Croma Security Solutions (CSSG) AI Stock Analysis

• Market Cap: £11.63M
• Dividend Yield: 2.02%
• Average Volume (3M): 7.71K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.25
• Revenue Growth: 6.44%
• EPS Growth: -82.88%
• Country: UK
• Employees: 90
• Sector: Industrials
• Sector Strength: 86
• Industry: Security & Protection Services
• EPS (TTM): 0.04
• Shares Outstanding: 13,768,255
• 10 Day Avg. Volume: 5,687
• 30 Day Avg. Volume: 7,706
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.30
• 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

• Rating: 65 Neutral
• Price Target: 91.00p ▲(10733.33%Upside)

Croma Security Solutions demonstrates financial stability and a reasonable valuation, which are its primary strengths. However, operational challenges, particularly declining margins and volatile cash flows, combined with neutral technical indicators, suggest a need for cautious optimism. The lack of significant earnings call highlights and corporate events leaves these areas unweighted, focusing the score on financial and market data.

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 exhibits financial stability with a strong balance sheet, marked by a low debt-to-equity ratio and high equity ratio. While revenue growth is positive, challenges exist with declining EBIT and EBITDA margins and volatile cash flows, which could impact profitability and operational efficiency.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.06M	8.74M	8.03M	35.16M	32.54M	32.32M
Gross Profit	3.73M	3.54M	3.75M	6.40M	5.38M	5.52M
EBITDA	1.39M	1.28M	4.02M	866.00K	1.98M	897.00K
Net Income	607.00K	543.00K	3.70M	63.00K	977.00K	-134.00K
Balance Sheet
Total Assets	17.70M	18.07M	17.72M	19.04M	19.44M	17.98M
Cash, Cash Equivalents and Short-Term Investments	4.17M	2.14M	2.14M	2.56M	5.43M	4.08M
Total Debt	534.00K	591.00K	659.00K	1.17M	1.05M	1.18M
Total Liabilities	2.48M	2.85M	2.57M	6.90M	7.06M	6.29M
Stockholders Equity	15.22M	15.22M	15.15M	12.14M	12.38M	11.69M
Cash Flow
Free Cash Flow	-181.00K	120.00K	862.00K	-2.08M	2.02M	2.92M
Operating Cash Flow	961.00K	913.00K	1.27M	-860.00K	2.15M	3.04M
Investing Cash Flow	1.86M	-328.00K	-967.00K	-1.28M	-110.00K	-110.00K
Financing Cash Flow	-376.00K	-587.00K	-718.00K	-738.00K	-688.00K	-587.00K

Croma Security Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 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 Positive. The current price of 0.84 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.85, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	69 Neutral	£11.93M	7.30	23.50%	10.53%	-2.04%	2.36%
NWT	69 Neutral	£7.50M	56.21	-3.17%	―	10.37%	-57.83%
Sector *	68 Neutral	£2.95B	10.28	8.40%	3.21%	2.87%	-9.95%
CSSG	65 Neutral	£11.63M	19.12	4.03%	2.02%	6.44%	-82.88%
IGE	61 Neutral	£1.85M	11.00	-7.14%	―	-16.19%	-600.00%
THRU	45 Neutral	£2.13M	―	-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.

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.