Freightos Limited (CRGO) AI Stock Analysis

44 Followers

Top Page

Freightos Limited

(NASDAQ:CRGO)

48Neutral

Freightos Limited shows strong revenue growth and promising operational developments, particularly in AI-driven solutions and increased transaction volumes. However, the stock is hindered by ongoing profitability challenges, negative cash flow, and valuation concerns due to negative earnings. The mixed technical indicators suggest uncertainty in the short term, though the company has potential for improvement if it can overcome its financial hurdles.

Freightos Limited (CRGO) vs. S&P 500 (SPY)

Market Cap

$97.08M

Dividend YieldN/A

Average Volume (3M)80.82K

Price to Earnings (P/E)―

Beta (1Y)2.11

Revenue Growth49.48%

EPS Growth80.17%

CountryUS

Employees378

SectorIndustrials

Sector Strength64

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)-0.33

Shares Outstanding50,042,740

10 Day Avg. Volume53,681

30 Day Avg. Volume80,817

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)5.93

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.50

Price Target Upside90.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Freightos Limited Business Overview & Revenue Model

Company DescriptionFreightos Limited (CRGO) is a leading digital freight booking platform that operates in the logistics and supply chain industry. The company offers a comprehensive online marketplace that connects importers, exporters, and freight forwarders, facilitating the booking and management of international freight shipments. Freightos aims to simplify global trade by providing transparent pricing, real-time tracking, and various logistical solutions tailored to meet the diverse needs of its clientele.

How the Company Makes MoneyFreightos Limited generates revenue primarily through its digital freight marketplace platform. The company charges transaction fees for each booking made through its platform, which can include air, ocean, and land freight services. Additionally, Freightos earns money through subscription fees for its software-as-a-service (SaaS) offerings, which provide advanced supply chain management tools and analytics to businesses. The company has established significant partnerships with major logistics providers and carriers, which enhance its service offerings and contribute to its revenue growth. Furthermore, the platform's ability to offer competitive pricing and efficient logistics solutions attracts a wide range of businesses, thus increasing transaction volume and revenue.

Freightos Limited Financial Statement Overview

Summary

Freightos Limited has strong revenue growth but faces challenges with profitability and cash flow management. Despite a solid equity base and low leverage, persistent operational losses and negative cash flow present significant challenges. The company needs to enhance its profit margins and cash conversion to improve financial health.

Income Statement

Neutral

Freightos Limited shows a consistent revenue growth trend, with a 17.28% increase from 2023 to 2024. However, the company faces challenges in profitability, reflected in negative EBIT and EBITDA margins. Despite a positive gross profit margin of 65.17% in 2024, the net profit margin remains negative at -94.57%, indicating significant operational and financial difficulties.

Balance Sheet

Neutral

The company maintains a strong equity base with a debt-to-equity ratio of 0.02, suggesting modest leverage. The equity ratio is high at 74.38%, indicating financial stability. However, the return on equity is negative due to persistent losses, highlighting the need for effective cost management to enhance shareholder value.

Cash Flow

Negative

Freightos Limited faces negative free cash flow, although there is an improvement in operating cash flow from -27.1 million in 2023 to -12.1 million in 2024. The free cash flow to net income ratio remains unfavorable, indicating challenges in converting revenues into cash. The company must enhance cash flow management to support its growth and operational needs.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
23.79M	20.28M	19.09M	11.12M	8.51M
	Gross Profit
15.50M	11.80M	11.23M	6.52M	4.24M
	EBIT
-229.47M	-77.80M	-24.98M	-16.29M	-12.87M
	EBITDA
-19.86M	-62.38M	-20.56M	-15.25M	-12.47M
	Net Income Common Stockholders
-22.49M	-65.47M	-24.70M	-16.36M	-14.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.27M	51.69M	6.69M	25.08M	21.89M
	Total Assets
73.78M	87.69M	41.81M	54.08M	31.17M
	Total Debt
954.00K	1.30M	3.51M	1.74M	2.35M
	Net Debt
-9.16M	-18.87M	-2.98M	-23.34M	-19.54M
	Total Liabilities
18.89M	15.64M	20.15M	19.16M	12.70M
	Stockholders Equity
54.89M	72.04M	21.66M	34.92M	18.47M
Cash Flow		Free Cash Flow
-12.15M	-27.18M	-15.16M	-17.50M	-8.33M
	Operating Cash Flow
-12.10M	-27.10M	-14.91M	-17.32M	-8.27M
	Investing Cash Flow
2.08M	-32.16M	-4.97M	-4.55M	66.00K
	Financing Cash Flow
85.00K	73.18M	1.89M	25.23M	-273.00K

