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Cairo Communication SPA (IT:CAI)
:CAI
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Cairo Communication SPA (CAI) AI Stock Analysis

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IT:CAI

Cairo Communication SPA

(LSE:CAI)

Rating:68Neutral
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 (CAI) vs. iShares MSCI Italy ETF (EWI)

Cairo Communication SPA Business Overview & Revenue Model

Company DescriptionCairo 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 MoneyCairo 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.10B1.10B1.06B1.07B969.60M
Gross Profit1.00B326.30M276.50M323.60M261.30M
EBITDA176.20M157.90M139.20M178.40M99.80M
Net Income45.20M38.40M32.10M51.00M16.50M
Balance Sheet
Total Assets1.81B1.77B1.82B1.82B1.76B
Cash, Cash Equivalents and Short-Term Investments83.30M58.10M54.30M113.10M87.40M
Total Debt212.10M209.40M232.90M260.80M337.20M
Total Liabilities882.90M878.50M948.30M972.80M985.40M
Stockholders Equity572.50M548.40M525.00M514.40M468.40M
Cash Flow
Free Cash Flow83.90M68.10M11.20M128.60M78.90M
Operating Cash Flow120.00M106.70M103.10M160.50M104.00M
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 Price2.74
Price Trends
50DMA
3.01
Negative
100DMA
2.95
Negative
200DMA
2.68
Positive
Market Momentum
MACD
-0.07
Negative
RSI
35.25
Neutral
STOCH
29.53
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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€522.56M8.4314.48%6.93%-1.06%8.71%
68
Neutral
€368.30M8.158.06%5.25%-1.33%17.71%
60
Neutral
€3.16B-11.0544.79%7.82%-4.42%21.19%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:CAI
Cairo Communication SPA
2.75
0.56
25.34%
IT:RCS
RCS MediaGroup S.p.A.
1.02
0.31
42.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2025