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Stock Analysis & ValuationCadre Holdings, Inc. (CDRE)

Previous Close
$32.52
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)56.3473
Intrinsic value (DCF)12.22-62
Graham-Dodd Method3.38-90
Graham Formula22.58-31
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Strategic Investment Analysis

Company Overview

Cadre Holdings, Inc. (NYSE: CDRE) is a leading manufacturer and distributor of safety and survivability equipment, serving first responders and government agencies globally. Specializing in high-performance protective gear, the company operates through two segments: Products and Distribution. Its flagship brands, Safariland and Protech Tactical, provide body armor, bomb suits, duty gear, and other mission-critical equipment for law enforcement, military, and emergency personnel. Cadre serves a diverse clientele, including federal agencies like the U.S. Department of Defense and Homeland Security, as well as international government entities. Founded in 1964 and headquartered in Jacksonville, Florida, Cadre Holdings plays a vital role in the aerospace & defense sector, ensuring safety in high-risk environments. With a market cap exceeding $1.3 billion, the company combines innovation with reliability, making it a trusted partner for life-saving solutions.

Investment Summary

Cadre Holdings presents a compelling investment opportunity due to its niche leadership in safety and survivability equipment, a sector with steady demand from government and law enforcement agencies. The company’s diversified revenue streams, strong brand recognition (Safariland, Protech Tactical), and recurring contracts with federal agencies provide stability. However, risks include reliance on government spending, competitive pressures, and supply chain disruptions. With a beta of 1.335, CDRE exhibits higher volatility than the broader market. While diluted EPS ($0.90) and net income ($36.1M) reflect profitability, investors should monitor debt levels ($238.8M) and capital expenditures. The dividend yield (~0.9%) adds modest income appeal. Overall, Cadre is well-positioned in a defensive industry but faces cyclical and regulatory risks.

Competitive Analysis

Cadre Holdings holds a competitive edge through its specialized product portfolio and long-standing relationships with government and law enforcement agencies. Its Safariland brand is a market leader in body armor and duty gear, benefiting from high barriers to entry due to stringent certification requirements. The company’s dual-segment approach (Products + Distribution) allows for both proprietary sales and third-party distribution, enhancing revenue diversification. However, competition is intense, with rivals offering similar tactical gear and body armor solutions. Cadre’s focus on innovation (e.g., blast sensors, bomb suits) differentiates it, but pricing pressure and procurement delays could erode margins. Its international footprint provides growth potential, though geopolitical risks and export controls remain challenges. The company’s $567.6M revenue base is solid, but scalability depends on expanding its federal and international contracts. Overall, Cadre’s brand strength and regulatory compliance give it a defensible position, but it must continuously innovate to fend off competitors.

Major Competitors

  • Axon Enterprise, Inc. (AXON): Axon dominates the law enforcement technology market with its TASER devices and body cameras. While Cadre focuses on physical protection gear, Axon’s tech-driven solutions (e.g., cloud-based evidence management) give it a growth edge. However, Axon lacks Cadre’s depth in armor and bomb-disposal equipment.
  • Vista Outdoor Inc. (VSTO): Vista Outdoor’s Safariland competitor, Federal Premium, offers ammunition and shooting accessories. Vista has broader outdoor recreation exposure, but Cadre’s specialized armor and government contracts provide more stable demand. Vista’s larger scale is an advantage, but it lacks Cadre’s pure-play focus on safety gear.
  • Olin Corporation (OLN): Olin’s Winchester segment competes in ammunition and tactical products. While Olin has stronger manufacturing capabilities, Cadre’s exclusive focus on protective gear and first-responder markets allows for deeper customer relationships and niche expertise.
  • Sturm, Ruger & Co. (RGR): Ruger is a firearms manufacturer with limited overlap in protective gear. Cadre’s distribution of third-party firearms (e.g., via its Distribution segment) competes indirectly, but Ruger’s consumer focus contrasts with Cadre’s B2B/government model.
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