Calnex Solutions (CLX) AI Stock Analysis

• Market Cap: £38.89M
• Dividend Yield: 2.02%
• Average Volume (3M): 124.09K
• Price to Earnings (P/E): 62.7
• Beta (1Y): 0.87
• Revenue Growth: 20.83%
• EPS Growth: N/A
• Country: UK
• Employees: 157
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 87,991,640
• 10 Day Avg. Volume: 73,027
• 30 Day Avg. Volume: 124,093
• PEG Ratio: 0.18
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.17
• P/FCF Ratio: -129.01
• 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: £115.00
• Price Target Upside: 160.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 47.00p ▲(6.33% Upside)

Calnex Solutions' overall stock score reflects a mix of solid financial stability and strategic growth initiatives, offset by weak technical indicators and high valuation. The company's strong balance sheet and recent strategic partnerships are significant positives, but the current bearish technical signals and high P/E ratio suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance product adoption, which is crucial for long-term success.

Gross Margin

High gross margins demonstrate effective cost control, allowing the company to reinvest in growth initiatives and maintain competitive pricing.

Balance Sheet Health

Low leverage provides financial stability and flexibility, enabling the company to navigate economic fluctuations and invest in strategic opportunities.

Negative Factors

Net Profit Margin

Low net profit margins indicate difficulties in converting sales into profits, which could hinder the company's ability to generate shareholder value over time.

Free Cash Flow

Negative free cash flow suggests challenges in sustaining cash generation, which could limit the company's ability to fund growth and pay down debt.

Profitability

Low return on equity indicates that the company is not efficiently generating profits from its equity base, which may affect investor confidence and capital raising.

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 generates revenue primarily through the sale of its test and measurement equipment, which includes both hardware and software solutions. The company offers a range of products tailored to various sectors, including telecommunications, data centers, and enterprise networking. Revenue streams are bolstered by recurring income from software licenses, maintenance contracts, and customer support services. Additionally, Calnex may enter strategic partnerships with telecommunications providers and technology firms, enhancing its market reach and driving sales through collaborative projects. The demand for advanced network testing in emerging technologies, such as 5G and IoT, also contributes significantly to the company's financial performance.

Calnex Solutions Financial Statement Overview

Summary

Calnex Solutions demonstrates solid revenue growth and strong gross margins, indicating effective cost management. The balance sheet is robust with low leverage, providing financial stability. However, profitability and cash flow management remain areas for improvement, as reflected in the low net profit margin and negative free cash flow.

Income Statement

Calnex Solutions has shown a positive revenue growth rate of 16.47% in the latest year, indicating a recovery from the previous year's decline. The gross profit margin improved significantly to 74.86%, reflecting strong cost management. However, the net profit margin remains low at 1.83%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have improved, but the overall profitability is still modest.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.044, indicating low leverage and financial stability. The return on equity is modest at 1.23%, reflecting limited profitability. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects stability with room for improved returns.

Cash Flow

Operating cash flow has improved significantly, but free cash flow remains negative, indicating potential cash management issues. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, the negative free cash flow growth rate and ratio to net income highlight challenges in sustaining cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.07M	18.39M	16.27M	27.45M	22.05M	17.98M
Gross Profit	9.65M	13.76M	8.17M	16.41M	13.26M	11.21M
EBITDA	3.88M	5.74M	4.22M	11.29M	8.61M	6.15M
Net Income	623.00K	337.00K	40.00K	5.91M	4.54M	3.45M
Balance Sheet
Total Assets	35.96M	38.48M	37.00M	38.75M	31.14M	24.28M
Cash, Cash Equivalents and Short-Term Investments	10.30M	10.91M	11.87M	19.10M	15.36M	12.67M
Total Debt	1.08M	1.22M	415.00K	691.00K	857.00K	566.00K
Total Liabilities	9.34M	11.04M	9.66M	11.39M	9.32M	7.12M
Stockholders Equity	26.63M	27.44M	27.34M	27.36M	21.83M	17.16M
Cash Flow
Free Cash Flow	7.56M	-309.00K	-6.49M	6.57M	3.14M	5.71M
Operating Cash Flow	7.65M	4.58M	-784.00K	11.27M	7.35M	9.05M
Investing Cash Flow	-5.12M	-4.57M	-3.84M	-6.98M	-5.71M	-3.34M
Financing Cash Flow	-963.00K	-967.00K	-1.09M	-563.00K	-448.00K	3.30M

