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Cemtrex (CETX)
:CETX
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Cemtrex
(NASDAQ:CETX)
37Underperform
Cemtrex (CETX) vs. S&P 500 (SPY)
Market Cap
$2.57M
Dividend YieldN/A
Average Volume (3M)68.32K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-0.86%
EPS Growth63.99%
CountryUS
Employees264
SectorTechnology
Sector Strength66
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-3240.59
Shares Outstanding1,784,581
10 Day Avg. Volume119,606
30 Day Avg. Volume68,316
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap8.31
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.78
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Cemtrex Business Overview & Revenue Model
Company DescriptionCemtrex Inc. (CETX) is a diversified technology company operating in various sectors including advanced technologies, smart devices, and intelligent security systems. The company offers a wide range of products and services, such as Internet of Things (IoT) solutions, industrial automation, and augmented and virtual reality applications, catering to both consumer and industrial markets.
How the Company Makes MoneyCemtrex generates revenue through multiple streams, primarily through the sale of its technology products and services. The company earns income from its advanced technologies division, which includes the manufacturing and sale of IoT and smart devices. Additionally, Cemtrex provides services in industrial automation and develops security systems, which are critical in generating service-based revenue. Partnerships with other technology firms and contracts with industrial clients also play a significant role in its revenue model, allowing the company to leverage its expertise in high-tech solutions to secure a diverse range of earnings.
Cemtrex Financial Statement Overview
Summary
Cemtrex shows significant revenue growth, but struggles with profitability and operational efficiency. The balance sheet is weak, with negative equity raising concerns about financial stability. Cash flow metrics highlight liquidity issues, underscoring the need for strategic improvements to enhance financial health.Income Statement
The company's TTM gross profit margin stands at 40.47%, indicating a strong ability to cover costs relative to revenue. However, the net profit margin is negative, at -54.57%, suggesting significant profitability challenges. Revenue growth from the previous annual report is 47.01%, indicating a positive trajectory. Despite the growth, EBIT and EBITDA margins are negative, reflecting operational inefficiencies.―
Balance Sheet
The debt-to-equity ratio is negative due to negative equity, which poses a potential risk. The return on equity is also negative, at -2229.14%, signaling severe financial distress. The equity ratio is negative, at -3.34%, indicating liabilities exceed assets, which is concerning for financial stability.20
Cash Flow
The operating cash flow to net income ratio is 0.06, revealing inefficiencies in converting income to cash. The free cash flow to net income ratio is 0.11, which is low. Free cash flow growth is negative, indicating challenges in maintaining liquidity.―
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 43.33M | 59.37M | 50.27M | 43.13M | 43.52M | Gross Profit |
| 27.48M | 25.69M | 19.06M | 16.97M | 19.36M | EBIT |
| -5.27M | -1.51M | -13.55M | 3.69M | -2.21M | EBITDA |
| -3.98M | ― | -5.20M | 5.90M | -66.50K | Net Income Common Stockholders |
| -7.23M | -9.20M | -13.29M | 393.78K | -8.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.91M | 5.34M | 10.62M | 15.44M | 20.38M | Total Assets |
| 44.12M | 48.45M | 45.76M | 52.94M | 63.79M | Total Debt |
| 23.12M | 26.75M | 5.01M | 9.26M | 15.17M | Net Debt |
| 19.22M | 21.42M | -5.60M | -6.17M | -4.32M | Total Liabilities |
| 39.15M | 40.11M | 31.12M | 29.39M | 31.84M | Stockholders Equity |
| 4.71M | 7.69M | 13.94M | 22.59M | 30.87M |
| Cash Flow | Free Cash Flow | |||
| -5.25M | -4.99M | -17.94M | -11.12M | -5.66M | Operating Cash Flow |
| -3.95M | -2.23M | -16.09M | -10.05M | -4.09M | Investing Cash Flow |
| -1.26M | -5.63M | 6.61M | 840.90K | 764.55K | Financing Cash Flow |
| 4.40M | 2.04M | 5.02M | 4.45M | 24.07M |
Cemtrex Technical Analysis
Neutral
1.44
Price Trends
1.49
Negative
2.14
Negative
93.65
Negative
Market Momentum
-0.03
Negative
52.84
Neutral
55.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CETX, the sentiment is Neutral. The current price of 1.44 is above the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.49, and below the 200-day MA of 93.65, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CETX.
