Cornerstone FS Plc (FIN) AI Stock Analysis

• Market Cap: £8.41M
• Dividend Yield: N/A
• Average Volume (3M): 463.18K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.16
• Revenue Growth: 9.45%
• EPS Growth: -86.94%
• Country: UK
• Employees: 43
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 59,019,733
• 10 Day Avg. Volume: 141,252
• 30 Day Avg. Volume: 463,178
• PEG Ratio: -0.37
• Price to Book (P/B): 6.79
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 9.35
• 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: 67 Neutral
• Price Target: 15.50p ▲(7.79% Upside)

The overall stock score reflects strong corporate confidence and financial improvements, tempered by bearish technical indicators and moderate valuation. The company's strategic initiatives and director share purchases are positive signals, but technical trends suggest caution.

Positive Factors

Revenue Growth

Sustained revenue growth indicates expanding market presence and effective business strategies, enhancing long-term financial stability.

Cash Flow Improvement

Improved cash flow metrics suggest enhanced cash generation ability, supporting future investments and operational resilience.

Balance Sheet Strength

Improved equity position reflects better financial health and reduced leverage risk, contributing to long-term growth potential.

Negative Factors

Historical Profitability Challenges

Past profitability issues highlight potential risks in maintaining consistent earnings, which could impact future financial performance.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to weather economic downturns.

Volatile Net Profit Margins

Volatile profit margins may indicate challenges in cost management and pricing power, affecting long-term profitability and competitiveness.

Cornerstone FS Plc Business Overview & Revenue Model

Company Description

WizzFinancial operates as a platform for B2B payments and foreign exchange solutions worldwide. It operates through three segments: Cross-Border Payments & Consumer Solutions, Consumer Foreign Exchange Solutions, and B2B & Payment Technology Solutions. The Cross-Border Payments & Consumer Solutions segment offers cross-border payments services through digital and physical channels. This segment also provides payroll processing, mobile wallet, bill payment, digital gifting, and consumer advance services. The Consumer Foreign Exchange Solutions segment purchases and sells foreign currency; issues prepaid travel cards; and provides VAT refund services through stores, ATMs, online portals, and mobile applications. The B2B & Payment Technology Solutions segment enables banks, financial institutions, mobile wallet operators, payments and technology companies, and others to offer cross-border payments, foreign exchange, stored value platforms, digital gifting, and acquiring services to their customers using its platforms. It offers services under the UAE Exchange, Travelex, Xpress Money, Unimoni, Remit2India, Ditto, and Swych brand names. The company was formerly known as Finablr PLC and changed its name to WizzFinancial in August 2021. WizzFinancial was incorporated in 2018 and is headquartered in Abu Dhabi, the United Arab Emirates.

How the Company Makes Money

Cornerstone FS generates revenue through several key streams, primarily by charging fees on foreign exchange transactions and international payments. The company earns commission fees for facilitating currency conversions and processing payments on behalf of its clients. Additionally, Cornerstone FS may also generate income through premium services, such as risk management solutions that help clients hedge against currency fluctuations. Strategic partnerships with financial institutions and payment networks further contribute to its earnings by expanding its service offerings and enhancing operational efficiencies. Overall, the company's revenue model is heavily reliant on transaction volume and the value of the services provided to its clients.

Cornerstone FS Plc Financial Statement Overview

Summary

Cornerstone FS Plc has shown a commendable turnaround with strong revenue growth, improved profitability, and enhanced cash flow. Despite historical challenges with profitability and high leverage, the company is progressing towards financial stability.

Income Statement

Cornerstone FS Plc has demonstrated strong revenue growth over the years, with a significant increase from 2020 to 2024. The gross profit margin has improved, indicating better cost management and profitability. However, net profit margins have shown volatility, with a large net loss in prior years turning into a profit in 2024. The EBIT and EBITDA margins have also improved in recent years, reflecting operational efficiency. Despite the positive trajectory, the earlier losses highlight historical challenges.

