Corero Network Security (CNS) AI Stock Analysis

• Market Cap: £47.63M
• Dividend Yield: N/A
• Average Volume (3M): 699.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• 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: 104.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 10.50p ▲(12.90% Upside)

Corero Network Security's overall score is driven by its solid financial performance and positive corporate events, indicating growth potential. However, the bearish technical indicators and poor valuation due to negative earnings weigh down the score. The company's strategic shifts and strong contract wins are promising, but challenges in profitability and cash flow management remain concerns.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments or downturns.

Revenue Growth

Consistent revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion.

Profitability Improvements

Improved profitability suggests better cost management and operational efficiency, contributing to sustainable business operations.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential challenges in managing capital expenditures, which could impact future growth opportunities.

Low EBIT Margin

A low EBIT margin can limit profitability and indicates the need for improved operational efficiencies to enhance overall financial performance.

Rising Liabilities

Increasing liabilities, if not controlled, may strain financial resources and reduce the company's ability to invest in growth initiatives.

Corero Network Security Business Overview & Revenue Model

Company Description

Corero Network Security (CNS) is a leading provider of cybersecurity solutions specializing in real-time DDoS (Distributed Denial of Service) protection. The company operates primarily in the cybersecurity sector, offering a suite of products and services designed to safeguard networks and applications from malicious attacks. Its core offerings include automated DDoS mitigation solutions, network security management, and threat intelligence services, catering to enterprises and service providers across various industries, including finance, telecommunications, and cloud services.

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

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	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: Negative
• Last Price: 9.30
• 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 9.3 is below the 20-day moving average (MA) of 9.71, below the 50-day MA of 9.68, and below the 200-day MA of 12.63, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 28.03 is Positive, neither overbought nor oversold. The STOCH value of 27.92 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
CNS	65 Neutral	£47.63M	-37.20	-9.83%	―	-5.43%	-292.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PCIP	56 Neutral	£36.95M	850.00	―	―	25.15%	―
SYS	51 Neutral	£12.13M	-5.66	-9.20%	―	-7.45%	78.23%
SWG	43 Neutral	£10.25M	-3.63	―	―	―	―
CLCO	41 Neutral	£1.17M	―	―	―	―	―
IOM	40 Underperform	£22.14M	-0.36	-67.57%	22.05%	25.44%	-1877.56%

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.

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.

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.