Croma Security Solutions (CSSG) AI Stock Analysis

• Market Cap: £10.40M
• Dividend Yield: 3.2%
• Average Volume (3M): 11.89K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.29
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 86.00p ▲(16.22% 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 Group plc provides various security services in the United Kingdom. The company operates through three segments: Croma Vigilant, Croma Security Systems, and Croma Locksmiths. It offers manned guarding and asset protection services; CCTV security, fire, and alarm systems; locksmithing keys, locks, and safes; and identity management and access control solutions. The company was formerly known as Croma Group plc and changed its name to Croma Security Solutions Group plc in March 2012. Croma Security Solutions Group plc was incorporated in 1996 and is headquartered in Whiteley, the United Kingdom.

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: 74.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 74 is below the 20-day moving average (MA) of 75.85, below the 50-day MA of 76.94, and below the 200-day MA of 78.00, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.60 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
SNX	79 Outperform	£36.05M	8.29	10.49%	2.09%	21.43%	44.70%
CSSG	70 Neutral	£10.40M	13.20	5.08%	3.20%	10.26%	45.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.37M	-12.50	-8.06%	―	63.81%	71.62%
IGE	48 Neutral	£2.87M	-9.76	-18.29%	―	-43.45%	-240.00%
THRU	42 Neutral	£4.25M	-0.52	-71.37%	―	-21.55%	10.59%

Croma Security Solutions Corporate Events

Croma Security Expands UK Network with Acquisition of TLS Security Systems

Croma Security Solutions Group has acquired TLS Security Systems, a family-owned locksmith and access control specialist based in Taunton, Somerset, for up to £0.47m plus £0.20m for its freehold retail property, funded entirely from existing cash reserves strengthened by instalments from the earlier Vigilant disposal. TLS, which generated £0.94m of revenue and £0.11m of EBITDA in the year to 31 March 2025 and derives about 80% of its turnover from commercial customers such as local authorities and healthcare operators, will become Croma’s first operational presence in Somerset, expanding the group’s network to 17 security centres and deepening coverage in the South West. The integration is designed to create operational synergies by combining TLS’s regional reputation and technical expertise in locksmith and electronic security with Croma’s broader national platform, reinforcing the company’s acquisition-led expansion strategy and offering enhanced service capabilities to both commercial and retail clients, while three of TLS’s owner-operators remain in place during the earnout period to ensure continuity.

The most recent analyst rating on (GB:CSSG) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Croma Security Solutions stock, see the GB:CSSG Stock Forecast page.

Croma Security Solutions Passes AGM Resolutions, Continues Expansion

Croma Security Solutions Group PLC announced that all resolutions were passed at its recent Annual General Meeting. The company continues to focus on expanding its network of security centers, having sold its man-guarding business to fund this growth. Croma’s strategy involves acquiring local locksmith businesses to enhance its service offerings and customer base, positioning itself as a leader in the security solutions industry.

The most recent analyst rating on (GB:CSSG) stock is a Hold with a £88.00 price target. To see the full list of analyst forecasts on Croma Security Solutions stock, see the GB:CSSG Stock Forecast page.

Croma Security Solutions Announces AGM Details and Online Access

Croma Security Solutions Group PLC has announced that its Annual General Meeting will be held on December 1, 2025, at its Hampshire offices. The company will provide online access to the AGM proceedings via the Investor Meet Company platform, although voting will not be available online. Shareholders are encouraged to submit proxy votes and questions in advance. This announcement reflects Croma’s commitment to engaging with stakeholders while continuing its strategic expansion in the security solutions industry.

The most recent analyst rating on (GB:CSSG) stock is a Hold with a £88.00 price target. To see the full list of analyst forecasts on Croma Security Solutions stock, see the GB:CSSG Stock Forecast page.

Croma Security Solutions to Announce Year-End Financial Results Amid Strategic Expansion

Croma Security Solutions Group PLC, listed on the AIM market, will announce its financial results for the year ending 30 June 2025 on 3 November 2025. The company, which has been expanding its network of security centers following the sale of its man-guarding business, continues to strengthen its market position by acquiring additional locksmith businesses. This strategic growth is supported by the capital from the sale and aims to enhance its service offerings to both retail and commercial customers.

The most recent analyst rating on (GB:CSSG) stock is a Hold with a £88.00 price target. To see the full list of analyst forecasts on Croma Security Solutions stock, see the GB:CSSG Stock Forecast page.

Croma Security Solutions Strengthens Leadership with New Appointments

Croma Security Solutions Group has appointed John Wakefield as Non-Executive Chairman and Andy Wonnacott as Non-Executive Director, effective November 1, 2025. These appointments bring significant expertise in finance, governance, and strategic growth, supporting Croma’s expansion goals. John Wakefield will lead the remuneration committee, and Andy Wonnacott will chair the audit committee, enhancing the company’s leadership as it continues to grow its security network.

The most recent analyst rating on (GB:CSSG) stock is a Hold with a £88.00 price target. To see the full list of analyst forecasts on Croma Security Solutions stock, see the GB:CSSG Stock Forecast page.