Wandisco (CRTA) AI Stock Analysis

• Market Cap: £25.39M
• Dividend Yield: N/A
• Average Volume (3M): 116.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: 1.65%
• EPS Growth: 29.02%
• Country: UK
• Employees: 103
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 126,340,250
• 10 Day Avg. Volume: 146,488
• 30 Day Avg. Volume: 116,723
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £19.50
• Price Target Upside: -7.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: 19.50p ▼(-7.14% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative cash flows. However, positive corporate events, such as strategic divestitures and new contracts, provide some optimism for future growth. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Contract Activity

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

Financial Performance

Cirata's FY24 results show a much better operating result than expected on revenue that is slightly shy of expectations.

Negative Factors

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

Cirata plc, together with its subsidiaries, engages in the development and provision of collaboration software in North America, Europe, China, and internationally. The company's WANdisco Data Activation Platform offers Data Migrator, an automated cloud migration solution that migrates HDFS data and Hive metadata to the cloud; Data Migrator for Azure, a native Azure service that enables users to migrate petabyte-scale Hadoop data and Hive metadata to the Azure cloud; and Edge to Cloud, a tool designed to move IoT and file data across edge systems, data centers, and public clouds to enable organizations to activate their data for AI, machine learning, and advanced analytics on modern cloud data platforms. Its application lifecycle management products include Subversion MultiSite Plus, Git MultiSite, Gerrit MultiSite, and Access Control Plus, as well as offers data migration services. The company was formerly known as WANdisco plc and changed its name to Cirata plc in October 2023. Cirata plc was founded in 2005 and is based in St. Helier, Jersey.

How the Company Makes Money

Wandisco generates revenue primarily through the sale of its software licenses and subscription services, which provide customers with access to its data replication technologies. The company often employs a SaaS (Software as a Service) model, allowing clients to pay for the services based on usage or through annual subscriptions. Key revenue streams include direct sales to enterprises, channel partnerships with cloud service providers, and strategic collaborations that enhance their service offerings. Additionally, Wandisco may benefit from consulting services related to the implementation and optimization of their products, as well as maintenance and support agreements that provide ongoing revenue. Significant partnerships with major cloud platforms can also amplify sales by integrating their solutions into larger ecosystems.

Wandisco Financial Statement Overview

Summary

Wandisco faces significant financial challenges, with declining revenues, substantial operating losses, and negative cash flows. Although the balance sheet shows a conservative capital structure, the inability to generate positive cash flow and profits undermines financial stability. The company needs to address its cost structure and explore revenue growth opportunities to improve its financial health.

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	9.69M	7.31M	10.53M
Gross Profit	7.14M	6.06M	8.99M	6.65M	9.47M
EBITDA	-13.09M	-36.69M	-24.28M	-32.47M	-29.20M
Net Income	-13.51M	-36.48M	-28.24M	-37.59M	-34.33M
Balance Sheet
Total Assets	14.92M	23.11M	26.54M	42.19M	41.32M
Cash, Cash Equivalents and Short-Term Investments	9.73M	18.25M	19.11M	27.76M	21.04M
Total Debt	889.00K	795.00K	1.17M	1.82M	2.89M
Total Liabilities	5.35M	6.50M	8.64M	7.76M	12.12M
Stockholders Equity	9.57M	16.61M	17.90M	34.42M	29.19M
Cash Flow
Free Cash Flow	-14.88M	-30.67M	-27.70M	-34.00M	-24.23M
Operating Cash Flow	-14.77M	-30.60M	-27.50M	-28.23M	-18.71M
Investing Cash Flow	-107.00K	-43.00K	-158.00K	-5.76M	-5.51M
Financing Cash Flow	6.44M	29.10M	19.48M	40.79M	21.82M

Wandisco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.00
• 50DMA: Negative
• 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 Neutral. The current price of 21 is above the 20-day moving average (MA) of 18.80, below the 50-day MA of 21.51, and below the 200-day MA of 22.76, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CRTA.

Wandisco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AOM	75 Outperform	£126.70M	114.52	11.82%	―	13.76%	31.36%
GETB	71 Outperform	£28.13M	32.49		―	1.58%	―
ELCO	66 Neutral	£137.03M	40.49	11.59%	0.61%	15.67%	25.62%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
PULS	61 Neutral	£53.56M	―	-16.92%	―	-1.09%	-6.65%
CRTA	51 Neutral	£25.39M	―	-268.88%	―	1.65%	29.02%
ESYS	45 Neutral	£12.63M	―	-15.60%	―	-5.21%	76.14%

Wandisco Corporate Events

Cirata Completes DevOps Divestment to Focus on Data Integration

Cirata plc has completed the divestment of its DevOps assets to BlueOptima Ltd, receiving an initial $2.5 million with a potential additional $1 million contingent on customer transfers. This move allows Cirata to concentrate on its core Data Integration business, which is pivotal for its growth strategy.

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 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.