CI&T Inc (NYSE: CINT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001868995
P/B 3.30
P/E 16.38
P/S 1.26
Market Cap 626.37 Mn
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 13.44
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

CI&T Inc., also known as CI&T, is a global digital transformation specialist that operates within the technology industry. The company, which was founded in 1995 in Brazil, has since expanded to encompass a global workforce of over 6,100 professionals across nine countries. CI&T generates revenue through its primary products and services, which include digital strategy, customer-centric design, and top-of-the-line software engineering. These services are highly customized and provide end-to-end solutions that cater to the unique needs of each client....

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Analysis

Pros

  • Operating cash flow of 80.75M provides strong 14.57x coverage of stock compensation 5.54M, indicating sustainable incentive practices.
  • Robust free cash flow of 66.66M exceeds capital expenditure of 14.09M by 4.73x, indicating strong organic growth funding capability.
  • Operating cash flow of 80.75M provides strong 5.73x coverage of capital expenditure 14.09M, enabling organic growth.

Cons

  • Operating cash flow of 80.75M barely covers its investment activities of (14.01M), with a coverage ratio of -5.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 80.75M barely covers operating expenses of (119768) with a -674.19 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of 66.66M represents just -1.36x of debt issuance (49.01M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 80.75M is outpaced by equity issuance of (12.44M) (-6.49 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 96.54M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.00 2.56
EV to Cash from Ops. 9.34 38.32
EV to Debt 0.00 -11.37
EV to EBIT 8.75 -12.79
EV to EBITDA 8.89 7.72
EV to Free Cash Flow [EV/FCF] 11.32 24.22
EV to Market Cap 1.20 0.58
EV to Revenue 1.52 -35.00
Price to Book Value [P/B] 3.30 3.74
Price to Earnings [P/E] 16.38 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 2.85 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -44.51 -404.11
Cash and Equivalents Growth (1y) % 0.00 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 34.78 31.15
EBITDA Growth (1y) % 11.90 49.02
EBIT Growth (1y) % 21.58 25.85
EBT Growth (1y) % 31.29 17.82
EPS Growth (1y) % 53.40 70.69
FCF Growth (1y) % -21.84 295.45
Gross Profit Growth (1y) % 1.69 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.00 1.21
Current Ratio 0.00 2.57
Debt to Equity Ratio 0.00 -0.93
Interest Cover Ratio 2.85 -13.15
Times Interest Earned 2.85 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 21.10 -544.82
EBIT Margin % 17.36 -197.78
EBT Margin % 11.26 -602.74
Gross Margin % 32.80 52.06
Net Profit Margin % 7.70 -605.52