CI&T, Inc. (Brazil) () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Solaris Oilfield Infrastructure, Inc.

Telos Corp.

TruBridge, Inc.

MediaAlpha, Inc.

CI&T, Inc. (Brazil)

NETGEAR, Inc.

Cibus, Inc.

Blend Labs, Inc.

Upland Software, Inc.

Rimini Street, Inc.

Unisys Corp.

Why is CI&T, Inc. (Brazil) ?

High Management Efficiency with a high ROCE of 15.08%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.53 times

Poor long term growth as Net Sales has grown by an annual rate of 4.94% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 56.24 MM
RAW MATERIAL COST(Y) Grown by 8.37% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 14.11 %

With ROCE of 16.35%, it has a very attractive valuation with a 1.88 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.55%, its profits have risen by 23.2% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 67.05%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -39.55% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CI&T, Inc. (Brazil) should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CI&T, Inc. (Brazil) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CI&T, Inc. (Brazil)

-39.24%

-0.56

48.92%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.94%

EBIT Growth (5y)

5.02%

EBIT to Interest (avg)

6.42

Debt to EBITDA (avg)

0.91

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

1.01

Tax Ratio

32.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

67.05%

ROCE (avg)

131.37%

ROE (avg)

10.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.10

EV to EBIT

11.48

EV to EBITDA

8.85

EV to Capital Employed

1.88

EV to Sales

1.48

PEG Ratio

0.90

Dividend Yield

ROCE (Latest)

16.35%

ROE (Latest)

12.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

ROCE(HY)

Highest at 13.37%

NET SALES(Q)

Highest at USD 136.61 MM

DEBT-EQUITY RATIO (HY)

Lowest at 25.1 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.73 times

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 56.24 MM

RAW MATERIAL COST(Y)

Grown by 8.37% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 14.11 %

NET PROFIT(Q)

At USD 7.39 MM has Fallen at -25.21%

Here's what is working for CI&T, Inc. (Brazil)

Net Sales

Highest at USD 136.61 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 25.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 5.56 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for CI&T, Inc. (Brazil)

Operating Cash Flow

Lowest at USD 56.24 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 14.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At USD 7.39 MM has Fallen at -25.21%

over average net sales of the previous four periods of USD 9.88 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 8.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales