Cantaloupe, Inc. (NASDAQ: CTLP)

Sector: Technology Industry: Software - Infrastructure CIK: 0000896429
Market Cap 733.20 Mn
P/B 2.90
P/E 13.47
P/S 2.31
ROIC (Qtr) -0.34
Div Yield % 0.00
Rev 1y % (Qtr) 6.77
Total Debt (Qtr) 37.71 Mn
Debt/Equity (Qtr) 0.15
Add ratio to table...

About

Cantaloupe, Inc., a prominent player in the global technology market, specializes in self-service commerce within the unattended point-of-sale (POS) sector. The company's offerings encompass micro-payments processing, enterprise cloud software, Internet of Things (IoT) technology, and kiosk and POS innovations. Cantaloupe's integrated solutions empower businesses of all scales to deliver self-service experiences to consumers, thereby enhancing consumer engagement and sales revenue through digital payments, promotional initiatives, and loyalty programs....

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 41.96M provides robust 1.11x coverage of total debt 37.70M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 52.98M provide 27.61x coverage of short-term debt 1.92M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 258.47M provides 6.85x coverage of total debt 37.70M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 41.96M provides strong 11.06x coverage of stock compensation 3.79M, indicating sustainable incentive practices.
  • Operating cash flow of 41.96M provides exceptional 16.55x coverage of interest expenses 2.54M, showing strong debt service capability.

Bear case

  • Operating cash flow of 41.96M barely covers its investment activities of (17.49M), with a coverage ratio of -2.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (17.49M) provide weak support for R&D spending of 18.06M, which is -0.97x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 52.98M provide limited coverage of acquisition spending of (1.37M), which is -38.64x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 41.96M provides minimal -1.05x coverage of tax expenses of (39.84M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 17.69M show weak coverage of depreciation charges of 21.23M, with a 0.83 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.88 2.10
EV to Cash from Ops. EV/CFO 17.08 3.92
EV to Debt EV to Debt 19.00 -2.43
EV to EBIT EV/EBIT 40.51 11.57
EV to EBITDA EV/EBITDA 19.62 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF 27.73 19.98
EV to Market Cap EV to Market Cap 0.98 1.27
EV to Revenue EV/Rev 2.26 29.29
Price to Book Value [P/B] P/B 2.90 4.97
Price to Earnings [P/E] P/E 13.47 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 94.15 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Int. cover (Qtr) 6.98 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.75 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 91.41 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 257.00 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.71 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -9.81 27.96
EBT Growth (1y) % EBT 1y % (Qtr) -9.82 20.61
EPS Growth (1y) % EPS 1y % (Qtr) 270.00 144.77
FCF Growth (1y) % FCF 1y % (Qtr) 6,753.85 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.97 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.83 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.64 1.23
Current Ratio Curr Ratio (Qtr) 1.92 2.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.15 0.73
Interest Cover Ratio Int Coverage (Qtr) 6.98 -16.04
Times Interest Earned Times Interest Earned (Qtr) 6.98 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.30 -549.97
EBIT Margin % EBIT Margin % (Qtr) 5.57 -240.33
EBT Margin % EBT Margin % (Qtr) 4.77 -608.68
Gross Margin % Gross Margin % (Qtr) 40.40 51.14
Net Profit Margin % Net Margin % (Qtr) 17.10 -611.28