Concurrent Technologies (CNC) AI Stock Analysis

• Market Cap: £193.44M
• Dividend Yield: 0.95%
• Average Volume (3M): 345.79K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 1.00
• Revenue Growth: 22.72%
• EPS Growth: -8.82%
• Country: UK
• Employees: 155
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.03
• Shares Outstanding: 86,989,044
• 10 Day Avg. Volume: 235,403
• 30 Day Avg. Volume: 345,791
• PEG Ratio: 2.45
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 16.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 241.00p ▲(8.31% Upside)

Concurrent Technologies' strong financial performance is the primary driver of its score, supported by solid revenue and cash flow growth. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. Corporate events present mixed signals, with a promising defense contract but potential negative sentiment from the CEO's share sale.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for the company's products and services, enhancing its market position and supporting long-term business expansion.

Cash Flow Generation

Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic uncertainties.

Balance Sheet Strength

A strong balance sheet with minimal leverage ensures financial stability and reduces risk, enabling the company to withstand market fluctuations and invest in strategic initiatives.

Negative Factors

EPS Decline

The decline in EPS suggests challenges in maintaining profitability, which could impact investor confidence and limit resources for future growth.

Profit Margin Pressure

Despite improved net profit margins, declining EPS indicates potential cost pressures or inefficiencies that could affect long-term profitability.

Limited Earnings Call Insights

Lack of detailed earnings call insights may hinder transparency and investor understanding of strategic direction, affecting long-term investor relations and confidence.

Concurrent Technologies Business Overview & Revenue Model

Company Description

Concurrent Technologies Plc, together with its subsidiaries, engages in the design, development, manufacture, and marketing of single board computers for system integrators and original equipment manufacturers. It offers central processing unit boards; and complementary accessory products, such as switches, storage, and I/O boards. The company serves customers in the defense, telecommunications, aerospace, transportation, scientific, and industrial markets in the United Kingdom, the United States, Malaysia, rest of Europe, and internationally. Concurrent Technologies Plc was incorporated in 1985 and is based in Colchester, the United Kingdom.

How the Company Makes Money

CNC generates revenue through a diversified model that includes direct sales of its high-performance computing products, custom engineering services, and long-term contracts with government and defense agencies. Key revenue streams come from the sale of embedded computing systems and components, which are often sold to military and aerospace clients requiring specialized technology. Additionally, CNC engages in partnerships with major defense contractors and technology companies, enabling them to integrate their products into larger systems. The company's focus on research and development also allows it to innovate continually, creating new products that address emerging market needs and expanding its customer base.

Concurrent Technologies Financial Statement Overview

Summary

Concurrent Technologies showcases strong financial performance with notable revenue and cash flow growth. The company maintains a strong balance sheet with low leverage and high equity, ensuring financial stability. The healthy profit margins and effective cash generation reflect operational efficiency and profitability.

Income Statement

Concurrent Technologies has demonstrated strong revenue growth with a 27.4% increase from 2023 to 2024. The gross profit margin remains robust at 43.1%, indicating effective cost management. Net profit margin improved to 11.7%, showcasing enhanced profitability. The EBIT and EBITDA margins of 12.1% and 19.5% respectively further reflect operational efficiency.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.019, indicating minimal leverage. The return on equity is impressive at 12.1%, reflecting effective utilization of equity. With an equity ratio of 76.7%, the company has a strong equity base relative to its assets, indicating financial stability.

