CREATIVE REALITIES, INC. (CREX) - Comprehensive Stock Analysis & Investment Research
Deep dive into CREATIVE REALITIES, INC.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
CREATIVE REALITIES, INC. Investment Summary
When evaluating whether CREATIVE REALITIES, INC. (CREX) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
CREATIVE REALITIES, INC. (CREX) operates within the Technology sector, specifically in the Services-Computer Integrated Systems Design industry. The company employs approximately 103 people. With a market capitalization of $28 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
CREATIVE REALITIES, INC. generates annual revenues of approximately $11 million. The company operates with a net margin of 6.7%, showing modest profitability.
From a profitability standpoint, the company reports a Return on Equity (ROE) of 10.7%, which is acceptable for its industry. The Return on Assets (ROA) stands at 3.4%, suggesting potential for operational improvement. The gross margin of 238.2% reflects strong pricing power and cost control.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.14x indicates the company can meet its short-term obligations, though with limited buffer. The debt-to-equity ratio of 0.71x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
Operating cash flow stands at $2 million, demonstrating the company's ability to generate cash from its core business operations.
Valuation Analysis
The company currently has negative earnings, resulting in no meaningful P/E ratio. This is common for growth companies investing heavily in expansion or those facing temporary headwinds. The price-to-book ratio stands at 1.28x, suggesting the stock trades at a modest premium to book value.
AI-Powered Price Predictions
Investment Considerations
When determining whether CREATIVE REALITIES, INC. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, CREATIVE REALITIES, INC. may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
CREATIVE REALITIES, INC. (Stock Symbol: CREX) is a prominent company operating within the Technology sector, with a specific focus on the Services-Computer Integrated Systems Design industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 103 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $28 million, CREATIVE REALITIES, INC. is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Technology sector, CREATIVE REALITIES, INC. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
CREATIVE REALITIES, INC. generates annual revenues of $11 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 6.7% net profit margin, indicating acceptable but modest profitability. This margin level is common in competitive industries or those with high operating costs. There may be opportunities for margin expansion through operational improvements or scale efficiencies.
Gross profit margin stands at 238.2%, a premium margin typical of software, pharmaceuticals, or luxury goods companies with exceptional pricing power and low marginal costs of production.
Operating margin is 32.5%, demonstrating excellent core business efficiency with well-controlled operating expenses relative to revenue generation.
Market Valuation
Current market capitalization stands at $28 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 10.7%, indicating adequate returns for shareholders, roughly in line with broader market averages. This represents acceptable but not exceptional capital efficiency.
Return on Assets (ROA) stands at 3.4%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures 9.3%, suggesting returns roughly in line with typical corporate cost of capital, indicating value maintenance but limited value creation.
Cash Flow Generation
Operating cash flow reaches $2 million . Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
CREATIVE REALITIES, INC. strategically competes in the highly dynamic Services-Computer Integrated Systems Design marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
CREATIVE REALITIES, INC. operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
Margin & Pricing Power Analysis
The company maintains a 238.2% gross margin which reflects exceptional pricing power and/or an asset-light business model. Gross margins at this level are typically seen in software, pharmaceuticals, or luxury goods companies where the cost of incremental production is minimal relative to selling prices. Such margins indicate significant competitive advantages protecting the company from price-based competition.
Operating margin of 32.5% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.56x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 1.14 suggests tight liquidity where current assets just cover current liabilities. This may be efficient but leaves limited cushion for unexpected needs.