Wandisco (CRTA) AI Stock Analysis

• Market Cap: £24.83M
• Dividend Yield: N/A
• Average Volume (3M): 311.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 1.65%
• EPS Growth: 29.02%
• Country: UK
• Employees: 103
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.02
• Shares Outstanding: 126,340,250
• 10 Day Avg. Volume: 624,016
• 30 Day Avg. Volume: 311,286
• PEG Ratio: 0.04
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 4.52
• P/FCF Ratio: -2.33
• 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
• EPS Forecast (FY): -4.48
• Revenue Forecast (FY): £664.63M

• Rating: 54 Neutral
• Price Target: 19.50p ▲(0.62% Upside)

Cirata's overall stock score is primarily impacted by its financial challenges, including negative cash flows and profitability issues. However, recent strategic moves and positive corporate events provide some optimism for future growth. Technical indicators and valuation metrics remain weak, tempering the overall outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful execution of business strategies, enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships with major players like Microsoft Azure expand market reach and integration capabilities, bolstering long-term competitive positioning.

Cost Management

Effective cost management enhances profitability and operational efficiency, supporting sustainable growth and financial health.

Negative Factors

Negative Cash Flow

Persistent negative cash flow strains financial resources, limiting the ability to invest in growth opportunities and posing long-term sustainability risks.

Sales Execution Issues

Inconsistent sales execution hampers revenue growth potential and could undermine customer acquisition efforts, affecting long-term market expansion.

Declining Revenue Trend

A declining revenue trend over several years indicates challenges in maintaining market share and competitiveness, impacting future growth prospects.

Wandisco Business Overview & Revenue Model

Company Description

Wandisco (CRTA) is a technology company specializing in data migration and replication solutions for enterprises. It operates primarily in the data management sector, focusing on enabling businesses to seamlessly move and manage their data across various platforms, including cloud and on-premises environments. The company's core products include its LiveData platform, which allows real-time data replication and synchronization, facilitating digital transformation and ensuring data availability.

How the Company Makes Money

Wandisco generates revenue primarily through subscription-based licensing of its software products, which provide businesses with the tools necessary for data migration and management. Key revenue streams include annual contracts for its LiveData solutions, professional services for implementation and support, and ongoing maintenance fees. The company has established strategic partnerships with major cloud service providers, enhancing its market reach and driving additional sales through collaborative offerings. Furthermore, Wandisco benefits from a growing demand for cloud migration services and data management solutions, contributing positively to its earnings.

Wandisco Financial Statement Overview

Summary

Cirata faces significant financial challenges, with declining revenues, substantial operating losses, and negative cash flows. Despite a conservative capital structure, the inability to generate positive cash flow and profits undermines financial stability. Improvement in cost structure and revenue growth is needed.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.46M	7.68M	6.70M	9.69M	7.31M	10.53M
Gross Profit	6.75M	7.14M	6.06M	8.99M	6.65M	9.47M
EBITDA	-9.28M	-14.39M	-36.69M	-39.13M	-32.47M	-33.27M
Net Income	-17.52M	-13.51M	-36.48M	-29.61M	-37.59M	-34.33M
Balance Sheet
Total Assets	10.36M	14.92M	23.11M	26.54M	42.19M	41.32M
Cash, Cash Equivalents and Short-Term Investments	6.08M	9.73M	18.25M	19.11M	27.76M	21.04M
Total Debt	749.00K	889.00K	795.00K	539.00K	1.82M	2.89M
Total Liabilities	4.94M	5.35M	6.50M	8.64M	7.76M	12.12M
Stockholders Equity	5.42M	9.57M	16.61M	16.56M	34.42M	29.19M
Cash Flow
Free Cash Flow	-8.98M	-14.88M	-30.67M	-27.70M	-34.00M	-24.23M
Operating Cash Flow	-8.86M	-14.77M	-30.60M	-27.50M	-28.23M	-18.71M
Investing Cash Flow	-121.76K	-107.00K	-43.00K	-158.00K	-5.76M	-5.51M
Financing Cash Flow	6.13M	6.44M	29.10M	19.48M	40.79M	21.82M

Wandisco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 19.38 is below the 20-day moving average (MA) of 19.40, above the 50-day MA of 19.28, and below the 200-day MA of 21.71, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 43.16 is Neutral, 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	68 Neutral	£111.71M	29.87	12.39%	0.79%	12.10%	27.35%
AOM	68 Neutral	£162.81M	147.10	-2.20%	―	31.86%	-115.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GETB	60 Neutral	£41.82M	250.00	―	―	1.73%	-68.87%
CRTA	54 Neutral	£24.83M	―	-268.88%	―	1.65%	29.02%
PULS	47 Neutral	£48.14M	-6.51	-16.92%	―	-1.09%	-6.65%
ESYS	45 Neutral	£10.04M	-3.90	―	―	-5.21%	76.14%

Wandisco Corporate Events

Cirata Cleared by FCA, Embarks on New Growth Chapter

Cirata plc, a company in the UK tech sector, has announced that the Financial Conduct Authority (FCA) has closed its investigation into the company without taking any action. The investigation, which began in April 2023, focused on whether Cirata had mis-stated its financial position in regulatory announcements between May 2021 and March 2023. CEO Stephen Kelly highlighted the efforts of the new management team in restructuring the company and launching the Cirata Symphony Data Orchestration Platform, marking a new chapter for the company.

Cirata Secures Landmark $6.7M Contract with IBM

Cirata plc has secured a significant $6.7 million, three-year contract with IBM to provide data integration software for a financial services client. This contract, the largest in Cirata’s history with IBM, is expected to enhance Cirata’s standing in the financial services market and strengthen its strategic partnership with IBM.

Cirata plc Focuses on Data Integration with Strategic Moves and New Contracts

Cirata plc has reported a significant transformation in its operations, highlighted by the divestment of its DevOps business and a strategic focus on its Data Integration (DI) product line. The company announced a substantial 3-year contract with a leading US insurer, marking the largest direct contract in its history, and launched the Cirata Symphony platform to enhance its market positioning. Financially, Cirata has reduced its cost base significantly and improved its cash burn rate, setting a solid foundation for future growth and operational leverage. The company remains optimistic about its Q4FY25 performance, driven by early momentum and a streamlined cost structure.

Cirata Secures Largest Contract with US Insurer

Cirata plc has secured a $3.1 million, three-year data integration contract with a leading US insurer, marking the largest direct contract in the company’s history. This contract signifies a strategic shift from a one-year legacy agreement to a longer-term partnership, enhancing Cirata’s industry positioning and potentially impacting its operations and stakeholder relationships positively.

Cirata Grants Share Options to CEO Stephen Kelly

Cirata plc has announced a grant of share options to its CEO, Stephen Kelly, as part of its Share Options Plan. The awards, approved by the company’s Remuneration Committee, aim to align leadership incentives with shareholder interests. The awards consist of 50% share options and 50% performance-based share options, with a total of 2,400,000 options granted. This move replaces a prior award and reflects Cirata’s commitment to long-term incentives for its leadership team.

Cirata Unveils ‘Cirata Symphony’ to Revolutionize Enterprise Data Management

Cirata has launched ‘Cirata Symphony’, a data orchestration platform designed to simplify, secure, and accelerate enterprise data management, addressing the challenges of data silos and AI project failures. This platform enables real-time data orchestration across hybrid and multi-cloud environments, eliminating issues like vendor lock-in and latency, and positioning Cirata to capitalize on the growing market for data, AI solutions, and advanced analytics.