Cembre SPA (CMB) AI Stock Analysis

• Market Cap: €1.04B
• Dividend Yield: 2.75%
• Average Volume (3M): 16.38K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.56
• Revenue Growth: 6.00%
• EPS Growth: 20.37%
• Country: IT
• Employees: 817
• Sector: General
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.83
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 16,070
• 30 Day Avg. Volume: 16,384
• PEG Ratio: 2.99
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 4.75
• P/FCF Ratio: 35.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.91
• Revenue Forecast (FY): €262.37M

• Rating: 69 Neutral
• Price Target: €68.00 ▼(-8.48% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

Overall score reflects strong underlying financial quality (high margins, strong ROE, low leverage) as the primary support, partially offset by weak technical positioning (trading below major moving averages with soft momentum). Valuation is mixed, with a supportive dividend yield but a P/E that looks demanding relative to the recent slowdown in revenue growth.

Positive Factors

High Margins & ROE

Cembre’s very high gross and net margins alongside ROE near 21% reflect durable pricing power, efficient manufacturing and a differentiated product mix. These structural profitability characteristics support sustained reinvestment, dividend capacity and resilience through slower top-line cycles.

Conservative Balance Sheet

A low debt-to-equity ratio and rising equity indicate a conservative capital structure that preserves financial flexibility. This allows the company to fund capex, support operations, maintain payouts and pursue selective M&A without materially stressing credit metrics during industry cyclicality.

Solid Cash Generation

Robust operating cash flow and materially positive free cash flow, which improved year-over-year, show the business produces real cash from operations. Reliable cash generation from products and consumables supports reinvestment, working-capital needs and shareholder returns over the medium term.

Negative Factors

Slowing Revenue Growth

Revenue growth has decelerated to low single digits versus stronger historical trends. Prolonged top-line weakness can limit operating leverage, reduce scope for margin expansion and constrain returns on new investments unless the company expands end-markets or accelerates product adoption.

Variable Cash Conversion

Operating cash flow below net income and free cash flow at roughly half of net income point to inconsistent cash conversion. Working-capital swings or elevated investment needs could reduce available cash for dividends, capex or acquisitions during adverse cycles.

Step-up in Total Debt

A recent increase in total debt, even from a low base, raises medium-term financing risk if revenue growth remains muted. Higher leverage could limit strategic flexibility, increase interest exposure and pressure capital allocation choices if margins or cash flows face headwinds.

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 makes money mainly by selling manufactured products used to connect, install, and identify electrical conductors and related components, with revenues generated from (1) electrical connection products (e.g., connectors, terminals, and accessories) sold to industrial and infrastructure customers; (2) installation tooling and equipment (e.g., crimping, cutting, and cable preparation tools, including associated consumables and spare parts); and (3) marking and identification systems (e.g., printers/labeling systems and compatible markers/consumables) used for cable/component identification. The company’s revenue model is predominantly B2B product sales through a mix of direct sales and distribution channels, with recurring or repeat demand supported by consumables (e.g., markers/labels) and replacement parts that complement equipment installed at customer sites. If specific details on material partnerships, customer concentration, or segment revenue splits are required, null.

Cembre SPA Financial Statement Overview

Summary

Strong profitability and returns (TTM gross margin ~66.6%, net margin ~19.0%, ROE ~20.8%) and low leverage (debt-to-equity ~0.12). Main offsets are slowing revenue growth (TTM ~2.8%), a TTM increase in total debt vs. 2024, and uneven cash conversion (OCF ~0.90x net income; FCF ~52% of net income).

Income Statement

Profitability is strong and improving: TTM (Trailing-Twelve-Months) gross margin is ~66.6% and net margin ~19.0%, with solid operating profitability (EBIT margin ~24.3%). Revenue has grown consistently over the last several years, although the latest TTM growth (~2.8%) is a clear slowdown versus prior years. Overall, the income statement shows high-quality margins and resilient earnings power, with the main watch item being decelerating top-line growth.

Balance Sheet

The balance sheet looks conservative with low leverage: TTM (Trailing-Twelve-Months) debt-to-equity is ~0.12 (still modest), and equity has steadily increased over time. Returns on equity are strong (TTM ~20.8%), indicating good capital efficiency. The key drawback is a noticeable step-up in total debt in TTM versus 2024, though leverage remains comfortably manageable given the equity base.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow (~€56.2m) and free cash flow (~€31.9m) both solid, and free cash flow up strongly versus the prior year. However, cash conversion is less consistent: TTM operating cash flow is slightly below net income (about 0.90x), and free cash flow is only ~52% of net income, pointing to working-capital or investment-related drag. Overall cash flow is healthy, but the variability in cash conversion tempers the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	244.25M	230.26M	222.64M	199.19M	167.36M
Gross Profit	59.76M	128.91M	124.40M	105.31M	91.58M
EBITDA	73.86M	66.73M	66.79M	54.53M	45.89M
Net Income	46.65M	42.59M	40.83M	31.92M	25.32M
Balance Sheet
Total Assets	300.53M	271.17M	249.20M	241.32M	237.82M
Cash, Cash Equivalents and Short-Term Investments	20.44M	13.47M	24.88M	30.03M	46.64M
Total Debt	20.95M	11.48M	6.66M	15.43M	25.99M
Total Liabilities	67.45M	51.42M	43.48M	53.23M	61.66M
Stockholders Equity	233.08M	219.74M	205.72M	188.09M	176.16M
Cash Flow
Free Cash Flow	33.06M	16.61M	30.25M	14.81M	26.47M
Operating Cash Flow	56.15M	46.13M	44.81M	27.10M	35.47M
Investing Cash Flow	-21.94M	-29.46M	-14.35M	-12.23M	-8.94M
Financing Cash Flow	-26.91M	-25.28M	-24.57M	-46.45M	-18.89M

Cembre SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 74.3 is above the 20-day moving average (MA) of 70.23, above the 50-day MA of 69.05, and above the 200-day MA of 62.79, indicating a neutral trend. The MACD of -1.68 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 17.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:CMB.

Cembre SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRY	77 Outperform	€27.15B	20.00	22.15%	0.93%	21.75%	92.91%
FILA	72 Outperform	€413.67M	10.16	11.68%	8.29%	-11.91%	-61.21%
COM	69 Neutral	€1.14B	6.91	―	1.80%	-20.36%	-23.31%
CMB	69 Neutral	€1.04B	24.86	21.53%	2.75%	6.00%	20.37%
CRL	63 Neutral	€2.26B	37.77	15.31%	0.67%	3.99%	27.12%
DAL	57 Neutral	€231.75M	30.49	0.70%	2.64%	0.19%	-76.65%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%