CML Microsystems (CML) AI Stock Analysis

• Market Cap: £44.84M
• Dividend Yield: 3.67%
• Average Volume (3M): 28.39K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.19
• 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: 308.00p ▲(8.07% Upside)

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

Balance Sheet Strength

A very low debt-to-equity ratio and healthy equity position give CML resilience versus cyclical downturns. Low leverage preserves financial flexibility to fund R&D, absorb demand shocks, or pursue targeted M&A over the coming quarters without straining liquidity.

High Gross Margins

A near-70% gross margin implies strong product mix, pricing power, or efficient cost structure in core semiconductor products. This margin tailwind provides long-term capacity to fund SG&A and R&D, supporting sustainable operating leverage if revenues recover.

Diversified OEM & Recurring Revenue

Sales to telecom, industrial and consumer OEMs plus recurring contract and support income create a diversified, stickier revenue base. That reduces cyclical volatility, aids multi-year planning, and supports steady investment in product development and customer relationships.

Negative Factors

Declining Revenue Growth

Recent top-line contraction erodes scale and operating leverage. Continued revenue decline would reduce absolute gross profit dollars, constrain R&D and go-to-market spend, and make it harder to restore margins and competitiveness over the medium term.

Negative Profitability

Sustained negative EBIT and net margins mean core operations are not covering costs. Persistent unprofitability will deplete retained earnings, limit reinvestment in products and manufacturing, and may force structural cost reductions or strategic shifts to regain profitability.

Sharp Free Cash Flow Decline

A steep fall in free cash flow materially reduces internally available funding for capex, R&D and shareholder returns. Weak FCF raises reliance on external financing or equity issuance, constraining strategic flexibility and making multi-year recovery investments harder to fund.

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: Positive
• RSI: Positive
• STOCH: Positive

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 below the 20-day moving average (MA) of 293.15, below the 50-day MA of 292.90, and above the 200-day MA of 269.82, indicating a bearish trend. The MACD of -6.53 indicates Positive momentum. The RSI at 18.90 is Positive, neither overbought nor oversold. The STOCH value of 8.81 is Positive, 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	£580.57M	22.40	8.49%	2.09%	0.49%	61.73%
FTC	75 Outperform	£370.60M	26.87	55.98%	―	121.45%	345.83%
CNC	69 Neutral	£193.12M	39.78	12.29%	0.95%	22.72%	-8.82%
GHH	67 Neutral	£167.55M	45.13	3.13%	2.19%	10.66%	21.19%
CML	66 Neutral	£44.84M	37.97	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	£199.43M	-2.80	-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.

CML Microsystems Updates on Share Options and Voting Rights

CML Microsystems announced the exercise of 9,414 options over ordinary shares by an employee, which were satisfied by transferring existing shares held in treasury. Following this exercise, the total number of voting rights in the company is 16,594,187 ordinary shares. This update aligns with the Financial Conduct Authority’s Disclosure and Transparency rules, allowing shareholders to calculate their interests accordingly.

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.

CML Microsystems to Announce Interim Results for H1 2025

CML Microsystems announced it will release its interim results for the six-month period ending 30 September 2025 on 18 November 2025. The announcement reflects the company’s ongoing commitment to transparency and engagement with stakeholders, as it continues to capitalize on growth opportunities in the global communications market. The company’s strategic focus on high-growth sub-segments and its robust customer base position it well to navigate industry challenges and leverage the increasing demand for faster and more secure data transmission.

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.