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1. Company Snapshot

1.a. Company Description

Cembre S.p.A. manufactures and sells electrical connectors, cable accessories, and related tools in Italy, the rest of Europe, and internationally.The company offers pre-insulated, un-insulated, and other types of electrical connectors, as well as flexible braids for earthing moving elements; mechanical tools for crimping electrical connectors and cutting and preparing cables; hydraulic tools for crimping electrical connectors and cutting and preparing conductors; products for railway electrical connections; machinery for track maintenance; and hand tools.It also provides cable glands and fixing components, brass and steel cable glands and fixing components, extensions, reducer bushes and converters, rutaseal grommets, and sicurclips modular retaining clips; and identification and labeling systems, such as thermal transfer systems, manual cable marking systems, document wallets, and warning labels.


In addition, the company offers heat-shrinkable tubing products, insulated covers, cable ties, tape rules, mechanical tools, bypass and joining muffles, overhead transmission and distribution, substation, and underground and meter dept.Its products are used in power production and transport, electrical systems, and industrial and railway applications.The company was founded in 1969 and is headquartered in Brescia, Italy.


Cembre S.p.A. is a subsidiary of Lysne S.p.A.

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1.b. Last Insights on CMB

Cembre S.p.A.'s recent momentum is driven by a solid financial foundation. The company's latest earnings release demonstrated a strong performance, with growing sales and profitability. Additionally, Cembre's strategic focus on innovative products and solutions has been well-received by the market. With no major legal issues or disruptions reported, the company's upward trajectory is likely sustained by its robust business conditions. Cembre's management has also been actively engaged in investor relations, further enhancing market confidence.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Electrical Connectors and Related Tools

Expected Growth: 7.0%

Cembre S.p.A.'s Electrical Connectors and Related Tools segment growth of 7.0% is driven by increasing demand for renewable energy, electrification of transportation, and rising infrastructure investments. Additionally, the company's focus on innovation, expanding product portfolio, and strategic acquisitions contribute to its growth momentum.

7. Detailed Products

Electrical Connectors

Cembre S.p.A. offers a wide range of electrical connectors for industrial and railway applications, including screw, crimp, and solder connectors.

Cable Accessories

Cembre S.p.A. provides a variety of cable accessories, including cable glands, cable ties, and cable markers, for securing and identifying cables.

Railway Connectors

Cembre S.p.A. designs and manufactures specialized connectors for railway applications, including high-voltage connectors and multi-pole connectors.

Earthing and Short-Circuiting Devices

Cembre S.p.A. offers a range of earthing and short-circuiting devices for electrical safety and protection in industrial and railway applications.

Tooling and Machinery

Cembre S.p.A. provides specialized tooling and machinery for the production of electrical connectors and cable accessories.

Customized Solutions

Cembre S.p.A. offers customized solutions for specific customer requirements, including design, development, and manufacturing of specialized electrical connectors and cable accessories.

8. Cembre S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cembre S.p.A. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition from Asian manufacturers.

Bargaining Power Of Customers

Cembre S.p.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Cembre S.p.A. relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the railway industry, including the need for specialized equipment and expertise. Additionally, Cembre S.p.A.'s strong brand reputation and established customer relationships make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The railway industry is highly competitive, with several established players competing for market share. Cembre S.p.A. faces intense competition from Asian manufacturers, which has led to pricing pressure and a need for continuous innovation to stay ahead.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.14%
Debt Cost 6.94%
Equity Weight 96.86%
Equity Cost 9.18%
WACC 9.11%
Leverage 3.24%

11. Quality Control: Cembre S.p.A. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cembre

A-Score: 6.6/10

Value: 2.5

Growth: 6.4

Quality: 7.9

Yield: 6.2

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
GPI

A-Score: 6.1/10

Value: 6.5

Growth: 6.7

Quality: 6.0

Yield: 4.4

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Mersen

A-Score: 5.2/10

Value: 7.6

Growth: 5.2

Quality: 3.6

Yield: 7.5

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

Stock-Card
Cenergy Holdings

A-Score: 5.0/10

Value: 3.5

Growth: 9.0

Quality: 5.1

Yield: 0.6

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Luceco

A-Score: 4.8/10

Value: 6.0

Growth: 5.0

Quality: 5.1

Yield: 6.2

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Carlo Gavazzi Holding

A-Score: 3.5/10

Value: 6.5

Growth: 2.2

Quality: 5.0

Yield: 3.1

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.4$

Current Price

68.4$

Potential

-0.00%

Expected Cash-Flows