Cairo Communication SPA (CAI) AI Stock Analysis

• Market Cap: €342.45M
• Dividend Yield: N/A
• Average Volume (3M): 212.15K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.54
• Revenue Growth: -1.56%
• EPS Growth: 7.19%
• Country: IT
• Employees: 3,661
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.16
• Shares Outstanding: 134,416,600
• 10 Day Avg. Volume: 282,825
• 30 Day Avg. Volume: 212,149
• PEG Ratio: 0.42
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 3.91
• 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: 17.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €3.00 ▲(6.38% Upside)

Cairo Communication SPA's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's efficient operations and robust cash flow generation support its financial health. Technical indicators suggest moderate bullish momentum, enhancing the stock's appeal. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Generation

Strong free cash flow growth indicates the company's ability to generate cash efficiently, supporting reinvestment and debt reduction.

Profit Margins

High gross profit margins demonstrate effective cost management and pricing power, contributing to long-term profitability.

Operational Efficiency

Improved EBITDA margin reflects enhanced operational efficiency, which can lead to better profitability and competitive advantage.

Negative Factors

Revenue Growth

Declining revenue growth could signal challenges in market expansion or product demand, impacting future earnings potential.

Return on Equity

Moderate return on equity suggests potential inefficiencies in using shareholder capital, which may limit shareholder value creation.

Revenue Dependency

Heavy reliance on advertising revenue exposes the company to economic cycles and shifts in advertising spend, affecting revenue stability.

Cairo Communication SPA Business Overview & Revenue Model

Company Description

Cairo Communication S.p.A. operates as a multimedia publishing company in Italy and Spain. It engages in the publishing of periodicals and books; television programs through the La7 and La7d channels, as well as pay and Web TV; multimedia concessionaire for the sale of advertising space on television, press, and stadium media; and weekly and monthly newspapers and periodicals. The company is also involved in the organization of sporting events; operation of network; and distribution of editorial and non-editorial products at newsstand channels and other authorized points. Cairo Communication S.p.A. was founded in 1995 and is headquartered in Milan, Italy.

How the Company Makes Money

Cairo Communication generates revenue through multiple streams, including advertising sales, subscription fees for its publications, and licensing agreements. The company earns a significant portion of its income from advertising, leveraging its media properties to attract advertisers seeking to reach targeted demographics. Additionally, Cairo Communication benefits from subscriptions to its magazines and newspapers, which provide a steady income from loyal readers. The company's television operations also contribute to its revenue through advertising and sponsorship deals. Strategic partnerships with other media organizations and advertisers further enhance its earnings potential, allowing Cairo Communication to expand its reach and influence in the competitive media landscape.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.10B	1.10B	1.06B	1.07B	969.60M
Gross Profit	876.60M	1.00B	326.30M	276.50M	323.60M	261.30M
EBITDA	193.90M	176.20M	157.90M	139.20M	178.40M	99.80M
Net Income	45.30M	45.20M	38.40M	32.10M	51.00M	16.50M
Balance Sheet
Total Assets	1.79B	1.81B	1.77B	1.82B	1.82B	1.76B
Cash, Cash Equivalents and Short-Term Investments	84.60M	83.30M	58.10M	54.30M	113.10M	87.40M
Total Debt	163.10M	212.10M	209.40M	232.90M	260.80M	337.20M
Total Liabilities	886.30M	882.90M	878.50M	948.30M	972.80M	985.40M
Stockholders Equity	550.70M	572.50M	548.40M	525.00M	514.40M	468.40M
Cash Flow
Free Cash Flow	111.40M	83.90M	68.10M	11.20M	128.60M	78.90M
Operating Cash Flow	154.70M	120.00M	106.70M	103.10M	160.50M	104.00M
Investing Cash Flow	-43.20M	-35.00M	-36.90M	-93.60M	-15.70M	-8.20M
Financing Cash Flow	-76.00M	-55.40M	-72.10M	-68.30M	-118.60M	-50.20M

Cairo Communication SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.82
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.82 is below the 20-day moving average (MA) of 2.84, above the 50-day MA of 2.78, and below the 200-day MA of 2.83, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CAI.

Cairo Communication SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAI	―	€342.45M	8.42	8.25%	―	-1.56%	7.19%
RCS	―	€536.01M	8.51	14.78%	6.76%	-1.41%	3.84%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%