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CML Microsystems (GB:CML)
:CML

CML Microsystems (CML) AI Stock Analysis

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CML Microsystems

(LSE:CML)

Rating:68Neutral
Price Target:
CML Microsystems' overall score reflects solid financial stability and insider confidence, with challenges in profitability and cash flow management. Technical indicators suggest potential downward pressure, but the attractive dividend yield may appeal to income-focused investors.

CML Microsystems (CML) vs. iShares MSCI United Kingdom ETF (EWC)

CML Microsystems Business Overview & Revenue Model

Company DescriptionCML Microsystems (CML) is a UK-based company that specializes in the design, development, and supply of mixed-signal, RF, and microwave semiconductors. These products are utilized across a range of sectors, including telecommunications, broadcast, and wireless data. With a focus on delivering high-quality and innovative semiconductor solutions, CML Microsystems serves both consumer and industrial markets worldwide.
How the Company Makes MoneyCML Microsystems generates revenue through the sale of its semiconductor products, which include integrated circuits for communications, audio, and data applications. The company sells these products to a diverse customer base, including original equipment manufacturers (OEMs) and distributors in the telecommunications, broadcast, and wireless sectors. Revenue is also driven by its strong research and development efforts, which enable CML to provide cutting-edge solutions that meet the evolving needs of its customers. Additionally, the company may engage in strategic partnerships and collaborations that enhance its market presence and broaden its product offerings, contributing to its earnings.

CML Microsystems Financial Statement Overview

Summary
CML Microsystems demonstrates financial stability with strong equity and low leverage. The company exhibits growth in revenue but faces profitability challenges. Cash flow management requires attention, with negative free cash flow posing potential risks. The company should focus on improving profitability and optimizing capital spending.
Income Statement
72
Positive
CML Microsystems shows a positive revenue growth trend, with a consistent increase in revenue over the past years. The gross profit margin remains strong, reflecting efficient cost management. However, recent declines in net income and EBIT margins indicate challenges in maintaining profitability at prior levels.
Balance Sheet
85
Very Positive
The balance sheet of CML Microsystems is robust, with a very low debt-to-equity ratio, indicating low leverage and financial stability. The company's equity ratio is high, underscoring solid financial backing by its stockholders' equity. However, the return on equity has shown some fluctuations, suggesting room for improvement in using equity efficiently.
Cash Flow
60
Neutral
CML Microsystems faces challenges with cash flow as evidenced by the volatile free cash flow, which has turned negative recently. The operating cash flow to net income ratio is healthy, but the decrease in free cash flow indicates potential issues in managing capital expenditures.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue24.85M22.89M20.64M16.96M13.10M14.96M
Gross Profit14.88M16.21M12.89M10.37M7.65M8.48M
EBITDA3.85M6.04M8.12M4.32M1.96M4.55M
Net Income1.29M2.06M4.81M1.24M1.82M1.54M
Balance Sheet
Total Assets67.97M69.11M60.47M59.33M65.24M57.24M
Cash, Cash Equivalents and Short-Term Investments14.98M18.21M22.26M25.04M32.20M8.48M
Total Debt2.39M856.00K1.05M468.00K727.00K1.07M
Total Liabilities18.46M18.04M9.71M9.48M11.80M14.85M
Stockholders Equity49.50M51.08M50.75M49.85M53.45M42.39M
Cash Flow
Free Cash Flow2.46M-53.00K182.00K-616.00K223.00K-1.18M
Operating Cash Flow3.65M5.04M5.67M4.02M7.88M7.07M
Investing Cash Flow-5.52M-10.85M1.75M1.81M15.72M-9.87M
Financing Cash Flow-2.94M-3.88M-5.56M-8.92M-10.79M-2.01M

CML Microsystems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price252.00
Price Trends
50DMA
251.54
Positive
100DMA
242.42
Positive
200DMA
251.36
Positive
Market Momentum
MACD
-0.15
Negative
RSI
57.82
Neutral
STOCH
70.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CML, the sentiment is Positive. The current price of 252 is above the 20-day moving average (MA) of 243.10, above the 50-day MA of 251.54, and above the 200-day MA of 251.36, indicating a bullish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CML.

CML Microsystems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£713.32M32.7018.73%0.67%13.49%47.00%
GBSPT
74
Outperform
£1.11B111.633.25%-5.70%-50.00%
GBCML
68
Neutral
£40.12M29.30-0.04%7.94%17.36%-71.37%
63
Neutral
£566.00M24.41-6.00%2.49%3.52%-29.29%
GBTTG
54
Neutral
£199.47M-22.95%2.98%-15.12%-690.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CML
CML Microsystems
252.00
-43.33
-14.67%
GB:TTG
TT Electronics
112.80
-31.37
-21.76%
GB:SPT
Spirent Communications
192.00
15.04
8.50%
GB:CHRT
Cohort plc
1,552.00
790.32
103.76%

CML Microsystems Corporate Events

Business Operations and Strategy
CML Microsystems Share Purchase by Chairman’s Family Member Signals Confidence
Positive
Mar 31, 2025

CML Microsystems announced that Hervor Clark, wife of Non-Executive Chairman Nigel Clark, purchased 9,250 ordinary shares of the company at 215p per share, increasing Mr. Clark’s beneficial interest to 41,160 shares, or approximately 0.26% of total voting rights. This transaction reflects continued confidence in the company’s operations and market positioning, as CML remains cash-generative, debt-free, and dividend-paying, with growth driven by increasing demand for advanced communication technologies.

Business Operations and StrategyFinancial Disclosures
CML Microsystems Navigates Market Challenges with Strategic Expansion
Neutral
Mar 27, 2025

CML Microsystems reported a challenging trading environment for the year ending March 2025, with industrial market softness affecting its core products. Despite this, the company expanded its product portfolio and saw positive signs in its opportunity pipeline. The US team relocated to a new facility, and revenue is expected to remain flat, with EBITDA exceeding £5m. The company is focusing on innovation and product diversification to drive future growth, despite a subdued short-term outlook.

Regulatory Filings and Compliance
CML Microsystems Announces Exercise of Share Options and Updates Voting Rights
Neutral
Mar 4, 2025

CML Microsystems announced that Michelle Jones, the Group Director of Finance and Company Secretary, exercised 4,000 options over ordinary shares, representing approximately 0.03% of the company’s issued share capital. This transaction impacts the total voting rights, which now stand at 15,914,859 ordinary shares. The announcement is significant for stakeholders as it reflects the company’s adherence to regulatory transparency and provides insight into the shareholding structure, which may influence shareholder decisions.

Business Operations and Strategy
CML Microsystems Director Increases Stake with Significant Share Purchase
Positive
Mar 3, 2025

CML Microsystems announced that Dr. Nathan Zommer, a Non-Executive Director, purchased 100,000 ordinary shares at 220p each, increasing his stake to approximately 4.35% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange’s AIM Market, signifies confidence in the company’s strategic direction and stability, potentially influencing investor sentiment positively.

Stock BuybackRegulatory Filings and Compliance
CML Microsystems Announces Share Buyback and Updates Voting Rights
Neutral
Feb 28, 2025

CML Microsystems Plc announced the purchase of 155,000 ordinary shares at £2.15 each, which will be held in treasury, as authorized by shareholders at the 2024 Annual General Meeting. Following this transaction, the company’s issued share capital consists of 16,504,754 ordinary shares, with 593,895 held in treasury, resulting in 15,910,859 voting rights. This transaction aligns with the Financial Conduct Authority’s Disclosure and Transparency rules, impacting shareholders’ calculations regarding their interest in the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025