Cerillion (CER) AI Stock Analysis

• Market Cap: £421.86M
• Dividend Yield: 1.19%
• Average Volume (3M): 85.38K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.23
• 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: 29,500,975
• 10 Day Avg. Volume: 59,721
• 30 Day Avg. Volume: 85,383
• PEG Ratio: 1.91
• Price to Book (P/B): 10.95
• Price to Sales (P/S): 12.14
• P/FCF Ratio: 54.79
• 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: £2,031.00
• Price Target Upside: 47.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 43.41
• Revenue Forecast (FY): £3.94B

• Rating: 62 Neutral
• Price Target: 1,484.00p ▲(7.54% Upside)

Cerillion's strong financial performance is the most significant factor, reflecting robust revenue growth, high profitability, and efficient cash management. However, technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is fair, but not compelling enough to offset the technical weaknesses.

Positive Factors

High profitability margins

Sustained high gross and operating margins signal durable pricing power and efficient cost structure. Such margins support internal R&D, margin-accretive growth investments and cash returns, making earnings resilient across business cycles in software and services.

Strong balance sheet, low leverage

Very low leverage and a strong equity base reduce financial risk and increase strategic optionality. This enables sustained investment in product development, selective M&A or cyclical cushioning without pressure to refinance, preserving long-term operational stability.

Efficient cash generation and conversion

High conversion of earnings into operating and free cash flow demonstrates durable cash generation. Reliable cash conversion supports recurring subscription models, funds customer implementation and product enhancements, and underpins sustainable shareholder returns or reinvestment.

Negative Factors

Modest revenue growth rate

Single-digit revenue growth constrains long-term scale benefits in a competitive software market. Slower top-line expansion limits economies of scale, could pressure future margin expansion and requires higher investment intensity to accelerate market penetration across telecom and utility segments.

Limited organizational scale

A relatively small employee base can constrain capacity for large multi-year enterprise deployments and simultaneous global rollouts. Limited scale may slow product development, professional services delivery and sales coverage versus larger rivals, impacting durable market share gains.

Concentration in telecoms and utilities

Significant exposure to telecom and utility customers concentrates revenue risk to industry-specific cycles, regulation and capex timing. Dependence on these sectors can amplify revenue cyclicality and limit diversification benefits over the medium term.

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

Cerillion exhibits strong financial health across income statement, balance sheet, and cash flow metrics. The company showcases impressive revenue and profit growth, high profitability margins, low financial leverage, and strong cash generation capabilities. These factors collectively indicate robust financial stability and growth potential in the software industry.

Income Statement

Cerillion's income statement shows strong performance with significant revenue growth year-over-year, with a 11.68% increase from 2023 to 2024. Gross Profit Margin and Net Profit Margin are robust at 80.47% and 34.88% respectively, indicating high profitability. Both EBIT and EBITDA margins are also strong, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet is healthy, with a low Debt-to-Equity Ratio of 0.06, indicating minimal leverage and financial risk. The Return on Equity is an impressive 31.47%, reflecting effective utilization of shareholders' equity to generate profits. The Equity Ratio is 76.88%, suggesting a strong equity base relative to total assets.

Cash Flow

Cerillion's cash flow statement demonstrates solid cash generation. The Free Cash Flow Growth Rate is 16.48%, showcasing strong growth in cash generation. The Operating Cash Flow to Net Income Ratio is 0.73, indicating efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio of 0.64 reflects substantial free cash flow generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.15M	45.36M	43.75M	39.17M	32.73M	26.07M
Gross Profit	31.63M	34.56M	35.20M	30.81M	22.52M	20.41M
EBITDA	21.01M	24.32M	21.99M	18.83M	14.03M	10.47M
Net Income	14.24M	16.62M	15.26M	12.93M	9.34M	6.43M
Balance Sheet
Total Assets	67.49M	75.27M	63.10M	52.78M	42.63M	35.67M
Cash, Cash Equivalents and Short-Term Investments	31.21M	34.40M	29.85M	24.74M	20.25M	13.17M
Total Debt	3.74M	3.31M	2.80M	3.16M	4.03M	4.81M
Total Liabilities	15.94M	15.66M	14.59M	15.90M	15.90M	15.46M
Stockholders Equity	51.55M	59.61M	48.51M	36.88M	26.73M	20.21M
Cash Flow
Free Cash Flow	12.53M	12.81M	9.70M	8.32M	10.73M	8.53M
Operating Cash Flow	12.94M	13.23M	11.21M	9.75M	12.34M	9.80M
Investing Cash Flow	-2.08M	-2.28M	-1.51M	-1.43M	-1.61M	-1.27M
Financing Cash Flow	-6.24M	-6.40M	-4.54M	-3.76M	-3.76M	-3.61M

