Cordel Group PLC (CRDL) AI Stock Analysis

• Market Cap: £14.37M
• Dividend Yield: N/A
• Average Volume (3M): 190.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 17.06%
• EPS Growth: -78.26%
• Country: UK
• Employees: 35
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 216,923,230
• 10 Day Avg. Volume: 212,301
• 30 Day Avg. Volume: 190,914
• PEG Ratio: 0.36
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.07
• 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: £7.00
• Price Target Upside: 5.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: 6.50p ▼(-1.81%Downside)

The overall stock score reflects a company with potential growth opportunities, underscored by strategic contracts and investments. However, significant challenges remain, particularly regarding profitability and cash flow. While technical indicators suggest possible near-term price support, the valuation remains weak due to ongoing losses.

Cordel Group PLC Business Overview & Revenue Model

Company Description

Cordel Group PLC (CRDL) is a technology-driven company specializing in the provision of advanced data collection and processing solutions for infrastructure management. The company predominantly operates in the rail and transportation sectors, offering cutting-edge automated data capture and analysis services. Through its innovative technology solutions, Cordel Group enables its clients to optimize asset management, improve operational efficiency, and reduce maintenance costs.

How the Company Makes Money

Cordel Group PLC makes money primarily through the sale of its data collection and analysis services to infrastructure operators and asset managers, particularly in the rail and transportation industries. The company's revenue model is based on providing subscription-based services, where clients pay for access to Cordel's proprietary platform and tools that offer insights and analytics on infrastructure conditions. Additionally, Cordel Group may engage in direct sales of its technology solutions and offer consulting services to customize its offerings to meet specific client needs. Key partnerships with industry players and government contracts can also significantly contribute to its revenue streams, enhancing its market presence and broadening its customer base.

Cordel Group PLC Financial Statement Overview

Summary

Cordel Group PLC demonstrates strong revenue growth, but struggles with profitability and cash flow, maintaining a solid equity base and low leverage.

Income Statement

Cordel Group PLC has demonstrated revenue growth over the years, with the latest annual revenue increasing by 45.7% from the previous year. However, the company has been consistently operating at a loss, with negative gross profit margins and net profit margins, indicating challenges in achieving profitability. The EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity base with minimal debt levels, resulting in a low debt-to-equity ratio. Return on equity is negative due to persistent net losses. The equity ratio remains solid, suggesting that the company is not heavily leveraged, which is a positive sign for financial stability.

Cash Flow

Operating cash flow has been consistently negative, although there has been improvement in reducing cash outflows. The free cash flow is also negative, indicating challenges in generating cash from operations after capital expenditures. The company's ability to convert net income into cash remains weak.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.76M	4.44M	3.05M	2.27M	1.69M	872.27K
Gross Profit	1.45M	-69.34K	156.75K	-401.65K	-433.70K	-435.80K
EBITDA	-776.75K	-1.06M	-331.46K	-1.02M	-1.10M	-924.38K
Net Income	-837.29K	-1.30M	-598.15K	-1.20M	-1.02M	-969.95K
Balance Sheet
Total Assets	4.68M	4.14M	4.82M	3.59M	4.46M	3.64M
Cash, Cash Equivalents and Short-Term Investments	1.14M	1.02M	1.28M	339.67K	1.54M	1.56M
Total Debt	295.55K	253.92K	32.70K	139.31K	137.27K	155.66K
Total Liabilities	1.43M	1.62M	1.02M	850.29K	614.69K	789.69K
Stockholders Equity	3.25M	2.52M	3.80M	2.74M	3.84M	2.85M
Cash Flow
Free Cash Flow	-1.01M	-239.83K	-689.96K	-1.23M	-1.96M	-960.86K
Operating Cash Flow	-890.14K	-94.65K	-629.15K	-1.07M	-1.81M	-889.27K
Investing Cash Flow	-112.93K	-136.52K	8.61K	-152.64K	-155.78K	-53.28K
Financing Cash Flow	864.16K	-15.59K	1.58M	12.71K	1.94M	-6.18K

Cordel Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRDL, the sentiment is Negative. The current price of 6.62 is below the 20-day moving average (MA) of 7.15, below the 50-day MA of 7.07, and below the 200-day MA of 6.90, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRDL.

