Cairo Communication SPA (CAI) AI Stock Analysis

• Market Cap: €368.30M
• Dividend Yield: 5.25%
• Average Volume (3M): 141.95K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.58
• 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: 145,331
• 30 Day Avg. Volume: 141,954
• PEG Ratio: 0.47
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.40
• 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: 20.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: €3.00 ▲(9.49%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 S.p.A. (CAI) is an Italian media and publishing company that operates in the fields of television, publishing, and advertising. The company is known for its diverse portfolio, which includes television networks, magazines, and books. It also offers advertising services, leveraging its media assets to provide comprehensive marketing solutions for its clients.

How the Company Makes Money

Cairo Communication S.p.A. generates revenue through multiple streams primarily linked to its media and publishing operations. The company's television sector is a significant revenue driver, earning money from advertising sales on its television networks. Additionally, its publishing segment contributes to revenue through the sale of magazines and books, as well as advertising within these publications. The company also offers advertising services across its media platforms, creating integrated marketing campaigns for clients. Partnerships with other media entities and content creators can further enhance its revenue potential by expanding its reach and audience engagement.

Cairo Communication SPA Financial Statement Overview

Summary

Cairo Communication SPA demonstrates a strong financial position with efficient operations and robust cash flow generation. While debt levels are manageable, further improvements in revenue growth and return on equity could enhance financial performance.

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: 2.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.74 is below the 20-day moving average (MA) of 2.81, below the 50-day MA of 3.01, and above the 200-day MA of 2.68, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 29.53 is Neutral, 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	69 Neutral	€522.56M	8.43	14.48%	6.93%	-1.06%	8.71%
CAI	68 Neutral	€368.30M	8.15	8.06%	5.25%	-1.33%	17.71%
Sector *	60 Neutral	€3.16B	-11.05	44.79%	7.82%	-4.42%	21.19%