Croma Security Solutions (CSSG) AI Stock Analysis

• Market Cap: £11.53M
• Dividend Yield: 2.74%
• Average Volume (3M): 4.35K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.27
• Revenue Growth: 6.44%
• EPS Growth: -82.88%
• Country: UK
• Employees: 90
• Sector: Industrials
• Sector Strength: 89
• Industry: Security & Protection Services
• EPS (TTM): 0.04
• Shares Outstanding: 13,729,720
• 10 Day Avg. Volume: 6,621
• 30 Day Avg. Volume: 4,352
• PEG Ratio: -0.25
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.11
• 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

Croma Security Solutions' overall stock score reflects its strong financial stability and strategic growth through acquisitions. However, challenges in operational efficiency, cash flow volatility, and weak technical indicators temper the score. While the stock is fairly valued, the company's strategic acquisitions and low leverage position it for potential future growth.

Croma Security Solutions Business Overview & Revenue Model

Company Description

Croma Security Solutions Group (CSSG) is a UK-based company specializing in providing comprehensive security solutions. The company operates across various sectors, including commercial, residential, and government, offering a range of services such as security personnel, electronic security systems, and risk management consulting. CSSG is known for its expertise in integrating advanced technology with traditional security measures to deliver tailored security solutions to its clients.

How the Company Makes Money

Croma Security Solutions Group makes money through a diversified revenue model that includes several key streams. The primary source of revenue comes from the provision of security personnel services, where the company supplies trained security guards to a wide array of clients. Additionally, CSSG generates income by designing, installing, and maintaining electronic security systems, such as CCTV, access control, and alarm systems. Another significant revenue stream is the consultancy services offered to organizations seeking expert advice on risk management and security planning. The company also benefits from recurring maintenance contracts and service agreements, ensuring a steady income flow. Strategic partnerships and collaborations with technology providers enhance CSSG's offerings, contributing to its competitive advantage and financial performance.

Croma Security Solutions Financial Statement Overview

Summary

Croma Security Solutions demonstrates financial stability with a strong equity position and low leverage. Positive revenue growth and moderate profitability are tempered by declining margins and cash flow volatility, indicating areas for improvement.

Income Statement

Croma Security Solutions shows a moderate gross profit margin of 40.6% and a net profit margin of 6.2% for the latest year, indicating decent profitability. The revenue growth rate was 8.9% from 2023 to 2024, showing positive momentum. However, a decline in EBIT and EBITDA margins over the years suggests some operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.04 and a high equity ratio of 84.3%, indicating financial stability and low leverage risk. Return on equity stands at 3.6%, showcasing moderate efficiency in using equity to generate profits.

Cash Flow

Cash flows are somewhat volatile, with a significant decline in free cash flow from the previous year by 86.1%. The operating cash flow to net income ratio is 1.68, indicating good cash conversion, but the free cash flow to net income ratio is lower at 0.22, suggesting room for improvement in cash flow management.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
8.74M	8.03M	35.16M	32.54M	32.32M
	Gross Profit
3.54M	3.75M	6.40M	5.38M	5.52M
	EBIT
604.00K	427.00K	245.00K	1.25M	136.00K
	EBITDA
1.28M	4.02M	866.00K	1.98M	897.00K
	Net Income Common Stockholders
543.00K	3.70M	63.00K	977.00K	-134.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.14M	2.14M	2.56M	5.43M	4.08M
	Total Assets
18.07M	17.72M	19.04M	19.44M	17.98M
	Total Debt
591.00K	659.00K	1.17M	1.05M	1.18M
	Net Debt
-1.55M	-1.49M	-1.38M	-4.39M	-2.90M
	Total Liabilities
2.85M	2.57M	6.90M	7.06M	6.29M
	Stockholders Equity
15.22M	15.15M	12.14M	12.38M	11.69M
Cash Flow		Free Cash Flow
120.00K	862.00K	-2.08M	2.02M	2.92M
	Operating Cash Flow
913.00K	1.27M	-860.00K	2.15M	3.04M
	Investing Cash Flow
-328.00K	-967.00K	-1.28M	-110.00K	-110.00K
	Financing Cash Flow
-587.00K	-718.00K	-738.00K	-688.00K	-587.00K

Croma Security Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.00
• 50DMA: Negative
• 100DMA: Negative
• 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:CSSG, the sentiment is Negative. The current price of 84 is below the 20-day moving average (MA) of 84.97, below the 50-day MA of 85.78, and above the 200-day MA of 79.47, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 35.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CSSG.

