Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors

Are you keeping a close watch on Cadre Holdings, Inc. (CDRE) and wondering about its financial stability? In 2024, the company achieved net sales of $567.6 million and a gross margin of 41.1%. But how does this translate into overall financial health? While net income reached $36.1 million, the company's debt also increased to $223.2 million. Let’s delve deeper into these figures and more to provide a clearer picture of Cadre's financial standing and what it means for investors like you.

Cadre Holdings, Inc. (CDRE) Revenue Analysis

Understanding Cadre Holdings, Inc.'s (CDRE) financial health requires a detailed look into its revenue streams. A breakdown of where the company's money comes from, how quickly it's growing, and the performance of its different business areas can provide key insights for investors. This analysis will dissect these elements to give a clear picture of CDRE's revenue landscape.

Here's a breakdown of primary revenue sources, year-over-year revenue growth, and the contribution of different business segments to overall revenue for Cadre Holdings, Inc.:

• Primary Revenue Sources: Cadre Holdings, Inc. generates revenue primarily through the sale of safety and survivability equipment.
• Year-over-Year Revenue Growth Rate:
  • In 2022, Cadre Holdings reported revenue of $443.8 million, marking a substantial increase of 29.4% compared to 2021.
  • The company's financial outlook for 2024 anticipates revenues between $475 million and $490 million.
• Contribution of Different Business Segments to Overall Revenue: Cadre Holdings operates through two main segments:
  • Safety Equipment: Focused on providing equipment and solutions that enhance the safety and survivability of its users.
  • Other: Includes all other activities that do not fall under the Safety Equipment segment.

Examining the year-over-year revenue growth rate provides insights into the company's performance and market position. The significant increase in revenue from 2021 to 2022 indicates strong growth momentum. Investors should monitor whether Cadre Holdings can sustain this growth trajectory in the coming years, especially given the projected revenue for 2024.

Here's a table summarizing the revenue performance and expectations:

Analyzing significant changes in revenue streams involves identifying factors that influence the company's financial performance. This could include shifts in market demand, changes in product mix, or the impact of acquisitions and divestitures. Monitoring these changes is crucial for assessing the long-term sustainability of Cadre Holdings' revenue growth.

To gain further insight into the values that drive Cadre Holdings, Inc., explore Mission Statement, Vision, & Core Values of Cadre Holdings, Inc. (CDRE).

Understanding the revenue streams and their dynamics is essential for investors to make informed decisions about Cadre Holdings, Inc.

Cadre Holdings, Inc. (CDRE) Profitability Metrics

Understanding Cadre Holdings, Inc. (CDRE)'s profitability involves examining several key metrics that provide insight into the company's financial health and operational efficiency. By assessing gross profit, operating profit, and net profit margins, alongside trends in profitability and comparisons with industry averages, a clear picture of the company's ability to generate earnings emerges. Additionally, analyzing operational efficiency, such as cost management and gross margin trends, offers further depth to the evaluation.

As of the fiscal year 2024, details on Cadre Holdings, Inc.'s profitability can be gleaned from their financial statements and related reports. While specific figures require direct reference to these documents, the following discussion outlines the typical approach to analyzing these metrics.

Here's a breakdown of key profitability metrics:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). A higher gross profit margin suggests that Cadre Holdings, Inc. is efficient in managing its production costs.
• Operating Profit Margin: The operating profit margin reveals the percentage of revenue left after deducting operating expenses, such as salaries, rent, and marketing costs. It reflects the company's efficiency in managing its operational costs.
• Net Profit Margin: This metric represents the percentage of revenue that translates into net income after all expenses, including taxes and interest, have been paid. It provides a comprehensive view of the company's overall profitability.

To provide a clearer picture, let's consider a hypothetical scenario based on typical financial analysis:

Trends in Profitability Over Time: Analyzing trends in profitability over several years helps to identify whether Cadre Holdings, Inc. is improving its financial performance. Consistent growth in profit margins indicates effective management strategies and a strong competitive position.

Comparison with Industry Averages: Comparing Cadre Holdings, Inc.'s profitability ratios with industry averages provides context for its performance. If the company's margins are higher than the industry average, it suggests a competitive advantage. Conversely, lower margins may indicate areas for improvement.

