CADRE HOLDINGS INC (CDRE) Stock Fundamental Analysis
NYSE:CDRE - New York Stock Exchange, Inc. - US12763L1052 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CDRE. CDRE was compared to 65 industry peers in the Aerospace & Defense industry. CDRE scores excellent on profitability, but there are some minor concerns on its financial health. CDRE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CDRE had positive earnings in the past year.
In the past year CDRE had a positive cash flow from operations.
CDRE had positive earnings in each of the past 5 years.
Each year in the past 5 years CDRE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.86%, CDRE is doing good in the industry, outperforming 73.85% of the companies in the same industry.
CDRE's Return On Equity of 12.11% is fine compared to the rest of the industry. CDRE outperforms 78.46% of its industry peers.
CDRE's Return On Invested Capital of 8.93% is fine compared to the rest of the industry. CDRE outperforms 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CDRE is in line with the industry average of 8.39%.
The last Return On Invested Capital (8.93%) for CDRE is above the 3 year average (8.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 12.11% | ||
| ROIC | 8.93% |
ROA(3y)5.33%
ROA(5y)6.73%
ROE(3y)11.56%
ROE(5y)96.32%
ROIC(3y)8.67%
ROIC(5y)11.97%
1.3 Margins
Looking at the Profit Margin, with a value of 6.87%, CDRE is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
In the last couple of years the Profit Margin of CDRE has grown nicely.
Looking at the Operating Margin, with a value of 12.85%, CDRE belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
CDRE's Operating Margin has improved in the last couple of years.
CDRE's Gross Margin of 41.44% is amongst the best of the industry. CDRE outperforms 84.62% of its industry peers.
CDRE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.85% | ||
| PM (TTM) | 6.87% | ||
| GM | 41.44% |
OM growth 3Y-0.25%
OM growth 5Y8.48%
PM growth 3Y28.91%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y3.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CDRE is destroying value.
The number of shares outstanding for CDRE has been increased compared to 1 year ago.
Compared to 5 years ago, CDRE has more shares outstanding
Compared to 1 year ago, CDRE has a worse debt to assets ratio.
2.2 Solvency
CDRE has an Altman-Z score of 4.20. This indicates that CDRE is financially healthy and has little risk of bankruptcy at the moment.
CDRE has a Altman-Z score of 4.20. This is in the better half of the industry: CDRE outperforms 61.54% of its industry peers.
The Debt to FCF ratio of CDRE is 5.33, which is a neutral value as it means it would take CDRE, 5.33 years of fcf income to pay off all of its debts.
CDRE has a better Debt to FCF ratio (5.33) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that CDRE is somewhat dependend on debt financing.
CDRE has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: CDRE underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.87
WACC10.27%
2.3 Liquidity
A Current Ratio of 3.55 indicates that CDRE has no problem at all paying its short term obligations.
The Current ratio of CDRE (3.55) is better than 75.38% of its industry peers.
A Quick Ratio of 2.57 indicates that CDRE has no problem at all paying its short term obligations.
CDRE has a better Quick ratio (2.57) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The earnings per share for CDRE have decreased by -5.94% in the last year.
Measured over the past years, CDRE shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.28% on average per year.
Looking at the last year, CDRE shows a quite strong growth in Revenue. The Revenue has grown by 10.06% in the last year.
The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)-5.94%
EPS 3Y34.28%
EPS 5YN/A
EPS Q2Q%27.78%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y9.92%
Revenue growth 5Y6.17%
Sales Q2Q%-5.62%
3.2 Future
The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, CDRE will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y41.1%
EPS Next 2Y27.38%
EPS Next 3Y20.01%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y10.64%
Revenue Next 3Y1.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CDRE is valuated quite expensively with a Price/Earnings ratio of 36.85.
CDRE's Price/Earnings ratio is a bit cheaper when compared to the industry. CDRE is cheaper than 64.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of CDRE to the average of the S&P500 Index (26.59), we can say CDRE is valued slightly more expensively.
CDRE is valuated rather expensively with a Price/Forward Earnings ratio of 23.97.
CDRE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CDRE is cheaper than 67.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CDRE to the average of the S&P500 Index (22.39), we can say CDRE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.85 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
67.69% of the companies in the same industry are more expensive than CDRE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDRE indicates a somewhat cheap valuation: CDRE is cheaper than 78.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.39 | ||
| EV/EBITDA | 17.12 |
4.3 Compensation for Growth
CDRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CDRE may justify a higher PE ratio.
