One-glance verdict
Undervalued
$93.93 our estimate vs market $2.96
Wall Street consensus: $5.62 (-94.0% lower than our fair-value estimate)
97% below our estimate, below the bear case
Fundamentals snapshot
CI&T Inc.
CINT · NYQ · Technology · Software - Infrastructure
Current price
$2.96
52-week range
$2.80 - $5.80
Market cap
$378.85M
Balance sheet
Watch
4.59x Stretched
Net debt $89.83M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 11.5% last year.
- Reward Returns 11.7% on equity, ahead of 75% of its peers.
- Risk Operating margin compressed from 12.9% to 8.4% over 3 years.
- Risk Insider ownership is only 1.8% (peer median: 2.8%).
What this company does
CI&T Inc.
CI&T is a technology consulting company that helps other businesses create and improve their digital tools, like websites, mobile apps, and the software that runs their online operations. The company makes money by being hired for these custom software and design projects, which is important because many large corporations need expert help to keep up with fast-moving trends like artificial intelligence and cloud computing (using powerful, remote computers over the internet to store data and run programs).
How the company got here
CI&T was started in 1995 by three college friends in Brazil who saw an opportunity at the beginning of the internet. [4, 12, 14] It began by developing software for other technology companies and grew steadily over the years, expanding to the United States, Europe, and Asia. [4] To grow even faster, the company acquired several other smaller tech firms, adding new skills and clients. [4] A major turning point came in November 2021 when CI&T had its Initial Public Offering (IPO), which is when a private company first sells shares of stock to the public, and began trading on the New York Stock Exchange. [3, 5, 8]
What it actually does
Think of CI&T as a team of technology experts that big companies hire to help build and improve their digital operations. [16, 18] If a large bank wants to create a new mobile banking app or a retail company wants to improve its website to sell more products, they might hire CI&T. [12] The company provides the strategy, design, and software engineering to create these digital tools from start to finish. [10, 14] They specialize in using modern technologies like Artificial Intelligence (AI), which is making computers smarter, and cloud computing (running software on the internet instead of local computers) to make their clients' businesses more efficient and easier for customers to use. [10]
Tech-Integrated Business Solutions
This is the company's single, primary business, and it's how they make almost all of their money. [2] Large companies from industries like finance, healthcare, and retail pay CI&T to design, build, and modernize the software and digital platforms they rely on. [1, 16] The vast majority of the company's revenue (the total money it brings in) comes from these software development projects. [2] CI&T also earns a smaller amount from related services like consulting (giving expert advice on technology strategy) and ongoing software maintenance (keeping the digital platforms running smoothly after they are built). [2]
What management is betting on now
Management is heavily focused on Artificial Intelligence (AI), aiming to be a leading partner for companies that want to use AI to improve their business. [7, 13, 24] They have built their own internal AI system, called CI&T FLOW, to help their own employees build software faster and more efficiently for clients. [19, 20] The company's main strategy is to help its clients use AI to cut costs, create better experiences for their customers, and make smarter business decisions. [26] They recently launched a new group called 'Business Builders' specifically to help established companies completely reinvent their core operations for the age of AI. [24, 28]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $93.93 vs current price $2.96
Wall Street consensus is the average analyst price target: $5.62 (-94.0% lower than our fair-value estimate).
Our most-likely fair value is $93.93 a share — about 3,073.2% above today's price of $2.96, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $89.8M. Interest coverage 4.6x.
Net debt
$89.83M
Interest coverage
4.59x
CI&T Inc.'s profit covers its interest bill about 4.6 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
CINT
BASELINE
CI&T Inc.
Total debt $143.33M Interest coverage 4.59x This is the baseline the peer rows are being compared against.
Total debt $517.85M Interest coverage 6.18x +35% vs CINT Carries about 1.3x more debt cushion than CINT.
Total debt $152.24M Interest coverage 301.10x +6,460% vs CINT Carries about 65.6x more debt cushion than CINT.
Total debt $317.44M Interest coverage 2.95x -36% vs CINT Carries about 1.6x less debt cushion than CINT.
What you should know
The case for and against CINT
3 Rewards
2 Risks
Rewards
-
Revenue grew 11.5% last year.
-
Returns 11.7% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Operating margin compressed from 12.9% to 8.4% over 3 years.
-
Insider ownership is only 1.8% (peer median: 2.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.57x
Forward P/E
6.64x
P/B
1.17x
P/S
0.70x
EV/EBITDA
6.58x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
31.2%
Operating margin
8.4%
Net margin
6.8%
ROE
11.7%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.44x
Current ratio
1.31x
Quick ratio
1.28x
Total debt
$143.33M
Total cash
$53.50M
Growth
How the business has been compounding
Revenue TTM
$541.02M
Revenue 5Y CAGR
4.9%
EPS TTM
0.28
EPS 5Y CAGR
19.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$60.56M
Free CF TTM
$45.80M
FCF margin
8.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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