Corero Network Security (CNS) AI Stock Analysis

• Market Cap: £44.81M
• Dividend Yield: N/A
• Average Volume (3M): 699.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -5.43%
• EPS Growth: -292.31%
• Country: UK
• Employees: 87
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 512,161,800
• 10 Day Avg. Volume: 1,507,957
• 30 Day Avg. Volume: 699,549
• PEG Ratio: -0.58
• Price to Book (P/B): 6.68
• Price to Sales (P/S): 5.07
• P/FCF Ratio: -179.83
• 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: £19.00
• Price Target Upside: 94.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 10.00p ▲(2.56% Upside)

The overall stock score of 56 reflects a combination of solid financial performance and challenges in technical analysis and valuation. The company's strong revenue growth and balance sheet stability are offset by bearish technical indicators and a negative P/E ratio, indicating profitability issues. Addressing cash flow management and improving profitability are crucial for enhancing the stock's attractiveness.

Corero Network Security Business Overview & Revenue Model

Company Description

Corero Network Security (CNS) is a cybersecurity company specializing in real-time DDoS (Distributed Denial of Service) protection solutions. The company operates primarily in the technology sector, focusing on providing security services that safeguard businesses against various cyber threats. CNS offers a range of products designed to detect and mitigate DDoS attacks, ensuring the availability and performance of networks and applications for its clients, which include service providers, enterprises, and government organizations.

How the Company Makes Money

Corero Network Security generates revenue through the sale of its cybersecurity solutions, primarily its DDoS protection products. The company employs a subscription-based model, where clients pay for ongoing access to its software and services, which includes regular updates and support. Key revenue streams include initial software licensing fees, recurring subscription fees, and professional services, such as consulting and implementation support. Additionally, CNS has established partnerships with various telecommunications and managed security service providers, which help expand its market reach and drive further revenue through joint offerings and bundled services.

Corero Network Security Financial Statement Overview

Summary

Corero Network Security demonstrates solid revenue growth and profitability improvements, supported by a strong balance sheet with low leverage. While cash generation from operations is healthy, the negative free cash flow in recent periods signals potential challenges in capital expenditure management. Overall, the company shows promising growth with stable financial health, but must address cash flow concerns to maintain long-term stability.

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: Neutral
• Last Price: 9.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CNS, the sentiment is Neutral. The current price of 9.75 is above the 20-day moving average (MA) of 9.49, below the 50-day MA of 9.88, and below the 200-day MA of 13.86, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CNS.

Corero Network Security Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNS	56 Neutral	£44.81M	-35.00	-9.83%	―	-5.43%	-292.31%
SWG	54 Neutral	£14.89M	-5.27	―	―	―	―
SYS	51 Neutral	£14.64M	-7.23	-9.53%	―	-9.74%	79.93%
IOM	49 Neutral	£28.13M	-0.51	-58.97%	17.99%	12.92%	-949.57%
CLCO	41 Neutral	£1.24M	―	―	―	―	―
PCIP	41 Neutral	£33.69M	775.00	―	―	25.15%	―

Corero Network Security Corporate Events

Corero Network Security Strengthens Market Position with Key Contract and Product Enhancements

Corero Network Security has reported strong sales momentum in Q3 2025, highlighted by a significant renewal and expansion order with a major US cloud computing provider. This $6.8 million contract, which includes both renewal and expansion components, supports the company’s strategic focus on product innovation and expanding its global presence. The company also introduced several key platform enhancements, such as Layer 7 TLS Protection and Zero Trust Admission Control, to meet evolving customer demands. These developments underscore Corero’s strengthening market presence and the industry’s shift towards scalable DDoS protection solutions.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on Corero Network Security stock, see the GB:CNS Stock Forecast page.

Corero Network Security Announces CTO Board Departure

Corero Network Security announced that Ashley Stephenson, the Chief Technology Officer, has stepped down from the company’s board and will retire at the end of 2025. His departure marks the end of a significant era for Corero, as he played a crucial role in developing the company’s industry-leading DDoS protection solutions over his twelve-year tenure. This change in leadership could impact Corero’s strategic direction and innovation in the cybersecurity sector.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £10.00 price target. To see the full list of analyst forecasts on Corero Network Security stock, see the GB:CNS Stock Forecast page.

Corero Network Security Reports Strong Growth in Recurring Revenues Amid Strategic Shifts

Corero Network Security reported a 25% increase in annualized recurring revenues (ARR) for the first half of 2025, driven by a shift towards subscription-based DDoS Protection-as-a-Service (DDPaaS) solutions. Despite a 10% decline in overall revenue to $10.9 million due to reduced upfront sales, the company experienced a rebound in order intake in Q2 and secured significant new customer contracts. The strategic expansion of partnerships, particularly with Juniper Networks and in Latin America, positions Corero to capitalize on growing demand for comprehensive DDoS solutions. The company is focused on building a more predictable revenue model and expanding its global partner network, with management confident in achieving its revenue and EBITDA targets for the year.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on Corero Network Security stock, see the GB:CNS Stock Forecast page.

Corero Network Security to Announce Half-Year Results and Host Investor Presentation

Corero Network Security has announced it will release its half-year results for the period ending June 30, 2025, on September 16, 2025. The company will also host an investor presentation on September 17, 2025, led by CEO Carl Herberger and CFO Chris Goulden, open to all shareholders via the Investor Meet Company platform. This initiative underscores Corero’s commitment to transparency and engagement with its investors, potentially enhancing its market positioning and stakeholder relations.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on Corero Network Security stock, see the GB:CNS Stock Forecast page.