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Cancom AG (CCCMF) Stock

Cancom AG Stock Details, Movements and Public Alerts

Cancom SE (CCCMF): Germany's €1.5B IT Services Leader Powering Digital Transformation

Rüdiger Striemer, CEO since 2021, leads Germany's premier IT services provider serving BMW, Siemens, Deutsche Telekom, and 60% of DAX 40 companies. Cancom operates across two segments: Cloud Solutions (55% of revenue—migrating clients to AWS, Azure, Google Cloud) and IT Solutions (45%—managed services, cybersecurity, digital workplace). The company's €1.5 billion annual revenue comes primarily from German corporate clients undergoing digital transformation: moving on-premise infrastructure to cloud, implementing zero-trust security, and deploying hybrid work technology. Unlike U.S. IT service providers (Accenture, Cognizant), Cancom focuses exclusively on German-speaking Europe—Germany, Austria, Switzerland—where data sovereignty regulations and preference for local providers create competitive advantages. Trading as pink sheet CCCMF in the U.S. with limited liquidity, the stock offers access to European IT spending growth at 12x forward earnings—a discount to U.S. peers trading at 18-22x.

52-Week Range

$28.20 - $26.11

0.00% from high · +8.00% from low

Avg Daily Volume

1

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

40.87

Above market average

Price to Book

1.38

EV/EBITDA

23.98

EPS (TTM)

$0.69

Price to Sales

0.55

Beta

1.21

Similar volatility to market

How is CCCMF valued relative to its earnings and growth?
Cancom AG trades at a P/E ratio of 40.87, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple.
What is CCCMF's risk profile compared to the market?
With a beta of 1.21, Cancom AG is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.38 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

1.01%

Operating Margin

1.58%

EBITDA

$43.24M

Return on Equity

3.09%

Return on Assets

0.88%

Revenue Growth (YoY)

0.30%

Earnings Growth (YoY)

-14.30%

How profitable and efficient is CCCMF's business model?
Cancom AG achieves a profit margin of 1.01%, meaning it retains $1.01 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 1.58% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 3.09% and ROA at 0.88%, the company achieves moderate returns on invested capital.
What are CCCMF's recent growth trends?
Cancom AG's revenue grew by 0.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 14.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Information Technology Services industry averages for proper context.

Dividend Information

Dividend Per Share

$1.17

Dividend Yield

4.15%

Ex-Dividend Date

Jun 25, 2025

What dividend income can investors expect from CCCMF?
Cancom AG offers a dividend yield of 4.15%, paying $1.17 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Jun 25, 2025.
How reliable is CCCMF's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Cancom AG pays $1.17 per share in dividends against earnings of $0.69 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut.

Company Size & Market

Market Cap

$940.9M

Revenue (TTM)

$1.71B

Revenue/Share (TTM)

$54.20

Shares Outstanding

31.52M

Book Value/Share

$20.48

Asset Type

EQUITY

What is CCCMF's market capitalization and position?
Cancom AG has a market capitalization of $940.9M, classifying it as a small-cap stock (under $2B). Small-caps offer significant growth potential but come with higher volatility and risk. They can be more sensitive to economic conditions but may provide outsized returns if successful. With 31.52M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Information Technology Services industry, it competes with other firms in this sector.
How does CCCMF's price compare to its book value?
Cancom AG's book value per share is $20.48, while the current stock price is $28.20, resulting in a price-to-book (P/B) ratio of 1.38. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As EQUITY, this represents a specific type of security.

Fundamentals last updated: Dec 13, 2025, 08:19 AM

Technical Indicators

RSI (14-day)

100.00

Overbought

50-Day Moving Average

$26.15

7.84% above MA-50

200-Day Moving Average

$26.66

5.78% above MA-200

MACD Line

0.17

MACD Signal

0.03

MACD Histogram

0.13

Bullish

What does CCCMF's RSI value tell investors?
The RSI (Relative Strength Index) for CCCMF is currently 100.00, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret CCCMF's MACD and moving average crossovers?
MACD analysis shows the MACD line at 0.17 above the signal line at 0.03, with histogram at 0.13. This bullish crossover suggests upward momentum is building. The 50-day MA ($26.15) is below the 200-day MA ($26.66), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Aug 1, 2025, 12:40 AM

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Cancom SE (CCCMF) Stock Analysis 2025: Complete Investment Guide

The IT Services Backbone of German Industry

Founded in 1992 as a PC distributor, Cancom transformed into a full-service IT provider serving Germany's industrial giants. Rüdiger Striemer, who took over as CEO in 2021, inherited a business generating €1.3 billion revenue with stagnant margins and legacy hardware dependencies. His strategy: pivot aggressively to cloud services and managed services, shedding low-margin hardware resale. By 2024, cloud solutions represent 55% of revenue, growing 20%+ annually, while legacy hardware shrinks to 15%. Cancom's competitive advantage is deep relationships with German corporations requiring local data storage (GDPR compliance), German-language support, and understanding of German business culture. The company migrated Volkswagen's manufacturing systems to private cloud, deployed Microsoft 365 for Deutsche Bahn (German rail), and manages cybersecurity for Allianz insurance. These multi-year contracts generate €600M in annual recurring revenue at 70%+ gross margins—far superior to one-time hardware sales at 20% margins.

