Castro (CAST) AI Stock Analysis

• Market Cap: 1.70B
• Dividend Yield: 19.35%
• Average Volume (3M): 14.22K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.52
• Revenue Growth: 9.88%
• EPS Growth: -2.72%
• Country: IL
• Employees: 3,041
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Retail
• EPS (TTM): 289.00
• Shares Outstanding: 8,568,135
• 10 Day Avg. Volume: 12,800
• 30 Day Avg. Volume: 14,219
• PEG Ratio: 0.03
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.58
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 18,336.00 ▲(21.03% Upside)

The overall stock score of 61 reflects a company facing financial and technical challenges, with high leverage and declining cash flow. However, the stock's valuation is attractive due to a reasonable P/E ratio and high dividend yield, which may appeal to income-focused investors.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates efficient production and sales processes, which can support long-term profitability even amidst revenue challenges.

Multi-faceted Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and supporting sustainable growth.

Innovative Product Suite

Innovative products in media tech enhance user engagement and content delivery, positioning Castro well in a growing digital media industry.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Declining Cash Flow

A significant decline in cash flow generation can strain liquidity and hinder the company's ability to fund operations and strategic initiatives.

Declining Net Profit Margin

A declining net profit margin suggests challenges in cost control or pricing, which could pressure profitability and limit reinvestment capacity.

Castro Business Overview & Revenue Model

Company Description

Castro (CAST) is a forward-thinking technology company specializing in the development of innovative software solutions for the media and entertainment industry. The company focuses on creating cutting-edge applications that enhance content delivery, user engagement, and overall media consumption experiences. With a product suite that includes advanced streaming platforms, content management systems, and analytics tools, Castro aims to empower content creators and distributors to optimize their workflows and reach wider audiences effectively.

How the Company Makes Money

Castro generates revenue through a multi-faceted business model primarily based on subscription services, licensing agreements, and partnerships with media companies. The company charges a monthly or annual fee for its subscription-based software solutions, allowing users access to its suite of applications and ongoing updates. Additionally, Castro earns income from licensing its proprietary technology to third-party companies, which integrate these solutions into their own platforms. Significant partnerships with content providers and media distributors further enhance its revenue streams by enabling collaborative projects and shared marketing initiatives, ultimately driving user acquisition and retention.

Castro Financial Statement Overview

Summary

Castro's financial performance shows mixed results. While the gross profit margin is stable, declining revenue growth and profitability margins indicate market or operational challenges. High leverage on the balance sheet poses financial risks, and cash flow metrics highlight liquidity concerns with significant declines in free cash flow growth.

Income Statement

Castro's income statement reveals a mixed performance. The company has maintained a stable gross profit margin around 56-57%, indicating efficient production and sales processes. However, the net profit margin has declined to 4.7% in the TTM, down from 6.5% in 2024, reflecting challenges in controlling costs or pricing strategies. Revenue growth has been negative recently, indicating potential market challenges or competitive pressures. The EBIT and EBITDA margins have also seen a decline, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.43 in the TTM, which, although improved from previous years, still indicates significant leverage and potential financial risk. The return on equity has decreased to 13.4% from 20.2% in 2024, suggesting reduced profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity financing.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth, down by 64% in the TTM, which raises concerns about the company's ability to generate cash from operations. The operating cash flow to net income ratio is low at 0.28, indicating potential issues in converting income into cash. The free cash flow to net income ratio is also relatively low, suggesting challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	2.08B	1.76B	1.67B	1.60B	1.20B
Gross Profit	1.18B	1.19B	987.53M	930.52M	950.26M	661.30M
EBITDA	435.73M	451.88M	340.20M	160.46M	294.90M	165.47M
Net Income	98.38M	135.40M	42.52M	-1.12M	108.02M	-10.47M
Balance Sheet
Total Assets	2.70B	2.30B	2.15B	2.06B	2.15B	2.05B
Cash, Cash Equivalents and Short-Term Investments	499.95M	170.49M	270.70M	233.88M	394.71M	349.40M
Total Debt	1.29B	1.24B	1.29B	1.25B	1.24B	1.28B
Total Liabilities	1.57B	1.63B	1.56B	1.50B	1.51B	1.51B
Stockholders Equity	900.73M	669.53M	595.48M	554.15M	638.09M	533.13M
Cash Flow
Free Cash Flow	43.22M	184.93M	187.02M	95.94M	37.42M	112.19M
Operating Cash Flow	143.73M	256.40M	246.32M	116.67M	82.32M	137.33M
Investing Cash Flow	-100.44M	-74.05M	-61.56M	51.02M	-83.45M	149.88M
Financing Cash Flow	246.29M	-282.55M	-147.95M	-149.22M	-111.45M	-48.75M

Castro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15150.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CAST, the sentiment is Negative. The current price of 15150 is below the 20-day moving average (MA) of 17183.00, below the 50-day MA of 17653.40, and above the 200-day MA of 13890.33, indicating a neutral trend. The MACD of -748.04 indicates Positive momentum. The RSI at 27.30 is Positive, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:CAST.

Castro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMS	73 Outperform	766.73M	19.88	―	8.07%	7.70%	-34.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAST	61 Neutral	1.70B	17.15	―	19.35%	9.88%	-2.72%
RTLS	54 Neutral	2.48B	42.96	―	4.36%	13.95%	-45.91%