$0.11
arrow_drop_down42.80%Is CETX a Buy or Sell based on AI Analysis?
Fundamental Analysis
Cemtrex (CETX) is a technology company with a market capitalization of $84.43K and 385 employees. The company's financial indicators show a negative net income of -$9.23M and an operating margin of -21.65%. The company's return on equity is also significantly negative at -318.86%, indicating poor performance in terms of generating profits for its shareholders. Furthermore, Cemtrex has a high debt-to-equity ratio of $63.13, suggesting a high level of financial leverage that could pose risks to the company's financial stability. Despite its financial challenges, Cemtrex shows some positive indicators such as a current ratio of $1.88, which indicates the company's ability to cover its short-term liabilities with its current assets. Additionally, the company has a gross margin of 43.27%, suggesting it is able to maintain a healthy level of profitability in its operations. However, the company's negative free cash flow of -$4.99M raises concerns about its ability to generate cash to reinvest in its business or pay off debts. Overall, Cemtrex's fundamental analysis highlights a mix of strengths and weaknesses that investors should carefully consider before making investment decisions.
Positive Development
Cemtrex Inc has secured a $4.5 million contract through its Advanced Industrial Services (AIS) subsidiary, which underscores the company's strong market position and optimistic growth outlook. The company has been awarded a $4.7 million contract for TiSA energy upgrades at Fort Indiantown Gap in Lebanon County, PA, which is a significant project that could provide a substantial boost to the company's revenue. The company has a strong track record of securing large-scale infrastructure contracts, which suggests that it has the ability to secure significant projects and generate significant revenue.
Negative Development
The company's current ratio is relatively low at 1.8854, which suggests that it may face liquidity issues in the short term. The company's gross margin is only 0.4002, which means that its revenue is not as high as its costs, which could indicate a lack of pricing power or inefficient operations. The company's net debt to total capital is 0.6795, which suggests that it may be heavily leveraged and could face financial difficulties if it is unable to generate sufficient cash to meet its debt obligations.
Technical Analysis
Cemtrex (CETX) has a technical rating of NEUTRAL based on various indicators. The stock currently has a price of $0.34 with a market cap of $84.43K and a volume of 10.13M. The stock has shown a 19.07% price change and a 58 score. The technical analysis for the stock indicates that there are two buy indicators (ATR and WILLR), five hold indicators (RSI, MACD, CCI, ADX, and ROC), and one sell indicator (STOCHRSI) as of the latest update on October 21, 2024. Additionally, the stock has a beta of 1.84, indicating that it is more volatile compared to the market average. Furthermore, Cemtrex operates in the Technology sector and has 385 employees. The stock sector has seen a change of 38.35% in the past year, while the overall stock market has changed by 59.96% during the same period. The company's technical analysis also highlights key financial metrics such as the operating margin of -21.65%, return on assets of -7.26%, and return on equity of -318.86%. These indicators suggest that Cemtrex may need to address operational efficiency and profitability challenges to improve its financial performance and investor confidence.
Conclusion and recommendation
Based on the data provided, Cemtrex (CETX) is a penny stock with a market cap of $84.43K and a current price of $0.34. The company operates in the technology sector with 385 employees. Despite showing a negative net income of -$9.23M and operating margin of -21.65%, the company has a relatively healthy current ratio of 1.88 and quick ratio of 1.34. Cemtrex has a high beta of 1.84, indicating higher volatility compared to the overall market. The stock has seen a significant decline in price over various time periods, with a five-year price change of -99.99%. In conclusion, investing in Cemtrex may carry a high level of risk due to its volatile nature and negative financial performance. The company's low market cap and negative net income suggest potential challenges in its operations and profitability. Investors should carefully consider these factors before making any investment decisions in CETX. It is also important to monitor the company's financial performance and market trends closely to assess the potential for future growth and stability.