Cairo Communication SPA (CAI) AI Stock Analysis

• Market Cap: €378.38M
• Dividend Yield: 5.25%
• Average Volume (3M): 158.70K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.56
• Revenue Growth: -1.33%
• EPS Growth: 17.71%
• Country: IT
• Employees: 3,661
• Sector: Communication Services
• Sector Strength: 87
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 134,416,600
• 10 Day Avg. Volume: 138,010
• 30 Day Avg. Volume: 158,703
• PEG Ratio: -0.17
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.88
• 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: €3.30
• Price Target Upside: 17.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: €3.00 ▲(6.76%Upside)

Cairo Communication SPA's overall stock score is anchored by strong financial performance and attractive valuation, offset by weak technical indicators. The robust cash flow and operational efficiency are significant strengths, while bearish technical signals suggest caution in the short term.

Cairo Communication SPA Business Overview & Revenue Model

Company Description

Cairo Communication SPA (CAI) is an Italian multimedia company primarily engaged in the publishing and broadcasting sectors. The company operates through various segments, including television broadcasting, magazine and book publishing, as well as advertising sales. Its core products and services encompass a range of television channels, magazines, and digital media content, positioned to cater to diverse audiences throughout Italy.

How the Company Makes Money

Cairo Communication SPA generates revenue through several key streams. The primary source is advertising sales, leveraged across its television networks, magazines, and digital platforms. By offering advertising space within its media outlets, the company capitalizes on its audience reach to attract businesses seeking to promote their products and services. Additionally, revenue is derived from the sale of published content, including magazines and books, both in print and digital formats. Strategic partnerships with other media companies and content creators also play a significant role in enhancing its content offerings and expanding its market presence, thereby contributing to its earnings.

Cairo Communication SPA Financial Statement Overview

Summary

Cairo Communication SPA demonstrates a strong financial position with efficient operations and robust cash flow generation. Key strengths include consistent gross profit margins and strong cash flow growth. However, modest revenue growth and room for improvement in return on equity slightly temper the financial outlook.

Income Statement

Cairo Communication SPA shows strong gross profit margins consistently above 90%, with a healthy net profit margin of around 4.1% for 2024. Revenue growth has been modest but stable, with a slight decrease in total revenue from 2023 to 2024. EBIT and EBITDA margins indicate good operational efficiency, with EBITDA margin improving to 16.1% in 2024.

Balance Sheet

The company maintains a solid equity base, with an equity ratio of 31.6% for 2024. The debt-to-equity ratio has improved slightly, suggesting a better leverage position. Return on equity is reasonable at 7.9%, indicating effective utilization of shareholder funds, but there is room for improvement.

Cash Flow

Cairo Communication SPA has shown strong free cash flow growth of 23.2% in 2024, indicating good cash generation ability. The operating cash flow to net income ratio is robust at 2.65, suggesting strong cash conversion. The free cash flow to net income ratio is also healthy at 1.86, reflecting strong cash profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.10B	1.06B	1.07B	969.60M
Gross Profit	1.00B	326.30M	276.50M	323.60M	261.30M
EBITDA	176.20M	157.90M	139.20M	178.40M	99.80M
Net Income	45.20M	38.40M	32.10M	51.00M	16.50M
Balance Sheet
Total Assets	1.81B	1.77B	1.82B	1.82B	1.76B
Cash, Cash Equivalents and Short-Term Investments	83.30M	58.10M	54.30M	113.10M	87.40M
Total Debt	212.10M	209.40M	232.90M	260.80M	337.20M
Total Liabilities	882.90M	878.50M	948.30M	972.80M	985.40M
Stockholders Equity	572.50M	548.40M	525.00M	514.40M	468.40M
Cash Flow
Free Cash Flow	83.90M	68.10M	11.20M	128.60M	78.90M
Operating Cash Flow	120.00M	106.70M	103.10M	160.50M	104.00M
Investing Cash Flow	-35.00M	-36.90M	-93.60M	-15.70M	-8.20M
Financing Cash Flow	-55.40M	-72.10M	-68.30M	-118.60M	-50.20M

Cairo Communication SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CAI, the sentiment is Negative. The current price of 2.81 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 3.06, and above the 200-day MA of 2.64, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 28.82 is Positive, neither overbought nor oversold. The STOCH value of 8.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:CAI.

Cairo Communication SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCS	70 Outperform	€508.07M	8.20	14.48%	6.21%	-1.06%	8.71%
CAI	68 Neutral	€378.38M	8.36	8.06%	5.25%	-1.33%	17.71%
Sector *	60 Neutral	€3.17B	-11.22	44.79%	6.69%	-4.42%	21.19%