Wandisco (CRTA) AI Stock Analysis

• Market Cap: £22.65M
• Dividend Yield: N/A
• Average Volume (3M): 249.09K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.55
• Revenue Growth: 11.59%
• EPS Growth: 75.79%
• Country: UK
• Employees: 103
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 126,340,250
• 10 Day Avg. Volume: 316,422
• 30 Day Avg. Volume: 249,092
• PEG Ratio: -0.05
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: £53.00
• Price Target Upside: 201.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: 18.00p ▲(2.39%Upside)

The overall stock score for Cirata is primarily impacted by significant financial challenges, including declining revenues and substantial losses. Although corporate events are positive, indicating strategic improvements and potential future growth, the bearish technical indicators and negative valuation metrics weigh heavily on the stock's prospects.

Positive Factors

Contract Activity

Recent contract activity in the growth area of Data Integration has been encouraging.

Sales Momentum

A new $2m 3-year contract shows sales momentum and expansion of service with a global UK retailer.

Negative Factors

Headcount Reduction

Today's announcement shows headcount has continued a steady decline from 177 at Q422 to just 71 at the end of Q125.

Selling Environment

The selling environment remains tough, with progress continuing at a slower pace than originally hoped for.

Wandisco Business Overview & Revenue Model

Company Description

WANdisco (CRTA) is a software company that specializes in distributed computing solutions, particularly focusing on data replication and migration technologies. The company operates primarily in the IT and software sectors, offering products and services designed to enhance data availability, integrity, and efficiency across a range of platforms. WANdisco's core offerings include solutions for cloud data migration, hybrid cloud deployment, and continuous data availability, which cater to enterprises looking to leverage big data and cloud computing technologies.

How the Company Makes Money

WANdisco generates revenue through the sale of its software solutions and services licenses. Its primary revenue streams include subscription fees for its software products and professional services fees for implementation, support, and consulting. The company's products are often used by large organizations that require reliable data replication and migration solutions, enabling them to maintain consistent data across global operations. WANdisco's partnerships with major cloud service providers and technology companies further enhance its market reach and revenue potential, as these partnerships help integrate its software into broader cloud computing ecosystems.

Wandisco Financial Statement Overview

Summary

Despite a high gross profit margin, Cirata faces significant financial challenges with declining revenue, substantial operating losses, and negative cash flows. The balance sheet is conservatively structured, but persistent losses and negative cash flows undermine financial stability.

Income Statement

The company has shown a declining revenue trend with a negative revenue growth rate from 2020 to 2024. The gross profit margin is relatively high, indicating efficient production, but the net profit margin is severely negative due to substantial losses, highlighting ongoing operational challenges. EBIT and EBITDA margins are also deeply negative, which suggests significant inefficiencies and cost control issues.

Balance Sheet

The company has a relatively high equity ratio, indicating a conservative capital structure with low leverage. However, the return on equity is negative due to consistent net losses, which raises concerns about the company's ability to generate shareholder value. Despite low debt levels, the persistent losses are a financial strain.

Cash Flow

The company has experienced negative free cash flow for several years, indicating that it is not generating sufficient cash to cover operational and capital expenditure. The operating cash flow to net income ratio is poor, suggesting cash flow issues. There is also a significant reliance on financing activities, which could lead to sustainability issues in the long term.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.68M	6.70M	7.86M	5.31M	8.21M
Gross Profit	7.14M	6.06M	3.42M	330.84K	2.49M
EBITDA	-14.39M	-35.83M	-24.73M	-32.47M	-29.20M
Net Income	-13.51M	-36.48M	-24.03M	-27.34M	-26.77M
Balance Sheet
Total Assets	14.92M	23.11M	21.28M	31.15M	30.23M
Cash, Cash Equivalents and Short-Term Investments	9.73M	18.25M	15.88M	20.49M	15.39M
Total Debt	889.00K	795.00K	448.08K	1.34M	2.12M
Total Liabilities	5.35M	6.50M	7.51M	5.73M	8.87M
Stockholders Equity	9.57M	16.61M	13.77M	25.41M	21.36M
Cash Flow
Free Cash Flow	-14.88M	-30.67M	-22.45M	-24.72M	-18.88M
Operating Cash Flow	-14.77M	-30.60M	-22.28M	-20.52M	-14.57M
Investing Cash Flow	-107.00K	-43.00K	-167.24K	-4.19M	-4.31M
Financing Cash Flow	6.44M	29.10M	15.82M	29.66M	17.01M

