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Freightos Limited (CRGO)
NASDAQ:CRGO
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Freightos Limited
(NASDAQ:CRGO)
49Neutral
Freightos Limited (CRGO) vs. S&P 500 (SPY)
Market Cap
$116.10M
Dividend YieldN/A
Average Volume (3M)54.69K
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth49.48%
EPS Growth80.17%
CountryUS
Employees378
SectorIndustrials
Sector Strength78
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)-0.33
Shares Outstanding50,042,740
10 Day Avg. Volume49,714
30 Day Avg. Volume54,685
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 Cap0.22
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.66
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside50.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Freightos Limited Business Overview & Revenue Model
Company DescriptionFreightos Ltd., owns and operates an online freight marketplace. It connects importers and exporters, providing instant comparison, booking, and management of air, ocean, and land shipments from forwarders. Further, the company offers freight software solutions, such as Freightos AcceleRate that offers freight rate management, instant freight quotes, and business intelligence; Enterprise Shipper that offers freight tariff control, real-time landed pricing, routing, and spend analytics; Freightos WebCargo; and Freightos Shipping Calculator which integrates with the e-commerce platform, providing instant international air or ocean pricing for oversized goods and e-commerce. Additionally, the company offers freight shipping tools, including HS Code lookup, an interactive airport and seaport directory; and a freight density calculator. The company caters to forwarders, carriers, enterprise shippers, logistics providers, and e-commerce retailers for automating freight and sales. The company was formerly known as Tradeos Limited and changed its name to Freightos Ltd. in March 2016. The company was founded in 2011 and is based in North Point, Hong Kong with operations in Hong Kong, China, Germany, Israel, and Palestine.
How the Company Makes MoneyFreightos Limited generates revenue primarily through its digital freight marketplace platform. The company charges transaction fees for each booking made through its platform, which can include air, ocean, and land freight services. Additionally, Freightos earns money through subscription fees for its software-as-a-service (SaaS) offerings, which provide advanced supply chain management tools and analytics to businesses. The company has established significant partnerships with major logistics providers and carriers, which enhance its service offerings and contribute to its revenue growth. Furthermore, the platform's ability to offer competitive pricing and efficient logistics solutions attracts a wide range of businesses, thus increasing transaction volume and revenue.
Freightos Limited Financial Statement Overview
Summary
Freightos Limited has strong revenue growth but faces challenges with profitability and cash flow management. Despite a solid equity base and low leverage, persistent operational losses and negative cash flow present significant challenges. The company needs to enhance its profit margins and cash conversion to improve financial health.Income Statement
Freightos Limited shows a consistent revenue growth trend, with a 17.28% increase from 2023 to 2024. However, the company faces challenges in profitability, reflected in negative EBIT and EBITDA margins. Despite a positive gross profit margin of 65.17% in 2024, the net profit margin remains negative at -94.57%, indicating significant operational and financial difficulties.42
Neutral
Balance Sheet
The company maintains a strong equity base with a debt-to-equity ratio of 0.02, suggesting modest leverage. The equity ratio is high at 74.38%, indicating financial stability. However, the return on equity is negative due to persistent losses, highlighting the need for effective cost management to enhance shareholder value.55
Neutral
Cash Flow
Freightos Limited faces negative free cash flow, although there is an improvement in operating cash flow from -27.1 million in 2023 to -12.1 million in 2024. The free cash flow to net income ratio remains unfavorable, indicating challenges in converting revenues into cash. The company must enhance cash flow management to support its growth and operational needs.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.79M | 20.28M | 19.09M | 11.12M | 8.51M | Gross Profit |
| 15.50M | 11.80M | 11.23M | 6.52M | 4.24M | EBIT |
| -229.47M | -77.80M | -24.98M | -16.29M | -12.87M | EBITDA |
| -19.86M | -62.38M | -20.56M | -15.25M | -12.47M | Net Income Common Stockholders |
| -22.49M | -65.47M | -24.70M | -16.36M | -14.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 37.27M | 51.69M | 6.69M | 25.08M | 21.89M | Total Assets |
| 73.78M | 87.69M | 41.81M | 54.08M | 31.17M | Total Debt |
| 954.00K | 1.30M | 3.51M | 1.74M | 2.35M | Net Debt |
| -9.16M | -18.87M | -2.98M | -23.34M | -19.54M | Total Liabilities |
| 18.89M | 15.64M | 20.15M | 19.16M | 12.70M | Stockholders Equity |
| 54.89M | 72.04M | 21.66M | 34.92M | 18.47M |
| Cash Flow | Free Cash Flow | |||
| -12.15M | -27.18M | -15.16M | -17.50M | -8.33M | Operating Cash Flow |
| -12.10M | -27.10M | -14.91M | -17.32M | -8.27M | Investing Cash Flow |
| 2.08M | -32.16M | -4.97M | -4.55M | 66.00K | Financing Cash Flow |
| 85.00K | 73.18M | 1.89M | 25.23M | -273.00K |
Freightos Limited Technical Analysis
Positive
2.32
Price Trends
2.37
Negative
2.82
Negative
2.23
Positive
Market Momentum
-0.03
Negative
52.72
Neutral
71.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGO, the sentiment is Positive. The current price of 2.32 is above the 20-day moving average (MA) of 2.07, below the 50-day MA of 2.37, and above the 200-day MA of 2.23, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRGO.