Cash Flow

The company has achieved significant growth in free cash flow, increasing to $7 million in 2024. The operating cash flow to net income ratio of 1.68 demonstrates healthy cash generation compared to earnings. The free cash flow to net income ratio of 1.49 indicates strong cash flow relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.57M	40.32M	31.66M	18.27M	20.45M	21.14M
Gross Profit	20.48M	17.37M	15.64M	7.26M	10.03M	9.28M
EBITDA	7.53M	7.88M	5.87M	2.11M	4.94M	5.01M
Net Income	4.80M	4.70M	3.87M	987.02K	2.82M	2.75M
Balance Sheet
Total Assets	50.60M	50.78M	47.83M	32.65M	29.78M	29.04M
Cash, Cash Equivalents and Short-Term Investments	7.83M	13.71M	11.12M	4.51M	11.84M	11.77M
Total Debt	277.81K	756.66K	989.93K	1.46M	910.21K	822.78K
Total Liabilities	10.01M	11.86M	12.79M	9.47M	7.10M	6.48M
Stockholders Equity	40.59M	38.93M	35.04M	23.18M	22.68M	22.56M
Cash Flow
Free Cash Flow	4.65M	7.00M	1.16M	-6.19M	2.11M	3.18M
Operating Cash Flow	5.36M	7.88M	5.63M	-994.30K	4.25M	5.46M
Investing Cash Flow	-4.51M	-4.26M	-5.09M	-5.19M	-2.13M	-2.28M
Financing Cash Flow	-1.99M	-1.03M	6.05M	-1.12M	-2.01M	-1.93M

Concurrent Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 222.50
• 50DMA: Negative
• 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:CNC, the sentiment is Negative. The current price of 222.5 is below the 20-day moving average (MA) of 233.45, below the 50-day MA of 234.20, and above the 200-day MA of 199.42, indicating a neutral trend. The MACD of -3.98 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 41.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CNC.

Concurrent Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APTD	72 Outperform	£161.88M	37.16	7.71%	1.86%	-6.63%	-7.88%
CNC	69 Neutral	£193.44M	39.87	12.29%	0.95%	22.72%	-8.82%
TST	68 Neutral	£4.95M	145.35	1.05%	5.65%	0.09%	-94.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TRCS	61 Neutral	£84.78M	165.70	0.78%	0.84%	1.07%	11.25%
SRT	55 Neutral	£193.72M	87.22	―	―	―	―
TTG	54 Neutral	£198.48M	-2.84	-31.42%	―	-16.33%	-448.12%

Concurrent Technologies Corporate Events

Concurrent Technologies Issues New Shares to Satisfy Employee Options

Concurrent Technologies Plc has announced the issuance of 100,000 new ordinary shares to satisfy the exercise of options by employees under its Long Term Incentive Plan. This move, which involves an application for trading on the AIM market of the London Stock Exchange, will increase the total number of ordinary shares with voting rights to 86,839,048. This development is significant for stakeholders as it impacts the calculation of their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Concurrent Technologies Announces New Share Issuance and CEO Share Sale

Concurrent Technologies Plc has announced the issuance of 267,379 new ordinary shares to satisfy the exercise of options by CEO Miles Adcock. Following this transaction, Adcock sold 103,377 shares to cover associated costs, resulting in him holding 315,431 shares, representing 0.36% of the company’s enlarged share capital. This move is part of the company’s ongoing operations and impacts the total voting rights, which now stand at 86,739,048 ordinary shares.

Concurrent Technologies Issues Share Options to Key Employees

Concurrent Technologies Plc has announced the issuance of 468,674 share options to 24 employees, including key managerial personnel, under its Long Term Incentive Plan. This move, aimed at aligning employee incentives with company performance, reflects the company’s strategic focus on enhancing shareholder value through improved earnings per share over the coming years.

Concurrent Technologies CEO Sells Significant Shareholding

Concurrent Technologies Plc announced that CEO Miles Adcock has sold 61,539 ordinary shares at an average price of 225p, leaving him with a total interest of 151,429 shares, representing 0.18% of the company’s issued share capital. This transaction may impact investor perceptions and the company’s market positioning, as it reflects a significant share dealing by a top executive.

Concurrent Technologies Secures $5.25M US Defence Contract

Concurrent Technologies Plc has secured a $5.25 million contract to provide design services to a major US defence contractor, marking the first time this customer has outsourced its computer product design and Concurrent’s initial foray into offering design services. This contract, effective immediately and running through 2026, aligns with the Department of Defence’s push for open standards and agile solutions, and represents an opportunity for Concurrent to explore design services as a potential business line, capitalizing on the trend of outsourced hardware development.