Cadre Holdings (CDRE) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 1.23%
• Average Volume (3M): 301.76K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.95
• Revenue Growth: 17.62%
• EPS Growth: -12.37%
• Country: US
• Employees: 2,284
• Sector: Industrials
• Sector Strength: 65
• Industry: Aerospace & Defense
• EPS (TTM): 0.89
• Shares Outstanding: 40,607,986
• 10 Day Avg. Volume: 258,221
• 30 Day Avg. Volume: 301,758
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.23
• Price to Cash Flow (P/CF): 13.40
• P/FCF Ratio: 14.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.33
• Price Target Upside: 37.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Cadre Holdings holds a solid financial foundation with impressive revenue growth and profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. Positive earnings call guidance and strategic initiatives are promising, though macroeconomic uncertainties and tariff impacts pose risks.

Positive Factors

Earnings

Q4 revenues increased by 41%, outperforming estimates by 3%.

Financial Performance

Adjusted EBITDA rose by 86%, exceeding estimates by 6% with margins improving by 5.3 percentage points year-over-year.

Financial Position

CDRE announced a $590 million credit agreement, strengthening its financial position with a comfortable leverage range.

Negative Factors

Outlook

Management reduced full year outlook for revenue and adjusted EBITDA as a result of production delays caused by the cybersecurity incidents.

Revenue Guidance

2025 revenue guidance is below consensus expectations, partly due to government procurement and tariff disruptions.

Sales Performance

Sales of $109mn came in below expectations, hampered by the July cyberattack and a subsequent event in September.

Cadre Holdings Business Overview & Revenue Model

Company Description

Cadre Holdings, Inc. manufactures and distributes safety and survivability equipment that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It primarily provides body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brands; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective and law enforcement equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, and various foreign government agencies. The company was founded in 1964 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

Cadre Holdings generates revenue primarily through the sale of its safety and survivability products to government entities, law enforcement agencies, and commercial customers. The company's key revenue streams include direct sales of body armor, tactical gear, and other protective equipment. Significant partnerships with governmental organizations and defense contractors contribute to its earnings, as these collaborations often involve large-scale contracts and long-term agreements. Additionally, Cadre Holdings benefits from an established distribution network that extends its market reach both domestically and internationally, further driving its sales and revenue growth.

Cadre Holdings Financial Statement Overview

Summary

Cadre Holdings shows strong revenue growth and healthy profit margins, with a robust balance sheet. While cash flow is solid, there are areas that need attention, such as debt levels and free cash flow growth.

Income Statement

Cadre Holdings has shown strong growth in revenue, with a notable increase of 17.63% from 2023 to 2024. The company maintains solid profitability with a gross profit margin of 41.13% and a net profit margin of 12.74% in 2024. However, the net profit margin has room for improvement. The EBIT and EBITDA margins are also healthy at 11.76% and 11.76% respectively, indicating efficient operations.

Balance Sheet

The company's balance sheet reveals a relatively high debt-to-equity ratio of 0.75 in 2024, which is reasonable for the industry but signals a need for cautious leverage management. The return on equity has improved significantly to 23.21%, showing effective use of shareholder funds. The equity ratio stands at 47.72%, indicating a stable financial structure with ample equity to support its assets.

Cash Flow

Cadre Holdings experienced a decline in operating cash flow from 2023 to 2024, but maintains a strong free cash flow to net income ratio of 0.36, indicating effective cash conversion. The free cash flow growth rate is negative, which could be a concern if not addressed. Overall, the cash flow position is solid but requires attention to ensure future growth and sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
567.56M	482.53M	457.84M	427.29M	404.64M
	Gross Profit
233.48M	200.73M	175.68M	170.69M	152.94M
	EBIT
66.76M	56.52M	16.72M	51.72M	49.80M
	EBITDA
78.46M	73.19M	41.98M	68.87M	59.39M
	Net Income Common Stockholders
36.13M	38.64M	5.82M	12.66M	38.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
124.93M	87.69M	45.29M	33.86M	2.87M
	Total Assets
652.71M	431.18M	391.95M	311.80M	283.28M
	Total Debt
233.94M	146.83M	154.65M	159.69M	212.81M
	Net Debt
109.00M	59.14M	109.37M	125.83M	209.93M
	Total Liabilities
341.20M	234.02M	226.06M	223.16M	274.43M
	Stockholders Equity
311.51M	197.16M	165.89M	88.64M	8.85M
Cash Flow		Free Cash Flow
26.11M	66.48M	41.91M	37.26M	40.71M
	Operating Cash Flow
31.78M	73.21M	46.41M	40.09M	45.42M
	Investing Cash Flow
-147.43M	-6.52M	-59.63M	-2.83M	19.78M
	Financing Cash Flow
152.67M	-24.72M	24.46M	-6.60M	-64.90M

Cadre Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRE, the sentiment is Negative. The current price of 29.37 is below the 20-day moving average (MA) of 29.90, below the 50-day MA of 32.21, and below the 200-day MA of 34.74, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDRE.

Cadre Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	76 Outperform	$456.97M	33.19	28.88%	―	87.26%	―
CDRE	71 Outperform	$1.19B	32.78	14.21%	1.23%	17.62%	-12.37%
RGR	70 Outperform	$653.55M	22.03	9.39%	1.80%	-1.49%	-34.38%
DCO	69 Neutral	$816.44M	26.18	4.78%	―	3.90%	81.41%
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
SWBI	62 Neutral	$416.27M	14.55	8.05%	5.55%	-5.77%	14.45%
PL	55 Neutral	$894.66M	―	-25.68%	―	10.72%	16.19%

Cadre Holdings Corporate Events

Cadre Holdings Solidifies Executive Leadership with New Agreements

On January 24, 2025, Cadre Holdings, Inc. formalized employment agreements with Brad Williams as President and Blaine Browers as Chief Financial Officer, each for a three-year term. These agreements outline salaries, performance bonuses, and stock incentives, alongside confidentiality, non-competition, and other employment terms. The agreements also specify conditions for termination and associated compensations, aiming to secure leadership continuity and align executive incentives with company performance.