Analysis of Operational Efficiency: Evaluating operational efficiency involves examining how well Cadre Holdings, Inc. manages its costs. Key factors to consider include:

• Cost Management: Efficient cost management practices can lead to higher profit margins. This includes controlling production costs, reducing operating expenses, and optimizing resource allocation.
• Gross Margin Trends: Monitoring gross margin trends helps to assess the effectiveness of the company's pricing strategies and cost control measures. A rising gross margin indicates improved efficiency, while a declining margin may signal challenges in managing costs or maintaining prices.

For further insights into Cadre Holdings, Inc. (CDRE), explore Exploring Cadre Holdings, Inc. (CDRE) Investor Profile: Who’s Buying and Why?

Cadre Holdings, Inc. (CDRE) Debt vs. Equity Structure

Understanding how Cadre Holdings, Inc. (CDRE) finances its operations and growth is crucial for investors. This involves looking at the company's debt levels, how it compares to its equity, and how these choices align with industry practices.

Here’s a detailed look at Cadre Holdings, Inc.'s debt situation:

• Overview of Debt Levels:

Cadre Holdings, Inc. has a mix of debt, including both short-term and long-term obligations. As of the fiscal year 2024:

• The company’s long-term debt stood at $149.4 million.
• The current portion of long-term debt is $3.7 million.

• Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric for assessing financial leverage. For Cadre Holdings, Inc., the debt-to-equity ratio can be calculated using the total liabilities and total equity. According to the 2024 data:

• Total liabilities were $214.7 million.
• Total equity was $292.1 million.

The debt-to-equity ratio is approximately 0.73, suggesting that Cadre Holdings, Inc. has a moderate level of debt compared to its equity. This ratio is vital for investors to gauge the company's financial risk.

• Recent Financing Activities:

In terms of recent financing activities, on November 8, 2024, Cadre Holdings, Inc. entered into Amendment No. 1 ('Amendment No. 1') to the Credit Agreement, which provides for, among other things:

• A $25 million increase in the aggregate principal amount of the revolving commitments, from $75 million to $100 million.
• An extension of the maturity date of the revolving commitments and the term loan from November 8, 2026 to November 8, 2029.

This amendment demonstrates the company's proactive approach to managing its debt and securing favorable terms.

• Balancing Debt and Equity:

Cadre Holdings, Inc. strategically uses both debt and equity to fund its growth and operations. The company's approach to balancing debt and equity is evident in its financial structure and recent financing activities. The debt-to-equity ratio of 0.73 indicates a balanced approach, where the company leverages debt to enhance returns without taking on excessive risk.

Here's a summary of Cadre Holdings, Inc.'s key financial data:

For further insights into Cadre Holdings, Inc., explore Exploring Cadre Holdings, Inc. (CDRE) Investor Profile: Who’s Buying and Why?.

By analyzing these elements, investors can gain a clearer picture of Cadre Holdings, Inc.'s financial strategy and its implications for future performance.

Cadre Holdings, Inc. (CDRE) Liquidity and Solvency

Assessing Cadre Holdings, Inc.'s financial health involves a close look at its liquidity and solvency, which reveals its ability to meet short-term obligations and long-term financial stability. Here’s an analysis based on the latest available data.

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are essential metrics for evaluating a company's ability to cover its short-term liabilities with its short-term assets. For Cadre Holdings, Inc. (CDRE), these ratios provide a snapshot of its immediate financial health.

• The current ratio, calculated by dividing current assets by current liabilities, indicates the extent to which current assets can cover current liabilities.
• The quick ratio, which excludes inventory from current assets, offers a more conservative view of liquidity, focusing on the most liquid assets.

Analysis of these ratios over time can show trends in Cadre Holdings, Inc.'s liquidity management, highlighting any potential areas of concern or improvement.

Analysis of Working Capital Trends

Working capital, the difference between a company’s current assets and current liabilities, is a fundamental measure of its short-term financial health. Monitoring trends in working capital provides insights into Cadre Holdings, Inc.'s operational efficiency and liquidity management.

• Positive working capital indicates that a company has enough liquid assets to cover its short-term liabilities.
• Negative working capital may signal potential liquidity issues, requiring closer examination of asset turnover and liability management.

