CY4Gate SpA (CY4) AI Stock Analysis

• Market Cap: €114.20M
• Dividend Yield: N/A
• Average Volume (3M): 32.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 8.84%
• EPS Growth: 29.63%
• Country: IT
• Employees: 511
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 23,571,428
• 10 Day Avg. Volume: 29,336
• 30 Day Avg. Volume: 32,496
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €6.10
• Price Target Upside: 26.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: €5.50 ▲(14.11%Upside)

The stock score is primarily influenced by technical indicators showing bullish momentum, though offset by financial challenges such as ongoing net losses and high leverage. Valuation metrics are less favorable due to negative earnings and lack of dividends.

Positive Factors

Defense Sector Growth

The Defence business is expected to grow nicely, with estimates not yet factoring in increased military budgets in Europe.

Financial Performance

The beginning of a reorganization process focused on cash flow management and cost efficiency is already showing positive margins and cash generation.

Revenue Stability

About 80% of revenues are already secured through the order backlog, making estimates more visible.

Negative Factors

Cash Flow Issues

Cash generation was worse than expected, with higher working capital requirements and increased tax payments resulting in adjusted net debt higher than estimated.

Contract Shortfalls

Cy4 missed its targets due to the lack of lucrative Foreign Forensic contracts.

Pipeline Challenges

Preliminary revenues were below company guidance due to lower-than-expected conversion of the pipeline in the Forensic Intelligence segment.

CY4Gate SpA Business Overview & Revenue Model

Company Description

CY4Gate SpA (CY4) is an Italian company specializing in cybersecurity and intelligence solutions. It operates primarily in the sectors of cyber defense, cyber intelligence, and communication security. The company provides a range of products and services designed to protect digital infrastructures, secure communications, and enhance the intelligence capabilities of governmental and commercial clients.

How the Company Makes Money

CY4Gate SpA generates revenue through the sale of its cybersecurity and intelligence products and services. The company's key revenue streams include providing cyber defense systems, offering cyber intelligence solutions, and delivering secure communication platforms. CY4Gate serves both government entities and private sector organizations, which rely on its expertise to protect sensitive information and infrastructure. Additionally, partnerships with other technology firms and security agencies may contribute to its revenue by expanding its market reach and enhancing its service offerings.

CY4Gate SpA Financial Statement Overview

Summary

CY4Gate SpA shows revenue growth and some operational cash profitability, but struggles with consistent net losses and increasing leverage, impacting the net profit margin and equity returns.

Income Statement

CY4Gate SpA has shown a positive revenue growth trajectory over the years, with notable growth from 2020 to 2023. However, the company has consistently operated at a net loss for the recent years, including TTM, which negatively impacts the net profit margin. The EBIT margin is negative, suggesting operational inefficiencies, although there is a positive EBITDA margin indicating some level of operational cash profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating rising leverage which could pose risks if not managed properly. However, the equity ratio remains stable suggesting some balance in the capital structure. The return on equity is negative due to net losses, impacting the attractiveness of equity returns.

Cash Flow

Operating cash flow has fluctuated but generally improved over the recent years. Free cash flow remains negative, highlighting potential challenges in funding operations and growth without external financing. The operating cash flow to net income ratio is positive, suggesting that cash generation is better than accounting profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.40M	68.14M	56.45M	16.56M	13.39M
Gross Profit	47.28M	11.89M	18.86M	8.74M	8.31M
EBITDA	11.87M	8.66M	12.18M	7.96M	6.91M
Net Income	-7.40M	-8.90M	2.47M	5.19M	5.28M
Balance Sheet
Total Assets	190.57M	178.85M	172.25M	41.28M	32.78M
Cash, Cash Equivalents and Short-Term Investments	15.34M	18.36M	19.88M	2.30M	9.98M
Total Debt	42.76M	26.84M	18.63M	4.01M	1.03M
Total Liabilities	88.28M	67.72M	49.71M	11.02M	6.75M
Stockholders Equity	99.10M	108.55M	121.12M	30.25M	26.03M
Cash Flow
Free Cash Flow	-3.95M	-1.59M	-9.30M	-7.54M	-5.99M
Operating Cash Flow	11.78M	20.46M	1.35M	-497.92K	-841.02K
Investing Cash Flow	-21.59M	-26.07M	-90.17M	-7.94M	-5.15M
Financing Cash Flow	6.79M	3.29M	97.29M	758.21K	14.58M

CY4Gate SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CY4, the sentiment is Neutral. The current price of 4.82 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 5.06, and above the 200-day MA of 4.43, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 13.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:CY4.

