Cembre SPA (CMB) AI Stock Analysis

• Market Cap: €909.09M
• Dividend Yield: 3.42%
• Average Volume (3M): 9.79K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.61
• Revenue Growth: 3.42%
• EPS Growth: 12.72%
• Country: IT
• Employees: 817
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.71
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 6,135
• 30 Day Avg. Volume: 9,791
• PEG Ratio: 0.61
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.70
• 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: €49.00
• Price Target Upside: -10.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ―

Cembre SPA's strong financial performance is the primary driver of the high overall stock score, supported by robust financial stability and profitability. Technical indicators suggest a positive market sentiment, enhancing the score. Valuation metrics indicate a fair price with a good dividend yield, supporting long-term investor returns.

Cembre SPA Business Overview & Revenue Model

Company Description

Cembre S.p.A. is a leading manufacturer in the electrical connectors and tools sector, particularly focusing on the production of electrical compression connectors and related installation tools. Headquartered in Italy, the company caters to a broad range of industries including the railways, energy, and transportation sectors. Cembre is renowned for its high-quality products and innovative solutions, which are distributed globally through an extensive network of subsidiaries and distributors.

How the Company Makes Money

Cembre S.p.A. generates revenue primarily through the sale of its electrical connectors, cable accessories, and installation tools. The company's key revenue streams include direct sales to industrial customers, distributors, and through its own subsidiaries located in strategic international markets. Cembre's innovative approach and commitment to high-quality manufacturing allow it to maintain strong relationships with major players in the railway and energy industries. Additionally, the company's investment in research and development helps in creating advanced products that meet evolving customer demands, further enhancing its revenue potential. Significant factors contributing to Cembre's earnings include its ability to adapt to market needs, strategic geographic presence, and a strong emphasis on customer service and satisfaction.

Cembre SPA Financial Statement Overview

Summary

Cembre SPA demonstrates strong financial performance with consistent revenue growth and profitability. The company's income statement shows effective cost management with robust profit margins. The balance sheet reflects financial stability with low leverage and a healthy equity ratio. Cash flow generation is strong, supporting operations and growth.

Income Statement

Cembre SPA shows strong performance in its income statement with consistent revenue growth, reflected in a 3.43% increase from 2023 to 2024. The company maintains robust profitability indicators, with a gross profit margin of 55.97% and a net profit margin of 18.49% in 2024. EBIT and EBITDA margins remain strong at 22.93% and 28.97%, respectively. These metrics highlight effective cost management and strong operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.05, indicating low leverage. The equity ratio is healthy at 81.04%, showing strong equity financing. However, the return on equity at 19.38% is robust, indicating efficient use of equity capital to generate profits. The steady increase in stockholders' equity over the years further underscores the company's financial stability.

Cash Flow

The cash flow statement shows a strong operating cash flow to net income ratio of 1.08, indicating good cash generation from operations. Although free cash flow decreased from 2023 to 2024, the company maintains a positive free cash flow to net income ratio of 0.39, reflecting efficient cash management. The high free cash flow generation ensures liquidity and supports future investments and debt servicing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
230.26M	222.64M	199.19M	167.36M	137.58M
	Gross Profit
128.91M	124.40M	105.31M	91.58M	79.19M
	EBIT
52.80M	53.96M	42.57M	34.19M	25.20M
	EBITDA
66.73M	66.41M	54.53M	45.89M	36.16M
	Net Income Common Stockholders
42.59M	40.83M	31.92M	25.32M	18.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.47M	24.88M	30.03M	46.64M	37.69M
	Total Assets
271.17M	249.20M	241.32M	237.82M	220.90M
	Total Debt
11.48M	6.66M	15.43M	25.99M	29.28M
	Net Debt
-1.99M	-14.22M	404.00K	-20.65M	-8.41M
	Total Liabilities
51.42M	43.48M	53.23M	61.66M	57.31M
	Stockholders Equity
219.74M	205.72M	188.09M	176.16M	163.59M
Cash Flow		Free Cash Flow
16.61M	30.25M	14.81M	26.47M	21.34M
	Operating Cash Flow
46.13M	44.81M	27.10M	35.47M	29.31M
	Investing Cash Flow
-29.46M	-14.35M	-12.23M	-8.94M	-8.86M
	Financing Cash Flow
-25.28M	-24.57M	-46.45M	-18.89M	-2.59M

Cembre SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 54.9 is below the 20-day moving average (MA) of 55.06, above the 50-day MA of 49.58, and above the 200-day MA of 41.53, indicating a neutral trend. The MACD of 1.40 indicates Positive momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, 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	€909.09M	20.39	20.04%	3.42%	3.42%	12.72%
COM	74 Outperform	€903.36M	13.43		2.53%	-23.00%	-28.46%
PRY	71 Outperform	€16.42B	22.82	15.32%	1.43%	20.34%	25.32%
CRL	71 Outperform	€2.52B	44.62	13.25%	0.85%	-8.83%	-22.83%
FILA	70 Neutral	€504.97M	6.48	12.77%	8.08%	-15.75%	-57.23%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
DAL	58 Neutral	€244.90M	117.96	0.50%	2.63%	-0.62%	-83.77%