CY4Gate SpA (CY4) AI Stock Analysis

• Market Cap: €152.04M
• Dividend Yield: N/A
• Average Volume (3M): 93.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 29.64%
• EPS Growth: 62.10%
• Country: IT
• Employees: 511
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.40
• Shares Outstanding: 23,571,428
• 10 Day Avg. Volume: 148,367
• 30 Day Avg. Volume: 93,014
• PEG Ratio: 0.98
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -28.93
• 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: €6.05
• Price Target Upside: -8.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: €6.50 ▼(-1.37% Downside)

CY4Gate SpA's overall stock score is primarily influenced by its financial performance challenges, including consistent net losses and increasing leverage. Despite these issues, the stock shows strong technical momentum, which partially offsets the negative valuation due to the negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong demand for its cybersecurity solutions, positioning it well for future expansion and market penetration.

Market Position

Serving both government and private sectors enhances CY4Gate's market position, providing a diversified client base and reducing dependency on a single revenue stream.

Cash Generation

Positive cash flow relative to net income suggests effective cash management, providing the company with liquidity to support operations and potential growth initiatives.

Negative Factors

Net Losses

Ongoing net losses can hinder long-term profitability and limit the company's ability to reinvest in growth, posing a risk to financial stability.

Rising Leverage

Increased leverage could strain financial resources, reducing flexibility and increasing risk, especially if revenue growth does not keep pace with debt obligations.

Negative EBIT Margin

A negative EBIT margin indicates operational challenges that could impact profitability, requiring strategic adjustments to improve efficiency and cost management.

CY4Gate SpA Business Overview & Revenue Model

Company Description

Cy4gate S.P.A. develops cyber electronic warfare and intelligence solutions for government and corporate organizations. The company offers QUIPO, is an advanced intelligence analytics platform to collect, analyze, and transform heterogeneous data flows into strategic intelligence outcome; Real Time Analytics, a cyber security monitoring and incident response solution for corporates and companies; and C4I solutions for decision making in a range of military and law enforcement scenarios, as well as operates CY4GATE Academy that provides recruiting, educational, and training programs to address needs in cyber intelligence, cyber security engineering, cybersecurity incident response and recovery, and cybersecurity assessment. It also designs and develops network intelligence products to support law enforcement agencies and security agencies; homeland security mobile assets; TACTICAL RTA to support the cyber team focusing on real-time threats; cyber electromagnetic attack systems and simulation models; DIGILAB to perform digital activities for platform and system analysis, vulnerability management, and attack pattern engineering; and solutions cyber and digital protection needs of VIPS'. In addition, the company develops HITS, a software platform designed to support the institutions involved in the health emergency; and IGEA solution, an integrated system capable of managing the flows of entry in companies and/or shopping centers. Cy4gate S.P.A. is based in Rome, Italy.

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 positive revenue growth and operational cash profitability. However, consistent net losses, negative EBIT margin, and increased leverage pose significant financial challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.66M	68.40M	68.14M	56.45M	16.56M	13.39M
Gross Profit	6.53M	47.28M	11.89M	14.97M	8.74M	8.31M
EBITDA	964.73K	11.87M	8.66M	12.32M	7.96M	6.91M
Net Income	-11.28M	-7.40M	-8.90M	2.47M	5.19M	5.28M
Balance Sheet
Total Assets	180.85M	190.57M	178.85M	172.25M	41.28M	32.78M
Cash, Cash Equivalents and Short-Term Investments	11.92M	15.34M	18.36M	21.05M	2.30M	9.98M
Total Debt	43.06M	42.76M	32.58M	18.63M	4.01M	1.47M
Total Liabilities	88.86M	88.28M	67.72M	49.71M	11.02M	6.75M
Stockholders Equity	90.00M	99.10M	108.55M	121.12M	30.25M	26.03M
Cash Flow
Free Cash Flow	11.34M	-3.95M	-1.59M	-9.30M	-7.54M	-5.99M
Operating Cash Flow	13.50M	11.78M	20.46M	1.35M	-497.92K	-841.02K
Investing Cash Flow	-12.76M	-21.59M	-26.07M	-84.52M	-7.94M	-5.15M
Financing Cash Flow	-12.31M	6.79M	3.29M	97.29M	758.21K	13.14M

CY4Gate SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CY4, the sentiment is Positive. The current price of 6.59 is above the 20-day moving average (MA) of 6.18, above the 50-day MA of 5.55, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 46.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CY4.

CY4Gate SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	―	€292.21M	15.50	―	2.78%	-24.28%	-57.55%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CY4	―	€152.04M	―	-7.05%	―	29.64%	62.10%

CY4Gate SpA Corporate Events

CY4Gate Secures €9.9 Million Contract for Decision Intelligence Solutions

CY4Gate SpA has secured a €9.9 million contract over 36 months with a foreign institutional client to provide Decision Intelligence solutions. This contract underscores the market’s confidence in CY4Gate’s expertise in managing big data and leveraging Artificial Intelligence, as the Decision Intelligence market grows in Italy and Europe, driven by the need for advanced tools to enhance operational efficiency and decision-making processes.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR6.30 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Denies Allegations of Misused EU Subsidies

CY4Gate S.p.A. has denied allegations from the newspaper ‘Domani’ and platform ‘Follow the Money’ regarding receiving EU subsidies for spyware development, clarifying that the €3.8 million received from the EU between 2020 and 2024 was solely for cyber security research and development. The company emphasizes its commitment to transparency with stakeholders, aiming to maintain its reputation in the cyber security industry.

The most recent analyst rating on (IT:CY4) stock is a Buy with a EUR6.30 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Reports Strong Financial Growth in H1 2025

The Board of Directors of CY4Gate has approved the consolidated financial report for the first half of 2025, showing significant growth in economic indicators. Revenues increased by 30% compared to the previous year, with a production value of €40.6 million and operating revenues of €39.5 million. The company confirmed its 2025 revenue guidance, expecting total revenues between €84 million and €87 million. The positive financial trajectory, driven by strong performance in forensic and decision intelligence segments, reflects the company’s solid strategies and its ability to meet market demands. The geopolitical situation further supports the company’s value proposition in cyber intelligence and security, with expectations of continued market growth.

The most recent analyst rating on (IT:CY4) stock is a Hold with a EUR5.00 price target. To see the full list of analyst forecasts on CY4Gate SpA stock, see the IT:CY4 Stock Forecast page.

CY4Gate Appoints New 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.