Cerillion (CER) AI Stock Analysis

• Market Cap: £561.90M
• Dividend Yield: 0.73%
• Average Volume (3M): 45.11K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.74
• Revenue Growth: 2.33%
• EPS Growth: 1.11%
• Country: UK
• Employees: 351
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 29,495,974
• 10 Day Avg. Volume: 41,477
• 30 Day Avg. Volume: 45,107
• PEG Ratio: 4.33
• Price to Book (P/B): 11.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.82
• 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: £2,125.00
• Price Target Upside: 11.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: 2,101.00p ▲(10.29%Upside)

Cerillion's stock score is bolstered by strong financial performance and positive corporate events, indicating robust growth potential. However, caution is advised due to mixed technical indicators and relatively high valuation.

Cerillion Business Overview & Revenue Model

Company Description

Cerillion Plc provides software for billing, charging, and customer relationship management (CRM) to the telecommunications sector in the United Kingdom and internationally. It operates through four segments: Services, Software, Software-as-a-Service (SaaS), and Third-Party. The company offers Cerillion Enterprise BSS/OSS Suite, a pre-integrated end-to-end CRM and billing solution for mobile, fixed, cable, and multi-service communications providers; and Cerillion Skyline, a cloud billing SaaS application for the next generation of subscription and usage-based services. It also provides enterprise product catalogue, a platform for managing all products, services, tariffs, and packages; network inventory, an integrated suite to complement and extend GE grid solutions; mediator plus, a mediation solution for all types of transactional systems; Business Insights, an embedded analytics platform for real time data; and customer management products. The company offers service manager, an order to cash telecom order management for convergent services; and interconnect manager, a wholesale margin for multi-play communications services providers. Its solutions are used for 5G monetisation, subscription management, digital transformation, Internet of things, critical communications, total convergence, network asset management, broadband and multi-play, cerillion express, cable services, and MVNE / MVNO solutions. Cerillion Plc was founded in 1999 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Cerillion makes money by licensing its software solutions to telecommunications companies and other service providers. The company's revenue model includes one-time licensing fees, recurring maintenance and support fees, and professional services fees for implementation and customization of the software. Cerillion also generates revenue from SaaS (Software as a Service) subscriptions, enabling clients to access its solutions via the cloud. Additionally, significant partnerships with technology firms and telecom operators contribute to its growth and market presence, further enhancing its revenue streams.

Cerillion Financial Statement Overview

Summary

Cerillion shows strong financial health with significant revenue growth, high profitability margins, minimal financial leverage, and robust cash generation. Overall, the company exhibits impressive 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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
43.75M	39.17M	32.73M	26.07M	20.81M
	Gross Profit
35.20M	30.81M	25.50M	20.41M	15.35M
	EBIT
18.41M	15.28M	10.70M	7.52M	2.80M
	EBITDA
21.99M	18.83M	14.03M	10.47M	5.79M
	Net Income Common Stockholders
15.26M	12.93M	9.34M	6.43M	2.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.85M	24.74M	20.25M	13.17M	8.31M
	Total Assets
63.10M	52.78M	42.63M	35.67M	32.12M
	Total Debt
2.80M	3.16M	4.03M	4.81M	6.19M
	Net Debt
-27.05M	-21.58M	-16.22M	-8.36M	-2.12M
	Total Liabilities
14.59M	15.90M	15.90M	15.46M	16.09M
	Stockholders Equity
48.51M	36.88M	26.73M	20.21M	16.03M
Cash Flow		Free Cash Flow
9.70M	8.32M	10.73M	8.53M	5.17M
	Operating Cash Flow
11.21M	9.75M	12.34M	9.80M	6.61M
	Investing Cash Flow
-1.51M	-1.43M	-1.61M	-1.27M	-1.44M
	Financing Cash Flow
-4.54M	-3.76M	-3.76M	-3.61M	-3.61M

Cerillion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1905.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1905 is above the 20-day moving average (MA) of 1797.25, above the 50-day MA of 1621.31, and above the 200-day MA of 1691.25, indicating a bullish trend. The MACD of 79.72 indicates Negative momentum. The RSI at 65.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.17 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
ALFA	81 Outperform	£725.88M	28.23	58.00%	0.61%	7.75%	8.77%
CER	79 Outperform	£561.90M	39.52	30.29%	0.73%	2.33%	1.11%
IDOX	75 Outperform	£269.03M	50.86	6.94%	1.19%	19.55%	-6.45%
KNOS	75 Outperform	£907.02M	26.13	24.12%	3.82%	-4.13%	23.09%
APTD	73 Outperform	£170.17M	34.93	8.42%	1.76%	-6.21%	21.39%
NCC	67 Neutral	£503.28M	―	-10.60%	2.91%	―	―
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%

Cerillion Corporate Events

Cerillion’s Business Development Director Sells Shares

Cerillion announced that Richard Doughty, the Business Development Director, has sold 5,576 shares of the company at an average price of £18.35 per share. This transaction is in compliance with the Market Abuse Regulation, and it may have implications for the company’s stock market performance and investor perception.

