Castro (CAST) AI Stock Analysis

• Market Cap: 1.20B
• Dividend Yield: 21.85%
• Average Volume (3M): 14.22K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.77
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 15,779.00 ▲(8.00% Upside)

The overall stock score of 66 reflects a mixed outlook for Castro. The company's strong financial performance and attractive valuation are significant positives, offering potential for income and growth. However, technical analysis indicates bearish momentum, suggesting caution in the short term. Investors should weigh the high dividend yield and reasonable P/E ratio against the current technical indicators.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Operational Efficiency

High gross profit margins reflect efficient operations and cost control, contributing to sustainable profitability and competitive positioning.

Negative Factors

Leverage Concerns

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

Profit Margin Pressure

Declining net profit margins suggest challenges in maintaining profitability, which could affect long-term earnings growth and shareholder returns.

Cash Conversion Challenges

Challenges in cash conversion efficiency could limit the company's ability to fund operations and investments, impacting future growth prospects.

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. The stable gross profit margin is a positive, but declining net profit and revenue growth indicate market challenges. High leverage and declining cash flow metrics raise concerns about financial risk and liquidity.

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	2.14B	2.08B	1.76B	1.67B	1.60B	1.20B
Gross Profit	1.22B	1.19B	987.53M	930.52M	950.26M	661.30M
EBITDA	457.45M	451.88M	340.20M	160.46M	294.90M	165.47M
Net Income	106.49M	135.40M	42.52M	-1.12M	108.02M	-10.47M
Balance Sheet
Total Assets	2.66B	2.30B	2.15B	2.06B	2.15B	2.05B
Cash, Cash Equivalents and Short-Term Investments	341.13M	170.49M	270.70M	233.88M	394.71M	349.40M
Total Debt	1.41B	1.24B	1.29B	1.25B	1.24B	1.28B
Total Liabilities	1.70B	1.63B	1.56B	1.50B	1.51B	1.51B
Stockholders Equity	725.26M	669.53M	595.48M	554.15M	638.09M	533.13M
Cash Flow
Free Cash Flow	117.53M	184.93M	187.02M	95.94M	37.42M	112.19M
Operating Cash Flow	226.39M	256.40M	246.32M	116.67M	82.32M	137.33M
Investing Cash Flow	-107.11M	-74.05M	-61.56M	51.02M	-83.45M	149.88M
Financing Cash Flow	64.28M	-282.55M	-147.95M	-149.22M	-111.45M	-48.75M

Castro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14610.00
• 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 IL:CAST, the sentiment is Negative. The current price of 14610 is below the 20-day moving average (MA) of 15013.50, below the 50-day MA of 17180.40, and above the 200-day MA of 14132.48, indicating a bearish trend. The MACD of -793.31 indicates Negative momentum. The RSI at 21.57 is Positive, neither overbought nor oversold. The STOCH value of 29.71 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
CAST	66 Neutral	1.20B	11.26	―	21.85%	9.88%	-2.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLMS	59 Neutral	690.48M	20.54	―	5.28%	7.70%	-34.56%
RTLS	56 Neutral	2.27B	39.39	―	4.95%	13.95%	-45.91%