Calnex Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 44.2 is below the 20-day moving average (MA) of 45.14, below the 50-day MA of 49.10, and below the 200-day MA of 51.09, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 37.02 is Neutral, neither overbought nor oversold. The STOCH value of 28.41 is Neutral, 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
FTC	75 Outperform	£379.40M	28.66	55.98%	―	121.45%	345.83%
MWE	75 Outperform	£43.96M	11.78	17.79%	4.20%	5.46%	12.34%
CML	66 Neutral	£44.01M	37.27	2.28%	3.67%	-21.33%	-11.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLX	58 Neutral	£38.89M	62.68	2.36%	2.02%	20.83%	―
ENSI	55 Neutral	£47.33M	-16.23	-9.74%	―	-28.03%	-1213.04%
ENET	45 Neutral	£551.75K	-0.05	-203.82%	―	-54.10%	85.53%

Calnex Solutions Corporate Events

Calnex Solutions Reports Revenue Growth and Strategic Expansion in H1 FY26

Calnex Solutions reported a 9% revenue growth to £8.0 million for the first half of the fiscal year, driven by strategic investments and a stable telecoms market. The company reduced its loss before tax and maintained a strong cash position, allowing for continued investment in new markets such as US defence and cloud computing. The introduction of new products and partnerships, such as with Viavi for O-RAN testing solutions, positions Calnex for future growth. The company remains optimistic about meeting full-year market expectations and sees significant opportunities in expanding its market reach and product offerings.

The most recent analyst rating on (GB:CLX) stock is a Hold with a £58.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Reports Revenue Growth and Strategic Investments in H1 FY26

Calnex Solutions reported a 9% revenue growth to £8.0m for the first half of FY26, with improved gross margins and a reduced loss before tax. The company is investing strategically in new market opportunities, particularly in the US government and defence sectors, and is seeing increased demand for its network and application assurance products. Calnex is well-positioned for future growth, supported by a healthy balance sheet and ongoing investments in people, products, and partnerships. The company remains confident in meeting full-year market expectations, driven by momentum in telecoms, cloud computing, and datacentre markets.

The most recent analyst rating on (GB:CLX) stock is a Hold with a £58.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Partners with VIAVI to Enhance Open RAN Testing

Calnex Solutions has partnered with VIAVI Solutions to deliver a suite of test solutions for Open RAN products, aimed at simplifying and reducing the cost of pre-certification validation. This collaboration addresses the need for in-house labs to validate Open RAN systems, which traditionally required equipment from multiple vendors and extensive debugging. By integrating their systems, Calnex and VIAVI provide comprehensive testing capabilities that emulate realistic network conditions, thus enhancing the efficiency and reliability of Open RAN testing. This partnership is expected to strengthen Calnex’s market position and foster innovation within the telecom infrastructure market.

The most recent analyst rating on (GB:CLX) stock is a Hold with a £58.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions to Announce Interim Results and Host Investor Presentations

Calnex Solutions announced it will release its unaudited results for the six months ending 30 September 2025 on 18 November 2025. The company will host presentations for analysts and investors to discuss these results, highlighting its commitment to transparency and stakeholder engagement. This announcement underscores Calnex’s strategic focus on maintaining strong communication with its investors and analysts, which is crucial for its positioning in the competitive telecommunications and cloud computing markets.

The most recent analyst rating on (GB:CLX) stock is a Hold with a £56.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.