Effective management of working capital involves optimizing inventory levels, accounts receivable, and accounts payable to ensure sufficient liquidity while maximizing returns. Changes in working capital trends can reflect shifts in Cadre Holdings, Inc.'s operational strategies or market conditions.

Cash Flow Statements Overview

Cash flow statements provide a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities. Examining these trends can reveal how Cadre Holdings, Inc. generates and uses cash.

• Operating cash flow reflects the cash generated from the company's core business operations.
• Investing cash flow includes cash used for investments in assets, such as property, plant, and equipment (PP&E).
• Financing cash flow involves activities related to debt, equity, and dividends.

Here is a sample table illustrating how cash flow activities might look (Note: the data below is illustrative and not actual data):

A positive trend in operating cash flow indicates improved business performance, while significant investments may suggest growth initiatives. Financing activities can show how Cadre Holdings, Inc. manages its capital structure and returns value to shareholders. Analyzing these cash flow trends is vital for assessing the company’s financial sustainability.

Potential Liquidity Concerns or Strengths

Identifying potential liquidity concerns or strengths involves synthesizing insights from the current and quick ratios, working capital trends, and cash flow statements. Key considerations include:

• Declining liquidity ratios may indicate difficulties in meeting short-term obligations.
• Consistent positive operating cash flow suggests strong business fundamentals and the ability to generate cash.
• Large capital expenditures could strain liquidity if not managed effectively.

By monitoring these factors, investors and analysts can gain a deeper understanding of Cadre Holdings, Inc.'s financial health and make informed decisions. For more insights into the company's strategic direction, refer to the Mission Statement, Vision, & Core Values of Cadre Holdings, Inc. (CDRE).

Cadre Holdings, Inc. (CDRE) Valuation Analysis

Determining whether Cadre Holdings, Inc. (CDRE) is overvalued or undervalued requires a comprehensive look at several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

As of April 2025, here’s a breakdown of these factors:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a key indicator of how much investors are willing to pay for each dollar of Cadre Holdings, Inc.'s earnings, requires up-to-date earnings per share (EPS) data and the current stock price.
• Price-to-Book (P/B) Ratio: This ratio compares Cadre Holdings, Inc.'s market capitalization to its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: EV/EBITDA provides a more comprehensive valuation measure than P/E by taking into account debt and capital expenditures.

Analyzing these metrics provides a detailed view of Cadre Holdings, Inc.'s valuation relative to its financial performance and assets.

To assess whether Cadre Holdings, Inc. is overvalued or undervalued, it’s crucial to consider its stock price trends over the past year. Recent data indicates:

• 1-Year Stock Price Trend: Monitoring the stock price movement over the last 12 months helps to understand market sentiment and growth trajectory.

For companies that offer dividends, dividend yield and payout ratios are important for assessing valuation. As of April 2025:

• Dividend Yield: The annual dividend payment relative to the stock price.
• Payout Ratio: The proportion of earnings paid out as dividends.

These metrics are essential for investors seeking income-generating stocks.

Analyst consensus plays a significant role in determining market perception. Recent reports show:

• Analyst Ratings: Buy, hold, or sell recommendations from various analysts provide a consolidated view of market sentiment.
• Price Targets: Analysts' estimated future stock prices offer potential upside or downside predictions.

The consensus helps investors gauge the prevailing sentiment and potential future performance of Cadre Holdings, Inc.

Here is a summary of key valuation metrics for Cadre Holdings, Inc. (CDRE) as of 2024 fiscal year data:

Understanding Cadre Holdings, Inc.'s mission, vision, and core values can provide additional context for assessing its long-term potential and alignment with investor values: Mission Statement, Vision, & Core Values of Cadre Holdings, Inc. (CDRE).

Cadre Holdings, Inc. (CDRE) Risk Factors

Cadre Holdings, Inc. (CDRE) faces a variety of risks that could significantly impact its financial health. These risks stem from both internal operational challenges and external market dynamics. Understanding these factors is crucial for investors assessing the company's stability and future prospects. Here's an overview of some key risk areas:

Industry Competition: The industries in which Cadre Holdings, Inc. operates are highly competitive. This competition could lead to price reductions, reduced margins, and loss of market share. Maintaining a competitive edge requires continuous innovation and adaptation to market changes.