Freightos Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $82.91M | 7.63 | 9.67% | ― | 24.75% | 5.52% | |
64 Neutral | $7.54M | 8.32 | 44.81% | ― | -11.88% | 11.17% | |
64 Neutral | $4.28B | 11.80 | 5.30% | 250.74% | 4.12% | -9.02% | |
49 Neutral | $116.10M | ― | -23.18% | ― | 49.48% | 80.17% | |
45 Neutral | $42.85M | ― | -13.52% | ― | 3.36% | 94.32% | |
41 Neutral | $162.89M | 124.65 | -49.98% | ― | -2.76% | -586.31% |
* Industrials Sector Average
Performance Comparison
CRGO
Freightos Limited
2.32
-0.33
-12.45%
AIRT
Air T
16.10
-10.03
-38.38%
SFWL
Shengfeng Development Limited Class A
1.00
-0.78
-43.82%
GVH
Globavend Holdings Ltd.
0.50
-0.79
-61.24%
FLX
BingEx Ltd. ADR
2.29
-14.20
-86.11%
NCEW
New Century Logistics (BVI) Ltd.
2.22
-0.38
-14.62%
Freightos Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2025
(Q4-2024)
| % Change Since: -42.86%|
Next Earnings Date:May 27, 2025
Earnings Call Sentiment Positive
Freightos demonstrated strong performance in Q4 2024 with significant revenue growth, record transactions, and successful onboarding of new carriers. The company is advancing in AI-driven solutions and improving gross margins. However, challenges remain with negative adjusted EBITDA and potential impacts from tariff changes and seasonal weaknesses.Q4-2024 Updates
Positive Updates
Strong Revenue Growth
Freightos reported a 25% year-over-year increase in revenue for Q4 2024, reaching $6.6 million. This is the highest quarterly growth rate since going public.
Record Transactions and Onboarding
Freightos facilitated over 350,000 transactions, a 22% increase from the previous year, and added twelve new carriers, marking the strongest onboarding of new carriers in its history.
SaaS Revenue Milestone
The SaaS solution subsegment generated its highest quarterly revenue ever in Q4 2024, supported by the recently acquired Shipster business.
AI-Driven Solutions Success
The newly launched AI-powered airline dynamic pricing tool, Skyway, showed a 70% revenue increase during a test, demonstrating promise in the market.
Improved Gross Margins
IFRS gross margin improved to 68% from 62% in Q4 2023, and non-IFRS gross margin rose to 74% from 70% last year, indicating ongoing cost efficiencies.
Negative Updates
Negative Adjusted EBITDA
Adjusted EBITDA for Q4 2024 was negative $3.1 million, though this is within the guidance range and an improvement from the previous year.
Potential Tariff Impacts
The potential escalation of a trade war and changes in tariff policies could dampen international trade volumes, creating some uncertainty for Freightos.
Seasonal Weakness in Q1
Q1 2025 is expected to see flat adjusted EBITDA due to seasonal cost increases and weak freight volumes.
Company Guidance
During the Freightos Q4 2024 Earnings Conference Call, the company reported strong financial performance with a 25% year-over-year revenue growth, reaching $6.6 million for the quarter. The company facilitated over 350,000 transactions, marking a 22% increase from the previous year and adding twelve new carriers to their platform, bringing the total to 67. Gross margins improved significantly, with IFRS gross margin at 68% and non-IFRS gross margin at 74%. For Q1 2025, Freightos provided guidance expecting transactions between 362,000 and 370,000, GBV between $272 million and $280 million, and revenue between $6.7 million and $6.8 million. The full-year 2025 revenue is anticipated to be between $29 million and $30.6 million. The company also projected Q1 adjusted EBITDA between negative $3 million and negative $3.2 million, with an aim for breakeven by the end of 2026. Freightos continues to focus on expanding its platform and solutions, leveraging AI for dynamic pricing, and navigating potential impacts from tariffs and market conditions.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.