Cerillion (CER) AI Stock Analysis

• Market Cap: £415.04M
• Dividend Yield: 1.19%
• Average Volume (3M): 85.38K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.00
• Revenue Growth: 3.67%
• EPS Growth: 8.74%
• Country: UK
• Employees: 351
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 29,540,346
• 10 Day Avg. Volume: 59,721
• 30 Day Avg. Volume: 85,383
• PEG Ratio: 3.49
• Price to Book (P/B): 7.48
• Price to Sales (P/S): 9.84
• P/FCF Ratio: 34.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,225.00
• Price Target Upside: 61.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.59
• Revenue Forecast (FY): £53.08M

• Rating: 70 Outperform
• Price Target: 1,573.00p ▲(13.99% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is primarily supported by strong financial performance (high margins, low leverage, and solid cash generation). Offsetting this, technicals look overheated (very high RSI/Stoch and price well above moving averages), and valuation is on the expensive side (P/E ~28.95 with a sub-1% yield).

Positive Factors

High Profitability Margins

Cerillion reports very high gross and operating margins, indicating pricing power and efficient operations. Durable margin structure supports reinvestment in product development and sales, providing a buffer through industry cycles and enabling long-term cash returns to shareholders.

Very Low Leverage / Strong Balance Sheet

Extremely low leverage and a high equity ratio give the company financial flexibility to fund growth, absorb shocks, or pursue M&A without stressing cash flow. A strong balance sheet underpins durable investment in cloud offerings and long-term strategic initiatives.

Strong Cash Generation & Conversion

Efficient conversion of earnings into operating and free cash flow signals sustainable cash generation. Predictable cash conversion supports ongoing product investment, customer support, and potential shareholder returns, strengthening resilience over the medium term.

Negative Factors

Modest Revenue Growth

Revenue growth in the mid-single-digit range limits the scale dynamics typical of high-growth software peers. Sustained modest top-line expansion constrains market share gains and may require continued margin excellence or higher investment to achieve faster structural growth.

Material Professional Services Mix

Reliance on professional services and initial license sales increases revenue lumpiness and reduces the recurring revenue share. Services are less scalable and can pressure long-term margin expansion and predictability compared with a pure SaaS subscription model.

Customer / Sector Concentration Risk

Heavy exposure to telecom and utility partners concentrates revenue risk to a few large customers and sector cycles. Industry-specific capex timing, contract renegotiation risk, or regulatory shifts in those sectors could materially affect multi-quarter revenue visibility.

Cerillion Business Overview & Revenue Model

Company Description

Cerillion (CER) is a leading provider of billing, charging, and customer relationship management (CRM) solutions for telecommunications and utility companies. The company specializes in delivering software that enables businesses to manage their customer interactions, billing processes, and revenue management efficiently. With a focus on cloud-based solutions, Cerillion serves clients across various sectors, including telecommunications, energy, and finance, offering products that enhance operational efficiency and improve customer experiences.

How the Company Makes Money

Cerillion generates revenue primarily through the sale of its software solutions and services. Its revenue model includes software licensing fees, subscription-based services, and professional services related to implementation and support. Key revenue streams consist of initial software licenses, ongoing subscription fees for cloud services, maintenance contracts, and consulting services. Cerillion also benefits from significant partnerships with telecom operators and utility companies that rely on its technology to streamline their billing and customer management processes. The recurring nature of subscription fees and maintenance contracts provides a stable revenue foundation, while ongoing demand for digital transformation in various industries further contributes to its earnings.

Cerillion Financial Statement Overview

Summary

Strong fundamentals driven by solid revenue growth (+7.61%) and very high profitability (gross margin 76.19%, net margin 36.64%, EBITDA margin 53.61%). Balance sheet risk looks low with minimal leverage (debt-to-equity 0.06) and a strong equity base (equity ratio 79.20%), supported by healthy cash conversion (operating cash flow to net income 1.11) and strong free cash flow relative to earnings (FCF to net income 0.97).

