Cornerstone FS Plc (FIN) AI Stock Analysis

• Market Cap: £13.19M
• Dividend Yield: N/A
• Average Volume (3M): 258.90K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.51
• Revenue Growth: 17.67%
• EPS Growth: -53.23%
• Country: UK
• Employees: 43
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 57,967,102
• 10 Day Avg. Volume: 179,282
• 30 Day Avg. Volume: 258,904
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £28.00
• Price Target Upside: 23.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: 28.00p ▲(23.08% Upside)

The stock's score is primarily driven by its strong financial performance and positive corporate events. However, bearish technical indicators and moderate valuation metrics weigh on the overall score. The absence of dividend yield also limits its attractiveness for some investors.

Cornerstone FS Plc Business Overview & Revenue Model

Company Description

Cornerstone FS Plc (FIN) is a financial services company that operates within the foreign exchange and payments sector. The company provides multi-currency payment services and foreign exchange solutions to businesses and individuals, facilitating efficient and secure cross-border transactions. Cornerstone FS is committed to offering tailored financial solutions that meet the diverse needs of its clients, leveraging technology to enhance the user experience and streamline operations.

How the Company Makes Money

Cornerstone FS Plc generates revenue through its foreign exchange and payment services. The company earns money by charging fees and commissions on currency exchange transactions and cross-border payments. These fees can be fixed or variable, depending on the transaction size and currency pairs involved. Additionally, Cornerstone FS may benefit from favorable exchange rate margins when converting currencies on behalf of clients. The company's revenue is also influenced by the volume and value of transactions processed through its platform. Strategic partnerships with financial institutions and technology providers can enhance Cornerstone FS's service offerings and expand its client base, contributing to its revenue growth.

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

Cornerstone FS Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.75
• 50DMA: Negative
• 100DMA: Negative
• 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:FIN, the sentiment is Negative. The current price of 22.75 is below the 20-day moving average (MA) of 23.65, below the 50-day MA of 25.57, and below the 200-day MA of 32.07, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 27.91 is Positive, neither overbought nor oversold. The STOCH value of 27.89 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	64 Neutral	£13.19M	12.76	43.60%	―	17.67%	-53.23%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
PCIP	60 Neutral	£32.97M	866.67		―	25.15%	―
SWG	54 Neutral	£13.58M	―	-6.16%	―	-11.19%	63.83%
CLCO	54 Neutral	£1.84M	―		―	―	―
SYS	45 Neutral	£13.59M	―	-9.53%	―	-9.74%	80.02%
IOM	44 Neutral	£24.81M	9.41	-58.97%	20.19%	12.92%	-949.57%

Cornerstone FS Plc Corporate Events

Finseta plc Amends Shareholding Announcement for CIO and Spouse

Finseta plc announced amendments to a previous shareholding announcement involving its Chief Information Officer, William Newton, and his spouse, Michele Newton. The corrections clarified that Michele Newton sold 154,240 shares and both she and William Newton purchased 75,353 shares each into their ISA accounts. This adjustment impacts the reported share transactions and holdings of the company’s directors, aligning with regulatory requirements under the UK Market Abuse Regulation.

Finseta Executives Increase Shareholdings, Reflecting Confidence

Finseta plc announced recent transactions involving its directors and executives, including the purchase of ordinary shares by CEO James Hickman, CFO Judy Happe, and Non-executive Director Simon Bullock. Additionally, CIO William Newton executed a Bed and SIPP arrangement to transfer shares to his pension. These transactions reflect internal confidence in the company’s prospects and may influence stakeholder perceptions positively.

Finseta Plc Announces Change in Major Shareholdings

Finseta Plc, a company based in the UK, has announced a change in its major shareholdings. Mark Horrocks & Family Interests have reduced their voting rights in Finseta Plc from 9.95% to 8.21%. This change was due to an acquisition or disposal of voting rights, which could impact the company’s control dynamics and influence within the market.

Finseta plc Reports Revenue Growth and Strategic Expansion in H1 2025

Finseta plc has reported a 16% increase in revenue for the first half of 2025, reaching £5.9 million, driven by a rise in active customers. Despite a slight decrease in gross margin, the company has invested in strategic initiatives, such as its corporate card scheme and expansions in Canada and Dubai, which are expected to boost sales and profitability. The company anticipates significant revenue growth in the second half of the year as market conditions stabilize and new customer transactions resume.

Finseta plc Announces Share Option Exercise and Equity Issue

Finseta plc has announced the exercise of options over 550,000 ordinary shares, with these shares set to be admitted to trading on AIM by early June 2025. This increase in shares will adjust the company’s total voting rights to 57,967,101, impacting shareholder calculations under the Financial Conduct Authority’s rules.