Cordel Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALT	75 Outperform	£14.73M	20.40	6.94%	―	15.82%	37.50%
Sector *	63 Neutral	£505.90M	23.92	-8.45%	170.41%	4.53%	-18.72%
CRDL	52 Neutral	£14.37M	―	-26.44%	―	17.06%	-78.26%
PEN	50 Neutral	£13.40M	―	-28.36%	―	-11.33%	-139.92%
BIRD	49 Neutral	£11.71M	―	-28.72%	―	-17.02%	10.29%
CKT	46 Neutral	£16.20M	―	-28.02%	―	17.50%	20.14%

Cordel Group PLC Corporate Events

Cordel Group PLC Reports Revenue Growth and Strategic Investments Amid Delays

Cordel Group PLC reported an 8% increase in revenue for the fiscal year ending June 2025, reaching £4.79 million, with a significant improvement in cash flow and operating margin due to a shift towards software revenues and careful expense management. Despite delays in revenue from new contracts, the company added five new customers, including two major USA railroads, and plans to invest further in marketing and delivery to support the rollout of its new Positive Train Control platform, which has garnered international interest.

Cordel Group Chairman Increases Stake in Company

Cordel Group PLC announced that its Chairman, Ian Buddery, has purchased 358,150 ordinary shares, increasing his total holdings to 9,831,626 shares, which represents 4.53% of the company’s voting rights. This transaction also raises the Concert Party’s aggregate holding to 35.23% of the company’s issued share capital, potentially impacting the company’s governance and shareholder dynamics.

Cordel Group PLC Projects Revenue Growth Amid Economic Challenges

Cordel Group PLC anticipates revenue growth of up to 12% for the fiscal year ending June 2025, despite economic uncertainties in the USA affecting sales cycles and delaying revenue recognition. The company has secured contract expansions and new customers, with an improved cash position expected. Progress in their Positive Train Control product initiative, including a contract with a major Class 1 railroad, positions Cordel for future growth, with significant revenue expected in FY26.

Cordel Group Aligns Executive Incentives with FY25 Bookings Target

Cordel Group PLC announced a change in the vesting conditions for Chief Revenue Officer Mike Turner’s options, aligning them with the company’s fiscal year 2025 bookings target. This adjustment emphasizes the importance of securing multi-year recurring revenue contracts, particularly those involving Positive Train Control, to support the company’s long-term growth objectives.

Cordel Group Secures Major USA Rail Contract

Cordel Group PLC has secured a new five-year contract with a leading Class 1 freight railroad in the USA, valued at over $3.7 million, with an additional $3.8 million provision for their upcoming PTC Asset Management SaaS. This contract, which involves the use of Cordel’s AI-driven platform for rail corridor data analytics, marks Cordel’s second Class 1 multi-year contract and third major customer in the USA, alongside Amtrak and Genesee & Wyoming, reinforcing its position as a leader in transport corridor analytics.

Cordel Group PLC Announces Shareholder Name Change

Cordel Group PLC, a UK-based company, has issued a notification regarding a change in the name of a shareholder entity from Amati AIM VCT plc to Maven Renovar VCT PLC, following a change of investment manager to Maven Capital Partners UK LLP. This notification does not indicate any change in the position held by the company, but serves to inform stakeholders of the name change, maintaining transparency in its shareholder structure.

Cordel Group Secures Contract with DG8 for Network Rail Integration

Cordel Group PLC has announced a new contract with DG8 Design and Engineering Ltd to supply their LiDAR and AI technology for integration into Network Rail’s Class 153 visual inspection units. This collaboration aims to enhance infrastructure monitoring services, improve maintenance efficiency, and provide valuable insights through the Cordel Connect platform, potentially strengthening Cordel’s position in the transport analytics market.

Cordel Group PLC Strengthens Advisory Board with New Appointment

Cordel Group PLC has appointed Ms. Kayden Howard to its international Advisory Board. With extensive experience in the US railroad industry, Howard’s expertise is expected to significantly contribute to Cordel’s growth, particularly in the US market. Her appointment aligns with the company’s strategic focus on expanding its presence in the US, especially with the upcoming launch of its Positive Train Control product.