CloudCoCo Group (CLCO) AI Stock Analysis

• Market Cap: £1.24M
• Dividend Yield: N/A
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 12
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 706,215,700
• 10 Day Avg. Volume: 678,741
• 30 Day Avg. Volume: 3,001,249
• PEG Ratio: -0.03
• Price to Book (P/B): -5.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: 0.00p ▼(-100.00%Downside)

CloudCoCo Group's overall stock score is influenced by its financial challenges, including negative net income and weak balance sheet, which are partially offset by improved cash flow management. The technical indicators suggest moderate upward momentum. Corporate events have positively impacted the company's financial position and strategic focus, but valuation remains a concern with negative earnings and no dividend yield.

CloudCoCo Group Business Overview & Revenue Model

Company Description

CloudCoCo Group plc provides information technology (IT) and communications services to small and medium-sized enterprises in the United Kingdom. The company operates through two segments, Managed IT services and Value Added Resale. The Managed IT services segment provides recurring IT services, which have an ongoing billing and support elements. The Value Added Resale segment engages in the resale of hardware and software solutions. The company also offers cyber security services, such as security fabric, zero trust access, security driven network, adaptive cloud security, network security, end-point protection, email security, identity and access management, security operations, AWS security, security assessments, penetration and cloud application testing, and cyber essentials accreditation services; and connectivity services, including secure global learning, broadband and ethernet, SD-WAN, leased lines, public sector networks, Internet, and cloud connectivity, as well as LAN, WiFi, and analytics services. In addition, the company provides communications services, such as cloud telephone and unified cloud, SIP tunking, analogue calls and lines, inbound, mobile and mobile device management, contact center, and maintenance and support; public, private, and hybrid cloud services; VMware, colocation, data center migration and optimization, business continuity and disaster recovery, Veeam availability suite, and global streaming services, as well as services for gaming startups; and graphics processing unit and bare metal servers. Further, it offers Microsoft services; professional and IT consulting services; and cost analysis services. The company was formerly known as Adept4 Plc and changed its name to CloudCoCo Group plc in November 2019. CloudCoCo Group plc was incorporated in 2004 and is based in London, the United Kingdom.

How the Company Makes Money

CloudCoCo Group generates revenue through a diversified business model that includes managed IT services, cloud solutions, and consultancy services. The company charges subscription fees for its managed IT services, which provide ongoing support and maintenance for clients' IT infrastructure. CloudCoCo also earns money by offering cloud solutions such as data storage, backup, and disaster recovery services, typically billed on a usage-based model or through fixed monthly fees. Additionally, the company provides cybersecurity services to safeguard clients' data and networks, contributing to its revenue streams. Strategic partnerships with technology vendors and service providers further enhance CloudCoCo's offerings and enable it to deliver comprehensive IT solutions, driving additional revenue.

CloudCoCo Group Financial Statement Overview

Summary

CloudCoCo Group faces significant financial challenges with consistently negative net income and declining revenues. The balance sheet shows high financial risk with negative equity. However, improved cash flow management provides some positive outlook.

Income Statement

CloudCoCo Group's revenue has shown fluctuations over the years with a significant drop from 2023 to 2024. The company has consistently reported negative net income, resulting in a negative net profit margin. Despite a positive EBITDA margin in 2024, the EBIT margin remains negative, indicating ongoing operational challenges.

Balance Sheet

The company's balance sheet is weak with negative stockholders' equity in 2024, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, reflecting more liabilities than assets. This presents a risk of financial instability.

Cash Flow

CloudCoCo Group has improved its operating cash flow and free cash flow in 2024, demonstrating better cash management. The free cash flow growth rate from 2023 to 2024 is significant, but the company's ability to generate cash flow relative to net income is hindered by negative earnings.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
8.74M	6.19M	24.19M	8.11M	7.97M
	Gross Profit
499.00K	595.00K	5.97M	3.22M	1.68M
	EBIT
-2.34M	-1.76M	-1.84M	-1.51M	-2.01M
	EBITDA
2.01M	660.00K	144.00K	-404.00K	-713.00K
	Net Income Common Stockholders
-3.15M	-2.09M	-2.29M	-2.13M	-2.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04M	794.00K	1.52M	1.18M	588.00K
	Total Assets
17.50M	18.84M	20.53M	14.76M	13.05M
	Total Debt
6.19M	7.02M	5.55M	4.26M	3.75M
	Net Debt
5.15M	6.22M	4.04M	3.08M	3.16M
	Total Liabilities
19.59M	17.81M	17.52M	9.59M	8.08M
	Stockholders Equity
-2.09M	1.03M	3.01M	5.17M	4.98M
Cash Flow		Free Cash Flow
1.48M	493.00K	847.00K	-561.00K	-22.00K
	Operating Cash Flow
1.53M	839.00K	962.00K	-530.00K	15.00K
	Investing Cash Flow
-106.00K	-392.00K	202.00K	-594.00K	120.00K
	Financing Cash Flow
-1.52M	-1.17M	-831.00K	1.72M	142.00K

CloudCoCo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CLCO, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.16, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CLCO.

CloudCoCo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOM	66 Neutral	£32.70M	9.57	2.80%	8.96%	1.47%	-49.08%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CLCO	60 Neutral	£1.24M	―		―	―	―
CTAI		£3.23M	―	-70.65%	―	―	―
FIN	70 Outperform	£19.71M	18.97	43.60%	―	17.67%	-53.23%
SYS	55 Neutral	£18.32M	―	-26.77%	―	2.89%	-804.62%
SWG	54 Neutral	£10.48M	―	-6.16%	―	-11.19%	63.83%

CloudCoCo Group Corporate Events

CloudCoCo Group plc Successfully Passes All AGM Resolutions

CloudCoCo Group plc announced that all resolutions were passed at their Annual General Meeting, reflecting the company’s strong operational and strategic alignment. This outcome underscores CloudCoCo’s robust positioning in the technology sector and its commitment to growth, potentially benefiting stakeholders through continued innovation and market expansion.

CloudCoCo Group Strengthens Financial Position with Strategic Divestment

CloudCoCo Group reported a 6% increase in revenue to £27.5 million for the fiscal year ending September 2024, with significant growth in e-commerce sales. The company completed the sale of its IT managed services businesses, CloudCoCo Limited and CloudCoCo Connect Limited, for £7.75 million, which enabled the repayment of debts and strengthened its financial position. This strategic divestment allows CloudCoCo to focus on its e-commerce and IT procurement operations, aiming for long-term growth and profitability. The company is exploring new opportunities in consultancy and investment to broaden its revenue base, despite challenges in the Managed IT Services sector.