Income Statement

Cerillion has demonstrated strong revenue growth with a 7.61% increase in the latest year. The company maintains high profitability with a gross profit margin of 76.19% and a net profit margin of 36.64%. EBIT and EBITDA margins are also robust at 48.29% and 53.61%, respectively, indicating efficient operations and strong earnings before interest, taxes, depreciation, and amortization. Overall, the income statement reflects a healthy growth trajectory and strong profitability.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.06, indicating low leverage and financial risk. The equity ratio stands at 79.20%, reflecting a strong equity base relative to total assets. Although the return on equity (ROE) is not provided for the latest year, previous years indicate a strong ROE, suggesting effective use of equity to generate profits. Overall, the balance sheet is stable with low leverage and a strong equity position.

Cash Flow

Cerillion's cash flow statement reveals a positive free cash flow growth rate of 2.28%, indicating improved cash generation. The operating cash flow to net income ratio of 1.11 suggests efficient conversion of earnings into cash. The free cash flow to net income ratio is high at 0.97, demonstrating strong cash flow relative to net income. Overall, the cash flow statement reflects healthy cash generation and efficient cash management.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	45.36M	43.75M	39.17M	32.73M	26.07M
Gross Profit	34.56M	35.20M	30.81M	22.52M	20.41M
EBITDA	24.32M	21.99M	18.83M	14.03M	10.47M
Net Income	16.62M	15.26M	12.93M	9.34M	6.43M
Balance Sheet
Total Assets	75.27M	63.10M	52.78M	42.63M	35.67M
Cash, Cash Equivalents and Short-Term Investments	34.40M	29.85M	24.74M	20.25M	13.17M
Total Debt	3.31M	2.80M	3.16M	4.03M	4.81M
Total Liabilities	15.66M	14.59M	15.90M	15.90M	15.46M
Stockholders Equity	59.61M	48.51M	36.88M	26.73M	20.21M
Cash Flow
Free Cash Flow	12.81M	9.70M	8.32M	10.73M	8.53M
Operating Cash Flow	13.23M	11.21M	9.75M	12.34M	9.80M
Investing Cash Flow	-2.28M	-1.51M	-1.43M	-1.61M	-1.27M
Financing Cash Flow	-6.40M	-4.54M	-3.76M	-3.76M	-3.61M

Cerillion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1380.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CER, the sentiment is Negative. The current price of 1380 is below the 20-day moving average (MA) of 1575.25, below the 50-day MA of 1496.49, and below the 200-day MA of 1482.45, indicating a bearish trend. The MACD of -16.45 indicates Positive momentum. The RSI at 30.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CER.

Cerillion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGE	74 Outperform	£7.89B	29.15	40.71%	1.94%	7.76%	17.61%
DOTD	73 Outperform	£171.64M	11.82	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£130.47M	33.60	7.71%	1.92%	-6.63%	-7.88%
CER	70 Outperform	£415.04M	26.85	30.74%	1.19%	3.67%	8.74%
GBG	70 Outperform	£466.80M	71.10	1.56%	1.73%	-0.18%	11.49%
NET	68 Neutral	£175.60M	46.99	9.59%	0.80%	22.80%	-32.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cerillion Corporate Events

Cerillion Secures Full Shareholder Backing at Virtual AGM

Cerillion plc reported that all resolutions at its virtually held annual general meeting on 19 February 2026 were approved by shareholders, including the adoption of accounts, the directors’ remuneration report, a dividend declaration and the re-election of key board members. Investors also backed the reappointment of auditors, authorities to allot shares and equity securities, disapply pre-emption rights, authorise political expenditure and permit market purchases of the company’s own shares, reinforcing management’s financial flexibility and corporate governance framework.

The strong voting support across both ordinary and special resolutions indicates continued shareholder confidence in Cerillion’s strategy and leadership, with high approval levels for most items despite some dissent on political expenditure and one director’s re-election. The renewed authorities over capital issuance and share buybacks provide the board with tools to manage the capital structure and pursue future strategic initiatives, which may influence the company’s growth trajectory and its positioning in the competitive telecoms software market.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1881.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion updates voting share capital after employee option exercise

Cerillion plc has issued 5,499 ordinary shares following the exercise of employee options under its Save-As-You-Earn scheme, with the shares being allotted from treasury rather than newly created stock. As a result, the company now has 29,540,347 ordinary shares carrying voting rights, a figure that shareholders must use when assessing disclosure obligations under the Financial Conduct Authority’s transparency rules.

