CI&T Inc (NYSE: CINT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001868995
Market Cap 628.98 Mn
P/B 3.32
P/E 16.45
P/S 1.27
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 2.69
EV to Cash from Ops. EV/CFO 9.37 28.91
EV to Debt EV to Debt 0.00 19.83
EV to EBIT EV/EBIT 8.78 -9.95
EV to EBITDA EV/EBITDA 8.92 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 11.35 26.09
EV to Market Cap EV to Market Cap 1.20 0.36
EV to Revenue EV/Rev 1.52 -9.34
Price to Book Value [P/B] P/B 3.32 3.88
Price to Earnings [P/E] P/E 16.45 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 2.85 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -44.51 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 34.78 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.90 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 21.58 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 31.29 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 53.40 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -21.84 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.69 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.00 1.22
Current Ratio Curr Ratio (Qtr) 0.00 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.96
Interest Cover Ratio Int Coverage (Qtr) 2.85 -14.20
Times Interest Earned Times Interest Earned (Qtr) 2.85 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.10 -548.16
EBIT Margin % EBIT Margin % (Qtr) 17.36 -199.84
EBT Margin % EBT Margin % (Qtr) 11.26 -607.20
Gross Margin % Gross Margin % (Qtr) 32.80 51.88
Net Profit Margin % Net Margin % (Qtr) 7.70 -610.00