Corero Network Security (CNS) AI Stock Analysis

• Market Cap: £61.46M
• Dividend Yield: N/A
• Average Volume (3M): 699.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• 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: 58.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 14.00p ▲(16.67% Upside)

The score is primarily supported by improving financial performance (revenue growth and a return to profitability) and a low-leverage balance sheet. Offsetting this are cash-flow quality concerns (negative free cash flow) and stretched technical conditions (RSI near 90). Valuation is also a headwind given the negative P/E and lack of dividend yield data.

Positive Factors

Product Leadership in DDoS Protection

Specialization in real-time DDoS mitigation and complementary threat intelligence creates a durable competitive moat. Enterprises, telcos and cloud providers need continuous protection, so CNS’s focused product suite and managed services support sustained demand and higher customer switching costs over time.

Shift to Recurring Revenue / Major Contract

Transitioning sales toward subscriptions and landing a major cloud provider contract materially improves recurring revenue mix and customer stickiness. This structural shift boosts predictable cashflows, increases lifetime customer value, and strengthens go-to-market credibility for multi‑year growth sustainability.

Balance Sheet Strength

Low leverage and a strong equity base provide financial flexibility to invest in product R&D, scale managed services, and absorb cyclical shocks without forcing dilutive financing. This balance sheet resilience supports long-term strategic initiatives and sustained operation during growth investments.

Negative Factors

Negative Recent Revenue Trend

A negative revenue growth rate signals potential demand softness, customer churn, or execution gaps. If this trend persists it undermines scale economics, constrains reinvestment capacity, and pressures margins; management must reverse it to sustain long‑term growth and justify recurring revenue strategies.

Negative Free Cash Flow / FCF Conversion

Consistent operating cashflow is positive, yet negative FCF indicates capex or working capital demands outpacing cash generation. Poor conversion of earnings to free cash reduces ability to self‑fund growth, increases financing risk, and can limit long‑term investment in product and service expansion if not corrected.

Low EBIT Margin / Operational Efficiency

Relatively low EBIT margins suggest operating leverage is underutilized despite solid gross margins. Sustained low operating profitability can impair the company’s capacity to fund sales, R&D, and margin-enhancing initiatives, leaving earnings vulnerable to revenue mix shifts and competitive pricing pressure.

Corero Network Security Business Overview & Revenue Model

Company Description

Corero Network Security plc provides distributed denial of service (DDoS) protection solutions worldwide. It offers Corero SmartWall products to remove DDoS attack traffic. Its products include SmartWall Threat Defense System appliances for DDoS protection; SmartWall Threat Defense Director, which delivers software edge protection for the networks; SmartWall Threat Defense Cloud that protects against the cloud attacks; and SecureWatch Managed Services, a suite of configuration optimization, monitoring, and mitigation response services. The company also provides installation and training services. It provides its solutions to service, hosting, co-location, edge, and SaaS providers, as well as enterprises. The company was formerly known as Corero plc and changed its name to Corero Network Security plc in June 2011. Corero Network Security plc was incorporated in 1991 and is based in Amersham, the United Kingdom.

How the Company Makes Money

Corero Network Security generates revenue through a combination of product sales, subscription services, and managed security services. The company's primary revenue streams include the sale of its DDoS protection hardware and software solutions, which are often sold on a one-time basis or through licensing agreements. Additionally, CNS offers subscription-based services for its cloud-based DDoS mitigation solutions, providing customers with ongoing protection against evolving threats. Managed security services also contribute to revenue, as clients outsource their cybersecurity needs to CNS for continuous monitoring and response. Strategic partnerships with telecommunications providers and other cybersecurity firms enhance its market reach and customer base, further driving revenue growth.

