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Cemtrex

CETX
11
Software - Infrastructure · Technology
Price
$3.12
+0.17 (+5.59%)
Market Cap
$3.5M
Exchange
NASDAQ Capital Market
Winston Score
11
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+99.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7K (2021) → 13K (2025)

Cemtrex is a small technology company that runs two main businesses: industrial services and security technology. Its industrial arm helps manufacturers with electrical and technical work, while its security division sells smart workspace and surveillance products — including a platform called SmartDesk — to businesses looking to monitor and manage their offices. The company serves commercial and industrial customers primarily in the United States and Europe.

Cemtrex earns money through a mix of service contracts, hardware sales, and software subscriptions tied to its security and workspace products. It is a very small company with a market cap near zero, and it operates at a loss, meaning it spends more than it earns. The company faces significant financial pressure, and its main challenge is reaching a scale where its software and security segment can generate enough recurring revenue to cover costs — a hurdle many small, diversified tech companies struggle to clear.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-33.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-99.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2M/ year

Declining (-30% vs prior year)

3.1% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Runway

~9 months

$14M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Cemtrex has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
37.9%
Modest — 37.9% gross margin
Operating Margin
-12.0%
Losing money on operations — -12.0%
ROCE
-4.0%
Weak — -4.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-5.6%
Shrinking sales (-5.6% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-11.0%
Burning cash (-11.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.56
Conservative — low debt load (0.56)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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