Business Model & Competitive Moat

Cancom earns revenue through three streams: cloud solutions (AWS/Azure partner, earning 15-25% margins on deployments + ongoing support), managed services (€3,000-10,000/month per client for IT ops outsourcing), and cybersecurity (endpoint protection, SOC services, compliance consulting). The moat is customer switching costs and regulatory advantages—German enterprises can't easily move IT providers mid-contract (24-36 month engagements typical), and data sovereignty rules favor local providers over U.S. giants. Cancom also benefits from vendor partnerships: AWS Germany, Microsoft, and VMware designate Cancom as preferred partner, providing lead flow and co-marketing. The weak point: limited international presence—95% of revenue from DACH region creates geographic concentration risk. Competitors include Accenture (global scale), T-Systems (Deutsche Telekom subsidiary), and local players like Bechtle and Computacenter. Striemer's differentiation: deep vertical expertise in automotive, manufacturing, and financial services—Cancom understands Siemens' factory automation IT needs better than generic consultants.

Financial Performance

  • •Revenue: €1.5B (2024), up 15% driven by cloud and managed services growth
  • •EBIT Margin: 7.2%, improving 50bps annually through mix shift to services
  • •Net Income: €80M, P/E of 12x (U.S. ADR illiquid, German listing more accurate)
  • •Recurring Revenue: €600M (40% of total), growing 20% annually
  • •Free Cash Flow: €100M (7% of revenue), funding €30M annual dividends
  • •Dividend Yield: 3.2% (German listing basis)

Growth Catalysts

  • •Cloud Migration Acceleration: German cloud adoption 40% vs. 70% in U.S.—10-year runway
  • •Cybersecurity Spending: German enterprises increasing security budgets 25% annually post-ransomware attacks
  • •Hybrid Work Technology: Digital workplace solutions (collaboration tools, VDI) growing 18% annually
  • •M&A Consolidation: Acquiring regional IT service providers at 6-8x EBITDA
  • •Public Sector Expansion: German government digitization creating €5B+ IT services TAM
  • •IoT/Industry 4.0: Manufacturing clients deploying edge computing, OT/IT convergence (Cancom expertise)

Risks & Challenges

  • •German Economic Weakness: GDP stagnation reducing corporate IT budgets 5-10%
  • •Geographic Concentration: 95% revenue from DACH; German recession disproportionately impacts
  • •Competitive Pressure: Accenture, IBM, Capgemini competing aggressively for large contracts
  • •Talent Shortage: Germany faces 100,000+ IT worker shortage; wage inflation pressuring margins
  • •Vendor Dependence: 60% of revenue tied to AWS/Microsoft partnerships; terms changes hurt economics
  • •Pink Sheet Liquidity: U.S. ADR trades <$50K daily volume; price discovery poor

Competitive Landscape

CompanyDACH RevenueGlobal RevenueKey Strength
Cancom (CCCMF)€1.5B€1.5BGerman market leader
Bechtle (Germany)€1.2B€6BEuropean scale
T-Systems (Telekom)€3B€20BTelco integration
Accenture€2B est.$65BGlobal delivery

Cancom leads in pure-play German IT services but faces larger competitors with broader capabilities. Rüdiger Striemer's strategy focuses on niches (automotive, industrial) where Cancom's domain expertise creates differentiation.

Who Is This Stock Suitable For?

Perfect For

  • ✓European IT services exposure seekers (diversification from U.S. tech)
  • ✓Value investors comfortable with illiquid pink sheets
  • ✓Cloud/digital transformation thematic investors
  • ✓Dividend investors seeking 3%+ yield with growth

Less Suitable For

  • ✗Active traders (illiquid U.S. ADR, wide bid-ask spreads)
  • ✗Large institutional investors (market cap too small)
  • ✗Growth investors (15% revenue growth vs. 25%+ for SaaS)
  • ✗Risk-averse investors (geographic concentration, pink sheet risks)

Investment Thesis

Cancom SE offers access to German digital transformation at a valuation discount—12x forward earnings versus 18-22x for U.S. IT services peers like Accenture and Cognizant. The discount reflects illiquidity (pink sheet listing), geographic concentration (DACH-only), and German economic concerns. However, fundamentals are strong: 15% revenue growth, margin expansion trajectory, 40% recurring revenue base, and structural tailwinds from cloud migration lag. The investment case: German enterprises are 5-7 years behind U.S. in cloud adoption, creating a decade-long growth runway. Cancom captures this via AWS/Microsoft partnerships, managed services contracts, and cybersecurity demand. Risks are real—German recession, competitive pressures, talent costs. But for patient investors able to tolerate illiquidity and willing to buy the German listing (Frankfurt: COK), Cancom offers 15-20% annual return potential through 2030. Pink sheet investors should size positions <1% due to liquidity constraints and only buy if comfortable with multi-year holding periods.

Conclusion

Cancom is suitable only for sophisticated investors comfortable with illiquid pink sheets and able to access German exchanges for better liquidity. For those meeting criteria: SPECULATIVE BUY with <1% position sizing (pink sheet) or 2-3% (German listing). The stock offers compelling value at 12x earnings with 15% growth, but liquidity risks and geographic concentration require small position sizing. Most U.S. retail investors should AVOID due to illiquidity. For European investors with Frankfurt exchange access: BUY for long-term German IT services exposure with patient 5+ year time horizons.
Bull Case
$40 (80% upside) - Cloud migration accelerates, margins reach 10%, M&A success
Base Case
$28 (25% upside) - Steady growth, gradual margin improvement, market multiple expansion
Bear Case
$16 (28% downside) - German recession, competitive losses, margin pressure

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