Corero Network Security (CNS) AI Stock Analysis

• Market Cap: £72.98M
• Dividend Yield: N/A
• Average Volume (3M): 239.85K
• Price to Earnings (P/E): 203.6
• Beta (1Y): 0.29
• Revenue Growth: 6.95%
• EPS Growth: N/A
• Country: UK
• Employees: 87
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 512,161,800
• 10 Day Avg. Volume: 309,407
• 30 Day Avg. Volume: 239,853
• PEG Ratio: -1.55
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.80
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.28
• Enterprise Value/Ebitda: 10.91
• 1Y Price Target: £23.50
• Price Target Upside: 64.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 16.00p ▲(12.28%Upside)

Corero Network Security's overall stock score reflects robust financial growth and strategic corporate developments, counterbalanced by bearish technical indicators and high valuation. While the company demonstrates strong strategic initiatives, the current stock price may not be justified by earnings, suggesting caution to potential investors.

Corero Network Security Business Overview & Revenue Model

Company Description

Corero Network Security (CNS) is a leading provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) defense solutions. Operating in the cybersecurity sector, the company specializes in protecting businesses and service providers from the growing threat of DDoS attacks. Corero's primary product offering is the SmartWall Threat Defense System, which provides advanced DDoS protection capabilities to ensure network availability and security.

How the Company Makes Money

Corero Network Security makes money primarily through the sale of its DDoS protection solutions, including hardware, software, and associated services. The company's revenue streams include product sales, service contracts, and subscription-based offerings. Corero also generates income from professional services such as consulting, implementation, and support. Key partnerships with Internet service providers and data center operators enhance Corero's market reach, enabling joint go-to-market strategies and broadening its customer base. Additionally, recurring revenue from annual maintenance and support contracts contributes significantly to Corero's financial performance.

Corero Network Security Financial Statement Overview

Summary

Corero Network Security shows strong revenue growth and improved profitability, supported by a solid balance sheet with low leverage. However, the company faces challenges with negative free cash flow, indicating potential issues with capital expenditure management.

Income Statement

Corero Network Security shows a strong revenue growth trend, with a notable increase from 2023 to 2024. The gross profit margin remains robust, indicating effective cost management. The shift from a negative net income in 2023 to a positive one in 2024 reflects improved profitability. However, the EBIT margin is relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet indicates a solid equity base with a low debt-to-equity ratio, enhancing financial stability. The equity ratio is favorable, showing a strong reliance on equity financing. However, a slight increase in total liabilities over the years could pose a risk if not managed well.

Cash Flow

Operating cash flow has been consistently positive, which is a positive sign of cash generation ability. However, negative free cash flow in 2024 raises concerns about capital expenditure management. The free cash flow to net income ratio indicates that the company is not efficiently converting its earnings into free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.56M	22.35M	20.12M	20.89M	16.88M
Gross Profit	22.43M	20.18M	17.55M	17.78M	13.04M
EBITDA	2.82M	2.07M	1.17M	1.75M	-1.16M
Net Income	498.00K	-170.00K	554.00K	1.52M	-3.78M
Balance Sheet
Total Assets	33.50M	28.44M	26.83M	29.79M	29.63M
Cash, Cash Equivalents and Short-Term Investments	5.32M	5.16M	5.65M	11.20M	10.14M
Total Debt	150.00K	315.00K	1.29M	2.95M	2.73M
Total Liabilities	14.83M	11.70M	10.95M	13.98M	15.75M
Stockholders Equity	18.66M	16.74M	15.88M	15.80M	13.88M
Cash Flow
Free Cash Flow	-693.00K	494.00K	-2.15M	2.36M	4.13M
Operating Cash Flow	3.29M	3.13M	-1.73M	2.79M	5.14M
Investing Cash Flow	-3.88M	-2.59M	-2.12M	-2.17M	-2.43M
Financing Cash Flow	765.00K	-1.37M	-1.39M	605.00K	-876.00K

Corero Network Security Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CNS, the sentiment is Negative. The current price of 14.25 is below the 20-day moving average (MA) of 15.04, below the 50-day MA of 16.36, and below the 200-day MA of 18.77, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 26.92 is Positive, neither overbought nor oversold. The STOCH value of 27.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CNS.