Cerillion Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CER, the sentiment is Positive. The current price of 1380 is above the 20-day moving average (MA) of 1244.25, above the 50-day MA of 1335.80, and below the 200-day MA of 1484.34, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CER.

Cerillion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGE	77 Outperform	£10.26B	28.69	40.71%	1.94%	7.76%	17.61%
DOTD	73 Outperform	£195.71M	17.59	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£163.94M	37.68	7.71%	1.92%	-6.63%	-7.88%
GBG	70 Outperform	£586.02M	68.94	1.56%	1.73%	-0.18%	11.49%
CER	62 Neutral	£421.86M	25.42	30.74%	1.19%	3.67%	8.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£197.76M	47.35	9.59%	0.80%	22.80%	-32.13%

Cerillion Corporate Events

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.

Cerillion CFO Exercises Share Options and Sells Portion to Cover Tax Liabilities

Cerillion announced that Andrew Dickson, the CFO, exercised options for 7,500 shares under the company’s Long Term Incentive Plan, with the new shares issued from treasury holdings. Dickson sold 4,055 of these shares to cover tax liabilities, reflecting a routine financial maneuver that underscores the company’s adherence to regulatory compliance and financial management practices.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1604.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Reports Strong Financial Growth and Strategic Positioning for Future Expansion

Cerillion plc reported strong financial results for the year ending 30 September 2025, with a 4% increase in revenue to £45.4 million and a 10% rise in adjusted profit before tax to £21.8 million. The company achieved record highs in key financial metrics, including a 50.9% adjusted EBITDA margin and a 25% increase in new orders to £47.6 million. Cerillion’s strategic investments in R&D, focusing on AI and expanding its operational teams, have positioned it well for future growth. The company enters the new financial year with a robust back-order book and a strong sales pipeline, reflecting its solid market position and potential for continued expansion.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1604.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion to Announce FY2025 Results and Host Investor Presentation

Cerillion PLC announced it will release its final results for the fiscal year ending 30 September 2025 on 24 November 2025. An online presentation by CEO Louis Hall and CFO Andrew Dickson will follow on 28 November, where they will discuss the company’s performance and future prospects. This announcement is significant for stakeholders as it provides insights into the company’s operational performance and strategic direction.

The most recent analyst rating on (GB:CER) stock is a Hold with a £1604.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Unveils AI-Driven Enhancements with Cerillion 25.2 Launch

Cerillion has launched version 25.2 of its software suite, introducing a new Model Context Protocol (MCP) Server and a suite of AI Agents designed to enhance conversational intelligence across communications service providers’ operations. This release, which includes a new AI Billing Agent and other AI-driven tools, aims to transform user interaction with business applications by providing natural language interfaces for complex operations. The update also features a new Service Catalogue and a refreshed Interconnect Manager, enhancing the company’s BSS/OSS suite and accelerating service innovation for communications providers. Cerillion’s commitment to open standards is further demonstrated by achieving its first TM Forum Open Digital Architecture Component Certifications.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1551.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion PLC Announces Share Transfer to CEO Louis Hall

Cerillion PLC announced that Affinity Trust Limited, a trust for the benefit of CEO Louis Hall, transferred 3,346,887 ordinary shares to him at no cost, leaving his beneficial interest unchanged. This transaction, conducted outside a trading venue, complies with the Market Abuse Regulation, reflecting internal shareholding adjustments without impacting the company’s market position or stakeholder interests.

The most recent analyst rating on (GB:CER) stock is a Buy with a £1665.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.