Cembre SPA (CMB) AI Stock Analysis

• Market Cap: €1.03B
• Dividend Yield: 2.87%
• Average Volume (3M): 16.38K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.51
• Revenue Growth: 6.00%
• EPS Growth: 20.37%
• Country: IT
• 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: -18.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €70.00 ▲(5.42% Upside)

Cembre SPA's strong financial performance and operational efficiency are the primary drivers of its favorable stock score. While technical indicators suggest bullish momentum, overbought conditions could lead to short-term volatility. The valuation is slightly high, but the dividend yield offers some compensation. Overall, the stock is well-positioned for long-term growth, though investors should be cautious of potential short-term corrections.

Positive Factors

Financial Stability

Cembre SPA's low Debt-to-Equity Ratio and high Equity Ratio indicate financial resilience, reducing risk and supporting long-term growth.

Cash Generation

Strong cash generation relative to net income allows Cembre SPA to invest in growth opportunities and return value to shareholders sustainably.

Profit Margins

High profit margins reflect effective cost management and operational efficiency, enhancing Cembre SPA's competitive position and profitability.

Negative Factors

Revenue Growth

While revenue growth is steady, it may not be sufficient to significantly outpace industry peers or drive substantial market share gains in the near term.

Market Position

Operating in a competitive industry, Cembre SPA may face challenges in differentiating its products and maintaining market share against larger competitors.

Innovation Challenges

While quality is a focus, ongoing innovation is crucial to meet evolving customer needs and technological advancements in the electrical sector.

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 SPA generates revenue primarily through the sale of its diverse product offerings, which include electrical connectors, crimping tools, and marking systems. The company operates on a B2B model, supplying its products to electrical contractors, utility companies, and industrial manufacturers. Key revenue streams include direct sales to customers, distribution partnerships, and export activities. Cembre also benefits from long-term relationships with various industry players and a strong presence in both domestic and international markets, which enhances its sales volume. Additionally, the company's focus on innovation and quality allows it to maintain competitive pricing and customer loyalty, further contributing to its earnings.

Cembre SPA Financial Statement Overview

Summary

Cembre SPA exhibits a robust financial profile with consistent revenue growth, strong profitability, minimal leverage, and effective cash flow management. The company's financial stability and operational efficiency are well-aligned with industry standards, positioning it favorably for future growth and shareholder value creation.

Income Statement

Cembre SPA demonstrates a strong financial performance with consistent revenue growth and robust profit margins. The TTM data shows a Gross Profit Margin of approximately 60.8% and a Net Profit Margin of around 19.3%, indicating effective cost management and profitability. Revenue growth from the previous year is steady, reflecting positive operational momentum. The EBIT and EBITDA margins are also solid, enhancing the company's financial stability and competitiveness within the industry.

Balance Sheet

The balance sheet reveals a healthy financial position with a strong equity base. The Debt-to-Equity Ratio remains low at approximately 0.03, indicating minimal leverage and low financial risk. The Return on Equity is impressive at about 19.4%, showcasing efficient use of equity to generate profits. The Equity Ratio stands at 82.3%, highlighting a substantial portion of assets financed by equity, contributing to financial resilience.

Cash Flow

Cembre SPA's cash flow performance is commendable, with a significant Free Cash Flow growth rate. The Operating Cash Flow to Net Income Ratio of 1.23 signifies strong cash generation relative to net income. Additionally, the Free Cash Flow to Net Income Ratio of 0.58 indicates effective conversion of profits into cash, supporting future investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.76M	230.26M	222.64M	199.19M	167.36M	137.58M
Gross Profit	140.95M	128.91M	124.40M	105.31M	91.58M	79.19M
EBITDA	69.74M	66.73M	66.79M	54.53M	45.89M	36.16M
Net Income	44.77M	42.59M	40.83M	31.92M	25.32M	18.98M
Balance Sheet
Total Assets	280.68M	271.17M	249.20M	241.32M	237.82M	220.90M
Cash, Cash Equivalents and Short-Term Investments	15.01M	13.47M	24.88M	30.03M	46.64M	37.69M
Total Debt	7.93M	11.48M	6.66M	15.43M	25.99M	29.28M
Total Liabilities	49.76M	51.42M	43.48M	53.23M	61.66M	57.31M
Stockholders Equity	230.92M	219.74M	205.72M	188.09M	176.16M	163.59M
Cash Flow
Free Cash Flow	25.98M	16.61M	30.25M	14.81M	26.47M	21.34M
Operating Cash Flow	54.86M	46.13M	44.81M	27.10M	35.47M	29.31M
Investing Cash Flow	-28.76M	-29.46M	-14.35M	-12.23M	-8.94M	-8.86M
Financing Cash Flow	-24.30M	-25.28M	-24.57M	-46.45M	-18.89M	-2.59M

Cembre SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 66.4 is above the 20-day moving average (MA) of 63.36, above the 50-day MA of 60.26, and above the 200-day MA of 54.60, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 88.37 is Negative, 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
COM	71 Outperform	€1.12B	18.73	―	2.07%	-20.36%	-23.31%
CMB	70 Outperform	€1.03B	23.30	21.53%	2.87%	6.00%	20.37%
PRY	69 Neutral	€24.95B	22.03	21.00%	0.93%	21.75%	92.91%
FILA	66 Neutral	€479.97M	7.57	11.68%	8.16%	-11.91%	-61.21%
CRL	66 Neutral	€2.45B	39.86	15.31%	0.67%	3.99%	27.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DAL	53 Neutral	€238.73M	58.63	0.71%	2.71%	0.19%	-76.65%