Cordel Group PLC (CRDL) AI Stock Analysis

• Market Cap: £15.73M
• Dividend Yield: N/A
• Average Volume (3M): 474.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 17.06%
• EPS Growth: -78.26%
• Country: UK
• Employees: 35
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 216,923,230
• 10 Day Avg. Volume: 173,713
• 30 Day Avg. Volume: 474,084
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: 8.00p ▲(14.29%Upside)

Cordel Group's strong revenue growth and positive market momentum are offset by its lack of profitability and cash flow challenges. The recent strategic contracts and market expansions provide a positive outlook, but the financial fundamentals remain a concern for long-term investors.

Cordel Group PLC Business Overview & Revenue Model

Company Description

Cordel Group Plc provides data integration and analytic services for the transportation, infrastructure, and banking sectors in Australia, the United Kingdom, the United States, Asia, Europe, the Middle East, and Africa. It offers a patented cloud-based platform for master data management and business analytics together with specialist hardware and software for capturing, analyzing, and reporting on datasets within the transport sector employing artificial intelligence algorithms. The company provides Corridor, an automated software and hardware solution that enables rail, road, and energy networks to automate inspections, predict failures, and transform corridor insights; Nextcore, a drone-based light detection and ranging for the assessment and survey of power lines, steep terrain, vegetated areas, and limited access environments; and Airsight, which offers aerial surveying and information services, including inspection, mapping, and aerial video and photography to various industries using drones. It also offers Maestrano Presen!, which presents data through dashboards, graphs, charts, animated gifs, and others; Maestrano Impac! that comprises predication services creating business insights, including classification, categorization, pattern detection, recognition, future trends modelling and projections, and KPI monitoring and management; Maestrano Reconcile!, which cleans and analyses volumes of data in real-time; Maestrano Connec! that ingests data from various disparate sources for use in new digital services; Maestrano Nex!, a platform as a service deployment; and Maestrano Hub!, a orchestration platform. The company was formerly known as Maestrano Group plc and changed its name to Cordel Group Plc in November 2021. The company was founded in 2013 and is based in Mayfield West, Australia.

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: Neutral
• Last Price: 7.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 7 is below the 20-day moving average (MA) of 7.22, above the 50-day MA of 6.73, and above the 200-day MA of 6.81, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 27.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£17.86M	24.75	6.94%	―	15.82%	37.50%
CRDL	61 Neutral	£15.73M	―	-26.44%	―	17.06%	-78.26%
CKT	57 Neutral	£16.20M	―	-28.02%	―	17.50%	20.14%
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%
BIRD	49 Neutral	£11.71M	―	-28.72%	―	-17.02%	10.29%
PEN	48 Neutral	£11.89M	―	-28.36%	―	-11.33%	-139.92%
TEK		£17.96M	0.97	32.40%	―	―	―

Cordel Group PLC Corporate Events

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.

Cordel Group Advances AI-Driven Rail Asset Management

Cordel Group PLC has announced significant progress in its Positive Train Control (PTC) project for North American railroads, achieving a milestone with its Cordel Asset Extraction system (CASE) that employs multimodal AI. The company has secured agreements with two major North American railroads and is negotiating with two others to share PTC datasets, which are crucial for the anticipated product launch in July. This development aligns with Cordel’s strategy to enhance rail corridor data analysis and asset extraction, presenting a global opportunity to improve asset registry management using AI.