CML Microsystems (CML) AI Stock Analysis

• Market Cap: £48.95M
• Dividend Yield: 1.98%
• Average Volume (3M): 28.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• 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: 16,594,187
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 313.00p ▲(2.62% Upside)

CML Microsystems shows financial stability due to a strong equity position and low leverage, but faces significant profitability and cash flow challenges. The technical analysis indicates mixed signals with positive short-term momentum but potential bearish trends. The stock's high P/E ratio suggests it may be overvalued, though the dividend yield is attractive for income investors.

Positive Factors

Strong Equity Position

CML's low leverage and strong equity position provide financial stability, allowing for potential investment in growth opportunities without excessive risk.

High Gross Profit Margin

A high gross profit margin indicates operational efficiency and the ability to maintain pricing power, supporting long-term profitability despite current challenges.

Strategic Partnerships

Strategic partnerships and licensing agreements provide stable revenue streams and enhance market presence, contributing to sustainable growth.

Negative Factors

Profitability Challenges

Negative profitability impacts cash generation and limits reinvestment capabilities, posing a risk to long-term financial health and growth potential.

Declining Free Cash Flow

Declining free cash flow reduces financial flexibility and may hinder the company's ability to fund operations or invest in growth initiatives.

Negative Revenue Growth

Negative revenue growth reflects potential market share loss or demand issues, challenging the company's ability to sustain long-term expansion.

CML Microsystems Business Overview & Revenue Model

Company Description

CML Microsystems (CML) is a leading designer and manufacturer of mixed-signal semiconductor products, primarily focused on the communications and industrial sectors. The company specializes in developing integrated circuits and systems that facilitate data communication, audio transmission, and control applications. CML's core products include radio frequency (RF) devices, digital signal processors, and various communication ICs, which are utilized in diverse applications such as wireless communication, broadcasting, and industrial automation.

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. However, the company maintains a strong equity position and low leverage, providing some financial stability. Improvement in revenue growth and operational efficiency is needed.

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	22.90M	22.90M	22.89M	20.64M	16.96M	13.10M
Gross Profit	11.52M	15.89M	16.21M	12.89M	10.37M	7.65M
EBITDA	3.71M	3.75M	6.04M	8.12M	4.32M	1.96M
Net Income	-18.00K	-18.00K	2.06M	4.81M	1.24M	1.82M
Balance Sheet
Total Assets	63.19M	63.19M	69.11M	60.47M	59.33M	65.24M
Cash, Cash Equivalents and Short-Term Investments	9.92M	9.92M	18.21M	22.26M	25.04M	32.20M
Total Debt	2.26M	2.26M	856.00K	1.05M	468.00K	727.00K
Total Liabilities	14.18M	14.18M	18.04M	9.71M	9.48M	11.80M
Stockholders Equity	49.01M	49.01M	51.08M	50.75M	49.85M	53.45M
Cash Flow
Free Cash Flow	2.90M	-1.75M	-53.00K	182.00K	-616.00K	223.00K
Operating Cash Flow	3.50M	3.09M	5.04M	5.67M	4.02M	7.88M
Investing Cash Flow	-3.81M	-3.39M	-10.85M	1.75M	1.81M	15.72M
Financing Cash Flow	-3.07M	-3.09M	-3.88M	-5.56M	-8.92M	-10.79M

CML Microsystems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 305 is above the 20-day moving average (MA) of 283.19, above the 50-day MA of 284.83, and above the 200-day MA of 259.73, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CML.

CML Microsystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OXIG	73 Outperform	$1.04B	40.82	4.64%	1.14%	-5.39%	-73.52%
MWE	71 Outperform	£41.37M	11.57	17.41%	3.87%	1.08%	10.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CML	57 Neutral	£48.95M	-2,681.82	2.28%	1.98%	-21.33%	-11.35%
CLX	55 Neutral	£49.28M	147.37	2.36%	1.92%	20.83%	―
NANO	44 Neutral	£17.74M	-6.51	―	―	-3.25%	-172.09%
IQE	42 Neutral	£54.35M	-1.08	-37.55%	―	-24.75%	-110.79%

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.

CML Microsystems Issues Shares to Non-Executive Director

CML Microsystems announced that Nathan Zommer, a Non-Executive Director, has been issued 559,134 ordinary shares at 262 pence per share, increasing his total holding to approximately 7.54% of the company’s voting rights. This transaction, conducted on the London Stock Exchange’s AIM Market, reflects strategic share distribution within the company, potentially impacting its governance and stakeholder dynamics.

The most recent analyst rating on (GB:CML) stock is a Hold with a £263.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.

CML Microsystems Issues Shares to Non-Executive Director, Reflecting Confidence in Growth

CML Microsystems has announced the issuance of new ordinary shares to Non-Executive Director Nathan Zommer, in lieu of a deferred cash payment related to the acquisition of Microwave Technology, Inc. This move, agreed upon by the board, reflects Zommer’s confidence in CML’s growth potential and aligns his interests with those of the shareholders. The issuance of 559,134 shares at 262p each underscores the company’s strategic ambitions and strengthens its market positioning. The new shares are set to be admitted to trading on AIM, increasing the total voting rights to 16,584,773 ordinary shares.

The most recent analyst rating on (GB:CML) stock is a Hold with a £263.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.

CML Microsystems Completes Share Transfer for MwT Acquisition

CML Microsystems Plc announced the transfer of 90,780 ordinary shares from treasury as part of the acquisition of Microwave Technology, Inc. This move is part of issuing Consideration Shares to the vendors of MwT, following the acquisition announcement made on 2 October 2023. The company’s total issued share capital now comprises 16,504,754 ordinary shares, with 479,115 held in treasury, resulting in 16,025,639 shares carrying voting rights. This update aligns with the Financial Conduct Authority’s Disclosure and Transparency rules, providing shareholders with the necessary information for interest calculations.

The most recent analyst rating on (GB:CML) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.