CML Microsystems (CML) AI Stock Analysis

• Market Cap: £39.02M
• Dividend Yield: 3.67%
• Average Volume (3M): 28.39K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.20
• 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: 254.00p ▼(-10.88% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

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 and strong equity position provide durable financial flexibility, reducing refinancing and interest-rate risk. This supports sustained R&D and product support during cycles, enables opportunistic investment or M&A, and improves resilience against customer demand swings.

High gross margins

A ~69% gross margin indicates product-level differentiation or efficient cost structure, giving structural cushion to absorb SG&A and R&D. High gross margins support long-term reinvestment in chip development and firmware, helping sustain competitiveness despite volume variability.

Recurring revenue from customer design‑ins

Design-ins create sticky, long-lived production revenue streams as OEMs continue sourcing components across a product's life. This recurring nature improves revenue visibility, supports production planning and long-term customer relationships, increasing lifetime value versus one-off sales.

Negative Factors

Declining revenue

A large recent revenue contraction materially weakens economies of scale and market presence. Persistent top-line decline pressures fixed-cost absorption, compresses gross-to-operating profit conversion, and can undermine OEM confidence and future design-ins unless growth stabilizes or reverses.

Weak free cash flow

A >170% fall in free cash flow signals structural cash-generation weakness that limits ability to fund capex, R&D, dividends, or absorb order volatility. Over the medium term this raises financing risk, may force equity issuance or curbs on strategic initiatives, and constrains operational flexibility.

Profitability shortfall

Negative operating and net margins show the company is not converting revenue into sustainable earnings. Persistent unprofitability undermines return on equity, limits reinvestment capacity and could necessitate cost restructuring or pricing pressure that impair long-term product development and customer support.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 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: Positive
• 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 243.25, above the 50-day MA of 262.58, and above the 200-day MA of 273.06, indicating a bearish trend. The MACD of -7.13 indicates Negative momentum. The RSI at 28.81 is Positive, neither overbought nor oversold. The STOCH value of 34.26 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	£630.55M	24.33	8.49%	2.09%	0.49%	61.73%
FTC	75 Outperform	£444.28M	44.40	55.98%	―	121.45%	345.83%
CNC	69 Neutral	£237.92M	49.01	12.29%	0.95%	22.72%	-8.82%
CML	66 Neutral	£39.02M	33.05	2.28%	3.67%	-21.33%	-11.35%
GHH	65 Neutral	£229.91M	61.54	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£213.67M	-3.05	-31.42%	―	-16.33%	-448.12%