Freightos Limited Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.84

Price Trends

50DMA

3.03

Negative

100DMA

2.82

Negative

200DMA

2.23

Negative

Market Momentum

MACD

-0.18

Negative

RSI

42.54

Neutral

STOCH

39.63

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGO, the sentiment is Negative. The current price of 1.84 is below the 20-day moving average (MA) of 2.34, below the 50-day MA of 3.03, and below the 200-day MA of 2.23, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 39.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRGO.

Freightos Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	75 Outperform	$14.56B	18.49	35.12%	1.38%	13.98%	14.29%
CHRW	68 Neutral	$10.75B	23.57	29.65%	2.77%	0.73%	41.65%
XPO	66 Neutral	$10.73B	28.47	27.07%	―	4.22%	105.29%
JBHT	65 Neutral	$13.21B	23.77	14.06%	1.31%	-5.79%	-20.32%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
KNX	61 Neutral	$6.31B	53.74	1.66%	1.69%	3.76%	-46.10%
CRGO	48 Neutral	$97.08M	―	-23.18%	―	49.48%	80.17%

* Industrials Sector Average

Performance Comparison

CRGO

Freightos Limited

1.82

-0.63

-25.71%

CHRW

CH Robinson

86.96

15.85

22.29%

EXPD

Expeditors International

102.84

-16.71

-13.98%

XPO

91.46

-35.88

-28.18%

JBHT

JB Hunt

129.46

-63.05

-32.75%

KNX

Knight Transportation

39.23

-13.73

-25.93%

Freightos Limited Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: -54.68% | Next Earnings Date: May 27, 2025

Earnings Call Sentiment Positive

Freightos demonstrated strong performance in Q4 2024 with significant revenue growth, record transactions, and successful onboarding of new carriers. The company is advancing in AI-driven solutions and improving gross margins. However, challenges remain with negative adjusted EBITDA and potential impacts from tariff changes and seasonal weaknesses.

Highlights

Strong Revenue Growth

Freightos reported a 25% year-over-year increase in revenue for Q4 2024, reaching $6.6 million. This is the highest quarterly growth rate since going public.

Record Transactions and Onboarding

Freightos facilitated over 350,000 transactions, a 22% increase from the previous year, and added twelve new carriers, marking the strongest onboarding of new carriers in its history.

SaaS Revenue Milestone

The SaaS solution subsegment generated its highest quarterly revenue ever in Q4 2024, supported by the recently acquired Shipster business.

AI-Driven Solutions Success

The newly launched AI-powered airline dynamic pricing tool, Skyway, showed a 70% revenue increase during a test, demonstrating promise in the market.

Improved Gross Margins

IFRS gross margin improved to 68% from 62% in Q4 2023, and non-IFRS gross margin rose to 74% from 70% last year, indicating ongoing cost efficiencies.

Lowlights

Negative Adjusted EBITDA

Adjusted EBITDA for Q4 2024 was negative $3.1 million, though this is within the guidance range and an improvement from the previous year.

Potential Tariff Impacts

The potential escalation of a trade war and changes in tariff policies could dampen international trade volumes, creating some uncertainty for Freightos.

Seasonal Weakness in Q1

Q1 2025 is expected to see flat adjusted EBITDA due to seasonal cost increases and weak freight volumes.

Company Guidance

During the Freightos Q4 2024 Earnings Conference Call, the company reported strong financial performance with a 25% year-over-year revenue growth, reaching $6.6 million for the quarter. The company facilitated over 350,000 transactions, marking a 22% increase from the previous year and adding twelve new carriers to their platform, bringing the total to 67. Gross margins improved significantly, with IFRS gross margin at 68% and non-IFRS gross margin at 74%. For Q1 2025, Freightos provided guidance expecting transactions between 362,000 and 370,000, GBV between $272 million and $280 million, and revenue between $6.7 million and $6.8 million. The full-year 2025 revenue is anticipated to be between $29 million and $30.6 million. The company also projected Q1 adjusted EBITDA between negative $3 million and negative $3.2 million, with an aim for breakeven by the end of 2026. Freightos continues to focus on expanding its platform and solutions, leveraging AI for dynamic pricing, and navigating potential impacts from tariffs and market conditions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.