CANCOM SE (COK) AI Stock Analysis

• Market Cap: €869.82M
• Dividend Yield: 3.48%
• Average Volume (3M): 77.22K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.64
• Revenue Growth: 3.76%
• EPS Growth: -22.05%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 80
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 31,515,345
• 10 Day Avg. Volume: 70,167
• 30 Day Avg. Volume: 77,218
• PEG Ratio: -1.78
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.90
• 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: €29.60
• Price Target Upside: 5.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

CANCOM SE shows solid financial performance with strong cash flow and revenue growth, but faces challenges in profitability. The technical analysis suggests a bearish trend, while the valuation indicates a fair pricing with a good dividend yield. The absence of recent earnings call and corporate events data means these factors have not influenced the score.

Positive Factors

Cash Flow Improvement

Operating cash flow improved by nearly €100m this year to €192.9m.

Guidance Confirmation

Management confirmed the full-year guidance in light of first recovery signs and in anticipation of a stronger second half due to reviving public client business.

Sales Performance

Preliminary sales increased by +5% YoY to €484m.

Negative Factors

Earnings Expectation

Management expects earnings with an EBITDA mid-point that is 4% below consensus.

Margin Deterioration

Margins deteriorated significantly, with EBITDA decreasing by 31% year-over-year to €21.1m, translating into a margin of 5.1% compared to the previous year's 7.0%.

Revenue Decline

Revenues in the first quarter are down 6% year-over-year as SME customers remained cautious to invest in light of US tariff uncertainty.

CANCOM SE Business Overview & Revenue Model

Company Description

CANCOM SE is a leading provider of IT infrastructure and services, primarily operating in the technology and telecommunications sectors. Headquartered in Munich, Germany, the company specializes in offering a wide range of digital transformation solutions, including cloud computing, cybersecurity, and IT management services. With a focus on helping businesses optimize their IT environments, CANCOM SE serves a diverse clientele across various industries, providing both hardware and software solutions tailored to meet specific organizational needs.

How the Company Makes Money

CANCOM SE generates revenue through a combination of hardware sales, software licensing, and IT services. The company sells IT infrastructure products such as servers, storage systems, and networking equipment, which form a significant portion of its income. Additionally, CANCOM SE provides managed services, consulting, and system integration, allowing clients to outsource their IT needs. The company also earns from software licensing agreements and subscription-based cloud services, which offer recurring revenue streams. Strategic partnerships with major technology firms enhance CANCOM SE's offerings, enabling it to deliver comprehensive solutions that drive its earnings.

CANCOM SE Financial Statement Overview

Summary

CANCOM SE exhibits a solid financial performance with strong cash flow and revenue growth. The income statement shows a 16.76% revenue increase, but challenges in net profit margin exist. The balance sheet reflects manageable leverage with a debt-to-equity ratio of 0.34, though declining equity ratio is a concern. Strong cash flow management is evident with impressive free cash flow growth.

Income Statement

CANCOM SE's income statement shows a solid performance with a consistent increase in revenue over the years. The revenue growth rate from 2022 to 2023 was approximately 16.76%, indicating strong demand for its software services. Gross profit margin stands at roughly 39.6% for 2023, reflecting effective cost management. However, the net profit margin decreased slightly from 2022, signaling potential challenges in controlling non-operating expenses or taxes. The EBIT and EBITDA margins are healthy, showing effective core business operations, although there was a slight decline in EBIT margin compared to previous years.

Balance Sheet

The balance sheet indicates a moderate financial position with a debt-to-equity ratio of approximately 0.34 for 2023, which is quite reasonable and suggests manageable leverage. However, the equity ratio shows a decreasing trend, going from 55.8% in 2022 to 46.8% in 2023, which could indicate rising liabilities. Return on equity for 2023 is around 4.6%, which is modest, suggesting room for improvement in generating profits from equity. The decline in stockholders' equity over the years might pose a challenge if not addressed.

Cash Flow

CANCOM SE demonstrated strong cash flow management, as evidenced by a significant increase in operating cash flow from 2022 to 2023. The operating cash flow to net income ratio is robust, indicating efficient conversion of net income into cash. The free cash flow growth rate was impressive, showcasing improved capital expenditure management. The free cash flow to net income ratio in 2023 is also strong, underscoring healthy cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.75B	1.53B	1.31B	1.31B	1.66B
	Gross Profit
693.34M	567.08M	437.69M	431.10M	472.48M
	EBIT
47.98M	55.78M	49.82M	77.44M	63.85M
	EBITDA
120.79M	124.72M	103.66M	124.53M	100.56M
	Net Income Common Stockholders
33.45M	36.83M	30.80M	44.86M	61.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
144.67M	222.55M	393.17M	652.97M	338.37M
	Total Assets
1.41B	1.55B	1.31B	1.41B	1.25B
	Total Debt
193.98M	211.06M	137.13M	129.73M	117.78M
	Net Debt
49.31M	-11.49M	-256.04M	-523.24M	-220.59M
	Total Liabilities
832.53M	824.01M	610.28M	592.58M	635.20M
	Stockholders Equity
574.00M	724.08M	694.51M	813.72M	614.31M
Cash Flow		Free Cash Flow
170.60M	72.61M	-80.00M	39.16M	31.33M
	Operating Cash Flow
192.88M	98.40M	-53.56M	72.31M	68.24M
	Investing Cash Flow
-43.23M	-74.42M	-34.25M	332.17M	-50.56M
	Financing Cash Flow
-227.47M	-190.40M	-171.89M	-90.47M	-42.32M

CANCOM SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:COK, the sentiment is Positive. The current price of 27.95 is above the 20-day moving average (MA) of 27.20, above the 50-day MA of 26.40, and above the 200-day MA of 25.88, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:COK.

CANCOM SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	77 Outperform	€164.07B	13.28	19.60%	2.85%	4.90%	176.57%
DTG	73 Outperform	€32.35B	11.23	12.77%	4.73%	-4.81%	-22.95%
FNTN	71 Outperform	€4.00B	16.22	20.32%	5.15%	-5.69%	59.53%
COK	66 Neutral	€869.82M	35.62	4.13%	3.48%	3.76%	-22.05%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
COP	59 Neutral	€1.16B	33.10	5.26%	4.52%	-2.84%	-24.28%