CML Microsystems (CML) AI Stock Analysis

• Market Cap: £41.35M
• Dividend Yield: 3.67%
• Average Volume (3M): 28.39K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.23
• Revenue Growth: -21.33%
• EPS Growth: -11.35%
• Country: UK
• Employees: 162
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.12
• Shares Outstanding: 16,605,692
• 10 Day Avg. Volume: 52,042
• 30 Day Avg. Volume: 28,394
• PEG Ratio: 18.99
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -19.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 272.00p ▼(-4.56% Downside)

CML Microsystems' overall stock score is driven by strong technical indicators and positive corporate events, which are offset by financial performance challenges. The stock's valuation is relatively high, but the dividend yield provides some investor appeal.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio (0.046) and strong equity position provide durable financial flexibility. This reduces refinancing risk in downturns, supports continued R&D and capex investment, and allows the company to pursue strategic opportunities without heavy leverage pressure.

High gross margins

Sustained gross margin near 70% indicates product-level pricing power and efficient cost structure typical of specialized IC design. High gross margins create a buffer to absorb R&D and SG&A, supporting long-term margin sustainability even with revenue variability.

Niche product focus and recurring revenue

Specialization in mixed-signal and communications ICs, plus recurring income from long-term contracts and support, builds deep OEM relationships and product stickiness. This structural customer base supports steadier revenue streams and higher lifetime customer value over time.

Negative Factors

Declining revenue and negative margins

Falling revenue and persistent negative operating and net margins are structural concerns: they erode retained earnings and limit reinvestment. If sustained, profitability weakness can undermine competitive position and restrict ability to fund product roadmap and customer support.

Severe free cash flow deterioration

A sharp FCF decline reduces the company's ability to self-fund R&D, capital expenditures, and working capital. Persistent negative FCF increases reliance on external financing or equity issuance, which can dilute shareholders and constrain strategic flexibility over the medium term.

Earnings per share deterioration

A declining EPS rate signals deteriorating profitability on a per-share basis, reflecting margin pressure and weaker operational leverage. Continued EPS decline limits capacity to restore dividends or invest for growth and may reduce investor confidence in long-term performance.

CML Microsystems Business Overview & Revenue Model

Company Description

CML Microsystems plc, through its subsidiaries, designs, manufactures, and markets mixed-signal, radio frequency (RF), and microwave semiconductors for communications markets worldwide. It primarily offers high performance RF products and mixed-signal baseband/modem processors, as well as microwave/millimetre wave semiconductors for wireless voice and data communications. The company provides its products for professional and industrial voice and data communications products. It serves communications equipment providers and industrial product manufacturers. CML Microsystems Plc was incorporated in 1968 and is headquartered in Maldon, the United Kingdom.

How the Company Makes Money

CML Microsystems generates revenue through the sale of its semiconductor products to a wide range of customers in the telecommunications, industrial, and consumer electronics markets. The primary revenue stream comes from the sale of ICs and related products, which are often sold directly to original equipment manufacturers (OEMs) and via distribution partners. Additionally, CML may engage in licensing agreements or collaborative partnerships with other technology companies to develop specialized solutions, further enhancing its revenue potential. The company also benefits from recurring revenues through long-term contracts and ongoing support services, contributing to its financial stability.

CML Microsystems Financial Statement Overview

Summary

CML Microsystems faces profitability and cash flow challenges, with negative net profit margins and declining free cash flow. Despite these issues, the company maintains a strong equity position and low leverage, providing some financial stability.

Income Statement

CML Microsystems has experienced a decline in revenue growth, with a negative growth rate of -7.84% in the most recent year. The company also reported negative EBIT and net profit margins, indicating challenges in profitability. However, the gross profit margin remains relatively strong at 69.39%, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. However, the return on equity is slightly negative, reflecting recent profitability challenges. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow, with a growth rate of -171.28%. The operating cash flow to net income ratio is moderate at 0.57, indicating some ability to generate cash from operations despite net losses. However, the negative free cash flow to net income ratio highlights cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.55M	22.90M	22.89M	20.64M	16.96M	13.10M
Gross Profit	9.04M	15.89M	16.21M	12.89M	10.37M	7.65M
EBITDA	5.30M	3.75M	6.04M	8.12M	4.32M	1.96M
Net Income	1.13M	-18.00K	2.06M	4.81M	1.24M	1.82M
Balance Sheet
Total Assets	64.18M	63.19M	69.11M	60.47M	59.33M	65.24M
Cash, Cash Equivalents and Short-Term Investments	10.68M	9.92M	18.21M	22.26M	25.04M	32.20M
Total Debt	1.99M	2.26M	856.00K	1.05M	468.00K	727.00K
Total Liabilities	14.82M	14.18M	18.04M	9.71M	9.48M	11.80M
Stockholders Equity	49.35M	49.01M	51.08M	50.75M	49.85M	53.45M
Cash Flow
Free Cash Flow	1.48M	-1.75M	-53.00K	182.00K	-616.00K	223.00K
Operating Cash Flow	2.27M	3.09M	5.04M	5.67M	4.02M	7.88M
Investing Cash Flow	-147.00K	-3.39M	-10.85M	1.75M	1.81M	15.72M
Financing Cash Flow	-2.46M	-3.09M	-3.88M	-5.56M	-8.92M	-10.79M

CML Microsystems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CML, the sentiment is Negative. The current price of 285 is above the 20-day moving average (MA) of 258.35, above the 50-day MA of 284.72, and above the 200-day MA of 273.33, indicating a bearish trend. The MACD of -8.68 indicates Negative momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CML.

CML Microsystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	77 Outperform	£610.37M	23.55	8.49%	2.09%	0.49%	61.73%
FTC	75 Outperform	£402.50M	40.88	55.98%	―	121.45%	345.83%
CNC	69 Neutral	£226.61M	46.68	12.29%	0.95%	22.72%	-8.82%
GHH	67 Neutral	£206.38M	55.24	3.13%	2.19%	10.66%	21.19%
CML	66 Neutral	£41.35M	35.02	2.28%	3.67%	-21.33%	-11.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£209.04M	-3.03	-31.42%	―	-16.33%	-448.12%

CML Microsystems Corporate Events

CML Microsystems Reports Revenue Decline but Anticipates Growth

CML Microsystems reported a 27% decline in revenue for the first half of 2025 due to market destocking and supply chain issues, but the company remains optimistic about future growth. The company has completed significant operational improvements, including the relocation of MwT in Silicon Valley and ISO 9001 re-certification, and has strengthened its order intake, signaling a potential return to growth. CML is focusing on diversifying its revenue base and has secured a substantial contract with a leading GNSS equipment manufacturer, highlighting its capabilities in high-performance wireless communications. The company is also preparing to release a new integrated chip for Digital Radio Mondiale, aiming to capitalize on growing market adoption in India and China.

The most recent analyst rating on (GB:CML) stock is a Hold with a £280.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.

CML Microsystems Updates on Share Options and Voting Rights

CML Microsystems announced that an employee exercised 11,505 options over ordinary shares, impacting the company’s total voting rights, which now comprise 16,605,692 ordinary shares. This adjustment aligns with the Financial Conduct Authority’s Disclosure and Transparency rules, allowing shareholders to accurately determine their interest in the company.

The most recent analyst rating on (GB:CML) stock is a Hold with a £289.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.