Cerillion (CER) AI Stock Analysis

• Market Cap: £501.76M
• Dividend Yield: 1.19%
• Average Volume (3M): 85.38K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.06
• 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: 29,515,291
• 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: £2,098.75
• Price Target Upside: 52.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 1,881.00p ▲(36.30% Upside)

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

Cerillion's very high gross, EBITDA and net margins reflect strong pricing power, scalable software economics and efficient operations. Structurally, these margins support durable internal funding for R&D and client delivery, improving resilience across economic cycles.

Low leverage / strong balance sheet

A minimal debt-to-equity ratio and a high equity ratio provide financial flexibility and low refinancing risk. This capital structure supports opportunistic investment, M&A or buffer through downturns without relying on external funding, strengthening long-term operational stability.

Recurring revenue and strong cash conversion

A business model built on subscriptions, maintenance and professional services plus operating cash conversion >1.0 and FCF near net income implies predictable, high-quality cash flows. That recurring profile supports reinvestment, margin maintenance and shareholder returns over time.

Negative Factors

Modest revenue growth

Reported revenue growth is modest, suggesting top-line expansion is limited relative to margin strength. Persistently slow growth can cap long-term earnings upside, increase reliance on upsells or pricing, and make it harder to justify sustained investment in scale or new markets.

End-market concentration

Heavy exposure to telecoms and utilities concentrates demand and ties performance to those sectors' capex cycles and consolidation dynamics. That structural concentration can amplify revenue volatility and limit diversification benefits over multi-quarter horizons.

Margin sustainability risk

Exceptionally high margins are a strength but may be hard to sustain as competition, cloud SaaS commoditization and the shift to subscription delivery demand ongoing R&D, customer success investment and competitive pricing. These structural pressures can compress margins over time.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.36M	45.36M	43.75M	39.17M	32.73M	26.07M
Gross Profit	34.56M	34.56M	35.20M	30.81M	22.52M	20.41M
EBITDA	24.32M	24.32M	21.99M	18.83M	14.03M	10.47M
Net Income	16.62M	16.62M	15.26M	12.93M	9.34M	6.43M
Balance Sheet
Total Assets	75.27M	75.27M	63.10M	52.78M	42.63M	35.67M
Cash, Cash Equivalents and Short-Term Investments	34.40M	34.40M	29.85M	24.74M	20.25M	13.17M
Total Debt	3.31M	3.31M	2.80M	3.16M	4.03M	4.81M
Total Liabilities	15.66M	15.66M	14.59M	15.90M	15.90M	15.46M
Stockholders Equity	59.61M	59.61M	48.51M	36.88M	26.73M	20.21M
Cash Flow
Free Cash Flow	12.81M	12.81M	9.70M	8.32M	10.73M	8.53M
Operating Cash Flow	13.23M	13.23M	11.21M	9.75M	12.34M	9.80M
Investing Cash Flow	-2.28M	-2.28M	-1.51M	-1.43M	-1.61M	-1.27M
Financing Cash Flow	-6.40M	-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: Positive
• 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 below the 20-day moving average (MA) of 1516.63, above the 50-day MA of 1372.40, and below the 200-day MA of 1487.35, indicating a bullish trend. The MACD of 112.47 indicates Negative momentum. The RSI at 77.57 is Negative, neither overbought nor oversold. The STOCH value of 86.26 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	£9.01B	25.38	40.71%	1.94%	7.76%	17.61%
DOTD	73 Outperform	£223.80M	20.22	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£149.90M	34.48	7.71%	1.92%	-6.63%	-7.88%
CER	70 Outperform	£501.76M	30.19	30.74%	1.19%	3.67%	8.74%
GBG	70 Outperform	£566.72M	66.85	1.56%	1.73%	-0.18%	11.49%
NET	68 Neutral	£225.04M	53.88	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 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.

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.