The updated voting share total slightly alters existing investors’ percentage holdings and may trigger notification requirements for some shareholders under UK market regulations. The transaction underscores ongoing employee participation in the company’s equity while leaving overall issued share capital broadly unchanged, given that the shares were reallocated from treasury holdings rather than increasing the total share count.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1881.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Updates Voting Share Capital After Employee Option Exercise

Cerillion has announced that employees have exercised options over 5,326 ordinary shares under the company’s Save-As-You-Earn option plan, with the shares being issued from treasury stock. Following this transaction, the total number of voting shares stands at 29,534,848, a figure that investors should now use when assessing disclosure thresholds under UK transparency rules, and the company confirmed that all securities available under the relevant block listing for the SAYE scheme have now been allotted.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1881.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Issues New Shares After Employee Option Exercises, Updates Voting Rights

Cerillion plc has issued 14,230 new ordinary shares following the exercise of options by employees and several senior managers under its Save-As-You-Earn scheme, with Product Director Brian Coombs, Account Development Director Amit McCann, Chief Operating Officer Mark Nicholls and Marketing Director Andrew Smith among the participants. As a result of these option exercises, the company’s total shares in issue now stand at 29,529,522, of which 17,036 are held in treasury, a change that slightly alters the denominator used by shareholders for calculating notifiable interests under UK disclosure and transparency rules.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1881.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Announces CFO Transition as Growth Phase Continues

Cerillion has announced a planned transition in its finance leadership, with Chief Financial Officer Andrew Dickson stepping down from the board on 1 March 2026 to pursue new career opportunities after four years in the role, during which the company’s revenues grew by nearly 75% and adjusted EBITDA by more than 120%. He will remain for a handover period to incoming CFO Greg Price, a seasoned finance executive with extensive technology sector and corporate experience from roles at essensys, Checkit and several major UK and international businesses, whose appointment to the board is expected by 1 May 2026 subject to standard regulatory due diligence, signalling an orderly succession designed to support Cerillion’s continued growth and operational stability.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1881.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Executives Exercise Options as Company Replenishes Treasury Shares

Cerillion has disclosed that four senior managers have exercised options over 22,500 ordinary shares under its Long Term Incentive Plan, with a portion of these shares subsequently sold on the London Stock Exchange at prices between £14.40 and £14.60. The shares used to satisfy the option exercises were drawn from treasury, and the company has since repurchased 15,682 shares at an average price of £14.78 to replenish treasury stock for future employee option schemes, leaving 31,266 shares held in treasury and 29,515,292 voting shares in issue, a figure that will guide investors’ regulatory disclosure calculations.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1389.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Publishes 2025 Annual Report and Sets Date for Virtual AGM

Cerillion plc has distributed its Annual Report and Accounts for the year ended 30 September 2025, along with the notice of its upcoming Annual General Meeting, to shareholders, and has made both documents available on its website. The AGM is scheduled to be held virtually on 19 February at 9:00 a.m., with shareholders able to access full participation details and the meeting agenda through the notice, underscoring the company’s continued shift towards digital shareholder engagement and governance processes.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1389.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Secures Record £42.5m Omantel Deal to Power Oman’s Digital Push

Cerillion has secured its largest-ever contract, a roughly £42.5m agreement with Omantel, Oman’s leading integrated telecoms operator, to deploy its full BSS/OSS suite, including hosting, managed services, and ongoing support over a five-year subscription term. The deal, awarded after an extensive tender that weighed Cerillion against larger incumbent vendors, will underpin market forecasts for the 2026 financial year and beyond, enhancing Cerillion’s standing as a competitive full-service provider whose productised model promises lower total cost of ownership and greater operational flexibility for Tier 1 operators pursuing large-scale digital transformation, such as Omantel’s push to become a regional technology powerhouse under Oman Vision 2040.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1389.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.