Should you add Cadre Holdings to your Trump Trade Portfolio? You bet

February 16, 2025

Does Cadre Holdings (CDRE) belong in your Trump Trade Portfolio? You bet. 

President Trump is changing the country and the world. There is a reasonable probability that our country is changed forever. As Trump promised during the campaign, there will not be any more elections in this country. A Trump coup d'etat backed by Putin seems inevitable for many. The United States of Trump seems to be creating a new alliance with Russia that will most likely reshape the entire post WWII world order. Best case scenario for the United States of Trump is becoming a bigger version of the United Arab Emirates. Worst case scenario is becoming Venezuela. Likely case scenario is becoming a capitalist version of Russia. 

Nothing will be exactly the same yet many things will remain almost unchanged. Of the things that will most likely stay the same under any geopolitical scenario to come is that you will need financial resources to survive and thrive. You need to continue investing in your personal and interpersonal skills so that you can be of service to others. It is by serving others that you will obtain resources to survive and thrive. With those resources, you need to invest in diversified holdings. You need to acquire diversified property rights that can be reasonably expected to increase in value over time.  

As the United States of Trump is increasingly becoming a police state, you should consider investing in businesses that can be reasonably expected to do well in a rich country like the United States focused on increasing the quality and quantity of safe law enforcement and immigration control. At Creatix, we find those companies for you. For example, we recently showcased Palantir, which can be expected to continue increasing in value in Trump's police state. In this post, we present a smaller and completely different company that can also be reasonably expected to do well in the United States of Trump.  

Cadre Holdings, Inc. (NYSE: CDRE)

Headquartered in Jacksonville, Florida, CDRE is a holding company of different and highly specialized brands of safety, personal protection, and survivability equipment for first responders and law enforcement agencies.  Products range includes body armor, bomb suits, duty gear, and other protective equipment.

Below is a list of notable brands under the Cadre Holdings umbrella:

1. Atlantic Tactical®: One of the nation’s largest public safety equipment and uniform suppliers.
2. Bianchi®: Since 1958, a leader in quality leather holsters and gear.
3. Break Free®: Produces synthetic-based cleaners, lubricants, and preservative compounds for firearms, sports equipment, and industrial machinery.
4. Cyalume®: Recognized as a world leader in chemical light solutions for the U.S. and NATO military forces, as well as other commercial and law enforcement markets.
5. Evi-Paq®: Produces products that offer solutions to everyday challenges faced in real-life fieldwork.
6. GH Armor Systems®: Leading provider of high-performance protective solutions to the military, federal, and law enforcement communities.
7. Hatch®: Provides a full line of protective gloves for uniformed, tactical, corrections, and military personnel.
8. Identicator®: Manufactures cost-effective fingerprinting products used by businesses and government/law enforcement agencies.
9. Lawmen's®: Supplies tactical gear and equipment for law enforcement, military, and emergency medical services.
10. Lightning Powder®: Offers a wide array of latent fingerprint powders known for their reliability and quality.
11. Med-Eng®: Provides solutions to protect military and public safety personnel from blast threats.
12. NIK®: Provides accurate narcotics field identification, specimen, and evidence collection kits.
13. Pacific Safety Products®: Offers a comprehensive portfolio of advanced armor solutions designed to provide superior protection.
14. Protech®: Offers a comprehensive range of field-proven hard and soft armor for tactical teams.
15. Protech Armor Systems®: Specializes in hard-armor technologies and solutions designed for various applications.
16. Radar®: With over 60 years of experience, specializes in the design and development of holsters.
17. Safariland®: Offers innovative and technologically advanced holsters, gear, body armor, and communication solutions.
18. Tactical Command Industries®: Develops innovative communication solutions for law enforcement, military, and public safety applications.
19. United Uniform®: Premier retailer and distributor of equipment, tactical gear, and uniforms for law enforcement.

These brands are known for their innovation, quality, and commitment to protecting those who protect others. In addition to these established brands, Cadre Holdings announced in January 2025 its intention to acquire several leading nuclear industry safety brands, including Wälischmiller GmbH, CarrsMSM, Bendalls Engineering, NW Total Engineered Solutions, and NuVision Engineering, Inc. This strategic acquisition aims to expand Cadre's presence in the nuclear safety sector and introduce new product categories within the nuclear market segment. 

CDRE went public on November 4, 2021 and has performed well since its initial public offering (IPO). As of February 14, 2025, the stock is trading at $35.05 per share, which reflects an increase of approximately 36% since its IPO. 

In 2023, Cadre Holdings reported revenue of $482.53 million, marking a 5.39% increase compared to the previous year. Earnings for the same period were $38.64 million, an impressive rise of 563.93%.

As of February 16, 2025, CDRE has not yet released its full-year financial results for 2024. However, based on the available data up to the third quarter, we can provide an overview of the company's performance and its projected revenue for the year.

• Year-to-Date Performance (as of September 30, 2024): Net Sales of $391.6 million, an increase from $357.9 million during the same period in 2023. Gross Profit Margin: 39.9%, compared to 42.2% in the prior year. Net Income: $23.2 million, or $0.58 per diluted share, down from $29.0 million, or $0.77 per diluted share, in the same period last year. Adjusted EBITDA: $66.3 million, slightly up from $65.1 million in the prior year.
• The third quarter of 2024 saw net sales of $109.4 million, a decrease from $125.1 million in the third quarter of 2023. This decline was primarily attributed to cybersecurity incidents in July and September 2024, which temporarily disrupted production and order fulfillment. In light of these challenges, Cadre Holdings adjusted its full-year guidance for 2024, with projected net sales between $560 million and $571 million; and an adjusted EBITDA between $101 million and $107 million.

As of February 14, 2025, Cadre Holdings has a market capitalization of approximately $1.42 billion USD. The company's trailing twelve months (TTM) P/E ratio stands at 43. The average 12-month price target is $40, suggesting a potential upside of approximately 14% from the current price of $35. Based on evaluations from seven analysts, the consensus rating is "Buy," with 60% recommending a "Strong Buy," 30% advising "Buy," and 10% suggesting a "Hold."

It's important to note that while the company has demonstrated robust financial health, including a significant increase in gross margin and a growing backlog, there are considerations such as a decline in Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA) and potential impacts from shifts in the U.S. defense budget. 

Creatix expects CDRE to do well in the next years as the Trump administration continues turning the country into a police state. You may want to consider adding CDRE to the stocks in your radar. There's no indication that the company shares will increase in value at extraordinary multiples or that it would necessarily beat the S&P 500. However, we believe that the company has a bright future in the potentially dark future ahead. Do your own research. Consult others. Invest a little; stay well diversified and ready to adapt to the changes to come. 

Now you know it. 

www.creatix.one