Croma Security Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSSG	65 Neutral	£11.53M	19.00	4.03%	2.74%	6.44%	-82.88%
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%
RTC	64 Neutral	£11.29M	6.92	23.50%	6.22%	-2.04%	2.36%
IGE	62 Neutral	£2.46M	12.00	12.82%	―	-3.45%	66.67%
NWT	62 Neutral	£6.80M	56.21	-3.17%	―	10.37%	-57.83%
THRU	45 Neutral	£3.12M	―	-55.82%	―	-52.98%	-615.15%

Croma Security Solutions Corporate Events

Croma Security CEO Transfers Shares to ISAs

Croma Security Solutions Group PLC announced that its CEO, Roberto Fiorentino, transferred shares from his dealing account to his and his wife’s ISAs without changing their total holdings. This transaction reflects a strategic financial decision by the CEO, maintaining his 27.3% stake in the company, and highlights the company’s adherence to regulatory requirements.

Spark’s Take on GB:CSSG Stock

According to Spark, TipRanks’ AI Analyst, GB:CSSG is a Neutral.

Croma Security Solutions’ overall stock score reflects its strong financial stability and strategic growth through acquisitions. However, challenges in operational efficiency, cash flow volatility, and weak technical indicators temper the score. While the stock is fairly valued, the company’s strategic acquisitions and low leverage position it for potential future growth.

To see Spark’s full report on GB:CSSG stock, click here.

Croma Security CEO Sells Shares to Family Members

Croma Security Solutions Group PLC announced that its CEO, Roberto Fiorentino, sold 186,869 ordinary shares at 85.5p per share to family members, including his daughter Sofia Fiorentino. This transaction adjusts Roberto’s direct and indirect holdings to 3,762,029 shares, representing 27.3% of the company’s share capital. The sale, conducted on the London Stock Exchange’s AIM, reflects a shift in share distribution within the Fiorentino family, potentially impacting the company’s internal dynamics and shareholder structure.

Spark’s Take on GB:CSSG Stock

According to Spark, TipRanks’ AI Analyst, GB:CSSG is a Neutral.

Croma Security Solutions demonstrates financial stability with a strong balance sheet and growing revenues. However, operational challenges and cash flow volatility need addressing. The technical indicators suggest a neutral to slightly bearish trend, while fair valuation and strategic acquisitions support a positive outlook. Overall, the company has a moderate risk-reward profile, balancing growth potential with operational risks.

To see Spark’s full report on GB:CSSG stock, click here.

Croma Security Solutions Expands with Acquisition of Benn Lock & Safe

Croma Security Solutions Group has acquired Benn Lock & Safe, a Peterborough-based locksmith and security provider, for £200,000. This acquisition is strategic for Croma, as it consolidates its presence in Peterborough by merging Benn Lock & Safe with its existing branch, creating cost savings and synergies. The move aligns with Croma’s growth strategy of expanding its national security network by acquiring local locksmith businesses. Benn Lock & Safe, with its established reputation and expertise, will enhance Croma’s service offerings and strengthen its market position.

Croma Security Solutions Grants Share Options to CFO

Croma Security Solutions Group PLC has granted options to its Chief Financial Officer, Teo Andreeva, for 16,000 new ordinary shares at an exercise price of 86.5p. This move is part of the company’s Approved Share Option Plan, with the options set to vest in March 2028 and expire in March 2030, potentially impacting the company’s financial strategy and stakeholder interests.

Croma Security Solutions Enters Acquisition-Led Growth Phase with Strong Financial Results

Croma Security Solutions Group PLC reported strong financial performance for the first half of the fiscal year, with an 8% rise in group revenue and a 26% increase in profit before tax. The company is executing a strategy of acquisition-led growth, having completed the acquisition of Meridian Security Systems Ltd and planning additional acquisitions. The strategy aims to create value by turning independent locksmith stores into full-service security centers, enhancing profitability through expanded product offerings and operational efficiencies. With no debt and a solid cash position, Croma is well-positioned for sustainable growth, responding to market demands and upcoming legislative changes like Martyn’s Law, which may present new opportunities.

Croma Security Set to Announce Interim Results and Expansion Updates

Croma Security Solutions Group PLC is set to announce its financial results for the six months ending December 2024 on February 24, 2025. The company will hold two investor presentations to discuss these results, highlighting its commitment to transparency and stakeholder engagement. Following its strategic sale of the man-guarding business in 2023, Croma has capitalized on expansion opportunities, enhancing its industry positioning by increasing its network of security centers and services.