CML Microsystems (CML) AI Stock Analysis

• Market Cap: £42.23M
• Dividend Yield: 4.15%
• Average Volume (3M): 9.55K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.37
• Revenue Growth: 0.03%
• EPS Growth: -100.84%
• Country: UK
• Employees: 162
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.04
• Shares Outstanding: 15,934,859
• 10 Day Avg. Volume: 5,813
• 30 Day Avg. Volume: 9,550
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £274.00
• Price Target Upside: 3.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: 274.00p ▲(3.40% Upside)

CML Microsystems is currently facing significant challenges, particularly in profitability and cash flow, which are reflected in its low financial performance score. The technical analysis indicates bearish momentum, further impacting the stock's attractiveness. The negative P/E ratio highlights valuation difficulties, although the dividend yield offers some compensation. The overall score reflects these combined challenges.

CML Microsystems Business Overview & Revenue Model

Company Description

CML Microsystems plc, through its subsidiaries, designs, manufactures, and markets mixed-signal, radio frequency (RF), and microwave semiconductors for communications markets worldwide. It primarily offers high performance RF products and mixed-signal baseband/modem processors, as well as microwave/millimetre wave semiconductors for wireless voice and data communications. The company provides its products for professional and industrial voice and data communications products. It serves communications equipment providers and industrial product manufacturers. CML Microsystems Plc was incorporated in 1968 and is headquartered in Maldon, the United Kingdom.

How the Company Makes Money

CML Microsystems generates revenue primarily through the sale of its semiconductor products and integrated circuits to various industries, including telecommunications, automotive, and industrial sectors. The company's revenue model consists of direct sales to original equipment manufacturers (OEMs) and distributors, with a focus on high-margin products that leverage advanced technology. Key revenue streams include royalties from licensing agreements and strategic partnerships with major telecommunications companies that utilize CML's technology in their products. Additionally, CML benefits from ongoing demand for its products due to the increasing need for advanced communication systems, which contributes to consistent revenue growth.

CML Microsystems Financial Statement Overview

Summary

CML Microsystems faces profitability and cash flow challenges, with negative net profit margins and declining free cash flow. Despite these issues, the company maintains a strong equity position and low leverage, providing some financial stability.

Income Statement

CML Microsystems has experienced a decline in revenue growth, with a negative growth rate of -7.84% in the most recent year. The company also reported negative EBIT and net profit margins, indicating challenges in profitability. However, the gross profit margin remains relatively strong at 69.39%, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. However, the return on equity is slightly negative, reflecting recent profitability challenges. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow, with a growth rate of -171.28%. The operating cash flow to net income ratio is moderate at 0.57, indicating some ability to generate cash from operations despite net losses. However, the negative free cash flow to net income ratio highlights cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.90M	22.90M	22.89M	20.64M	16.96M	13.10M
Gross Profit	11.52M	15.89M	16.21M	12.89M	10.37M	7.65M
EBITDA	3.71M	3.75M	6.04M	8.12M	4.32M	1.96M
Net Income	-18.00K	-18.00K	2.06M	4.81M	1.24M	1.82M
Balance Sheet
Total Assets	63.19M	63.19M	69.11M	60.47M	59.33M	65.24M
Cash, Cash Equivalents and Short-Term Investments	9.92M	9.92M	18.21M	22.26M	25.04M	32.20M
Total Debt	2.26M	2.26M	856.00K	1.05M	468.00K	727.00K
Total Liabilities	14.18M	14.18M	18.04M	9.71M	9.48M	11.80M
Stockholders Equity	49.01M	49.01M	51.08M	50.75M	49.85M	53.45M
Cash Flow
Free Cash Flow	2.90M	-1.75M	-53.00K	182.00K	-616.00K	223.00K
Operating Cash Flow	3.50M	3.09M	5.04M	5.67M	4.02M	7.88M
Investing Cash Flow	-3.81M	-3.39M	-10.85M	1.75M	1.81M	15.72M
Financing Cash Flow	-3.07M	-3.09M	-3.88M	-5.56M	-8.92M	-10.79M

CML Microsystems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 265.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CML, the sentiment is Negative. The current price of 265 is below the 20-day moving average (MA) of 271.70, below the 50-day MA of 289.97, and above the 200-day MA of 256.61, indicating a neutral trend. The MACD of -5.89 indicates Positive momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CML.