Regulatory Changes: Changes in government regulations and standards can affect product development, manufacturing, and sales. Compliance with new regulations may require significant investments, potentially impacting profitability.

Market Conditions: Economic downturns, shifts in law enforcement priorities, or changes in international relations can affect demand for Cadre Holdings, Inc.'s products. Unfavorable market conditions may lead to decreased sales and financial instability.

Operational Risks:

• Supply Chain Disruptions: Disruptions in the supply chain, whether due to geopolitical events, natural disasters, or other factors, can impact production and increase costs.
• Product Liability: As a manufacturer of safety and security products, Cadre Holdings, Inc. faces potential liability claims if its products fail to perform as expected.
• Intellectual Property Protection: Protecting its proprietary technology and products is crucial. Infringement on intellectual property rights could lead to financial losses and damage to the company's reputation.

Financial Risks:

• Debt Levels: High levels of debt can increase financial vulnerability, especially if interest rates rise or cash flow declines.
• Acquisition Integration: Cadre Holdings, Inc. has grown through acquisitions, and integrating these acquisitions successfully is critical. Failure to do so can lead to operational inefficiencies and financial losses.
• Foreign Exchange Risk: With international operations, Cadre Holdings, Inc. is exposed to fluctuations in foreign exchange rates, which can impact revenue and profitability.

Strategic Risks:

• Changing Customer Preferences: Shifts in customer preferences or technological advancements may render current products obsolete.
• Dependence on Key Customers: Reliance on a few major customers can create vulnerability if those customers reduce their orders or switch to competitors.

While specific mitigation strategies are not detailed here, companies like Cadre Holdings, Inc. typically employ various methods to address these risks, such as diversification of product lines, hedging against currency fluctuations, and investing in research and development.

For more insights into the company and its investors, check out: Exploring Cadre Holdings, Inc. (CDRE) Investor Profile: Who’s Buying and Why?

Cadre Holdings, Inc. (CDRE) Growth Opportunities

Cadre Holdings, Inc. (CDRE) has several key growth drivers that suggest a promising future. These include product innovations, market expansions, and strategic acquisitions.

Product innovation remains a critical component of Cadre Holdings, Inc.'s growth strategy. The company consistently invests in research and development to create advanced safety and security products. These innovations not only meet evolving customer needs but also strengthen Cadre Holdings, Inc.'s competitive edge. Continuous innovation helps the company maintain its market position and attract new customers.

Market expansion is another significant growth driver for Cadre Holdings, Inc. (CDRE). The company strategically targets both domestic and international markets to increase its customer base and revenue streams. By expanding into new geographic regions, Cadre Holdings, Inc. taps into previously unaccessed markets, boosting sales and solidifying its global presence. This expansion strategy diversifies the company’s revenue sources, reducing reliance on any single market.

Strategic initiatives and partnerships are essential for Cadre Holdings, Inc.'s future growth. These collaborations can enhance product offerings, expand market reach, and improve operational efficiencies. By forming alliances with other companies, Cadre Holdings, Inc. can leverage complementary resources and expertise to achieve mutual goals. Such partnerships often lead to innovative solutions and increased market penetration.

Future revenue growth projections and earnings estimates show a positive outlook for Cadre Holdings, Inc. (CDRE). Financial analysts predict steady increases in revenue, driven by product demand and market expansion. Earnings estimates also reflect this optimistic trend, indicating improved profitability and operational efficiency. These projections provide investors with confidence in the company's potential for long-term growth and financial success.

Cadre Holdings, Inc. possesses several competitive advantages that position it for sustained growth. These advantages include:

• Strong Brand Reputation: Cadre Holdings, Inc. has established a solid reputation for quality and reliability in the safety and security industry.
• Extensive Distribution Network: The company's broad distribution network ensures its products are readily available to customers worldwide.
• Technological Expertise: Cadre Holdings, Inc.'s focus on innovation and technology provides a competitive edge in developing advanced solutions.

These advantages collectively enhance Cadre Holdings, Inc.'s ability to capitalize on market opportunities and achieve its growth objectives.

Here's a look at some potential future growth avenues for Cadre Holdings, Inc.:

For more detailed insights into Cadre Holdings, Inc.'s financial health, you can read: Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors