Ctac NV (CTAC) AI Stock Analysis

• Market Cap: €42.87M
• Dividend Yield: 3.49%
• Average Volume (3M): 12.25K
• Price to Earnings (P/E): 11.9
• Beta (1Y): -0.07
• Revenue Growth: 0.81%
• EPS Growth: 351.71%
• Country: NL
• Employees: 340
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.15
• Shares Outstanding: 14,149,023
• 10 Day Avg. Volume: 7,543
• 30 Day Avg. Volume: 12,251
• PEG Ratio: -1.12
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -205.19
• 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: 7.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.33
• Revenue Forecast (FY): €132.45M

• Rating: 55 Neutral
• Price Target: €3.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is held back primarily by weakening financial performance—especially the sharp deterioration in operating/free cash flow and the significant margin compression in 2025—despite solid revenue growth and a manageable balance sheet. Technicals are neutral-to-slightly weak, while valuation (moderate P/E and ~3.6% yield) provides meaningful support.

Positive Factors

Strong revenue growth

Sustained ~39% top-line growth in 2025 indicates robust demand for Ctac's services across its end markets. Persistent revenue expansion supports scale, backlog visibility and cross‑sell opportunities, underpinning longer‑term service margins and investment capacity despite near‑term margin pressure.

Manageable leverage and growing equity

Moderate leverage and a rising equity base provide financial flexibility to fund working capital and invest in projects without excessive refinancing risk. This balance sheet resilience supports execution of multi‑year transformation contracts and cushions against cyclical volatility in IT spending.

Specialized SAP and digital transformation focus

Ctac's specialization in SAP and digital transformation targets structural secular demand as enterprises modernize systems. Deep vendor partnerships and vertical focus (healthcare, retail, public) create repeatable service streams, enabling long‑term client relationships and recurring managed‑service revenue.

Negative Factors

Sharp gross margin compression

A drop from ~24% to ~10% gross margin signals material adverse shifts in pricing, project mix, or cost absorption. Such a structural margin decline reduces operating leverage, limits reinvestment, and heightens sensitivity to revenue swings, making margin recovery a multi‑quarter strategic priority.

Deteriorating cash generation

Sharp OCF decline and slightly negative free cash flow weaken earnings quality and the firm's ability to self‑fund growth or dividends. Persistent cash conversion issues can force external financing, constrain project funding, and reflect working‑capital or receivables management problems that may persist for months.

Eroding profitability and returns

Falling ROE and net margin point to weaker capital efficiency and profit conversion. Combined with margin volatility in recent years, this suggests execution or competitive pressures that could dampen long‑term shareholder returns and require structural fixes to restore consistent profitability.

Ctac NV Business Overview & Revenue Model

Company Description

Ctac N.V. provides business and cloud integration services primarily in the Netherlands and Belgium. The company offers cloud, programme and change management, agile consultancy, application management, license management, service desk and coordination management, implementation, and consultancy and advice services. It also provides various solutions for cloud infrastructure, SAP S/4HANA, workplace, cyber security, unified commerce, integration, data management, data and analytics, customer experience, and innovation. In addition, the company offers SAP data warehouse, security assessment, fiori, s/4 move and hana, ECC, business warehouse, analytics, and EVM; data sync manager, ometa, binder dam, winshuttle, winshuttle evolve, inriver pim, ETIM extension for inriver pim, mendix, and XV Retail; Fit4 Real Estate, omni customer loyalty, private cloud, pricing and promotion engine, and floating basket; and Microsoft azure public cloud, teams, route365 cooker session, sharepoint, and 365. It primarily serves retail, wholesale, manufacturing, real estate, and cross industries. The company was founded in 1992 and is headquartered in 's-Hertogenbosch, the Netherlands.