Balance Sheet

The company's balance sheet shows a solid improvement in stockholders' equity, moving from negative to positive over the years, which is a positive sign of growth. The debt-to-equity ratio has decreased, indicating better leverage management, though it remains relatively high. The equity ratio has improved, suggesting a stronger asset base. However, the company has faced challenges with liabilities exceeding assets in some years, which could pose risks if not managed carefully.

Cash Flow

Cornerstone FS Plc has shown a strong recovery in its cash flow metrics, with significant growth in free cash flow and operating cash flow in recent years. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is positive, reflecting improved cash earnings quality. Despite past negative cash flows, recent improvements highlight a positive turnaround in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.16M	11.35M	9.65M	4.82M	2.30M	1.66M
Gross Profit	6.75M	6.58M	6.12M	2.94M	1.19M	496.31K
EBITDA	1.79M	2.45M	2.06M	-5.21M	-4.02M	-2.13M
Net Income	334.26K	996.55K	2.13M	-5.61M	-4.10M	-2.15M
Balance Sheet
Total Assets	7.77M	7.40M	6.75M	4.38M	1.44M	1.08M
Cash, Cash Equivalents and Short-Term Investments	2.43M	2.58M	2.34M	682.35K	348.10K	183.68K
Total Debt	2.56M	2.54M	2.98M	2.40M	0.00	0.00
Total Liabilities	4.91M	4.48M	5.09M	4.47M	1.18M	1.22M
Stockholders Equity	2.86M	2.92M	1.66M	-89.90K	258.63K	-135.92K
Cash Flow
Free Cash Flow	1.65M	2.12M	1.45M	-1.28M	-1.41M	-1.20M
Operating Cash Flow	1.75M	2.17M	1.95M	-835.87K	-986.35K	-857.64K
Investing Cash Flow	-1.51M	-1.34M	-202.09K	-992.04K	-421.94K	-344.58K
Financing Cash Flow	-573.68K	-594.35K	-90.99K	2.16M	1.57M	1.31M

Cornerstone FS Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FIN, the sentiment is Negative. The current price of 14.38 is above the 20-day moving average (MA) of 14.23, below the 50-day MA of 14.57, and below the 200-day MA of 23.07, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 50.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FIN.

Cornerstone FS Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIN	67 Neutral	£8.41M	24.57	13.03%	―	9.45%	-86.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PCIP	56 Neutral	£39.12M	900.00	―	―	25.15%	―
SYS	51 Neutral	£13.38M	-6.25	-9.20%	―	-7.45%	78.23%
SWG	43 Neutral	£11.20M	-3.97	―	―	―	―
CLCO	41 Neutral	£953.39K	―	―	―	―	―
IOM	40 Underperform	£19.30M	-0.32	-67.57%	23.79%	25.44%	-1877.56%

Cornerstone FS Plc Corporate Events

Finseta Adjusts Loan Terms and Compensation to Support Growth

Finseta plc has announced a variation in the terms of a loan note and incentivisation arrangements with its Chief Commercial Officer, Robert O’Brien. The company has converted £200k of a £2m loan note into ordinary shares and extended the repayment date for the remaining principal, providing more flexibility for future investments. This move, alongside changes in Mr. O’Brien’s compensation package, is expected to benefit the company’s cash flow and support its growth strategy. The issuance of new shares will increase Mr. O’Brien’s stake in the company and reflects his alignment with Finseta’s growth objectives.

The most recent analyst rating on (GB:FIN) stock is a Hold with a £14.00 price target. To see the full list of analyst forecasts on Cornerstone FS Plc stock, see the GB:FIN Stock Forecast page.

Finseta plc Grants Share Options to Key Employees

Finseta plc has announced the granting of 150,000 options over ordinary shares to certain employees, including Chief Product Officer Declan Jones, as part of its employee incentive program. These options, which vest over three years and are exercisable at 13.75 pence per share, align with the company’s strategy to retain key personnel and enhance its competitive positioning in the foreign exchange and payments industry.

The most recent analyst rating on (GB:FIN) stock is a Hold with a £28.00 price target. To see the full list of analyst forecasts on Cornerstone FS Plc stock, see the GB:FIN Stock Forecast page.