Latest news with #CDRE
Yahoo
11-04-2025
- Business
- Yahoo
3 Reasons CDRE is Risky and 1 Stock to Buy Instead
Shareholders of Cadre would probably like to forget the past six months even happened. The stock dropped 25.4% and now trades at $30.01. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Cadre, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the more favorable entry price, we're cautious about Cadre. Here are three reasons why CDRE doesn't excite us and a stock we'd rather own. Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Looking at the trend in its profitability, Cadre's operating margin decreased by 2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 11.8%. We track the change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Cadre's full-year EPS grew at a weak 3.2% compounded annual growth rate over the last three years, worse than the broader industrials sector. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, Cadre's margin dropped by 5.5 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Cadre's free cash flow margin for the trailing 12 months was 4.6%. Cadre isn't a terrible business, but it isn't one of our picks. After the recent drawdown, the stock trades at 10.5× forward EV-to-EBITDA (or $30.01 per share). Beauty is in the eye of the beholder, but we don't really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. We'd suggest looking at the most entrenched endpoint security platform on the market. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
09-04-2025
- Business
- Yahoo
Is Now The Time To Look At Buying Cadre Holdings, Inc. (NYSE:CDRE)?
Cadre Holdings, Inc. (NYSE:CDRE), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$39.84 at one point, and dropping to the lows of US$28.17. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Cadre Holdings' current trading price of US$28.43 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Cadre Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 31.95x is currently trading slightly above its industry peers' ratio of 27.18x, which means if you buy Cadre Holdings today, you'd be paying a relatively reasonable price for it. And if you believe that Cadre Holdings should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. So, is there another chance to buy low in the future? Given that Cadre Holdings's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for Cadre Holdings Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Cadre Holdings' earnings over the next few years are expected to increase by 79%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? CDRE's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at CDRE? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on CDRE, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for CDRE, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - Cadre Holdings has 1 warning sign we think you should be aware of. If you are no longer interested in Cadre Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Why Cadre Holdings, Inc. (CDRE) Is Skyrocketing So Far In 2025
We recently published an article titled . In this article, we are going to take a look at where Cadre Holdings, Inc. (NYSE:CDRE) stands against the other defense stocks. A Republican administration usually points to a good time for defense stocks and the military-industrial complex as a whole. However, the Trump administration has taken a surprising departure from the traditional Republican stance of advocating for ever-increasing military budgets. Instead, Trump has introduced significant shifts in priorities. His administration has pushed for budget cuts at the Pentagon. Trump wants to cut defense spending by 8% and re-allocate that toward border security and nuclear modernization instead of traditional military programs. The proposed cut would amount to approximately $50 billion in cuts each year and would total around $300 billion in reduced spending by fiscal 2030. However, that's unlikely to happen as both Democrats and Republicans in Congress haven't been cooperating. Similar attempts previously didn't get through. Regardless, many defense and aerospace companies have been posting great numbers and the stock market has rewarded them accordingly. It's a good idea to look into the ones investors are piling into this year, as they could also be the winners of the Trump era. For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (). A U.S. Marine in full body armor standing in formation in a parade. Number of Hedge Fund Holders In Q4 2024: 12 Cadre Holdings, Inc. (NYSE:CDRE) makes safety equipment for law enforcement, first responders, and for military uses. The stock is up significantly so far in 2025 as it announced an agreement to acquire Carr's Group's Engineering Division for £75 million in cash, which includes multiple nuclear brands. This division generated £51 million in revenue for fiscal year 2024. The acquisition will expand Cadre's nuclear safety presence. Furthermore, Cadre Holdings, Inc. (NYSE:CDRE) announced a 9% increase in its quarterly dividend to $0.095 per share and raised its annual dividend from $0.35 to $0.38 per share. It also received $590 million in new credit facilities. The consensus price target of $39.67 implies 13.65% upside. Cadre Holdings, Inc. (NYSE:CDRE) stock is up 9.16% year-to-date. Overall CDRE ranks 12th on our list of the defense stocks that are skyrocketing so far in 2025. While we acknowledge the potential of CDRE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CDRE but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
