CTT Systems AB (CTT) AI Stock Analysis

• Market Cap: kr2.91B
• Dividend Yield: 2.31%
• Average Volume (3M): 4.97K
• Price to Earnings (P/E): 52.9
• Beta (1Y): 0.81
• Revenue Growth: -13.34%
• EPS Growth: -46.12%
• Country: SE
• Employees: 86
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 1.19
• Shares Outstanding: 12,529,443
• 10 Day Avg. Volume: 7,279
• 30 Day Avg. Volume: 4,968
• PEG Ratio: -3.92
• Price to Book (P/B): 12.13
• Price to Sales (P/S): 11.74
• P/FCF Ratio: 57.56
• 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: kr245.00
• Price Target Upside: 5.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: kr245.00 ▲(5.15% Upside)

CTT Systems AB's overall stock score is primarily influenced by its strong financial performance, despite recent growth challenges. The technical analysis suggests a neutral market position, while the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Profitability

High gross profit margins indicate effective cost management and pricing power, which are crucial for sustaining profitability in the competitive aerospace industry.

Stable Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and weathering economic downturns.

Recurring Revenue Streams

Recurring revenue from maintenance and parts ensures a steady cash flow, reducing reliance on new sales and providing a buffer against market fluctuations.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests potential market challenges or competitive pressures, which could hinder the company's ability to expand its market share and invest in growth opportunities.

Decreased Cash Flow Generation

Reduced cash flow generation limits the company's ability to fund operations and invest in new projects, potentially affecting long-term growth and financial resilience.

Negative EPS Growth

A significant decline in EPS growth indicates challenges in profitability and earnings sustainability, which may affect investor confidence and the company's valuation.

CTT Systems AB Business Overview & Revenue Model

Company Description

CTT Systems AB (publ) designs, manufactures, and supplies humidity control products for aircraft worldwide. The company offers humidifiers and dehumidifiers for passenger cabins, flight decks, crew rest compartments, and VIP/business jets; and active moisture control systems, as well as anti-condensation protection. It serves commercial airliners and private jets. CTT Systems AB (publ) was incorporated in 1991 and is based in Nyköping, Sweden.

How the Company Makes Money

CTT Systems AB generates revenue primarily through the sale and installation of its humidity control products to airline operators and aircraft manufacturers. The company offers its products as original equipment manufacturer (OEM) solutions during the production of new aircraft, as well as retrofit options for existing fleets, expanding its market reach. CTT also provides maintenance services and spare parts supply, contributing to its recurring revenue streams. Strategic partnerships with major aerospace companies enhance CTT's market presence and facilitate access to a broader customer base, further boosting its earnings potential.

CTT Systems AB Financial Statement Overview

Summary

CTT Systems AB's financial performance is strong, with high profitability and a robust balance sheet characterized by low leverage and high equity. While revenue has slightly declined, the company maintains effective cost management and profitability. Cash flow generation remains strong, despite a recent drop in free cash flow. Overall, CTT Systems AB is in a stable financial position with potential for growth if revenue trends improve.

Income Statement

CTT Systems AB demonstrates strong profitability with a consistent gross profit margin (TTM: 78.26%) and net profit margin (TTM: 23.40%). The company has shown a slight decline in revenue (TTM Revenue Growth Rate: -8.01%), indicating challenges in maintaining growth. However, the EBIT margin (31.76%) and EBITDA margin (33.06%) remain solid, showcasing efficient cost management.

Balance Sheet

The balance sheet reflects a stable financial structure with a favorable debt-to-equity ratio of 0.14, indicating low leverage risks. The equity ratio is strong at 73.13%, suggesting robust asset financing through equity. ROE stands at 21.96%, highlighting effective use of equity to generate profits.

Cash Flow

CTT Systems AB has a healthy operating cash flow to net income ratio of 0.69, demonstrating efficient cash generation from operations. However, the free cash flow growth rate is negative (-35.46%), indicating a decrease in free cash flow over the TTM period. The free cash flow to net income ratio is 0.61, reflecting a solid conversion of net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	273.40M	300.10M	308.90M	244.00M	151.30M	200.80M
Gross Profit	207.00M	241.70M	247.70M	197.40M	118.50M	149.20M
EBITDA	78.30M	119.90M	127.60M	98.90M	38.10M	47.60M
Net Income	54.90M	85.50M	95.50M	66.30M	14.20M	31.10M
Balance Sheet
Total Assets	339.40M	393.20M	417.30M	377.10M	328.60M	307.50M
Cash, Cash Equivalents and Short-Term Investments	2.40M	68.70M	117.90M	60.10M	49.30M	21.60M
Total Debt	37.40M	44.10M	41.80M	45.50M	72.20M	36.90M
Total Liabilities	97.40M	102.70M	103.30M	107.80M	115.60M	87.00M
Stockholders Equity	242.00M	290.50M	314.00M	269.30M	213.00M	220.50M
Cash Flow
Free Cash Flow	26.60M	61.20M	109.10M	53.80M	21.70M	-44.50M
Operating Cash Flow	31.90M	66.30M	116.80M	61.20M	30.30M	-10.80M
Investing Cash Flow	-5.10M	-4.50M	-7.50M	-7.30M	-8.60M	-33.60M
Financing Cash Flow	-68.60M	-110.60M	-52.20M	-43.60M	6.60M	-41.20M

CTT Systems AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 233.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CTT, the sentiment is Negative. The current price of 233 is above the 20-day moving average (MA) of 228.93, above the 50-day MA of 229.67, and above the 200-day MA of 230.03, indicating a bearish trend. The MACD of 3.65 indicates Negative momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CTT.

CTT Systems AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTT	65 Neutral	kr2.91B	52.95		2.31%	-13.34%	-46.12%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
0GWL	―	kr278.54B	52.85	14.05%	―	―	―
ACCMF	―	$82.99M	―	-0.45%	―	―	―
8QL	―	€61.47M	45.67	32.79%	―	―	―
8QA	―	€751.06M	95.39	-19.55%	―	―	―
1G2	―	€195.60M	―	-128.43%	―	―	―

CTT Systems AB Corporate Events

CTT Systems AB Reports Q2 2025 Results Amid Strong Order Intake

CTT Systems AB reported a decrease in net sales and operating profit for the second quarter of 2025, primarily due to currency effects, sales mix, and one-off costs. Despite these challenges, the company experienced strong order intake driven by private jet and OEM sectors, with expectations of increased demand from Airbus and Boeing’s delivery plans. The company remains optimistic about future growth, supported by resilient trends and strategic partnerships, particularly in the private jet market.

CTT Systems AB Announces Q2 2025 Interim Report Presentation

CTT Systems AB announced the upcoming release of their Q2 2025 Interim Report, scheduled for July 18, 2025. The report will be presented by the company’s CEO and CFO via a webcast, allowing stakeholders to engage with the presentation and ask questions. This announcement highlights CTT Systems’ commitment to transparency and stakeholder engagement, potentially impacting their market positioning and stakeholder relations.