NasdaqCM:CYRN

Stock Analysis Report

Executive Summary

CYREN Ltd., together with its subsidiaries, provides information security solutions for protecting Web, email, and mobile transactions in the United States, Europe, the Asia Pacific, Israel, and internationally.


Snowflake Analysis

Overvalued with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CYRN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

CYRN

-9.9%

US Software

-10.6%

US Market


1 Year Return

-55.1%

CYRN

20.4%

US Software

5.2%

US Market

Return vs Industry: CYRN underperformed the US Software industry which returned 20.4% over the past year.

Return vs Market: CYRN underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

CYRNIndustryMarket
7 Day-7.8%-9.9%-10.6%
30 Day-13.8%-5.5%-8.5%
90 Day-25.0%1.9%-4.6%
1 Year-55.1%-55.1%21.7%20.4%7.4%5.2%
3 Year-49.5%-49.5%122.5%112.9%31.7%23.2%
5 Year-58.3%-58.3%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CYRN is good value based on its PB Ratio (2.9x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is CYREN forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CYRN's revenue (8.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CYRN's revenue (8.7% 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 CYRN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CYREN performed over the past 5 years?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CYRN is currently unprofitable.

Growing Profit Margin: CYRN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CYRN is unprofitable, and losses have increased over the past 5 years at a rate of -29.2% per year.

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

Earnings vs Industry: CYRN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: CYRN has a negative Return on Equity (-90%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CYREN's financial position?


Financial Position Analysis

Short Term Liabilities: CYRN's short term assets ($15.3M) do not cover its short term liabilities ($17.1M).

Long Term Liabilities: CYRN's short term assets ($15.3M) do not cover its long term liabilities ($23.0M).


Debt to Equity History and Analysis

Debt Level: CYRN's debt to equity ratio (49.3%) is considered high.

Reducing Debt: CYRN's debt to equity ratio has increased from 16% to 49.3% over the past 5 years.


Balance Sheet

Inventory Level: CYRN has a high level of physical assets or inventory.

Debt Coverage by Assets: CYRN's debt is covered by short term assets (assets are 1.5x debt).


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: CYRN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CYRN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -31.4% each year


Next Steps

Dividend

What is CYREN's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CYRN'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 CYRN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Brett Jackson (58yo)

0.8yrs

Tenure

0

Mr. Brett M. Jackson has been Chief Executive Officer of CYREN Ltd. since May 6, 2019. Mr. Jackson serves on the board of the Shenandoah National Park Trust. He had been the Chief Executive Officer at Digi ...


Leadership Team

NamePositionTenureCompensationOwnership
J. Myshrall
Chief Financial Officer5.9yrsUS$474.60k0.042% $28.2k
Lior Kohavi
Chief Strategy Officer & Executive VP of Advanced Solutions0.8yrsUS$965.92k0.31% $208.1k
Dominick DiPietro
Vice President of Sales - North America1.6yrsUS$419.72k0.031% $20.7k
Brett Jackson
Chief Executive Officer0.8yrsno datano data
Richard Ford
Chief Technology Officer0.8yrsno datano data
Eric Spindel
VP, General Counsel & Corporate Secretary3.8yrsUS$353.00k0.015% $10.2k
Daniel Maier
Vice President of Marketing4.1yrsUS$287.00k0.023% $15.6k
Eva Markowitz
Vice President of Human Resources6.3yrsno data0.011% $7.1k

2.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CYRN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cary Davis
Director2.3yrsUS$73.14kno data
John Becker
External Director2.8yrsUS$55.00k0.0084% $5.7k
Todd Thomson
Lead Director4.2yrsUS$110.00k0.067% $45.2k
James Hamilton
Independent Director8yrsUS$55.00k0.042% $28.2k
Rajveer Kushwaha
Director1.5yrsUS$75.25kno data
Lior Samuelson
Chairman9.2yrsUS$864.11k0.27% $181.7k
David Earhart
External Director6.6yrsUS$55.00k0.042% $28.2k
Brian Chang
Director2.3yrsUS$73.14kno data
Hila Karah
Independent Director11.9yrsUS$55.00k0.12% $83.5k
Lauren Zletz
Director1.8yrsUS$80.25kno data

3.5yrs

Average Tenure

55yo

Average Age

Experienced Board: CYRN's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CYRN insiders have only sold shares 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 5.1%.


Top Shareholders

Company Information

CYREN Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CYREN Ltd.
  • Ticker: CYRN
  • Exchange: NasdaqCM
  • Founded: 1991
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$67.031m
  • Shares outstanding: 59.32m
  • Website: https://www.cyren.com

Number of Employees


Location

  • CYREN Ltd.
  • 1430 Spring Hill Road
  • Suite 330
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CYRNNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDJul 1999
TOUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999

Biography

CYREN Ltd., together with its subsidiaries, provides information security solutions for protecting Web, email, and mobile transactions in the United States, Europe, the Asia Pacific, Israel, and internationally. The company operates Cyren Cloud Security, a SaaS security platform, which provides Internet security services, including Web Security that provides the enforcement of Web policy and state-of-the-art threat protection for business users; DNS Security, which allows businesses to protect employees at headquarters, visitors in remote offices, customers at retail stores, or students on a campus; Email Security, a cloud-based secure email gateway; and Cloud Sandboxing that protects businesses against breaches and data loss from threats. It also operates Cyren Threat Intelligence Services, a platform that offers cloud-based cyber threat detection APIs and SDKs to technology and security vendors. The company’s threat intelligence services comprise embedded email and Web security services; Endpoint Security, which detects malware on various endpoints, including mobile devices and embedded operating system devices; and advanced threat protection services, such as tools for combating mobile malware, ransomware, and other Web-borne threats. CYREN Ltd. sells its products through direct and indirect channels, including value added resellers and managed service providers to enterprise customers and original equipment manufacturers. The company was formerly known as Commtouch Software Ltd. and changed its name to CYREN Ltd. in January 2014. CYREN Ltd. was founded in 1991 and is headquartered in McLean, Virginia. CYREN Ltd. is a subsidiary of WP XII Investments B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:28
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.