StockPicksNYC

CETX Attractive Valuation, Consistent Growth, Profits &more

Long
NASDAQ:CETX   Cemtrex Inc.
Company Name: Cemtrex Inc.
Stock Symbol: CETX Company Website: www.cemtrex.com
Trading at approx $3.25 Per Share (06/08/2016)

Many reasons I like this company. Currently CETX has a very attractive valuation, consistent: revenue growth, profits, positive cash flow, and smart acquisition strategy with a proven track record.

The company recently completed an acquisition of a German electronics manufacturing company Periscope which strategically scales up the company and dramatically increases their revenue in a single transaction without dilution to CETX shareholders since no new shares were issued for this acquisition. Cemtrex is expecting about $33.5 million boost to its topline over the next 12 months. That should bring the company’s annual revenue to over $100 million. With the current market cap at only 29 million, things are already getting very interesting.

The company has been profitable for over 20 quarters straight and is consistently growing its diversified revenue stream year over year which is reasonable to continue especially after the recently announced acquisition, historical trend, possible future acquisitions and its industry marketplace forecasts. The company also has a impressive client base with reputable names such as Hershey, Volvo, Citgo, Mitsubishi just to name a few.

Overall, CETX is trading at a very attractive market cap using most common valuation metrics and management continues to demonstrate commitment to creating shareholder value.
The past few acquisitions of Advanced Industrial Services (AIS) and ROB Group were incredibly beneficial for Cemtrex and is already producing noticeable results.

CETX announced revenue of 18.9M for the three months ending March 31, 2016, up 32% compared to 14.33M for the same period in 2015. For the twelve months ending in September 30, 2015 the company reported revenue of $56,887,389 which represents a 19% increased compared to $47,653,114 for the same period in 2014 or up nearly 400% compared to $13,673,531 for the period ending in 2013.

CETX fairly new to the NASDAQ markets and has such a small market capitalization that institutions may be hesitant to take a large stake in the company, but judging by the the recent stock activity, this could change soon.

And the growth story doesn't just stop here. Management recently outlined a goal of reaching $300M in sales in the future as the company grows and continues to acquire larger assets.

About Cemtrex

Cemtrex, Inc. (CETX) is a global, diversified industrial and manufacturing company that provides a wide array of solutions to meet today’s technology challenges and is rapidly growing through acquisitions. Cemtrex provides: manufacturing services of advanced custom engineered electronics, industrial contracting services, monitoring instruments for industrial processes and environmental compliance, and equipment for controlling particulates, hazardous pollutants, and Greenhouse gases used in carbon trading globally.
www.cemtrex.com

About Periscope:
Periscope is focused on electronic manufacturing services primarily for the major German automotive manufacturers, including Tier 1 suppliers in the industry, as well as for industries like telecommunications, industrial goods, luxury consumer products, display technology, and other industrial OEMs. Periscope has more than 35 years of industrial operating experience.

If the stock decides to pullback, look for support in the 3.00 range with resistance at 6.00 – 8.00 per share.


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