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CSFS

Cornerstone FS AIM:CSFS Stock Report

Last Price

UK£0.20

Market Cap

UK£4.6m

7D

5.4%

1Y

-54.1%

Updated

27 Jun, 2022

Data

Company Financials +
CSFS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health1/6
Dividends0/6

CSFS Stock Overview

Cornerstone FS plc provides cloud based international payment, currency risk management, and electronic account services with focus on removing the complexity of international payments for its customers.

Cornerstone FS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cornerstone FS
Historical stock prices
Current Share PriceUK£0.20
52 Week HighUK£0.44
52 Week LowUK£0.16
Beta0
1 Month Change-4.88%
3 Month Change-2.50%
1 Year Change-54.12%
3 Year Changen/a
5 Year Changen/a
Change since IPO-68.29%

Recent News & Updates

Shareholder Returns

CSFSGB ITGB Market
7D5.4%4.1%1.8%
1Y-54.1%-18.9%-7.3%

Return vs Industry: CSFS underperformed the UK IT industry which returned -19.1% over the past year.

Return vs Market: CSFS underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is CSFS's price volatile compared to industry and market?
CSFS volatility
CSFS Average Weekly Movement12.3%
IT Industry Average Movement5.9%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: CSFS is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: CSFS's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
20109Julian Wheatlandhttps://www.cornerstonefs.com

Cornerstone FS plc provides cloud based international payment, currency risk management, and electronic account services with focus on removing the complexity of international payments for its customers. The company was founded in 2010 and is headquartered in London, the United Kingdom.

Cornerstone FS Fundamentals Summary

How do Cornerstone FS's earnings and revenue compare to its market cap?
CSFS fundamental statistics
Market CapUK£4.62m
Earnings (TTM)-UK£2.15m
Revenue (TTM)UK£1.66m

2.8x

P/S Ratio

-2.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSFS income statement (TTM)
RevenueUK£1.66m
Cost of RevenueUK£1.17m
Gross ProfitUK£496.31k
Other ExpensesUK£2.65m
Earnings-UK£2.15m

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)-0.091
Gross Margin29.82%
Net Profit Margin-129.47%
Debt/Equity Ratio0.0%

How did CSFS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CSFS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSFS?

Other financial metrics that can be useful for relative valuation.

CSFS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA-3.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CSFS's PS Ratio compare to its peers?

CSFS PS Ratio vs Peers
The above table shows the PS ratio for CSFS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average7.1x
SCGL Sealand Capital Galaxy
6.7xn/aUK£3.0m
TNT Tintra
12.3xn/aUK£14.1m
PCIP PCI-PAL
4.1x29.1%UK£39.9m
EYE Eagle Eye Solutions Group
5.2x15.0%UK£142.0m
CSFS Cornerstone FS
2.8x30.8%UK£4.6m

Price-To-Sales vs Peers: CSFS is good value based on its Price-To-Sales Ratio (2.8x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

How does CSFS's PE Ratio compare vs other companies in the GB IT Industry?

Price-To-Sales vs Industry: CSFS is expensive based on its Price-To-Sales Ratio (2.8x) compared to the UK IT industry average (2.5x)


Price to Sales Ratio vs Fair Ratio

What is CSFS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSFS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.8x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: CSFS is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).


Share Price vs Fair Value

What is the Fair Price of CSFS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSFS (£0.2) is trading below our estimate of fair value (£5.37)

Significantly Below Fair Value: CSFS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

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


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Future Growth

How is Cornerstone FS forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CSFS's revenue (30.8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: CSFS's revenue (30.8% 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 CSFS's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Cornerstone FS performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2,766.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: CSFS is currently unprofitable.

Growing Profit Margin: CSFS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CSFS's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: CSFS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (28.5%).


Return on Equity

High ROE: CSFS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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Financial Health

How is Cornerstone FS's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CSFS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CSFS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CSFS is debt free.

Reducing Debt: CSFS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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: Insufficient data to determine if CSFS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CSFS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Cornerstone FS current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CSFS'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 CSFS's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CSFS has not reported any payouts.


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Management

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

1.4yrs

Average board tenure


CEO

Julian Wheatland (60 yo)

1.75yrs

Tenure

Mr. Julian David Wheatland, CEng has been Chief Executive Officer of Cornerstone FS Plc since September 2020 and serves as its Director since July 22, 2020. He serves as Director of Corporate Development o...


Board Members

Experienced Board: CSFS's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.8%.


Top Shareholders

Company Information

Cornerstone FS plc's employee growth, exchange listings and data sources


Key Information

  • Name: Cornerstone FS plc
  • Ticker: CSFS
  • Exchange: AIM
  • Founded: 2010
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: UK£4.618m
  • Shares outstanding: 23.68m
  • Website: https://www.cornerstonefs.com

Number of Employees


Location

  • Cornerstone FS plc
  • 1 Poultry
  • London
  • Greater London
  • EC2M 8EJ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2020/12/31
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.