Cornerstone FS Plc (FIN) AI Stock Analysis

• Market Cap: £19.71M
• Dividend Yield: N/A
• Average Volume (3M): 113.70K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.25
• Revenue Growth: 17.67%
• EPS Growth: -53.23%
• Country: UK
• Employees: 43
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Infrastructure
• EPS (TTM): 0.02
• Shares Outstanding: 57,967,102
• 10 Day Avg. Volume: 113,500
• 30 Day Avg. Volume: 113,697
• PEG Ratio: 0.11
• Price to Book (P/B): -130.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.17
• 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: 70 Outperform
• Price Target: 38.00p ▲(15.15%Upside)

Cornerstone FS Plc's overall stock score reflects its strong financial recovery and strategic growth initiatives. The technical indicators suggest potential volatility, but corporate events and fair valuation provide a positive outlook. Continued focus on managing leverage and expanding operations could enhance future performance.

Cornerstone FS Plc Business Overview & Revenue Model

Company Description

Cornerstone FS Plc is a financial services company that operates primarily in the foreign exchange (FX) and international payment sectors. The company provides a range of FX and payment solutions to businesses and individuals, facilitating cross-border transactions and currency exchange. Cornerstone FS Plc leverages advanced technology and strategic partnerships to deliver efficient and secure financial services to its clients.

How the Company Makes Money

Cornerstone FS Plc generates revenue through a combination of transaction fees, exchange rate margins, and service charges associated with its foreign exchange and international payment services. The company earns money by charging clients a fee for processing foreign currency transactions and facilitating international payments. Additionally, Cornerstone FS Plc may partner with banks, financial institutions, and fintech companies to enhance its service offerings and expand its reach, thereby driving additional revenue through collaborative business opportunities and shared platforms.

Cornerstone FS Plc Financial Statement Overview

Summary

Cornerstone FS Plc has demonstrated strong revenue growth and improved profitability. The cash flow has shown significant recovery, and the balance sheet indicates better leverage management. Despite past profitability challenges, the company is on a positive trajectory 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
	EBIT
1.19M	1.36M	-5.62M	-4.18M	-2.16M
	EBITDA
2.45M	2.06M	-5.21M	-4.02M	-2.13M
	Net Income Common Stockholders
996.55K	2.13M	-5.61M	-4.10M	-2.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.58M	2.34M	682.35K	348.10K	183.68K
	Total Assets
7.40M	6.75M	4.38M	1.44M	1.08M
	Total Debt
2.54M	2.98M	2.40M	0.00	0.00
	Net Debt
-37.05K	636.07K	1.72M	-348.10K	-183.68K
	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: 33.00
• 50DMA: Negative
• 100DMA: Negative
• 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:FIN, the sentiment is Negative. The current price of 33 is below the 20-day moving average (MA) of 34.97, below the 50-day MA of 33.12, and below the 200-day MA of 35.32, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.42 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 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	70 Outperform	£19.71M	18.97	43.60%	―	17.67%	-53.23%
IOM	66 Neutral	£32.70M	9.57	2.80%	8.96%	1.47%	-49.08%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CLCO	60 Neutral	£1.24M	―		―	―	―
PCIP	58 Neutral	£38.39M	―		―	20.56%	83.30%
SYS	55 Neutral	£18.32M	―	-26.77%	―	2.89%	-804.62%
SWG	54 Neutral	£10.48M	―	-6.16%	―	-11.19%	63.83%

Cornerstone FS Plc Corporate Events

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.

Finseta Chairman Maintains Stake with Share Transfer

Finseta plc announced that its Non-Executive Chairman, Gareth Edwards, transferred 13,500 ordinary shares from his personal holding to his SIPP, maintaining his total shareholding at 790,846 shares, which is about 1.4% of the company’s total voting rights. This transaction, executed on the London Stock Exchange, does not alter Edwards’ overall stake in the company, ensuring stability in his investment and signaling confidence in Finseta’s future prospects.

Finseta plc Reports Strong 2024 Results and Strategic Expansion

Finseta plc announced its final results for 2024, showcasing significant growth with a 26% increase in underlying revenue and a 19% rise in reported revenue. The company has expanded its customer base and completed a strategic shift to direct sales, enhancing its global payments network and product offerings, including a new corporate card scheme. With regulatory approvals in Canada and the UAE, Finseta is positioned for further growth in 2025, expecting its new products and expanded operations to significantly boost revenue and profitability.

Finseta to Announce 2024 Final Results and Host Investor Presentation

Finseta plc announced it will release its final results for the year ended 31 December 2024 on 23 April 2025. The company will host a live investor presentation on the same day, led by CEO James Hickman and CFO Judy Happe, allowing existing and potential shareholders to engage with the leadership and ask questions about the company’s performance and future prospects.