CML Microsystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWE	73 Outperform	40.94M	11.45	15.34%	4.16%	1.08%	10.37%
OXIG	69 Neutral	1.03B	40.37	6.91%	1.21%	6.42%	-48.89%
CLX	62 Neutral	57.57M	172.37	1.23%	1.43%	12.98%	850.00%
IQE	47 Neutral	76.67M	-1.97	-28.47%	―	2.41%	-16.47%
CML	46 Neutral	£42.23M	29.30	-0.04%	4.15%	0.03%	-100.84%
NANO	44 Neutral	19.08M	-7.03	0.00%	―	-8.06%	-132.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CML Microsystems Corporate Events

CML Microsystems Director Increases Shareholding, Signaling Confidence

CML Microsystems announced that Geoff Barnes, Senior Non-Executive Director, purchased 6,650 ordinary shares in the company, increasing his total holdings to 23,650 shares, which represents approximately 0.15% of the company’s total voting rights. This transaction reflects confidence in CML’s market positioning and operational strategy, potentially signaling positive sentiment to stakeholders regarding the company’s future prospects and stability in the semiconductor industry.

CML Microsystems Confirms Strong Governance at 2025 AGM

CML Microsystems PLC held its 2025 Annual General Meeting where all resolutions were passed, including the approval of financial statements, directors’ remuneration, and a final dividend. The reappointment of directors and auditors, along with authorizations for share allotment and market purchases, were also confirmed. This demonstrates the company’s stable governance and commitment to shareholder value, reinforcing its strong position in the semiconductor industry.

CML Microsystems Secures Major Contract and Land Sale, Boosting Financial Outlook

CML Microsystems announced a positive trading update at its AGM, expecting to meet management’s financial expectations for the year with a focus on the second half. The company secured a significant 12-year design and supply contract worth over $30 million and agreed to sell surplus land for £7 million, enhancing its financial position and supporting sustainable medium-term growth. The board remains confident in delivering shareholder value and advancing the business.

CML Microsystems Announces Share Option Exercise and Voting Rights Update

CML Microsystems announced the exercise of 13,000 options over ordinary shares by an employee, with the shares being transferred from the company’s treasury. Following this transaction, the total number of voting rights in the company is 15,934,859 ordinary shares, which shareholders can use to determine their interest under the FCA’s rules. This update reflects the company’s adherence to transparency regulations and may impact shareholder calculations.

CML Microsystems Sells Excess Land to Boost Financial Flexibility

CML Microsystems PLC announced the sale of excess land at its Essex headquarters to Chapel 110 LLP, generating £7 million in cash proceeds. This move aligns with the company’s strategy to unlock value from non-operational assets, strengthening its balance sheet and providing financial flexibility for growth opportunities. The transaction does not affect CML’s operational activities, as the headquarters will continue to operate from the retained land, reinforcing the company’s commitment to efficient capital management and long-term shareholder value creation.

CML Microsystems Releases Annual Report and Announces AGM

CML Microsystems has announced the posting of its annual report and accounts for the year ended 31 March 2025, along with the notice of its Annual General Meeting (AGM) scheduled for 5 August 2025. The company, which is cash-generative, debt-free, and dividend-paying, is positioned to benefit from the growing demand for faster and more secure data transmission, telecom infrastructure upgrades, and the rise of private commercial wireless networks linked to the industrial internet of things (IIoT).

CML Microsystems Secures $30 Million GNSS Contract, Strengthening Satellite Tech Market Position

CML Microsystems PLC has secured a significant 12-year design and supply contract valued at over $30 million with a leading industrial GNSS equipment manufacturer. This agreement enhances CML’s strategic position in the global satellite technology market, showcasing its capability to deliver high-performance semiconductor solutions and reinforcing its role as a key enabler of high-precision GNSS applications. The contract underscores customer confidence in CML’s advanced RF design expertise and robust supply chain reliability, further supporting the company’s focus on next-generation positioning technologies.

CML Microsystems Reports Resilient Financial Results Amid Market Challenges

CML Microsystems PLC reported robust revenues of £22.90m for the year ending 31 March 2025, despite challenging market conditions. The company’s strategic focus on expanding its product portfolio and operational restructuring, including the successful integration of Microwave Technology, Inc., has positioned it for sustainable growth. However, increased costs from acquisitions and factory relocations impacted profits, leading to a breakeven after-tax result. The company remains confident in its growth strategy, maintaining its dividend and share buyback program, while acknowledging potential future impacts from global uncertainties.

CML Microsystems Announces Share Option Exercise and Voting Rights Update

CML Microsystems Plc announced the exercise of 7,000 options over ordinary shares by an employee, which will be satisfied by transferring existing treasury shares. Following this exercise, the company’s issued share capital comprises 16,504,754 ordinary shares, with 582,895 held in treasury, resulting in 15,921,859 voting rights. This update is in line with the Financial Conduct Authority’s Disclosure and Transparency rules, providing shareholders with the necessary information to assess their interests in the company.