Cerillion (CER) AI Stock Analysis

• Market Cap: £454.24M
• Dividend Yield: 0.86%
• Average Volume (3M): 68.43K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.51
• Revenue Growth: 11.70%
• EPS Growth: 17.85%
• Country: UK
• Employees: 351
• Sector: Technology
• Sector Strength: 43
• Industry: Software - Application
• EPS (TTM): 0.52
• Shares Outstanding: 29,495,974
• 10 Day Avg. Volume: 69,225
• 30 Day Avg. Volume: 68,432
• PEG Ratio: 1.67
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.05
• Price to Cash Flow (P/CF): 42.90
• P/FCF Ratio: 42.80
• 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: 2,350.00p
• Price Target Upside: 52.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Cerillion's stock score reflects strong financial performance and positive corporate events, such as a significant telecom contract and successful AGM resolutions. However, technical indicators show downward momentum, and the valuation remains relatively high, suggesting some caution is warranted despite the company's growth potential.

Cerillion Business Overview & Revenue Model

Company Description

Cerillion (CER) is a leading provider of billing, charging, and customer management systems primarily for the telecommunications industry. The company offers a comprehensive suite of solutions designed to support the end-to-end customer lifecycle, from initial order and subscription management to billing, invoicing, and real-time charging. Cerillion's core products are built to enhance operational efficiency and customer experience, enabling service providers to deliver innovative offerings and quickly adapt to market changes.

How the Company Makes Money

Cerillion makes money through the licensing and implementation of its software solutions, primarily targeting telecommunications service providers. The company's revenue model includes one-time licensing fees for its software products, as well as ongoing maintenance and support contracts. Additionally, Cerillion generates income from professional services, such as system integration, custom development, and consulting. Key revenue streams also include subscription-based models for its cloud-based offerings, allowing clients to pay for services on a recurring basis. Strategic partnerships with technology providers and system integrators further contribute to Cerillion's earnings by expanding its market reach and enhancing its service offerings.

Cerillion Financial Statement Overview

Summary

Cerillion demonstrates strong financial health with impressive revenue and profit growth, high profitability margins, low financial leverage, and strong cash generation capabilities. These factors indicate robust financial stability and growth potential in the software industry.

Income Statement

Cerillion's income statement shows strong performance with significant revenue growth year-over-year, with a 11.68% increase from 2023 to 2024. Gross Profit Margin and Net Profit Margin are robust at 80.47% and 34.88% respectively, indicating high profitability. Both EBIT and EBITDA margins are also strong, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet is healthy, with a low Debt-to-Equity Ratio of 0.06, indicating minimal leverage and financial risk. The Return on Equity is an impressive 31.47%, reflecting effective utilization of shareholders' equity to generate profits. The Equity Ratio is 76.88%, suggesting a strong equity base relative to total assets.

Cash Flow

Cerillion's cash flow statement demonstrates solid cash generation. The Free Cash Flow Growth Rate is 16.48%, showcasing strong growth in cash generation. The Operating Cash Flow to Net Income Ratio is 0.73, indicating efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio of 0.64 reflects substantial free cash flow generation relative to net income.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
41.19M	43.75M	39.17M	32.73M	26.07M	20.81M
	Gross Profit
30.13M	35.20M	30.81M	25.50M	20.41M	15.35M
	EBIT
17.11M	18.41M	15.28M	10.70M	7.52M	2.80M
	EBITDA
20.13M	21.99M	18.83M	14.03M	10.47M	5.79M
	Net Income Common Stockholders
14.07M	15.26M	12.93M	9.34M	6.43M	2.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.00M	29.85M	24.74M	20.25M	13.17M	8.31M
	Total Assets
31.82M	63.10M	52.78M	42.63M	35.67M	32.12M
	Total Debt
6.98M	2.80M	3.16M	4.03M	4.81M	6.19M
	Net Debt
979.53K	-27.05M	-21.58M	-16.22M	-8.36M	-2.12M
	Total Liabilities
16.39M	14.59M	15.90M	15.90M	15.46M	16.09M
	Stockholders Equity
15.43M	48.51M	36.88M	26.73M	20.21M	16.03M
Cash Flow		Free Cash Flow
7.21M	9.70M	8.32M	10.73M	8.53M	5.17M
	Operating Cash Flow
8.45M	11.21M	9.75M	12.34M	9.80M	6.61M
	Investing Cash Flow
-1.25M	-1.51M	-1.43M	-1.61M	-1.27M	-1.44M
	Financing Cash Flow
-4.23M	-4.54M	-3.76M	-3.76M	-3.61M	-3.61M

Cerillion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1540.00
• 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:CER, the sentiment is Neutral. The current price of 1540 is above the 20-day moving average (MA) of 1470.75, below the 50-day MA of 1570.65, and below the 200-day MA of 1713.11, indicating a neutral trend. The MACD of -7.37 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CER.

Cerillion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CER	73 Outperform	£454.24M	29.79	35.74%	0.86%	11.70%	17.85%
IDOX	69 Neutral	£264.47M	50.00	6.94%	1.03%	19.55%	-6.45%
TRCS	63 Neutral	£112.16M	227.78	0.72%	0.65%	-1.22%	-92.99%
Sector *	57 Neutral	$20.89B	10.40	-13.99%	2.52%	4.47%	-23.34%
RDT	41 Neutral	£2.37M	―	-117.29%	―	-3.60%	-729.74%

Cerillion Corporate Events

Cerillion plc Acquires Shares for Treasury to Support Incentive Plans

Cerillion plc has announced the purchase of 17,500 of its own shares to be held in treasury for future use in its Long Term Incentive Plan and Save As You Earn scheme. This move affects the total voting rights, now standing at 29,495,974, which shareholders can use to determine their interest in the company’s share capital.

Cerillion PLC Announces Successful AGM Resolutions

Cerillion plc announced the successful passing of all resolutions at its Annual General Meeting, with a high percentage of shareholder approval. This outcome reflects strong shareholder confidence and supports the company’s strategic direction, potentially enhancing its market position in the software solutions industry.

Cerillion Announces Internal Share Sale by Director

Cerillion plc has announced the sale of 1,832 ordinary shares by Amit McCann, the Account Development Director, and his associate Jenny McCann, at an average price of £15.81 per share. This transaction, conducted under the requirements of the EU Market Abuse Regulation, reflects internal shareholding changes but does not imply strategic shifts for the company.

Cerillion Announces Shareholding Transaction by Account Development Director

Cerillion plc has announced a shareholding transaction involving Amit McCann, the Account Development Director, who transferred 1,875 shares to his spouse at a price of £15.85 each. This transaction is in compliance with the Market Abuse Regulation and reflects internal strategic movements within the company’s shareholding structure, potentially impacting stakeholders’ perceptions of the company’s governance and operational strategies.

Cerillion Wins $11.4M Telecom Software Contract in Caucasus

Cerillion has secured a significant $11.4 million contract with a national telecom operator in the Caucasus region for its billing and CRM software solutions, which are set to support over one million customers across various services. This contract emphasizes Cerillion’s competitive advantage with its SaaS-based, configurable platform, offering a cost-effective and updated solution compared to traditional bespoke systems, which are often costly and time-consuming.

Cerillion Acquires Treasury Shares to Support Long Term Incentive Plan

Cerillion plc has announced the purchase of 33,084 of its own ordinary shares, which will be held in treasury to fulfill future options under the company’s Long Term Incentive Plan for senior managers. This move represents 0.1% of the voting rights of the total ordinary shares in issue before the purchase, and it affects how shareholders calculate their interest in the company under the Financial Conduct Authority’s rules.