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Market Cap

UK£182.2m

Last Updated

2021/05/08 19:14 UTC

Data Sources

Company Financials +

Executive Summary

Cerillion Plc provides software for billing, charging, and customer relationship management (CRM) to the telecommunications, finance, utilities, and transportation sectors in the United Kingdom and internationally. More Details

Rewards

Revenue is forecast to grow 9.77% per year

Earnings grew by 12.3% over the past year

Risk Analysis

CER passed our risk checks.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Cerillion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CER is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CER's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

CER

-2.6%

GB Software

2.1%

GB Market


1 Year Return

128.8%

CER

5.4%

GB Software

26.6%

GB Market

Return vs Industry: CER exceeded the UK Software industry which returned 8.3% over the past year.

Return vs Market: CER exceeded the UK Market which returned 26.4% over the past year.


Shareholder returns

CERIndustryMarket
7 Day-1.3%-2.6%2.1%
30 Day27.8%-4.2%3.6%
90 Day46.6%-0.4%9.6%
1 Year132.3%128.8%15.1%5.4%32.1%26.6%
3 Year366.2%333.6%18.3%4.3%12.8%-0.2%
5 Year470.2%400.0%32.0%7.7%51.8%23.0%

Long-Term Price Volatility Vs. Market

How volatile is Cerillion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cerillion undervalued compared to its fair value and its price relative to the market?

70.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CER (£6.2) is trading above our estimate of fair value (£2.61)

Significantly Below Fair Value: CER is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CER is poor value based on its PE Ratio (70.1x) compared to the GB Software industry average (53.5x).

PE vs Market: CER is poor value based on its PE Ratio (70.1x) compared to the UK market (25.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CER's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CER is overvalued based on its PB Ratio (11.4x) compared to the GB Software industry average (4.2x).


Future Growth

How is Cerillion forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CER's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if CER's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CER's revenue (9.8% per year) is forecast to grow faster than the UK market (5.4% per year).

High Growth Revenue: CER's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CER's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Cerillion performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CER has high quality earnings.

Growing Profit Margin: CER's current net profit margins (12.5%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: CER's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: CER's earnings growth over the past year (12.3%) is below its 5-year average (19.3% per year).

Earnings vs Industry: CER earnings growth over the past year (12.3%) exceeded the Software industry 4.4%.


Return on Equity

High ROE: CER's Return on Equity (16.3%) is considered low.


Financial Health

How is Cerillion's financial position?


Financial Position Analysis

Short Term Liabilities: CER's short term assets (£17.8M) exceed its short term liabilities (£10.6M).

Long Term Liabilities: CER's short term assets (£17.8M) exceed its long term liabilities (£5.5M).


Debt to Equity History and Analysis

Debt Level: CER's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: CER's debt to equity ratio has increased from 0.2% to 3.8% over the past 5 years.

Debt Coverage: CER's debt is well covered by operating cash flow (1084.2%).

Interest Coverage: CER's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Dividend

What is Cerillion current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CER's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: CER's dividend (0.89%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CER has been paying a dividend for less than 10 years.

Growing Dividend: CER's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.2%), CER's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CER's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average board tenure


CEO

Louis Hall (55 yo)

no data

Tenure

UK£588,379

Compensation

Mr. Louis Tancred Hall is the Founder at Cerillion PLC and serves as its Chief Executive Officer and has been its Executive Director since March 05, 2015. He led the management buyout of the original busin...


CEO Compensation Analysis

Compensation vs Market: Louis's total compensation ($USD818.43K) is above average for companies of similar size in the UK market ($USD567.08K).

Compensation vs Earnings: Louis's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: CER's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CER insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cerillion Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cerillion Plc
  • Ticker: CER
  • Exchange: AIM
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£182.209m
  • Shares outstanding: 29.39m
  • Website: https://www.cerillion.com

Number of Employees


Location

  • Cerillion Plc
  • 25 Bedford Street
  • London
  • Greater London
  • WC2E 9ES
  • United Kingdom

Listings


Biography

Cerillion Plc provides software for billing, charging, and customer relationship management (CRM) to the telecommunications, finance, utilities, and transportation sectors in the United Kingdom and interna...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 19:14
End of Day Share Price2021/05/07 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.