Calnex Solutions (CLX) AI Stock Analysis

• Market Cap: £39.99M
• Dividend Yield: 2.04%
• Average Volume (3M): 70.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.31
• Revenue Growth: -30.05%
• EPS Growth: -118.59%
• Country: UK
• Employees: 157
• Sector: Technology
• Sector Strength: 43
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 87,891,640
• 10 Day Avg. Volume: 103,696
• 30 Day Avg. Volume: 70,757
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.66
• Price to Cash Flow (P/CF): -11.00
• P/FCF Ratio: 0.00
• 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

Calnex Solutions currently faces significant challenges, notably in financial performance and technical indicators, which weigh heavily on its stock score. Operational inefficiencies and cash flow constraints are primary concerns. The technical outlook is bearish, and valuation metrics suggest caution. However, the director's share purchase offers a slight positive sentiment, though not enough to significantly alter the overall outlook.

Calnex Solutions Business Overview & Revenue Model

Company Description

Calnex Solutions plc designs, produces, and markets test instrumentation and solutions for network synchronization, and network emulation for telecoms networks, enterprise networks, and data centers worldwide. The company offers Paragon-neo, a platform that provides PTP and SyncE testing to 400GbE and sub-nanosecond accuracy for 5G networks; NE-ONE, a performance test application for realistic networks, including LAN, WAN, Internet, Cloud, Wi-Fi, (A)DSL, mobile, and satellite to verify application performance; Calnex SNE, a solution for network emulation and simulation, which enables users to build their network; Sentinel, a field solution for 3G/4G/5G mobile backhaul, E911/critical infrastructure, financial networks, and power comms; Paragon-ONE, a feature that bundles delivering test solutions for PTP to profiles, such as IEEE 802.1AS/AS-REV, SMPTE 2059-2, and ITU-T G.8275.1.; and Paragon-X, a solution to test SyncE, PTP, and NTP mechanisms, as well as E1/T1 sync interfaces and ethernet OAM. It also provides Attero-100G for 100/40/25GbE device performance testing; Attero-X, a network emulation test solution; Attero-V, a virtual impairments tool that extends and complements the capabilities of the Spirent range of virtualization products and solutions; and Tempo for canned tests for embedded GPS/GLONASS/BEDOU receiver and optional mini rubidium. In addition, the company offers Rb/GPS, a frequency reference, which provides a stable 10MHz and a 1pps measurement reference for Sync testers; 1pps/ToD/Frequency Converter that enables the users to convert essential signals required in modern network devices; and Calnex Analysis Tool, a network and device analysis software. It offers its products through a network of regional resellers and distributors. The company was incorporated in 2006 and is headquartered in Linlithgow, the United Kingdom.

How the Company Makes Money

Calnex Solutions makes money through the sale of its specialized test and measurement equipment, which is crucial for assessing and ensuring the quality of network synchronization and emulation. Their revenue model primarily involves direct sales to telecommunications companies, network operators, and equipment manufacturers. Additionally, Calnex may generate income from service contracts, maintenance agreements, and software licensing fees associated with their hardware products. Significant partnerships with major telecommunications companies and continuous innovation in network testing technologies further bolster their earnings.

Calnex Solutions Financial Statement Overview

Summary

Calnex Solutions faces operational and cash flow challenges, impacting its short-term financial health. The company needs to address declining revenues and improve operational efficiency to boost profitability. Despite a strong balance sheet, the pressure on cash flow requires strategic management to ensure sustainable growth.

Income Statement

The income statement reflects decreasing revenues and profitability. The revenue declined significantly from the previous year, and the company posted negative EBIT, indicating operational challenges. However, the company managed to remain slightly profitable at the net income level, highlighting some cost control.

Balance Sheet

The balance sheet shows stable equity levels with prudent debt management. The debt-to-equity ratio is low, indicating low leverage risk. However, stockholders' equity remained largely unchanged, pointing to a lack of growth in equity despite stable asset levels.

Cash Flow

Cash flow analysis reveals significant pressure on free cash flow due to negative operating cash flow and high capital expenditures. The company is currently unable to generate adequate cash from operations, raising concerns about liquidity and cash management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
16.27M	27.45M	22.05M	17.98M	13.74M
	Gross Profit
8.17M	16.41M	13.26M	11.21M	8.44M
	EBIT
-617.00K	6.48M	5.34M	3.40M	3.32M
	EBITDA
3.53M	10.54M	8.61M	6.15M	5.66M
	Net Income Common Stockholders
40.00K	5.91M	4.54M	3.45M	2.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.87M	19.10M	15.36M	12.67M	3.66M
	Total Assets
37.00M	38.75M	31.14M	24.28M	15.14M
	Total Debt
415.00K	691.00K	857.00K	566.00K	2.95M
	Net Debt
-11.45M	-11.75M	-6.47M	-7.10M	-711.87K
	Total Liabilities
9.66M	11.39M	9.32M	7.12M	8.14M
	Stockholders Equity
27.34M	27.36M	21.83M	17.16M	7.00M
Cash Flow		Free Cash Flow
-6.49M	6.57M	3.14M	5.71M	5.50M
	Operating Cash Flow
-784.00K	11.27M	7.35M	9.05M	5.53M
	Investing Cash Flow
-3.84M	-6.98M	-5.71M	-3.34M	-2.94M
	Financing Cash Flow
-1.09M	-563.00K	-448.00K	3.30M	-802.00K

Calnex Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CLX, the sentiment is Negative. The current price of 43 is below the 20-day moving average (MA) of 49.31, below the 50-day MA of 57.35, and below the 200-day MA of 55.97, indicating a bearish trend. The MACD of -3.26 indicates Positive momentum. The RSI at 13.28 is Positive, neither overbought nor oversold. The STOCH value of 6.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CLX.

Calnex Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRCS	63 Neutral	£112.16M	227.78	0.72%	0.65%	-1.22%	-92.99%
Sector *	57 Neutral	$20.89B	10.40	-13.99%	2.52%	4.47%	-23.34%
CLX	39 Underperform	£39.99M	―	-2.16%	2.04%	-30.05%	-118.59%

Calnex Solutions Corporate Events

Calnex Solutions Director Increases Stake with Share Purchase

Calnex Solutions announced that Helen Kelisky, a Non-Executive Director, purchased 20,202 ordinary shares at 49.5 pence each, reflecting confidence in the company’s market position. This transaction may signal positive sentiment towards Calnex’s future prospects and stability within the telecommunications industry.

Calnex Solutions Expands Share Capital with New Issue

Calnex Solutions plc has announced the issuance of 333,334 new ordinary shares following the exercise of options under its equity incentive schemes. These shares will be admitted to AIM trading, increasing the total share capital to 87,891,636 ordinary shares. This move is part of Calnex’s ongoing efforts to enhance its market participation and provides stakeholders with updated share capital information for compliance with the UK Financial Conduct Authority’s regulations.