NasdaqCM:CETX

Stock Analysis Report

Executive Summary

Cemtrex, Inc. primarily provides electronic manufacturing services.

Risk Analysis

Earnings have declined by -58.5% per year over past 5 years

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($9M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Cemtrex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CETX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.3%

CETX

-1.6%

US Electronic

-1.3%

US Market


1 Year Return

-77.2%

CETX

23.9%

US Electronic

22.0%

US Market

Return vs Industry: CETX underperformed the US Electronic industry which returned 30.2% over the past year.

Return vs Market: CETX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CETXIndustryMarket
7 Day-24.3%-1.6%-1.3%
30 Day24.9%1.2%1.8%
90 Day7.0%7.9%9.3%
1 Year-77.2%-77.2%25.1%23.9%24.6%22.0%
3 Year-97.0%-97.0%48.0%43.8%49.2%39.6%
5 Year-94.8%-94.8%88.7%79.2%77.9%58.3%

Price Volatility Vs. Market

How volatile is Cemtrex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cemtrex undervalued compared to its fair value and its price relative to the market?

0.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CETX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CETX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CETX is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: CETX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CETX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CETX is good value based on its PB Ratio (0.1x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Cemtrex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.3%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cemtrex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cemtrex performed over the past 5 years?

-62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CETX is currently unprofitable.

Growing Profit Margin: CETX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CETX is unprofitable, and losses have increased over the past 5 years at a rate of -58.5% per year.

Accelerating Growth: Unable to compare CETX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CETX is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (53.6%).


Return on Equity

High ROE: CETX has a negative Return on Equity (-45.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cemtrex's financial position?


Financial Position Analysis

Short Term Liabilities: CETX's short term assets ($39.1M) exceed its short term liabilities ($30.4M).

Long Term Liabilities: CETX's short term assets ($39.1M) exceed its long term liabilities ($11.9M).


Debt to Equity History and Analysis

Debt Level: CETX's debt to equity ratio (54.1%) is considered high.

Reducing Debt: CETX's debt to equity ratio has reduced from 512.2% to 74.3% over the past 5 years.


Balance Sheet

Inventory Level: CETX has a high level of physical assets or inventory.

Debt Coverage by Assets: CETX's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CETX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CETX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -73.2% per year.


Next Steps

Dividend

What is Cemtrex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CETX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CETX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CETX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CETX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CETX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CETX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cemtrex's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Saagar Govil (33yo)

8.1yrs

Tenure

US$444,000

Compensation

Mr. Saagar Govil serves as Chairman of the Board and Chief Executive Officer of Vicon Industries, Inc. since March 23, 2018. He brings extensive experience in operations, technology and public company over ...


CEO Compensation Analysis

Compensation vs Market: Saagar's total compensation ($USD444.00K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Saagar's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: CETX's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$92,11201 Jul 19
NIL Funding Corporation
EntityCompany
Shares20,000
Max PriceUS$4.90

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.4%.


Management Team

  • Aron Govil (64yo)

    CFO, Principal Accounting Officer & Executive Director

    • Saagar Govil (33yo)

      Chairman

      • Tenure: 8.1yrs
      • Compensation: US$444.00k

    Board Members

    • Raju Panjwani (61yo)

      Independent Director

      • Tenure: 4.8yrs
    • Aron Govil (64yo)

      CFO, Principal Accounting Officer & Executive Director

      • Metodi Filipov (55yo)

        Independent Director

        • Tenure: 1.9yrs
      • Saagar Govil (33yo)

        Chairman

        • Tenure: 8.1yrs
        • Compensation: US$444.00k
      • Sunny Verma

        Independent Director

        • Tenure: 0.08yrs

      Company Information

      Cemtrex, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Cemtrex, Inc.
      • Ticker: CETX
      • Exchange: NasdaqCM
      • Founded: 1998
      • Industry: Electronic Manufacturing Services
      • Sector: Tech
      • Market Cap: US$7.833m
      • Shares outstanding: 4.53m
      • Website: https://www.cemtrex.com

      Number of Employees


      Location

      • Cemtrex, Inc.
      • 30-30 47th Avenue
      • Long Island City
      • New York
      • 11101
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CETXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 1998
      C42ADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1998
      CETX.PNasdaqCM (Nasdaq Capital Market)PFD SER 1USUSDFeb 2017

      Biography

      Cemtrex, Inc. primarily provides electronic manufacturing services. The company operates through three segments: Advanced Technologies, Electronics Manufacturing, and Industrial Technology. The Advanced Technologies segment provides SmartDesk, an IoT product for the desktop PC market; and related white glove installation, extended warranties, and accessories directly to consumers, as well as through value added resellers for enterprises. This segment also offers design and development solutions to create impactful experiences for mobiles, Web, virtual and augmented reality, wearables, and televisions; and security and video surveillance systems, as well as develops various applications for virtual and augmented reality markets. The Electronics Manufacturing segment provides end to end electronic manufacturing services, including product design and sustaining engineering, printed circuit board assembly and production, cabling and wire harnessing, systems integration, and comprehensive testing services; and assembled electronic products to OEMs. This segment also designs, develops, manufactures, and sells interconnects and cable assemblies; and provides software development services for mobile, Web, virtual reality, and PC applications. The Industrial Technology segment offers single-source services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly; and sells a range of air filtration and environmental control products to various industries, such as chemical, cement, steel, food, construction, mining, and petrochemical. Cemtrex, Inc. operates in the United States and internationally. The company was formerly known as Diversified American Holding, Inc. and changed its name to Cemtrex, Inc. in December 2004. Cemtrex, Inc. was incorporated in 1998 and is headquartered in Long Island City, New York. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 00:10
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      Annual Earnings2019/09/30


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.