Cemtrex Risk Analysis
Cemtrex disclosed 52 risk factors in its most recent earnings report. Cemtrex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cemtrex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $10.94B | 10.48 | -7.04% | 2.99% | 7.55% | -12.20% | |
56 Neutral | $2.94M | 0.44 | -12.71% | ― | -5.08% | 93.27% | |
47 Neutral | $8.01M | ― | -243.87% | ― | -14.99% | 59.75% | |
43 Neutral | $9.48M | ― | -184.93% | ― | -45.24% | 64.61% | |
37 Underperform | $2.57M | ― | -1329.57% | ― | -0.86% | 63.99% | |
34 Underperform | $2.17M | ― | 470.97% | ― | ― | -8852.46% |
* Technology Sector Average
Performance Comparison
CETX
Cemtrex
1.44
-565.77
-99.75%
TAOP
Taoping
0.21
-0.80
-79.21%
APCX
AppTech
0.26
-0.63
-70.79%
RVYL
Ryvyl
0.96
-0.47
-32.87%
ATCH
AtlasClear Holdings
0.34
-53.66
-99.37%
Cemtrex Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q3-2024)
| % Change Since: -33.02%|
Next Earnings Date:May 20, 2025
Earnings Call Sentiment Neutral
The earnings call indicated a mixed performance for Cemtrex, with strong growth in the Industrial Services segment and balance sheet improvements offset by challenges in the Security segment and increased losses. The company remains optimistic about future growth and operating profit due to strategic initiatives and cost control measures.Q3-2024 Updates
Positive Updates
Significant Revenue Growth in Industrial Services Segment
Revenue in the Industrial Services segment increased by 49% to $8.5 million, driven by increased demand for services and the acquisition of Heisey.
Strengthened Balance Sheet
The company improved its balance sheet with a $10 million upsized underwritten public offering, using proceeds to pay off indebtedness.
Inventory Reduction
The company successfully reduced its inventory by over $1 million this fiscal year.
Negative Updates
Decrease in Security Segment Revenue
Security segment revenues decreased by 31% to $6.2 million due to project delays and broader economic conditions.
Increased Operating Loss
The operating loss for the third quarter was $3.2 million compared to an operating income of $0.1 million a year ago, primarily due to decreased gross profit in the Security segment and increased G&A expenses.
Increased Net Loss
Net loss for the third quarter of 2024 was $9.1 million, significantly higher than the net loss of $1.2 million in the same period of 2023.
Company Guidance
During the CETX Q3 2024 earnings call, the company highlighted several key metrics and strategic plans. The revenue for the third quarter remained steady at $14.7 million compared to the previous year. The Industrial Services segment experienced a substantial 49% revenue increase, reaching $8.5 million, driven by heightened demand and contributions from the Heisey acquisition. However, the Security segment saw a 31% decline to $6.2 million, attributed to project delays and challenging economic conditions. The company's operating loss widened to $3.2 million from an operating income of $0.1 million a year ago, largely due to decreased gross profit in the Security segment and increased general and administrative expenses. The net loss increased significantly to $9.1 million, compared to $1.2 million in Q3 2023. Despite these challenges, the company improved its balance sheet with a $10 million upsized public offering and reduced inventory by over $1 million. Looking ahead, Cemtrex is optimistic about future growth, particularly with the launch of its new cloud security platform, Anavio, and expects the Industrial Services segment to achieve over 30% annual revenue growth in fiscal year 2024.Cemtrex Corporate Events
Executive/Board Changes
Cemtrex Appoints Paul Wyckoff as Chief Financial Officer
Neutral
Jan 6, 2025
Cemtrex has appointed Paul J. Wyckoff as Chief Financial Officer, responsible for financial planning, accounting, tax, and business process functions. Wyckoff brings over 20 years of private accounting experience, having been with Cemtrex since 2014, and previously serving as Interim CFO since January 2022.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.