Corero Network Security (CNS) AI Stock Analysis

• Market Cap: £46.09M
• Dividend Yield: N/A
• Average Volume (3M): 428.47K
• Price to Earnings (P/E): 128.6
• Beta (1Y): 0.31
• Revenue Growth: 6.95%
• EPS Growth: N/A
• Country: UK
• Employees: 87
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 512,161,800
• 10 Day Avg. Volume: 820,249
• 30 Day Avg. Volume: 428,472
• PEG Ratio: 0.44
• Price to Book (P/B): 5.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.70
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 20.51
• 1Y Price Target: £19.00
• Price Target Upside: 111.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 10.00p ▲(11.11%Upside)

The overall stock score reflects a balanced view of strong financial performance and promising corporate events against technical and valuation challenges. The company's recent partnerships and contracts significantly enhance its strategic position, but overvaluation and bearish technical indicators weigh down the overall score.

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 makes money primarily through the sale of its cybersecurity solutions, particularly its SmartWall product line. The company generates revenue by charging customers for the purchase, licensing, and maintenance of its software and hardware solutions. Additionally, Corero offers managed security services and support contracts, providing ongoing protection and expertise to its clients, which constitutes a recurring revenue stream. Key partnerships with Internet Service Providers (ISPs), hosting providers, and data center operators also contribute to its revenue, as these partners integrate Corero's solutions into their own offerings or recommend them to their customers.

Corero Network Security Financial Statement Overview

Summary

Corero Network Security shows solid revenue growth and profitability improvements, supported by a strong balance sheet with low leverage. However, concerns arise from negative free cash flow, indicating challenges in 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: 9.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 15.15, and below the 200-day MA of 18.35, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 13.46 is Positive, neither overbought nor oversold. The STOCH value of 4.78 is Positive, 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	£33.89M	9.92	2.80%	14.31%	1.47%	-49.08%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	2.14%	5.30%	-18.55%
CNS	60 Neutral	£46.09M	128.57	2.72%	―	6.95%	―
SYS	55 Neutral	£17.07M	―	-26.77%	―	2.89%	-804.62%
SWG	54 Neutral	£14.06M	―	-6.16%	―	-11.19%	63.83%
CLCO	54 Neutral	£2.01M	―		―	―	―
PCIP	49 Neutral	£33.33M	―		―	20.56%	83.30%

Corero Network Security Corporate Events

Corero Network Security Sees Strong ARR Growth Amid Revenue Shift

Corero Network Security reported a 25% growth in Annualised Recurring Revenues (ARR) for the first half of 2025, driven by increased sales of its DDoS Protection as-a-Service (DDPaaS) solutions. Despite this growth, the company’s revenue for H1 2025 is expected to be lower than the previous year due to a weaker macroeconomic environment and a shift from upfront capex license sales to DDPaaS solutions, which are recognized over the contract’s life. This transition has led to a decrease in immediate revenue and EBITDA but enhances long-term revenue visibility and customer retention. Corero’s order intake rebounded in Q2 2025, and the company remains optimistic about sustained ARR growth, supported by a growing pipeline and recent CORE deployments.

The most recent analyst rating on (GB:CNS) stock is a Buy with a £24.00 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 Expands with CORE Platform Contracts

Corero Network Security has announced its first customer contracts for its CORE platform, marking a significant expansion in its cybersecurity offerings. The company secured a $1.5 million contract with TierPoint to integrate its new Layer 7 DDoS protection, enhancing TierPoint’s security platform for hybrid and multi-cloud environments. Additionally, Corero signed a $0.3 million agreement with Cooper University Health Care to deploy its Zero Trust Access Control capabilities, enhancing cybersecurity for Cooper Health’s online infrastructure. These contracts highlight Corero’s strategic move beyond its traditional DDoS protection market, addressing the growing demand for comprehensive cybersecurity solutions.

The most recent analyst rating on (GB:CNS) stock is a Buy with a £24.00 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 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.