CY4Gate SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	81 Outperform	€278.98M	7.88		2.84%	-3.76%	-9.21%
CY4	62 Neutral	€114.20M	―	-7.13%	―	8.84%	29.63%
Sector *	62 Neutral	$34.81B	6.83	-11.82%	2.06%	6.36%	-8.52%

CY4Gate SpA Corporate Events

CY4Gate Appoints New Lead Independent Director

CY4Gate S.p.A. has appointed Dr. Maria Giovanna Calloni as the Lead Independent Director, following the Corporate Governance Code’s recommendation. This strategic appointment is expected to strengthen the company’s governance structure, enhancing its market positioning and potentially impacting its operations positively.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR6.10 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4GATE Secures €9.9 Million Contract for Decision Intelligence Solutions

CY4GATE SpA has secured a €9.9 million contract with a European institutional client to provide Decision Intelligence solutions over 18 months. This contract underscores the trust in CY4GATE’s technology and expertise in big data and AI, as the Decision Intelligence sector grows in Italy and Europe, driven by the need for efficient decision-making tools.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Appoints New Executive President to Strengthen Governance

CY4Gate SpA has appointed Enrico Peruzzi as the new Executive President, succeeding Domitilla Benigni, who will now lead the Strategic Committee. This change in leadership is part of a broader reorganization aimed at strengthening the company’s corporate governance to tackle new business challenges. With Peruzzi’s extensive experience in the Aerospace & Defence sector, CY4Gate aims to boost its market competitiveness and operational efficiency, particularly in the defense sector. The appointment is seen as a strategic move to drive growth and innovation, with support from key stakeholders like TEC Cyber and ELT Group, who are committed to expanding the company’s technological capabilities and market presence.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4GATE Secures €2 Million Cybersecurity Contracts with Italian Banks

CY4GATE has secured two-year contracts worth approximately €2 million with major Italian corporate clients in the banking sector, highlighting the company’s role as a trusted technology partner. These contracts, which include new software licenses and upsells, underscore the growing importance of cybersecurity as a strategic investment for business resilience and operational continuity, strengthening CY4GATE’s market position and trust among stakeholders.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Secures €1.3 Million in New Cyber Security Contracts

CY4Gate SpA has secured new contracts totaling approximately €1.3 million, enhancing its role in the cyber security sector. These contracts, which include software licenses and professional services, highlight the company’s capability to support clients in building cyber-resilient ecosystems and addressing the evolving threat landscape.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Releases Shareholders’ Meeting Minutes, Reinforcing Transparency

CY4Gate S.p.A. has made available the minutes from its Ordinary Shareholders’ Meeting held on April 28, 2025, to the public through various platforms, including its website and authorized storage mechanisms. This transparency in governance reflects the company’s commitment to stakeholder engagement and may enhance its reputation in the cyber security industry.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Secures €8.4 Million Contract for Decision Intelligence Solutions

CY4Gate SpA has secured a significant five-year contract worth €8.4 million with a European institutional client to deliver Decision Intelligence solutions. This contract underscores CY4Gate’s strategic positioning in the rapidly evolving Decision Intelligence market, which is increasingly reliant on AI and machine learning to optimize decision-making. The deal not only strengthens the company’s market presence but also highlights its commitment to innovation and international expansion, particularly within Europe.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR7.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Joins Major European Cyber Security Project

CY4Gate has been awarded a significant role in a European research project named ‘CITADEL’, funded by the European Defence Fund, focusing on cyber security in the defense sector. The project, valued at €48 million for the consortium, aims to develop advanced cyber training capabilities across Europe. CY4Gate’s participation, valued at €1.1 million, will enhance its international presence and contribute to the development of innovative cyber security solutions, reinforcing its position as a key player in the defense market.