Croma Security Solutions (CSSG) AI Stock Analysis

• Market Cap: £10.46M
• Dividend Yield: 3.2%
• Average Volume (3M): 11.89K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.26
• Revenue Growth: 10.26%
• EPS Growth: 45.18%
• Country: UK
• Employees: 90
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.04
• Shares Outstanding: 13,768,255
• 10 Day Avg. Volume: 24,622
• 30 Day Avg. Volume: 11,891
• PEG Ratio: 0.32
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -17.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 86.00p ▲(14.67% Upside)

Croma Security Solutions is supported by strong financial stability and positive technical indicators. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, the overbought RSI suggests caution. The company should focus on improving profitability margins and cash flow management to enhance its financial position.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for CSSG's services and products, supporting long-term business expansion and market presence.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing CSSG with the flexibility to invest in growth opportunities.

Gross Profit Margin

A healthy gross profit margin reflects effective cost control, allowing CSSG to maintain profitability even as it scales operations.

Negative Factors

Cash Flow Management

Negative free cash flow indicates challenges in converting income into cash, potentially limiting CSSG's ability to fund future growth and operations.

Net Profit Margin

A low net profit margin suggests that CSSG may struggle to convert revenue into actual profit, which could impact long-term financial health.

Cash Flow Conversion

Suboptimal cash flow conversion indicates inefficiencies in turning net income into cash, which may affect CSSG's operational liquidity and investment capacity.

Croma Security Solutions Business Overview & Revenue Model

Company Description

Croma Security Solutions (CSSG) is a leading provider of security services, specializing in comprehensive security solutions for both residential and commercial clients. Operating in sectors such as cybersecurity, physical security, and risk management, CSSG offers a wide range of products and services including surveillance systems, access control, alarm systems, and cybersecurity consulting. The company's commitment to innovation and customer satisfaction has positioned it as a trusted partner in safeguarding assets and ensuring peace of mind for its clientele.

How the Company Makes Money

Croma Security Solutions generates revenue through multiple streams, primarily by providing security services and products. Key revenue streams include installation and maintenance fees for physical security systems, recurring service contracts for monitoring and cybersecurity services, and consulting fees for risk assessments and security audits. The company has established significant partnerships with technology providers and hardware manufacturers, allowing it to offer competitive pricing and integrated solutions. Additionally, CSSG benefits from a subscription model for its cybersecurity services, providing consistent cash flow through monthly or annual payments from clients seeking ongoing protection and support.

Croma Security Solutions Financial Statement Overview

Summary

Croma Security Solutions demonstrates solid revenue growth and a strong balance sheet with low leverage. However, profitability margins and cash flow management present areas for improvement. The company is financially stable but should focus on enhancing net profitability and cash flow conversion to strengthen its financial position further.

Income Statement

Croma Security Solutions shows a consistent revenue growth trend with a 6.33% increase in the latest year. The gross profit margin is healthy at 43.39%, indicating efficient cost management. However, the net profit margin is relatively low at 8.16%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.036, indicating minimal leverage and financial risk. The return on equity is modest at 4.99%, suggesting moderate profitability from shareholders' investments. The equity ratio is solid, showing a strong capital structure.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow, although there is significant growth in free cash flow compared to the previous year. The operating cash flow to net income ratio is below optimal, indicating potential issues in converting income into cash. The free cash flow to net income ratio is negative, highlighting cash flow management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.63M	9.63M	8.74M	8.03M	35.16M	32.54M
Gross Profit	3.61M	4.18M	3.54M	3.75M	6.40M	5.38M
EBITDA	1.43M	1.43M	1.28M	4.02M	866.00K	1.98M
Net Income	786.00K	786.00K	543.00K	3.70M	63.00K	977.00K
Balance Sheet
Total Assets	18.42M	18.42M	18.07M	17.72M	19.04M	19.44M
Cash, Cash Equivalents and Short-Term Investments	4.33M	4.33M	2.14M	2.14M	2.56M	5.43M
Total Debt	568.00K	568.00K	591.00K	659.00K	1.17M	1.05M
Total Liabilities	2.69M	2.69M	2.85M	2.57M	6.90M	7.06M
Stockholders Equity	15.73M	15.73M	15.22M	15.15M	12.14M	12.38M
Cash Flow
Free Cash Flow	-427.00K	-656.00K	120.00K	862.00K	-2.08M	2.02M
Operating Cash Flow	861.00K	632.00K	913.00K	1.27M	-860.00K	2.15M
Investing Cash Flow	1.74M	1.74M	-328.00K	-967.00K	-1.28M	-110.00K
Financing Cash Flow	-416.00K	-187.00K	-587.00K	-718.00K	-738.00K	-688.00K

Croma Security Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 75 is below the 20-day moving average (MA) of 77.13, below the 50-day MA of 76.17, and below the 200-day MA of 78.48, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 29.56 is Positive, neither overbought nor oversold. The STOCH value of 44.44 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
RTC	70 Outperform	£12.18M	6.89	23.32%	6.40%	-6.12%	4.30%
CSSG	70 Neutral	£10.46M	13.11	5.08%	3.20%	10.26%	45.18%
NWT	69 Neutral	£10.03M	15.08	7.90%	―	3.41%	393.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.22M	-12.50	-8.06%	―	63.81%	71.62%
IGE	48 Neutral	£2.87M	-10.00	-18.29%	―	-43.45%	-240.00%
THRU	42 Neutral	£4.25M	-0.45	-71.37%	―	-21.55%	10.59%

Croma Security Solutions Corporate Events

Croma Security Solutions Announces Change in Major Holdings

Croma Security Solutions Group PLC, a company in the security solutions industry, has announced a change in its major holdings. John Rockliff has acquired a 3.6% voting rights stake in the company, amounting to 500,000 shares, as of July 15, 2025. This acquisition may impact the company’s governance and influence future decision-making processes.

Croma Security Solutions Reports Strong FY 2025 Performance and Strategic Expansion

Croma Security Solutions Group PLC announced a successful trading year for FY 2025, with a 10% revenue increase to £9.6 million, driven by organic sales growth and network expansion. The company remains financially strong with £4.3 million in cash and no debt, following the sale of its manned guarding division, Vigilant, for £6.5 million. Croma’s strategy focuses on expanding its national security brand through acquisitions, having acquired locksmith stores in Leeds and Peterborough, and plans to acquire 3-5 new stores annually. The company is investing in its leadership team to support this growth, despite short-term profitability impacts. Croma’s balanced portfolio of security centres includes 9 freehold and 8 leasehold properties, ensuring long-term control and potential rental income.

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.