The most recent analyst rating on (GB:CER) stock is a Buy with a £19.60 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Maintains Strong Position Despite Revenue Dip

Cerillion plc reported a 7% decline in first-half revenue to £20.9m due to a shift in the timing of customer renewals to the second half of the year. Despite this, recurring revenue increased by 8%, and the company maintained a strong adjusted EBITDA margin of 47.7%. The back-order book grew significantly by 23% to £56.5m by the end of April 2025, bolstered by new contracts, including a major five-year deal with a telecoms operator in Armenia. The company remains on track to meet its full-year financial targets, supported by a robust pipeline of new customer orders and continued strong cash flow. Cerillion’s strategic focus on SaaS solutions positions it well for future growth, despite global trading uncertainties.

The most recent analyst rating on (GB:CER) stock is a Buy with a £2350.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion Approves Dividend Appropriation and Deeds of Release at General Meeting

Cerillion plc announced that a special resolution was passed at their General Meeting, authorizing the appropriation of the company’s distributable profits for dividends from 2020 to 2023 and approving deeds of release. This resolution’s approval allows Cerillion to proceed with the Shareholders’ and Directors’ Deed of Release, as outlined in their April 2025 circular, potentially impacting their financial operations and shareholder relations positively.

The most recent analyst rating on (GB:CER) stock is a Buy with a £2350.00 price target. To see the full list of analyst forecasts on Cerillion stock, see the GB:CER Stock Forecast page.

Cerillion to Announce Interim Results and Host Investor Presentation

Cerillion is set to announce its interim results for the first half of 2025 on May 19, with a subsequent online presentation by CEO Louis Hall and CFO Andrew Dickson on May 28. This event will provide insights into the company’s performance and growth prospects, offering stakeholders an opportunity to engage directly with the leadership through a Q&A session.

Cerillion Convenes General Meeting to Address Dividend Compliance

Cerillion plc has announced a General Meeting to address procedural requirements under the Companies Act 2006 related to the payment of historic dividends. The meeting aims to secure shareholder approval for waivers that would rectify the company’s failure to file interim accounts, ensuring compliance with the Act. This move is not expected to impact Cerillion’s financial position, and while directors cannot independently recommend a vote due to conflicts of interest, the waivers have been deemed fair and reasonable by the company’s Nominated Adviser.

Cerillion PLC Announces Change in Major Holdings

Cerillion PLC, a company in the telecommunications software industry, has announced a change in its major holdings. Canaccord Genuity Group Inc., based in Vancouver, Canada, has increased its voting rights in Cerillion to 5.0064% as of April 28, 2025. This change in holdings reflects an acquisition or disposal of voting rights, indicating a strategic move by Canaccord Genuity to strengthen its influence in Cerillion. The increase from the previous position of 4.4124% suggests a growing interest and potential impact on Cerillion’s corporate governance and decision-making processes.

Cerillion Reports Strong Financial Position and Promising Customer Pipeline

Cerillion plc has released a trading update for the first half of its financial year ending September 2025, reporting expected revenues of approximately £20.9 million, slightly down from £22.5 million in the same period last year, due to the timing of software licence renewals. Despite this, the company has strengthened its balance sheet with a net cash increase to £31.0 million. Cerillion’s strong customer pipeline and recent contract wins, including a major $11.4 million deal and a £5.4 million renewal, position it well to meet market expectations for the year. Additionally, a significant European customer has chosen Cerillion’s software to support a new tier-1 customer base, which is anticipated to boost revenues in the current and next financial year.

Cerillion plc Acquires Shares for Treasury to Support Incentive Plans

Cerillion plc has announced the purchase of 17,500 of its own shares to be held in treasury for future use in its Long Term Incentive Plan and Save As You Earn scheme. This move affects the total voting rights, now standing at 29,495,974, which shareholders can use to determine their interest in the company’s share capital.