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CyanConnode Holdings (GB:CYAN)
:CYAN

CyanConnode Holdings (CYAN) AI Stock Analysis

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CyanConnode Holdings

(LSE:CYAN)

Rating:45Neutral
Price Target:
CyanConnode Holdings shows potential due to its significant revenue growth and strategic expansions in the Indian market, notably through recent major contracts. However, persistent financial challenges, including negative profitability and cash flow issues, weigh heavily on the overall score. Technical indicators suggest a possible rebound, while valuation remains a concern due to ongoing losses.

CyanConnode Holdings (CYAN) vs. iShares MSCI United Kingdom ETF (EWC)

CyanConnode Holdings Business Overview & Revenue Model

Company DescriptionCyanConnode Holdings plc engages in the design, development, and sale of Narrowband radio frequency (RF) mesh networks that enable Omni Internet of Things (IoT) communications in the United Kingdom, India, Sweden, Thailand, and internationally. It offers wireless communication technology for smart metering, lighting, and IoT. The company provides Narrowband RF mesh technology that supports multi-application networks, enabling communication with any device, including gas, water, and electricity meters, as well as street lighting and traffic lights. In addition, it offers Omnimesh, a standard-based smart metering solution; and Omni IoT platform that provides multi-network and multi-application IoT solutions. The company was formerly known as Cyan Holdings plc and changed its name to CyanConnode Holdings plc in November 2016. CyanConnode Holdings plc was incorporated in 2002 and is headquartered in Cambridge, the United Kingdom.
How the Company Makes MoneyCyanConnode makes money by offering products and services that enable the deployment of smart metering and IoT solutions. Its revenue model is primarily based on licensing its proprietary technology, selling hardware components such as communication modules and gateways, and providing associated software and network management services. The company also earns revenue through long-term contracts with utility companies and governments, often collaborating with system integrators and other partners to deliver large-scale projects. These partnerships and contracts are significant contributors to its earnings, as they ensure a steady stream of income from both initial implementation and ongoing maintenance and support services.

CyanConnode Holdings Financial Statement Overview

Summary
CyanConnode Holdings demonstrates significant revenue growth but struggles with profitability and cash flows. The company faces challenges in cost management, evident from negative EBIT and Net Income margins, and liquidity issues due to negative operating and free cash flows.
Income Statement
35
Negative
CyanConnode Holdings shows a significant revenue growth of over 59% from 2023 to 2024. However, the company is struggling with profitability as indicated by negative EBIT and Net Income margins. Gross Profit Margin is present but overall the company is facing challenges in cost management and profitability.
Balance Sheet
45
Neutral
The company maintains a relatively favorable debt-to-equity ratio, indicating a controlled leverage. However, the declining stockholders' equity from 2023 to 2024 and the negative net income highlight financial underperformance. The equity ratio remains stable, suggesting moderate financial stability.
Cash Flow
30
Negative
CyanConnode's cash flow is concerning, with negative operating and free cash flow indicating liquidity challenges. The company is unable to convert its operational activities into positive cash flows, signaling potential cash management issues. The free cash flow has deteriorated significantly over the years.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Dec 2018
Income StatementTotal Revenue
18.58M18.73M11.73M9.56M6.44M4.46M
Gross Profit
5.72M5.61M4.21M5.01M3.10M2.74M
EBIT
-2.80M-4.20M-3.35M-1.02M-2.69M-6.32M
EBITDA
-3.62M-3.71M-2.82M-398.00K-2.04M-5.83M
Net Income Common Stockholders
-4.08M-3.83M-2.41M-871.00K-2.06M-5.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.37M783.00K4.07M2.35M1.49M4.56M
Total Assets
5.01M23.12M20.45M16.79M14.01M16.80M
Total Debt
0.00474.00K1.35M2.02M2.22M0.00
Net Debt
-2.37M-309.00K-2.72M-335.00K727.00K-4.56M
Total Liabilities
3.78M9.69M5.68M5.36M7.00M2.68M
Stockholders Equity
1.23M13.43M14.77M11.43M7.01M14.12M
Cash FlowFree Cash Flow
-3.12M-4.47M-2.98M-3.42M-1.14M-5.88M
Operating Cash Flow
-1.97M-2.86M-2.22M-3.13M-988.00K-5.84M
Investing Cash Flow
-1.63M-1.60M-766.00K-296.00K-90.00K-24.00K
Financing Cash Flow
6.30M1.23M4.69M4.28M1.40M5.04M

CyanConnode Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.75
Price Trends
50DMA
10.30
Negative
100DMA
11.41
Negative
200DMA
10.64
Negative
Market Momentum
MACD
-0.64
Negative
RSI
24.11
Positive
STOCH
34.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CYAN, the sentiment is Negative. The current price of 7.75 is below the 20-day moving average (MA) of 8.07, below the 50-day MA of 10.30, and below the 200-day MA of 10.64, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 24.11 is Positive, neither overbought nor oversold. The STOCH value of 34.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CYAN.