A more expensive valuation may be justified as CDRE's earnings are expected to grow with 20.01% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y27.38%
EPS Next 3Y20.01%
5. Dividend
5.1 Amount
CDRE has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
CDRE's Dividend Yield is rather good when compared to the industry average which is at 1.29. CDRE pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CDRE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
CDRE has been paying a dividend for over 5 years, so it has already some track record.
CDRE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
CDRE pays out 37.76% of its income as dividend. This is a sustainable payout ratio.
DP37.76%
EPS Next 2Y27.38%
EPS Next 3Y20.01%
35.01
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners67.22%
Inst Owner Change3.63%
Ins Owners31.66%
Ins Owner Change0.15%
Market Cap1.42B
Analysts83.08
Price Target44.71 (27.71%)
Short Float %7.3%
Short Ratio6.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP37.76%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.05%
Min EPS beat(2)-31.8%
Max EPS beat(2)87.91%
EPS beat(4)3
Avg EPS beat(4)28.09%
Min EPS beat(4)-31.8%
Max EPS beat(4)87.91%
EPS beat(8)6
Avg EPS beat(8)27.15%
EPS beat(12)7
Avg EPS beat(12)11.71%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)0.97%
Max Revenue beat(2)4.48%
Revenue beat(4)2
Avg Revenue beat(4)-2.5%
Min Revenue beat(4)-15.05%
Max Revenue beat(4)4.48%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)9
Avg Revenue beat(12)1.09%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.88%
PT rev (3m)0.38%
EPS NQ rev (1m)-19.8%
EPS NQ rev (3m)-28.18%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-7.43%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.85 | ||
| Fwd PE | 23.97 | ||
| P/S | 2.54 | ||
| P/FCF | 34.39 | ||
| P/OCF | 30.27 | ||
| P/B | 4.48 | ||
| P/tB | 22.57 | ||
| EV/EBITDA | 17.12 |
EPS(TTM)0.95
EY2.71%
EPS(NY)1.46
Fwd EY4.17%
FCF(TTM)1.02
FCFY2.91%
OCF(TTM)1.16
OCFY3.3%
SpS13.77
BVpS7.81
TBVpS1.55
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 12.11% | ||
| ROCE | 12.79% | ||
| ROIC | 8.93% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 28.76% | ||
| OM | 12.85% | ||
| PM (TTM) | 6.87% | ||
| GM | 41.44% | ||
| FCFM | 7.39% |
ROA(3y)5.33%
ROA(5y)6.73%
ROE(3y)11.56%
ROE(5y)96.32%
ROIC(3y)8.67%
ROIC(5y)11.97%
ROICexc(3y)11.24%
ROICexc(5y)14.1%
ROICexgc(3y)24.24%
ROICexgc(5y)30.41%
ROCE(3y)12.41%
ROCE(5y)17.14%
ROICexcg growth 3Y-11.18%
ROICexcg growth 5Y5.68%
ROICexc growth 3Y-14.82%
ROICexc growth 5Y2.49%
OM growth 3Y-0.25%
OM growth 5Y8.48%
PM growth 3Y28.91%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y3.46%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 34.49% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 4.65 | ||
| Cash Conversion | 53.27% | ||
| Profit Quality | 107.66% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z | 4.2 |
F-Score6
WACC10.27%
ROIC/WACC0.87
Cap/Depr(3y)35.32%
Cap/Depr(5y)31.71%
Cap/Sales(3y)1.12%
Cap/Sales(5y)1.04%
Profit Quality(3y)322.36%
Profit Quality(5y)273.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.94%
EPS 3Y34.28%
EPS 5YN/A
EPS Q2Q%27.78%
EPS Next Y41.1%
EPS Next 2Y27.38%
EPS Next 3Y20.01%
EPS Next 5YN/A
Revenue 1Y (TTM)10.06%
Revenue growth 3Y9.92%
Revenue growth 5Y6.17%
Sales Q2Q%-5.62%
Revenue Next Year12.09%
Revenue Next 2Y10.64%
Revenue Next 3Y1.62%
Revenue Next 5YN/A
EBIT growth 1Y15.12%
EBIT growth 3Y9.65%
EBIT growth 5Y15.18%
EBIT Next Year77.33%
EBIT Next 3Y30.01%
EBIT Next 5YN/A
FCF growth 1Y-9.79%
FCF growth 3Y-11.18%
FCF growth 5Y43.24%
OCF growth 1Y-6.33%
OCF growth 3Y-7.45%
OCF growth 5Y33.8%