Wandisco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.58
• 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:CRTA, the sentiment is Negative. The current price of 17.58 is below the 20-day moving average (MA) of 25.86, below the 50-day MA of 28.19, and below the 200-day MA of 24.14, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 29.36 is Positive, neither overbought nor oversold. The STOCH value of 6.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRTA.

Wandisco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELCO	77 Outperform	£148.97M	43.46	11.59%	0.57%	15.67%	25.62%
AOM	64 Neutral	£119.54M	111.29	11.82%	―	―	―
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
PULS	59 Neutral	£54.92M	―	-16.92%	―	-1.09%	-6.65%
GETB	58 Neutral	£25.35M	28.25		―	1.58%	―
CRTA	48 Neutral	£22.65M	―	-102.60%	―	11.59%	75.79%
ESYS	48 Neutral	£16.51M	―	-15.60%	―	-5.21%	76.14%

Wandisco Corporate Events

Cirata Reports Strong H1 Growth and Strategic Divestiture

Cirata plc has reported a significant 58% year-over-year growth in bookings for the first half of the fiscal year 2025, with a notable 244% increase in data integration sales. The company has divested its DevOps assets to BlueOptima for up to $3.5 million, allowing Cirata to focus on its core data integration business. This strategic move is expected to enhance financial flexibility and support growth initiatives. Despite a decline in total Q2 bookings, Cirata has reduced its cash burn and strengthened its sales execution with the appointment of a new Chief Revenue Officer. The company remains optimistic about its growth trajectory, particularly in the data integration sector, and aims to leverage partnerships such as the one with Microsoft Azure to expand its market reach.

The most recent analyst rating on (GB:CRTA) stock is a Buy with a £93.00 price target. To see the full list of analyst forecasts on Wandisco stock, see the GB:CRTA Stock Forecast page.

$700K Contract Renewal Boosts Cirata’s Market Position

Cirata plc has secured a $700,000 two-year contract renewal for its Data Integration software with a leading Canadian bank, demonstrating continued trust in its Live Data Migrator technology. This deal, facilitated through Google Marketplace, underscores Cirata’s strong positioning in the data integration sector and its ability to meet the complex needs of major financial institutions.

The most recent analyst rating on (GB:CRTA) stock is a Buy with a £93.00 price target. To see the full list of analyst forecasts on Wandisco stock, see the GB:CRTA Stock Forecast page.

Cirata Strengthens Board with New Appointment

Cirata has appointed Sarah Rolls as a Non-Executive Director and Chair of the Audit and Risk Committee. With extensive experience in finance, risk management, and governance from her roles at Sage Group and Tate & Lyle, Sarah’s expertise is expected to significantly benefit Cirata’s board and support the company’s ongoing development.

The most recent analyst rating on (GB:CRTA) stock is a Buy with a £93.00 price target. To see the full list of analyst forecasts on Wandisco stock, see the GB:CRTA Stock Forecast page.

Cirata Successfully Passes All Resolutions at AGM

Cirata plc announced that all resolutions proposed at its Annual General Meeting were successfully passed, including both ordinary and special resolutions. This outcome reflects strong shareholder support and enables the company to continue its strategic initiatives, including re-electing directors and authorizing share-related actions, which may impact its operational flexibility and market positioning.

Cirata Awards Share Options to CTO as Part of Incentive Strategy

Cirata plc has announced the grant of 295,000 share options to its Chief Technology Officer, Paul Scott-Murphy, under its 2025 Amended and Restated Share Option Plan and FY25 Company Bonus Plan. The options, priced at 20.46 pence per share, are part of the company’s long-term incentive strategy to align leadership with shareholder interests, reflecting Cirata’s commitment to rewarding its management team for performance and strategic alignment.