Corero Network Security Plc (CNS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bytes Technology Group Plc

Computacenter Plc

Softcat Plc

Darktrace Plc

Kainos Group Plc

Redcentric Plc

Corero Network Security Plc

FDM Group (Holdings) Plc

KR1 Plc

NCC Group Plc

Instem Plc

Why is Corero Network Security Plc ?

Poor Management Efficiency with a low ROE of 2.42%

The company has been able to generate a Return on Equity (avg) of 2.42% signifying low profitability per unit of shareholders funds

With a growth in Net Sales of 29.53%, the company declared Very Positive results in Dec 25

DEBTORS TURNOVER RATIO(HY) Highest at 4.37 times
NET SALES(Q) Highest at GBP 10.9 MM
OPERATING PROFIT(Q) Highest at GBP 2.35 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.33%, its profits have fallen by -97%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.33% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Corero Network Security Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Corero Network Security Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Corero Network Security Plc

-100.0%

-0.42

54.87%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.07%

EBIT Growth (5y)

12.48%

EBIT to Interest (avg)

-0.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.30

Tax Ratio

4.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.28%

ROE (avg)

2.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.99

EV to EBIT

-52.15

EV to EBITDA

41.15

EV to Capital Employed

4.79

EV to Sales

2.70

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.09%

ROE (Latest)

-4.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.37 times

NET SALES(Q)

Highest at GBP 10.9 MM

OPERATING PROFIT(Q)

Highest at GBP 2.35 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.55 %

PRE-TAX PROFIT(Q)

Highest at GBP 1.28 MM

NET PROFIT(Q)

Highest at GBP 1.27 MM

EPS(Q)

Highest at GBP 0

-3What is not working for the Company

INTEREST(HY)

At GBP 0.01 MM has Grown at 60.65%

Here's what is working for Corero Network Security Plc

Pre-Tax Profit

At GBP 1.28 MM has Grown at 113.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 1.27 MM has Grown at 112.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Net Sales

Highest at GBP 10.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 2.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 21.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 1.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 1.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Highest at 4.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at GBP 1.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Depreciation

At GBP 1.06 MM has Grown at 39.55%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (GBP MM)

Here's what is not working for Corero Network Security Plc

Interest

At GBP 0.01 MM has Grown at 60.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)