Corero Network Security Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOM	66 Neutral	£32.59M	9.54	2.80%	9.00%	1.47%	-49.08%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.50%	-19.96%
CNS	60 Neutral	£72.98M	203.57	2.72%	―	6.95%	―
PCIP	59 Neutral	£37.31M	―		―	20.56%	83.30%
SYS	55 Neutral	£17.07M	―	-26.77%	―	2.89%	-804.62%
SWG	54 Neutral	£11.20M	―	-6.16%	―	-11.19%	63.83%
CLCO	54 Neutral	£1.84M	―		―	―	―

Corero Network Security Corporate Events

Corero Network Security Successfully Passes All AGM Resolutions

Corero Network Security announced that all resolutions proposed at its Annual General Meeting on June 16, 2025, were successfully passed. This outcome reflects shareholder confidence in the company’s strategic direction and operational management, potentially strengthening its position in the cybersecurity industry.

Corero Expands Partnership with Lightedge to Enhance Global DDoS Protection

Corero Network Security has announced a significant 5-year, $1.2 million expansion of its partnership with Lightedge, enhancing its DDoS protection across Lightedge’s data centers globally. This expansion underscores a broader industry trend towards adaptable, AI-ready security architectures, as organizations increasingly focus on securing hybrid cloud environments against evolving cybersecurity threats.

Corero Network Security Announces 2025 AGM and 2024 Annual Report Release

Corero Network Security has announced the posting of its 2024 Annual Report and Accounts, along with the notice for its 2025 Annual General Meeting (AGM). The AGM is scheduled for June 16, 2025, in London. Shareholders are encouraged to submit questions about the AGM, which will be answered on the company’s website. This move underscores Corero’s commitment to shareholder engagement and transparency, potentially strengthening its position in the cybersecurity industry.

Corero Network Security Enhances Investor Outreach with Edison Group

Corero Network Security has appointed Edison Group to enhance its visibility among international retail and institutional investors, complementing its existing equity research. Edison will provide in-depth research coverage, including video commentary, to offer high-quality insights into Corero’s performance and strategy, aiming to increase awareness and understanding of the company’s long-term value proposition, particularly in the US market.

Corero CEO Increases Stake in Company

Corero Network Security announced that its CEO, Carl Herberger, has purchased 246,095 ordinary shares, increasing his total beneficial interest to 1,697,122 shares, which represents 0.33% of the company’s issued share capital. This transaction, conducted in accordance with UK Market Abuse Regulation, may indicate Herberger’s confidence in the company’s future prospects and could positively influence stakeholder perceptions.

Corero Network Security Expands Partnership in Latin America

Corero Network Security has announced a $0.6 million expansion of its partnership with TechEnabler, a technology service provider in Brazil, to enhance its presence in Latin America. This expansion includes upgrading the Corero SmartWall ONE solution to a new 400G platform, highlighting the demand for advanced DDoS solutions and Corero’s commitment to innovation in the DDoS defense market.

Corero Expands Partnership with Juniper Networks to Broaden DDoS Protection Reach

Corero Network Security has expanded its partnership with Juniper Networks, allowing Juniper to sell Corero’s full range of DDoS protection solutions to customers with any network infrastructure. This strategic move is expected to open new business opportunities, particularly with tier-one telecommunications providers and enterprises, enhancing Corero’s market reach and accelerating its go-to-market strategy.

Corero Network Security Reports Strong Financial Growth and Strategic Expansion in 2024

Corero Network Security reported a strong financial performance for the year ended December 31, 2024, with a 10% increase in revenue to $24.6 million and a 42% rise in EBITDA to $2.5 million. The company achieved significant growth in annual recurring revenues and order intake, driven by new contract wins and a robust customer retention rate of 97%. Corero’s strategic initiatives, including expanding its global footprint and enhancing its sales and marketing efforts, have positioned it well for future growth. The company remains focused on increasing its market share in the DDoS defense sector and capitalizing on new business opportunities across key geographies.