Calnex Solutions (CLX) AI Stock Analysis

• Market Cap: £59.81M
• Dividend Yield: 1.4%
• Average Volume (3M): 107.36K
• Price to Earnings (P/E): 180.3
• Beta (1Y): 0.65
• Revenue Growth: 12.98%
• EPS Growth: 850.00%
• Country: UK
• Employees: 157
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.01
• Shares Outstanding: 87,958,305
• 10 Day Avg. Volume: 134,671
• 30 Day Avg. Volume: 107,364
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £61.00
• Price Target Upside: -8.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: 61.00p ▼(-8.27% Downside)

Calnex Solutions' stock score is primarily driven by solid financial performance and strong technical momentum. However, the high P/E ratio raises valuation concerns, and the overbought RSI suggests caution. The company's financial stability provides a foundation, but profitability and cash flow improvements are needed to enhance 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 generates revenue primarily through the sale of its test and measurement equipment, which includes hardware and software solutions. The company also earns income from maintenance and support services offered to its customers, providing ongoing assistance and upgrades for their products. Key revenue streams include direct sales to telecommunications operators and equipment manufacturers, as well as partnerships with technology firms that require high-precision testing solutions for their products. Additionally, Calnex benefits from recurring revenue through service contracts and subscriptions for its software applications, which enhance the functionality and capabilities of its testing equipment.

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	18.39M	18.39M	16.27M	27.45M	22.05M	17.98M
Gross Profit	9.49M	13.76M	8.17M	16.41M	13.26M	11.21M
EBITDA	900.00K	5.74M	3.53M	10.54M	8.61M	6.15M
Net Income	337.00K	337.00K	40.00K	5.91M	4.54M	3.45M
Balance Sheet
Total Assets	38.48M	38.48M	37.00M	38.75M	31.14M	24.28M
Cash, Cash Equivalents and Short-Term Investments	10.91M	10.91M	11.87M	19.10M	15.36M	12.67M
Total Debt	1.22M	1.22M	415.00K	691.00K	857.00K	566.00K
Total Liabilities	11.04M	11.04M	9.66M	11.39M	9.32M	7.12M
Stockholders Equity	27.44M	27.44M	27.34M	27.36M	21.83M	17.16M
Cash Flow
Free Cash Flow	4.55M	-309.00K	-6.49M	6.57M	3.14M	5.71M
Operating Cash Flow	4.58M	4.58M	-784.00K	11.27M	7.35M	9.05M
Investing Cash Flow	-4.89M	-4.57M	-3.84M	-6.98M	-5.71M	-3.34M
Financing Cash Flow	-967.00K	-967.00K	-1.09M	-563.00K	-448.00K	3.30M

Calnex Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 66.5 is above the 20-day moving average (MA) of 61.85, above the 50-day MA of 54.67, and above the 200-day MA of 54.75, indicating a bullish trend. The MACD of 3.95 indicates Positive momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CLX.

Calnex Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTC	81 Outperform	291.18M	20.25	―	―	121.45%	345.83%
MWE	73 Outperform	36.63M	10.24	15.34%	4.54%	1.08%	10.37%
NXQ	65 Neutral	53.00M	-23.54	0.44%	4.18%	-27.57%	-130.10%
CLX	62 Neutral	£59.81M	180.26	1.23%	1.40%	12.98%	850.00%
CYAN	52 Neutral	24.46M	-5.83	-25.35%	―	-24.31%	14.89%
CML	46 Neutral	41.43M	-2,363.64	-0.04%	4.23%	0.03%	-100.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Calnex Solutions Corporate Events

Calnex Solutions Announces Successful AGM Resolutions

Calnex Solutions, a leader in test and measurement solutions for telecommunications and cloud computing, announced the successful passing of all resolutions at their recent Annual General Meeting. This outcome reflects strong shareholder support and positions the company well for continued growth and stability in its market, benefiting stakeholders and reinforcing its industry standing.

The most recent analyst rating on (GB:CLX) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Strengthens Market Position with Strategic Developments

Calnex Solutions, a leader in test and measurement solutions for telecommunications and cloud computing, announced strategic developments ahead of its AGM. The company is strengthening its sales and marketing teams and expanding its partner network, particularly in North America, to capitalize on growth in the cloud and defense markets. The installation of test instrumentation in customer-facing labs aims to enhance engagement with US Federal customers. Despite a stable telecoms market, Calnex’s diverse market presence and strong balance sheet position it well for anticipated performance in line with market expectations for FY26.

The most recent analyst rating on (GB:CLX) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Announces AGM and Dividend Proposal

Calnex Solutions has announced its Annual General Meeting (AGM) will be held on 14 August 2025, with options for both in-person and remote participation via Zoom. The company has also proposed a final dividend of 0.62p per share, subject to approval at the AGM, which will be paid on 29 August 2025 to shareholders on record as of 25 July 2025. This announcement underscores Calnex’s commitment to shareholder engagement and provides an opportunity for stakeholders to participate in the company’s governance and financial decisions.

The most recent analyst rating on (GB:CLX) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Announces Long-Term Incentive Plan Awards

Calnex Solutions plc has announced the issuance of share option awards to its executive and senior management team under the company’s Long-Term Incentive Plan (LTIP). A total of 950,634 nominal cost share options have been granted, set to vest over a three-year period starting April 2025, contingent on meeting performance metrics. This move is aimed at aligning management interests with company growth, potentially enhancing Calnex’s competitive positioning in the telecommunications and cloud computing markets.

The most recent analyst rating on (GB:CLX) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.

Calnex Solutions Director Increases Stake with Share Purchase

Calnex Solutions PLC announced that Graeme Bissett, a Non-Executive Director, has purchased 37,034 ordinary shares of the company at 54.0 pence per share. This transaction, conducted on the London Stock Exchange, reflects a significant insider investment, potentially indicating confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:CLX) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on Calnex Solutions stock, see the GB:CLX Stock Forecast page.