Corero Network Security Financial Statement Overview

Summary

Income statement strength (Score 78) is driven by strong revenue growth and a shift to positive net income, but low EBIT margin suggests limited operating efficiency. Balance sheet is solid (Score 70) with low leverage and a strong equity base, though liabilities have edged up. Cash flow is the main drag (Score 65) due to negative free cash flow and weak conversion of earnings into free cash flow despite positive operating cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.30M	24.56M	22.35M	20.12M	20.89M	16.88M
Gross Profit	21.19M	22.43M	20.18M	17.55M	17.78M	13.04M
EBITDA	529.00K	2.82M	2.07M	1.17M	2.38M	-1.16M
Net Income	-1.64M	498.00K	-170.00K	554.00K	1.52M	-3.78M
Balance Sheet
Total Assets	29.96M	33.50M	28.44M	26.83M	29.79M	29.63M
Cash, Cash Equivalents and Short-Term Investments	3.12M	5.32M	5.16M	5.65M	11.20M	10.14M
Total Debt	523.00K	150.00K	315.00K	1.29M	2.95M	2.73M
Total Liabilities	13.32M	14.83M	11.70M	10.95M	13.98M	15.75M
Stockholders Equity	16.64M	18.66M	16.74M	15.88M	15.80M	13.88M
Cash Flow
Free Cash Flow	-5.07M	-693.00K	494.00K	-2.15M	2.36M	4.13M
Operating Cash Flow	-1.17M	3.29M	3.13M	-1.73M	2.79M	5.14M
Investing Cash Flow	-4.17M	-3.88M	-2.59M	-2.12M	-2.17M	-2.43M
Financing Cash Flow	273.00K	765.00K	-1.37M	-1.39M	605.00K	-876.00K

Corero Network Security Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CNS, the sentiment is Positive. The current price of 12 is above the 20-day moving average (MA) of 11.92, above the 50-day MA of 10.58, and above the 200-day MA of 11.91, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CNS.

Corero Network Security Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYIT	76 Outperform	£794.59M	15.19	68.93%	5.54%	7.83%	2.36%
CNS	64 Neutral	£61.46M	-48.00	-9.83%	―	-5.43%	-292.31%
BKS	64 Neutral	£161.99M	53.85	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYS	51 Neutral	£12.97M	-6.05	-9.20%	―	-7.45%	78.23%
IOM	48 Neutral	£21.34M	-0.35	-67.57%	23.79%	25.44%	-1877.56%
CLCO	41 Neutral	£1.06M	―	―	―	―	―

Corero Network Security Corporate Events

Corero Beats 2025 Guidance as Recurring Revenue Model Gains Traction

Corero Network Security said it expects to report 2025 revenue at the upper end of its guidance range and EBITDA ahead of expectations, after strong trading momentum in the second half of the year offset a weaker start. Annual recurring revenue rose 23% to $23.9m and order intake climbed 20% to $33.8m, driven by demand for its SmartWall ONE and CORE platform products and a growing shift toward subscription and DDoS Protection-as-a-Service models; while full-year revenue increased 4% to about $25.5m, EBITDA is expected to exceed $1.3m and net cash stood at $4.0m with no debt, underpinned by a 98% customer retention rate. Management described 2025 as a transitional year as Corero accelerates its move to a more predictable recurring revenue base, positioning the company for higher-quality growth and improved profitability in 2026 and beyond despite lower EBITDA than the prior year, a dynamic likely to be closely watched by investors focused on cash generation and long-term value creation in the cybersecurity sector.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £10.50 price target. To see the full list of analyst forecasts on Corero Network Security stock, see the GB:CNS Stock Forecast page.

Corero Sharpenes DDoS Strategy as Evolving Attacks Drive Expansion of SmartWall ONE Platform

Corero Network Security has outlined how evolving DDoS attack patterns in 2025—characterised by small, persistent, often encrypted and multi‑vector assaults—have exposed weaknesses in legacy defences and underscored demand for always‑on, real‑time protection across network and application layers. In response, the company has expanded its SmartWall ONE platform with TLS inspection, Zero Trust Admission Control, broader application security capabilities and easier deployment options, positioning it as a more comprehensive operational resilience layer and setting the strategic direction for further automation, deeper cloud‑native integrations and tighter embedding in customers’ hybrid infrastructures over the next two years.

The most recent analyst rating on (GB:CNS) stock is a Hold with a £10.50 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 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.