CIMT . xnas - Cimatron Ltd.

Cimatron Ltd., together with its subsidiaries, designs, develops, manufactures, markets, and supports computer-aided design/computer aided manufacturing (CAD/CAM) software products. The company offers CimatronE, a CAD/CAM solution, which provides tools, applications, and process-automation solutions for the for the mold, die, and manufacturing industries. The CimatronE product family includes various basic modules, such as Designer Solution, NC Solution, Master Solution, Electrode Solution, Electrode Pro Solution, Student Package, and View Only System; and a range of vertical applications consisting of Mold Design, Die Design, Quick Electrode, ECO Manager, 5 Axes Production, Micro-Milling, and Die Quote Generator. It also provides GibbsCAM, a CAD/CAM solution for discrete part production manufacturing. The GibbsCAM product family consists of various module options, including Production Milling, Production Turning, Solid Import, 2.5D Solids, SolidSurfacer, Advanced CS, Polar and Cylindrical Milling, Radial Milling, 5-Axis Milling, 5-Axis MultiBlade Level 1 and level 2, 5-Axis Porting, Tombstone Management System, Multi-Task Machining, Wire-EDM, Machine Simulation, Data Exchange Options, CutDATA, VoluMill Wireframe, VoluMill Solids, and Post Processors. It serves customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries. The company distributes its products directly, as well as through a network of independent resellers in Europe, Israel, the Far East, North America, and internationally. Cimatron Ltd. was founded in 1982 and is headquartered in Givat Shmuel, Israel.

Análise Técnica:



A cotação quebrou a linha de tendência descendente (formação semelhante a um triângulo simétrico), e está a cotar perto das médias móveis.


Análise Fundamental:



PER forward - 11,13

PER indústria - 30,9

Ao aplicar o per da industria o modelo é atractivo, senao nao é atractivo.



Recomendação:
O modelo económico foi aplicado tendo em consideração o PER da industria que é 3x superior ao forward esperado.
Sendo assim o modelo é atractivo. Senão não o é. A empresa encontra-se a lateralizar e espera-se apresentação de resultados para dia 13 de Novembro antes de abertura de mercado nos EUA.
A recomendação é neutral.

Update técnico:

A empresa continua a lateralizar.




Cimatron - Nothing Wrong With Boring
Nov. 17, 2014 8:00 AM ET

Summary

Top line growing modestly at 5 percent.
Earnings before interest and tax up 15 percent.
Plenty of cash on balance sheet.
Solid investment metrics.
There is nothing wrong with boring.

Cimatron announced its third quarter numbers causing barely a ripple from equity markets, with the share price drifting backwards. While this company lacks the sex appeal of many software companies and probably can be labeled boring there is much to like about the company investment fundamentals.

The positive traits include around 50 percent of the company's $46.6 million revenue being recurring, in the form of support and maintenance. The $20 million net cash sitting in the balance sheet is nothing to be sneezed at as well. While revenues have only grown 5.4 percent in the 12 months to 30 September 2014, the leverage in the business is impressive with EBIT up 15 percent. The rolling 12 month data shows EBIT/Sales margins are now 13.4 percent, which has the potential to keep rising, given the scalable nature of software business models.

The company trades at 12.1 times historical earnings, which is a decent discount to the market. The most compelling investment metric is the 0.91 times enterprise value to revenue ratio the company trades at. The enterprise value to EBITDA and EBIT ratio's at 5.9 and 6.8 times again are well into value territory, when compared with profitable software peers.

Investors will also take comfort around the 2015 dividend policy which will see 50 percent of earnings return to investors in the form of dividends. At the current earnings per share this translates to 24 cents being returned to investors, which puts the share on a 4.1 percent yield.

The historical numbers below look interesting.



Investors have lacked enthusiasm for this stock even since the 3D printing hype was removed from the market. Possible reasons for downside include a possible delay in the release of GibbsCam 2015, which is now planned towards the end of the December quarter.

While the CimatronE version 12 product was launched in August 2014, any delays around the GibbsCam 2015 launch could impact on the key December quarter as prospective buyers of the software wait for the latest software release. The December quarter is traditionally the strongest revenue quarter and most cash generative quarter for the company.

US Investors have never fully embraced foreign headquartered companies which may explain some of the discount applied to the company from Israel, with all the problems in the Middle East.

Another dampener for Cimatron may be the slowing European and Chinese economies, with Europe (Germany and Italy the biggest country contributors) accounting for 50.8 percent of sales in 2013. The combination of potentially weaker core markets and a stronger US Dollar could put pressure on US dollar earnings.

We have also seen quite notable swings in investor appetite towards US small-caps with Cimatron also getting caught up here.

As an investor in the stock I am happy to stick with Cimatron. I like the commentary from the recent quarterly update of the company's "strong and accelerating financial performance". I also take comfort from the company's commentary about "promising version releases of our two product lines".

I believe the historical investment metrics are compelling enough with the combination of the best quarter to come and the prospect of dividends commencing in 2015. There is nothing wrong with boring stocks.



Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Mais uma boa oportunidade de investimento que deixamos passar! Ficamos na dúvida em relação á empresa, mas o modelo económico futuro dá-nos um óptimo price target. Não investimos porque pensavamos que iria lateralizar.
A seguinte noticia impulsionou a cotação durante o dia de hoje:

3D Systems to acquire Cimatron for $8.97/share
Nov 24 2014, 08:11 ET | About: 3D Systems Corp. (DDD) | By: Carl Surran, SA News Editor [Contact this editor with comments or a news tip]

   3D Systems (NYSE:DDD) agrees to acquire Israel's Cimatron (NASDAQ:CIMT) for ~$97M to strengthen its position in the 3D design and manufacturing business.
   CIMT provides CAD and CAM software products and solutions for 3D manufacturing; DDD will pay $8.97/share, a 47.5% premium to CIMT's Nasdaq closing price on Friday.
   CIMT +42.7% premarket, DDD +0.5%.

Nada a acrescentar à CIMT.