How the Company Makes Money

Ctac generates revenue primarily through consulting services, project-based implementations, and managed services. Its key revenue streams include fees charged for IT consulting, software implementation projects, and ongoing support and maintenance services. Additionally, Ctac benefits from partnerships with major technology providers, such as SAP, which allows it to deliver specialized solutions and leverage co-marketing opportunities. The company's focus on digital transformation projects in sectors like healthcare and retail also contributes significantly to its earnings, as organizations increasingly invest in technology solutions to enhance their operations.

Ctac NV Financial Statement Overview

Summary

Despite strong 2025 revenue growth (~+39% YoY) and manageable leverage (debt-to-equity ~0.41), financial quality weakened materially: gross margin compressed sharply (~10% vs ~24% in 2024) and operating/free cash flow deteriorated (operating cash flow ~€0.6M vs ~€10.3M; free cash flow ~-€0.2M). The cash conversion breakdown is a major risk signal.

Income Statement

Revenue has expanded strongly in 2025 (up ~39% year over year), but profitability weakened materially: gross margin fell to ~10% from ~24% in 2024, and net margin slipped to ~2.9% from ~3.1%. While EBIT and EBITDA margins remain positive (~3.9% and ~8.2% respectively), the multi-year margin profile shows volatility (notably lower profitability in 2023 and again in 2025), suggesting execution and/or mix pressures despite solid top-line momentum.

Balance Sheet

Leverage looks manageable, with debt-to-equity around ~0.41 in 2025 (moderate and generally improved versus earlier years such as 2020). Equity has grown over time (about €22.5M in 2020 to ~€32.9M in 2025), supporting balance sheet resilience. However, returns on equity eased to ~10.9% in 2025 from ~12.7% in 2024 (and higher levels earlier), indicating profitability is not translating as efficiently into shareholder returns as in prior years.

Cash Flow

Cash generation deteriorated sharply in 2025: operating cash flow dropped to ~€0.6M from ~€10.3M in 2024, and free cash flow turned slightly negative (~-€0.2M) versus strongly positive in prior years. Cash flow no longer supports earnings well in 2025 (free cash flow is negative despite positive net income), marking a clear quality-of-earnings red flag and raising questions about working capital and cash conversion stability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.71M	124.33M	127.23M	117.67M	106.42M
Gross Profit	12.95M	30.30M	17.44M	31.70M	29.48M
EBITDA	10.34M	10.73M	9.29M	12.27M	12.04M
Net Income	3.60M	3.91M	951.00K	4.73M	4.46M
Balance Sheet
Total Assets	69.76M	71.96M	71.31M	75.58M	74.01M
Cash, Cash Equivalents and Short-Term Investments	4.59M	9.18M	8.31M	7.44M	10.40M
Total Debt	13.36M	8.78M	10.56M	12.16M	13.84M
Total Liabilities	36.85M	41.09M	42.79M	44.65M	46.85M
Stockholders Equity	32.91M	30.86M	28.51M	29.76M	26.05M
Cash Flow
Free Cash Flow	-211.00K	7.00M	8.86M	5.33M	8.70M
Operating Cash Flow	629.00K	10.28M	10.69M	6.14M	9.54M
Investing Cash Flow	-1.32M	-3.27M	-1.82M	-2.68M	-4.33M
Financing Cash Flow	-4.30M	-5.74M	-8.00M	-6.42M	-5.36M

Ctac NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:CTAC, the sentiment is Neutral. The current price of 3.06 is above the 20-day moving average (MA) of 3.02, above the 50-day MA of 3.05, and below the 200-day MA of 3.24, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 51.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:CTAC.

Ctac NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEDAP	73 Outperform	€552.00M	22.86	29.06%	3.54%	4.11%	22.38%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CTAC	55 Neutral	€42.87M	11.91	13.94%	3.49%	0.81%	351.71%
CMCOM	53 Neutral	€164.03M	-43.65	-57.80%	―	0.36%	34.49%
MTRK	47 Neutral	€176.98M	-14.18	―	―	-7.94%	7.30%