Ceotronics AG Audio Video Data Communication (CEK) AI Stock Analysis

Ceotronics AG Audio Video Data Communication

(XETRA:CEK)

Select Model

Rating:70Outperform

Price Target:EUR 10.00▲(12.61% Upside)

Action:upgraded

Date:09/12/26

The score is driven primarily by solid financial fundamentals: doubled revenue over five years, best-in-period margins, €5.6 million net profit, ~17% return on equity and a low-leverage, equity-funded balance sheet. Supporting this is a reasonable valuation at roughly 15x earnings with a ~1.9% dividend yield. The main drags are technical: the stock trades below its 200-day average with neutral momentum and sits near the low end of its recent range, and its high beta implies above-average volatility. Fundamental risks centre on flattening revenue growth, volatile cash flows tied to large-contract timing, and a sharp drop in free cash flow amid heavier investment spending. No earnings call or corporate event data was available, so those components were excluded and their weight redistributed.

Positive Factors

Mission-critical nicheCeotronics operates in demanding communication environments where reliability and mission readiness are important purchasing requirements. This specialized positioning can support customer retention and technical differentiation, while professional users may continue upgrading or replenishing equipment over several years.

Negative Factors

Revenue volatilityThe sharp reversal from strong 2025 growth to an approximately 18% revenue decline in 2026 makes the higher earnings base less predictable. Such volatility can complicate capacity planning, customer investment decisions, and the ability to sustain margins when order timing becomes less favorable.

Ceotronics AG Audio Video Data Communication (CEK) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 70.86M
Dividend Yield: 2.25%
Average Volume (3M): 9,584
Price to Earnings (P/E): 12.7
Beta (1Y): 1.52
Revenue Growth: 0.96%
EPS Growth: 17.86%
Country: Germany
Employees: 141
Sector: Technology
Sector Strength: 61
Industry: Communication Equipment

Ceotronics AG Audio Video Data Communication Business Overview & Revenue Model

Company Description

CeoTronics AG, a German enterprise established in Rödermark in 1985, specializes in providing advanced communication technology worldwide. The company's offerings span mobile digital radio network systems, dedicated end devices for local applications...

How the Company Makes Money

Ceotronics AG makes money primarily by selling professional communication hardware and related systems to institutional and commercial customers. Its core revenue stream is product sales of specialized communication devices and accessories (e.g., hea...

Ceotronics AG Audio Video Data Communication Financial Statement Overview

Summary

Ceotronics combines strong profitability with a conservative balance sheet. Revenue has more than doubled over five years to €56.3 million, gross margin improved to roughly 45%, and net income rose about 18% to €5.6 million, producing a ~17% return on equity. Equity funds about two-thirds of assets and debt-to-equity has fallen to roughly 0.21 from 0.92, leaving ample financial flexibility. Offsetting this, revenue growth has flattened to low single digits after last year's exceptional jump, free cash flow dropped about 61% to €4.9 million as capital spending ramped, and operating cash flow has swung widely year to year due to lumpy contract and working-capital timing. Small absolute scale also makes results sensitive to a few large orders.

Income Statement

80Positive

Balance Sheet

82Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2024	May 2023	May 2022
Income Statement
Total Revenue	56.35M	56.33M	29.63M	55.80M	30.08M	29.12M
Gross Profit	25.25M	25.25M	13.85M	22.79M	14.49M	14.29M
EBITDA	11.89M	11.89M	3.92M	9.43M	5.27M	4.89M
Net Income	5.59M	5.59M	1.25M	4.74M	2.53M	2.51M
Balance Sheet
Total Assets	48.75M	48.75M	43.82M	42.60M	29.36M	28.75M
Cash, Cash Equivalents and Short-Term Investments	7.61M	7.61M	692.00K	4.76M	1.44M	190.00K
Total Debt	6.74M	6.74M	18.37M	7.04M	6.30M	7.11M
Total Liabilities	16.33M	16.33M	23.93M	14.25M	12.12M	13.04M
Stockholders Equity	32.42M	32.42M	19.89M	28.36M	17.24M	15.71M
Cash Flow
Free Cash Flow	5.57M	4.91M	-13.61M	12.66M	3.86M	285.00K
Operating Cash Flow	12.43M	12.61M	-12.12M	14.82M	4.67M	1.04M
Investing Cash Flow	-7.70M	-7.65M	-1.49M	-2.14M	-1.35M	-1.29M
Financing Cash Flow	-1.81M	-2.05M	6.68M	-1.73M	-2.09M	538.00K

Ceotronics AG Audio Video Data Communication Technical Analysis

Technical Analysis SentimentNegative

Last Price8.88

Price Trends

50DMA9.81Negative

100DMA9.95Negative

200DMA11.07Negative

Market Momentum

MACD-0.27Negative

RSI38.26Neutral

STOCH44.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:CEK, the sentiment is Negative. The current price of 8.88 is below the 20-day moving average (MA) of 9.15, below the 50-day MA of 9.81, and below the 200-day MA of 11.07, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 44.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:CEK.

Ceotronics AG Audio Video Data Communication Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:CEK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:TMV	71Outperform	EUR 1.15B	8.81	68.55%	―	5.39%	3.05%
DE:CEK	70Outperform	EUR 70.86M	12.69	17.72%	2.25%	0.96%	17.86%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DE:NFN	57Neutral	EUR 60.28M	75.05	1.58%	―	-1.78%	-13.16%
DE:ADV	53Neutral	EUR 1.14B	133.62	2.23%	2.35%	14.54%	―

* Technology Sector Average

Performance Comparison

DE:CEK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:CEK	Ceotronics AG Audio Video Data Communication	8.88	-4.92	-35.64%
DE:ADV	ADVA Optical Networking	22.10	0.99	4.68%
DE:GGS	Gigaset AG	0.01	-0.01	-50.00%
DE:NFN	NFON AG	3.64	-1.76	-32.59%
DE:TMV	TeamViewer AG	7.31	1.08	17.34%
DE:FEW0	Funkwerk AG	35.60	4.51	14.49%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Sep 12, 2026

Ceotronics AG Audio Video Data Communication AI Stock Analysis