AIM:CSSG

Stock Analysis Report

Croma Security Solutions Group

Executive Summary

Croma Security Solutions Group PLC provides various security services in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has Croma Security Solutions Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.3%

CSSG

-2.2%

GB Electronic

0.2%

GB Market


1 Year Return

-6.8%

CSSG

9.4%

GB Electronic

1.7%

GB Market

Return vs Industry: CSSG underperformed the UK Electronic industry which returned 9.4% over the past year.

Return vs Market: CSSG underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

CSSGIndustryMarket
7 Day-4.3%-2.2%0.2%
30 Day2.9%-4.5%-1.7%
90 Day-9.2%-6.4%-3.1%
1 Year-5.2%-6.8%11.2%9.4%6.7%1.7%
3 Year212.5%201.7%49.2%42.5%17.7%3.1%
5 Year112.9%102.3%124.3%104.9%36.1%5.5%

Price Volatility Vs. Market

How volatile is Croma Security Solutions Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Croma Security Solutions Group undervalued compared to its fair value and its price relative to the market?

11.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSSG (£0.89) is trading above our estimate of fair value (£0.23)

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


Price To Earnings Ratio

PE vs Industry: CSSG is good value based on its PE Ratio (11.4x) compared to the Electronic industry average (20x).

PE vs Market: CSSG is good value based on its PE Ratio (11.4x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CSSG is good value based on its PB Ratio (1x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Croma Security Solutions Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSSG's forecast earnings growth (10% per year) is above the savings rate (1.2%).

Earnings vs Market: CSSG's earnings (10% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: CSSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if CSSG's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if CSSG's revenue 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 CSSG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Croma Security Solutions Group performed over the past 5 years?

44.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSSG's earnings have grown significantly by 44.1% per year over the past 5 years.

Accelerating Growth: CSSG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CSSG had negative earnings growth (-27.8%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: CSSG's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: CSSG's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: CSSG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Croma Security Solutions Group's financial position?


Financial Position Analysis

Short Term Liabilities: CSSG's short term assets (£8.7M) exceeds its short term liabilities (£5.2M)

Long Term Liabilities: CSSG's short term assets (8.7M) exceeds its long term liabilities (181.0K)


Debt to Equity History and Analysis

Debt Level: CSSG is debt free.

Reducing Debt: CSSG has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.

Debt Coverage: CSSG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CSSG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CSSG has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSSG's debt is not covered by short term assets (assets are -8717x debt).


Next Steps

Dividend

What is Croma Security Solutions Group's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSSG's dividend (2.25%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: CSSG's dividend (2.25%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), CSSG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Croma Security Solutions Group's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Roberto Fiorentino (55yo)

7.6yrs

Tenure

UK£299,000

Compensation

Mr. Roberto Michele Fiorentino has been the Group Chief Executive Officer at Croma Security Solutions Group Plc since March 27, 2012. Mr. Fiorentino serves as the Managing Director of CSS Total Security Lt ...


CEO Compensation Analysis

Compensation vs. Market: Roberto's total compensation ($USD387.28K) is about average for companies of similar size in the UK market ($USD318.91K).

Compensation vs Earnings: Roberto's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

7.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CSSG's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

54yo

Average Age

Experienced Board: CSSG's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • David Bretel

    Managing Director of Croma Defence Systems Limited

    • Tenure: 12.2yrs
    • Compensation: UK£93.77k
  • Sebastian Morley (50yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: UK£267.00k
  • Paul Williamson (49yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£245.00k
  • Roberto Fiorentino (55yo)

    Group CEO & Executive Director

    • Tenure: 7.6yrs
    • Compensation: UK£299.00k
  • Richard Juett (55yo)

    Finance Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£90.00k

Board Members

  • Nick Hewson (61yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£26.00k
  • Sebastian Morley (50yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: UK£267.00k
  • Paul Williamson (49yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£245.00k
  • Roberto Fiorentino (55yo)

    Group CEO & Executive Director

    • Tenure: 7.6yrs
    • Compensation: UK£299.00k
  • Charles McMicking (53yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: UK£25.00k
  • Richard Juett (55yo)

    Finance Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£90.00k

Company Information

Croma Security Solutions Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Croma Security Solutions Group PLC
  • Ticker: CSSG
  • Exchange: AIM
  • Founded: 1996
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£13.263m
  • Shares outstanding: 14.90m
  • Website: https://www.cssgplc.com

Number of Employees


Location

  • Croma Security Solutions Group PLC
  • Unit 7 & 8
  • Fulcrum 4
  • Whiteley
  • Hampshire
  • PO15 7FT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSSGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2000

Biography

Croma Security Solutions Group PLC provides various security services in the United Kingdom. The company operates through four segments: Croma Vigilant, Croma Security Systems, Croma Locksmiths, and Croma  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:39
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.