Q: Could you provide an update on Cematrix: fundamentals, insider holdings, potential for growth, and your opinion on whether this is a good time to buy both for short term and long term.
Thanks.
Thanks.
5i Research Answer:
Market cap is now $61M, after the stock doubled in the past year. P/E is 20x; insiders own 12.71% with minor net buying in the past six months. Net cash is $7M. Revenue of $45M should be reported for 2025, rising to $60M this year (one analyst estimate). The Q3 was decent with good sales growth. It has recently won some contracts, and the backlog is good. It meets our 'HALO' theme and is not likely to be disrupted by AI. We would consider it a nice little micro cap.....except, it is fairly pricey, and the business can be cyclical. We could see it as part of a 'basket' stock approach with several other micro caps, but would not want a big position due to its overall risk.