The CAN SLIM investment strategy, made well-known by William O'Neil, joins fundamental and technical analysis to find high-growth market leaders ready for major price increases. The system's acronym lists particular requirements: strong Current quarterly earnings, solid Annual earnings growth, a New product or service, limited Supply of shares with strong demand, market Leadership, Institutional sponsorship, and a good overall Market direction. This approach looks for stocks with strong basic business momentum that is also being acknowledged by the wider market.
CADELER A/S-ADR (NYSE:CDLR) appears as a candidate from a screen created on these ideas. As a main supplier of installation and maintenance services for offshore wind farms, the company works directly inside the long-term move toward renewable energy, matching the "New" part of the system which likes companies in changing fields.
Looking at the Fundamental "CAN SLIM" Match
A detailed look at Cadeler's financials shows several numbers that fit with the growth-focused basics central to the CAN SLIM strategy.
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Current Earnings & Sales Growth (The "C"): The system requires large, and ideally speeding up, quarterly growth. Cadeler's latest quarterly results display very fast momentum:
- Earnings Per Share (EPS) increased by 112.5% year-over-year.
- Revenue jumped by 91.5% year-over-year. This amount of growth is much greater than the usual CAN SLIM lowest points of 20-25%, showing strong current business performance.
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Annual Earnings Increases (The "A"): CAN SLIM searches for a past of large growth, not only one quarter. Cadeler shows a solid multi-year history, with a 3-year EPS Compound Annual Growth Rate (CAGR) of 57.2%. This is much higher than the system's proposed lowest point of 25-50% yearly growth. Also, the company's Return on Equity (ROE) of 20.7% is above the 10% mark, showing good use of shareholder money.
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Supply, Debt, and Sponsorship (The "S" & "I"): The system likes companies with a workable capital setup and rising institutional attention. Cadeler's Debt-to-Equity ratio of 0.82 is under the common screening limit of 2, pointing to a fair level of financial borrowing. Institutional ownership is about 33.5%, which is much lower than the 85% top limit often used to stay away from fully developed stocks. This leaves lots of space for more institutional finding and purchasing, a main idea of the "I" part.
A detailed fundamental analysis report for CDLR gives it a 6 out of 10, noting its outstanding profit margins and very strong growth picture, while pointing out some questions about its financial strength numbers like cash availability and Altman-Z score.
Judging Technical and Market Leadership
The "L" and "M" of CAN SLIM center on technical strength and total market situation, making sure the stock's basic story is supported by price movement.
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Leader or Laggard (The "L"): Relative strength is a key part of the system, finding stocks that are doing better than the wider market. Cadeler's ChartMill Relative Strength (CRS) rating of 75.4 means it is performing better than about 75% of all stocks. This makes it a market leader, a required feature for CAN SLIM candidates.
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Market Direction (The "M"): The strategy suggests investing mainly during certain market upward moves. At this time, both the short-term and long-term moves for the S&P 500 are up, giving a fitting setting for following growth-focused strategies like CAN SLIM.
The technical analysis report gives CDLR a high rating of 8 out of 10. It states the stock is in upward moves across several time periods and is now trading close to a 52-week high, a standard CAN SLIM buy sign. However, the report also warns that recent price movement may not give a high-grade, low-risk chance to enter at this exact time, proposing investors look for a possible pause.
Summary and More Study
Cadeler A/S shows a strong picture for investors using the CAN SLIM structure. The company displays very fast quarterly growth, an excellent multi-year earnings history, and works in the high-growth renewable energy field. This basic strength is supported by its high relative strength rating and presence within a good market setting. While the fundamental report mentions some financial strength points to think about and the technical report proposes watching for a better entry chance, the main growth and leadership numbers fit well with the system's goals.
For investors wanting to find other companies that match this controlled growth and momentum method, the ready-made O'Neill CANSLIM High Growth screen can be a beginning point for more study.
Disclaimer: This article is for information and learning only and is not a suggestion to buy, sell, or keep any security. The CAN SLIM strategy includes particular risk control methods, like the use of stop-loss orders. All investment choices include risk, including the possible loss of the original amount invested. Investors should do their own complete study and think about their personal money situation before making any investment choice.
