Comet Industries (CMU) AI Stock Analysis

• Market Cap: C$20.15M
• Dividend Yield: N/A
• Average Volume (3M): 66.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -93.84%
• EPS Growth: -117.18%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial Materials
• EPS (TTM): -0.34
• Shares Outstanding: 5,037,595
• 10 Day Avg. Volume: 100
• 30 Day Avg. Volume: 66
• PEG Ratio: 0.09
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.15
• 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

Comet Industries is currently facing substantial financial challenges, with persistent operational losses and negative cash flows that weigh heavily on its overall score. The company's strong balance sheet offers some financial stability, but improvements are essential for a turnaround. Technical analysis suggests mixed market sentiment, with some indicators showing potential oversold conditions. Valuation metrics are weak due to the company's lack of profitability. The recent appointment of a new CFO is a positive step, but its effect on the stock is yet to be seen.

Comet Industries Business Overview & Revenue Model

Company Description

Comet Industries (CMU) operates as a diversified technology and manufacturing company specializing in advanced materials and components. Serving a wide range of sectors including aerospace, automotive, and electronics, Comet Industries is known for its innovative solutions and commitment to sustainability. The company offers a broad portfolio of products, including high-performance materials, precision-engineered components, and integrated systems designed to enhance the efficiency and performance of its clients' operations.

How the Company Makes Money

Comet Industries generates revenue through a multi-faceted business model that includes manufacturing and selling advanced materials and components to various industries. Key revenue streams include direct sales of its high-performance products to aerospace and automotive manufacturers, licensing of proprietary technologies, and long-term supply agreements with major electronics companies. The company also benefits from strategic partnerships and collaborations that facilitate the co-development of new products and solutions, enhancing its market presence and driving sales growth. Additionally, Comet Industries invests in research and development to continuously innovate and expand its product offerings, which attracts new customers and opens up additional revenue opportunities.

Comet Industries Financial Statement Overview

Summary

Comet Industries faces significant challenges across its financial statements. Persistent operational losses and negative cash flows highlight difficulties in achieving profitability and managing cash effectively. The balance sheet is relatively strong, with low leverage, which could provide a cushion for the company as it seeks to improve its financial performance. However, concerted efforts will be needed to turn around the company's operational and cash flow issues.

Income Statement

Comet Industries has faced significant challenges in maintaining profitability. The company experienced a substantial decline in revenue over the TTM period compared to previous annual reports. The gross profit is negative, indicating issues with controlling production costs or pricing strategies. The net profit margin is also negative, reflecting persistent losses. EBIT and EBITDA margins are both negative, highlighting operational inefficiencies and high overheads.

Balance Sheet

The balance sheet shows a strong equity position with a high equity ratio, indicating that the company is less reliant on debt financing, which is a positive indicator of financial stability. The zero total debt in the TTM period further underscores a conservative leverage strategy. However, the return on equity is negative due to the net losses, which is a concern for profitability.

Cash Flow

The cash flow statement reveals significant issues with cash management. Operating cash flow is negative, which means the company is not generating cash from its core operations. Free cash flow is also negative, suggesting that the company is struggling to cover capital expenditures and operational needs. This trend could pose liquidity risks if not addressed.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
28.92K	352.90K	609.50K	424.65K	309.98K	515.88K
	Gross Profit
-373.24K	276.29K	608.44K	423.53K	308.80K	514.65K
	EBIT
-855.17K	-1.00M	-71.54K	-120.39K	-195.88K	55.20K
	EBITDA
-775.62K	-984.63K	-37.65K	-88.94K	-32.26K	97.91K
	Net Income Common Stockholders
-1.61M	8.15M	-121.14K	360.19K	-67.93K	50.03K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.90M	8.53M	730.98K	826.70K	311.36K	70.40K
	Total Assets
11.53M	11.27M	2.51M	2.65M	2.40M	2.16M
	Total Debt
60.00K	79.88K	715.41K	738.23K	784.16K	880.33K
	Net Debt
-9.84M	-8.53M	-15.57K	-88.47K	472.80K	809.93K
	Total Liabilities
92.53K	1.23M	884.20K	909.72K	1.01M	1.09M
	Stockholders Equity
11.44M	10.03M	1.62M	1.74M	1.38M	1.06M
Cash Flow		Free Cash Flow
-2.38M	-728.98K	-52.90K	-41.30K	-6.39K	51.79K
	Operating Cash Flow
-1.76M	-710.98K	-52.90K	-41.30K	-6.39K	51.79K
	Investing Cash Flow
-3.70M	9.21M	0.00	608.38K	0.00	0.00
	Financing Cash Flow
-40.00K	-695.41K	-42.82K	-51.73K	247.34K	-38.90K

Comet Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CMU, the sentiment is Negative. The current price of 4 is below the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.12, and below the 200-day MA of 4.28, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 11.17 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CMU.

Comet Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
CMU	45 Neutral	C$20.15M	―	-15.12%	―	-93.84%	-117.18%
QST	42 Neutral	C$7.99M	―	-14.23%	―	-37.13%	32.21%
CDN	41 Neutral	C$2.66M	1.31	-35.75%	―	―	-401.66%
DYA	40 Underperform	C$73.68M	―	2492.91%	―	258.52%	-4.87%