Cembre SPA (CMB) AI Stock Analysis

• Market Cap: €1.14B
• Dividend Yield: 2.75%
• Average Volume (3M): 16.38K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.49
• Revenue Growth: 6.00%
• EPS Growth: 20.37%
• Country: US
• Employees: 817
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.57
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 16,070
• 30 Day Avg. Volume: 16,384
• PEG Ratio: 3.99
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 42.14
• 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: €54.00
• Price Target Upside: -21.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €77.00 ▲(11.27% Upside)

Cembre SPA's overall stock score is driven by its strong financial performance and positive technical indicators. The company's robust profitability, low leverage, and bullish technical trend are significant strengths. The valuation is slightly high, but the dividend yield offers some appeal.

Positive Factors

Strong Financial Health

The company's solid balance sheet with low leverage and impressive ROE indicates effective management and financial stability, supporting long-term growth.

Cash Generation

Improved cash generation capabilities enhance financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Profitability Margins

High profitability margins reflect efficient cost management and strong competitive positioning, which are crucial for sustaining long-term profitability.

Negative Factors

Slowing Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, potentially impacting future earnings and market share.

Free Cash Flow Conversion

Inefficient conversion of profits into free cash flow could limit the company's ability to fund new projects or return capital to shareholders.

Valuation Concerns

A high valuation may limit upside potential and increase risk if growth expectations are not met, affecting investor sentiment and stock performance.

Cembre SPA Business Overview & Revenue Model

Company Description

Cembre S.p.A. manufactures and sells electrical connectors, cable accessories, and related tools in Italy, the rest of Europe, and internationally. The company offers pre-insulated, un-insulated, and other types of electrical connectors, as well as flexible braids for earthing moving elements; mechanical tools for crimping electrical connectors and cutting and preparing cables; hydraulic tools for crimping electrical connectors and cutting and preparing conductors; products for railway electrical connections; machinery for track maintenance; and hand tools. It also provides cable glands and fixing components, brass and steel cable glands and fixing components, extensions, reducer bushes and converters, rutaseal grommets, and sicurclips modular retaining clips; and identification and labeling systems, such as thermal transfer systems, manual cable marking systems, document wallets, and warning labels. In addition, the company offers heat-shrinkable tubing products, insulated covers, cable ties, tape rules, mechanical tools, bypass and joining muffles, overhead transmission and distribution, substation, and underground and meter dept. Its products are used in power production and transport, electrical systems, and industrial and railway applications. The company was founded in 1969 and is headquartered in Brescia, Italy. Cembre S.p.A. is a subsidiary of Lysne S.p.A.

How the Company Makes Money

Cembre generates revenue through the sale of its extensive product portfolio, which includes various types of connectors, tools, and accessories used in electrical installations and maintenance. Key revenue streams come from direct sales to contractors, utility companies, and industrial clients, as well as through distribution partnerships. The company also benefits from recurring revenue through the provision of technical support and training services. Additionally, Cembre's strong presence in international markets, supported by strategic partnerships and a focus on innovation, helps to enhance its earnings potential.

Cembre SPA Financial Statement Overview

Summary

Cembre SPA exhibits strong financial health with robust profitability and growth. The company maintains a solid balance sheet with low leverage and impressive ROE. Cash flow generation is strong, though there is room for improvement in free cash flow conversion.

Income Statement

Cembre SPA demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The TTM data shows a gross profit margin of 60.82% and a net profit margin of 19.32%, indicating efficient cost management and strong bottom-line performance. The EBIT and EBITDA margins are also healthy at 24.23% and 30.09%, respectively. The revenue growth rate of 2.16% in the TTM period suggests steady expansion, although it has slowed compared to previous years.

Balance Sheet

The balance sheet of Cembre SPA reflects a solid financial position with a low debt-to-equity ratio of 0.034, indicating minimal leverage and financial risk. The return on equity (ROE) is impressive at 20.99%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at a healthy level, underscoring the company's strong capital structure and stability.

Cash Flow

Cembre SPA's cash flow performance is commendable, with a significant free cash flow growth rate of 58.17% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 1.45 indicates efficient conversion of earnings into cash. However, the free cash flow to net income ratio of 0.47 suggests room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	240.01M	230.26M	222.64M	199.19M	167.36M	137.58M
Gross Profit	159.81M	128.91M	124.40M	105.31M	91.58M	79.19M
EBITDA	72.36M	66.73M	66.79M	54.53M	45.89M	36.16M
Net Income	45.61M	42.59M	40.83M	31.92M	25.32M	18.98M
Balance Sheet
Total Assets	290.97M	271.17M	249.20M	241.32M	237.82M	220.90M
Cash, Cash Equivalents and Short-Term Investments	18.93M	13.47M	24.88M	30.03M	46.64M	37.69M
Total Debt	25.74M	11.48M	6.66M	15.43M	25.99M	29.28M
Total Liabilities	72.67M	51.42M	43.48M	53.23M	61.66M	57.31M
Stockholders Equity	218.31M	219.74M	205.72M	188.09M	176.16M	163.59M
Cash Flow
Free Cash Flow	28.50M	16.61M	30.25M	14.81M	26.47M	21.34M
Operating Cash Flow	54.91M	46.13M	44.81M	27.10M	35.47M	29.31M
Investing Cash Flow	-24.09M	-29.46M	-14.35M	-12.23M	-8.94M	-8.86M
Financing Cash Flow	-27.53M	-25.28M	-24.57M	-46.45M	-18.89M	-2.59M

Cembre SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CMB, the sentiment is Positive. The current price of 69.2 is above the 20-day moving average (MA) of 67.50, above the 50-day MA of 67.23, and above the 200-day MA of 59.41, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CMB.

Cembre SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMB	76 Outperform	€1.14B	25.11	21.53%	2.75%	6.00%	20.37%
FILA	72 Outperform	€472.83M	7.02	11.68%	8.29%	-11.91%	-61.21%
CRL	71 Outperform	€2.43B	36.83	15.31%	0.67%	3.99%	27.12%
COM	69 Neutral	€1.45B	24.30	―	1.80%	-20.36%	-23.31%
PRY	65 Neutral	€28.05B	24.76	21.00%	0.93%	21.75%	92.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DAL	57 Neutral	€229.34M	80.81	0.71%	2.64%	0.19%	-76.65%