CyanConnode Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBFTC
77
Outperform
£289.08M28.5758.61%159.75%
GBMWE
73
Outperform
£40.08M11.8915.26%5.47%-2.86%6.52%
GBNXQ
68
Neutral
£39.22M177.030.50%5.69%-26.16%-99.62%
GBIOM
66
Neutral
£35.64M10.432.80%14.93%1.47%-49.08%
61
Neutral
$11.56B10.44-6.88%2.93%7.49%-8.97%
45
Neutral
£27.08M-27.63%15.00%-68.67%
GBGST
44
Neutral
£28.14M-9.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CYAN
CyanConnode Holdings
7.75
-0.15
-1.90%
GB:FTC
Filtronic
132.00
62.50
89.93%
GB:IOM
Iomart Group plc
29.00
-101.48
-77.77%
GB:MWE
MTI Wireless Edge
51.00
9.97
24.30%
GB:NXQ
Quixant
66.00
-61.43
-48.21%
GB:GST
GSTechnologies
1.30
0.46
54.76%

CyanConnode Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
CyanConnode Reports Strong Order Growth Amid Shipment Delays
Neutral
Apr 28, 2025

CyanConnode Holdings reported a significant increase in its order book to approximately £180 million, driven by strong demand for its smart metering solutions. Despite delays in expected shipments due to Indian elections and consumer resistance, the company secured its largest contract and an AMISP engagement worth £70 million. The Indian government’s expanded smart meter deployment target presents substantial opportunities for CyanConnode. However, the company anticipates an EBITDA loss for FY25 due to shipment delays, but remains optimistic about future growth, evidenced by increased shipments in April 2025.

Spark’s Take on GB:CYAN Stock

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

CyanConnode Holdings shows potential with strategic expansions and contract wins, notably in the Indian market. However, the overall stock score is constrained by persistent financial challenges, including negative profitability and cash flow issues. While technical indicators suggest a possible recovery from oversold conditions, the valuation remains unattractive due to ongoing losses. The company’s recent contract wins improve its growth outlook, but significant financial improvements are necessary to enhance its stock score.

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

Business Operations and Strategy
CyanConnode Secures £70 Million Smart Metering Contract in Goa
Positive
Apr 14, 2025

CyanConnode Holdings PLC has announced that its Indian subsidiary, DigiSmart Networks Pvt. Ltd., has received a Letter of Intent for a £70 million contract from the Government of Goa’s Electricity Department to deploy 750,000 smart meters. This marks the company’s first major contract as an Advanced Metering Infrastructure Service Provider (AMISP), allowing it to lead smart metering projects in India. The project is expected to begin in the first quarter of FY 2026 and will last for 27 months, followed by a support period. This contract significantly increases CyanConnode’s order book to £180 million, with revenue expected over the next decade, enhancing its growth potential and industry positioning.

Spark’s Take on GB:CYAN Stock

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

CyanConnode Holdings shows potential due to significant revenue growth and strategic expansions in the Indian market. However, persistent financial challenges, including negative profitability and cash flow issues, weigh heavily on the overall score. The technical indicators suggest a possible rebound from oversold conditions, while valuation remains a concern due to ongoing losses.

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

Private Placements and FinancingBusiness Operations and Strategy
CyanConnode Secures £5 Million Loan to Boost Indian Market Expansion
Positive
Mar 19, 2025

CyanConnode Holdings PLC has secured a £5 million unsecured loan from its substantial shareholder, Axia Investments Limited, to support its growth in the Indian smart metering market. This funding will enable the company’s subsidiary, DigiSmart, to bid for large-scale smart metering tenders, ensuring they have the necessary capital to secure high-value contracts. The loan is part of CyanConnode’s strategy to maintain financial flexibility and drive expansion, with the company also exploring long-term financing options to support its accelerating growth.

Product-Related AnnouncementsBusiness Operations and Strategy
CyanConnode Secures Major Follow-On Orders in India
Positive
Mar 4, 2025

CyanConnode Holdings PLC announced significant follow-on orders from Montecarlo Limited for 872,000 Omnimesh Modules, aimed at supporting India’s Revamped Distribution Sector Scheme (RDSS). These orders, part of projects in Madhya Pradesh and Maharashtra, underscore the company’s strong partnership with Montecarlo and its pivotal role in India’s smart metering ecosystem. The orders are expected to bolster CyanConnode’s market position and demonstrate the effectiveness of its technology in improving billing efficiency and reducing power theft.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.