One-glance verdict
Undervalued
$109.77 our estimate vs market $3.21
Wall Street consensus: $5.62 (-94.9% 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
$3.21
52-week range
$2.80 - $5.80
Market cap
$410.84M
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 services company that helps large businesses create and improve their digital tools, such as mobile apps and websites. It earns revenue by guiding clients from initial strategy all the way to building and running the final software, often using advanced technologies like artificial intelligence. This is important because many companies rely on these outside experts to modernize their operations and better connect with customers in a digital world.
How the company got here
CI&T was founded in Brazil in 1995 as a software development company. [10] Over the years, it grew from a local tech firm into a global business that helps large companies update their technology for the digital age. [10] To fund its global expansion and solidify its position, the company went public and began trading on the New York Stock Exchange in 2021. [10, 7] Today, it has thousands of employees in several countries, working with major international brands. [4, 7]
What it actually does
Think of CI&T as a digital construction crew for big businesses. [8] Companies hire CI&T to design, build, and modernize their digital operations, such as creating mobile apps, improving websites, and moving their data to the cloud (a network of powerful, remote servers). [11, 14] They help clients map out a technology plan, create user-friendly digital products, and then write the code to make it all work. [1, 8] The goal is to help these large companies keep up with changing technology and better serve their own customers online. [8]
Financial Services
This is CI&T's largest business area, making up over a third of its sales. [2] Here, the company works with banks, insurance companies, and other financial firms to build things like mobile banking apps and more secure online payment systems. These clients pay CI&T to help them modernize their technology, making their services easier and safer for their customers to use. This segment is a major source of the company's revenue (the total money it brings in from sales). [2, 9]
Retail and Industrial Goods
This part of the business, which accounts for about a fifth of CI&T's revenue, helps stores and manufacturers improve how they sell to customers and manage their operations. [2] For example, CI&T might be hired to build a better e-commerce website for a clothing brand or create a system to help a factory track its products more efficiently. These clients are paying for technology that makes shopping smoother and their internal processes smarter. [17]
Consumer Goods
Similar in size to its retail segment, this division focuses on companies that make everyday products you'd find in a supermarket, like food, drinks, and household items. [2] CI&T helps these brands connect with their customers digitally, perhaps by building a new marketing website or an app that offers loyalty rewards. The goal is to use technology to strengthen the brand's relationship with the people who buy its products. [12]
Technology and Telecommunications
This is a smaller but fast-growing slice of the business. [2, 9] In this area, CI&T works with other tech companies and telecom providers to develop and improve their software and digital platforms. [2] For instance, a phone company might hire CI&T to help build a new customer service portal. These clients pay for CI&T's specialized engineering skills to get their own technology projects done faster and more effectively. [9]
What management is betting on now
Management is heavily focused on artificial intelligence (AI), believing it's the future of how businesses will operate. [5, 15] They've launched a new unit called 'CI&T Business Builders' specifically to help companies reinvent their core operations using AI. [5, 15] The company is also changing how it charges for its work, moving towards 'value-based' pricing, which means getting paid based on the success and efficiency gains its AI solutions provide, rather than just the hours worked. [13, 18] This strategy aims to tie CI&T's success directly to the measurable business improvements it delivers for its clients. [18]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $109.77 vs current price $3.21
Wall Street consensus is the average analyst price target: $5.62 (-94.9% lower than our fair-value estimate).
Our most-likely fair value is $109.77 a share — about 3,319.8% above today's price of $3.21, 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 $315.93M 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)
11.89x
Forward P/E
7.24x
P/B
1.27x
P/S
0.76x
EV/EBITDA
6.92x
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
0.27
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
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Payout ratio
0.0%
Last ex-div date
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