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CNS

Corero Network SecurityAIM:CNS Stock Report

Market Cap

UK£45.8m

7D

-0.5%

1Y

12.1%

Updated

01 Dec, 2021

Data

Company Financials +
CNS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

CNS Stock Overview

Corero Network Security plc provides distributed denial of service (DDoS) protection solutions worldwide.

Corero Network Security Competitors

Cloudflare

NYSE:NET

US$60.6b

Fortinet

NasdaqGS:FTNT

US$54.3b

Akamai Technologies

NasdaqGS:AKAM

US$18.3b

F5

NasdaqGS:FFIV

US$13.9b

Price History & Performance

Summary of all time highs, changes and price drops for Corero Network Security
Historical stock prices
Current Share PriceUK£0.092
52 Week HighUK£0.17
52 Week LowUK£0.073
Beta0.86
1 Month Change0%
3 Month Change-10.63%
1 Year Change12.12%
3 Year Change-23.55%
5 Year Change2.78%
Change since IPO-99.66%

Recent News & Updates

Nov 02
Is Corero Network Security (LON:CNS) Using Debt In A Risky Way?

Is Corero Network Security (LON:CNS) Using Debt In A Risky Way?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Apr 19
Is Corero Network Security (LON:CNS) Using Debt Sensibly?

Is Corero Network Security (LON:CNS) Using Debt Sensibly?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Feb 03
The Corero Network Security (LON:CNS) Share Price Has Gained 178%, So Why Not Pay It Some Attention?

The Corero Network Security (LON:CNS) Share Price Has Gained 178%, So Why Not Pay It Some Attention?

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes...

Shareholder Returns

CNSGB SoftwareGB Market
7D-0.5%-2.1%-2.6%
1Y12.1%16.5%10.9%

Return vs Industry: CNS underperformed the UK Software industry which returned 14% over the past year.

Return vs Market: CNS underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is CNS's price volatile compared to industry and market?
CNS volatility
CNS Average Weekly Movement4.6%
Software Industry Average Movement4.7%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: CNS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CNS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199159Lionel Chmilewskyhttps://www.corero.com

Corero Network Security plc provides distributed denial of service (DDoS) protection solutions worldwide. It offers Corero SmartWall family of products to remove DDoS attack traffic. The company also provides SmartWall Threat Defense System appliances for DDoS protection; SmartWall Threat Defense Director (TDD); SmartWall Central Management Server that offers various options for managing, configuring, and monitoring TDD detection appliances; SmartWall Service Portal that enables real-time DDoS mitigation to be delivered as-a-service; and SecureWatch Analytics, a web-based security analytics portal that delivers security dashboards.

Corero Network Security Fundamentals Summary

How do Corero Network Security's earnings and revenue compare to its market cap?
CNS fundamental statistics
Market CapUS$60.96m
Earnings (TTM)-US$2.43m
Revenue (TTM)US$18.94m

3.2x

P/S Ratio

-25.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNS income statement (TTM)
RevenueUS$18.94m
Cost of RevenueUS$3.64m
Gross ProfitUS$15.30m
ExpensesUS$17.73m
Earnings-US$2.43m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0049
Gross Margin80.79%
Net Profit Margin-12.84%
Debt/Equity Ratio29.0%

How did CNS perform over the long term?

See historical performance and comparison

Valuation

Is Corero Network Security undervalued compared to its fair value and its price relative to the market?

4.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CNS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CNS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CNS is unprofitable, so we can't compare its PE Ratio to the UK Software industry average.

PE vs Market: CNS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CNS is overvalued based on its PB Ratio (4.7x) compared to the GB Software industry average (4x).


Future Growth

How is Corero Network Security forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CNS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CNS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CNS's revenue (26.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: CNS's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Corero Network Security performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNS is currently unprofitable.

Growing Profit Margin: CNS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CNS is unprofitable, but has reduced losses over the past 5 years at a rate of 30.9% per year.

Accelerating Growth: Unable to compare CNS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.1%).


Return on Equity

High ROE: CNS has a negative Return on Equity (-18.76%), as it is currently unprofitable.


Financial Health

How is Corero Network Security's financial position?


Financial Position Analysis

Short Term Liabilities: CNS's short term assets ($12.1M) exceed its short term liabilities ($9.5M).

Long Term Liabilities: CNS's short term assets ($12.1M) exceed its long term liabilities ($5.3M).


Debt to Equity History and Analysis

Debt Level: CNS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if CNS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CNS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CNS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 38.7% per year.


Dividend

What is Corero Network Security current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CNS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Lionel Chmilewsky (59 yo)

1.33yrs

Tenure

US$846,500

Compensation

Mr. Lionel Chmilewsky serves as Chief Executive Officer at Corero Network Security, Inc. since July 1, 2020 and also its Executive Director since May 01, 2020. Mr. Chmilewsky has been Chief Executive Offic...


CEO Compensation Analysis

Compensation vs Market: Lionel's total compensation ($USD846.50K) is above average for companies of similar size in the UK market ($USD324.53K).

Compensation vs Earnings: Insufficient data to compare Lionel's compensation with company performance.


Leadership Team

Experienced Management: CNS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNS's board of directors are considered experienced (8.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Corero Network Security plc's employee growth, exchange listings and data sources


Key Information

  • Name: Corero Network Security plc
  • Ticker: CNS
  • Exchange: AIM
  • Founded: 1991
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£45.774m
  • Shares outstanding: 494.85m
  • Website: https://www.corero.com

Number of Employees


Location

  • Corero Network Security plc
  • St Mary’s Court
  • The Broadway
  • Amersham
  • Buckinghamshire
  • HP7 0UT
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 18:51
End of Day Share Price2021/12/01 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.