Latest news with #CelebrusTechnologies
Yahoo
a day ago
- Business
- Yahoo
Celebrus Technologies plc's (LON:CLBS) Stock Is Going Strong: Is the Market Following Fundamentals?
Celebrus Technologies' (LON:CLBS) stock is up by a considerable 22% over the past month. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on Celebrus Technologies' ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How To Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Celebrus Technologies is: 15% = UK£6.4m ÷ UK£43m (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.15 in profit. Check out our latest analysis for Celebrus Technologies Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. Celebrus Technologies' Earnings Growth And 15% ROE To begin with, Celebrus Technologies seems to have a respectable ROE. Yet, the fact that the company's ROE is lower than the industry average of 20% does temper our expectations. Celebrus Technologies was still able to see a decent net income growth of 13% over the past five years. We reckon that there could be other factors at play here. Such as - high earnings retention or an efficient management in place. However, not to forget, the company does have a decent ROE to begin with, just that it is lower than the industry average. So this also does lend some color to the fairly high earnings growth seen by the company. As a next step, we compared Celebrus Technologies' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 10.0%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for CLBS? You can find out in our latest intrinsic value infographic research report. Is Celebrus Technologies Making Efficient Use Of Its Profits? Celebrus Technologies has a three-year median payout ratio of 33%, which implies that it retains the remaining 67% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently. Moreover, Celebrus Technologies is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 35%. However, Celebrus Technologies' future ROE is expected to decline to 10% despite there being not much change anticipated in the company's payout ratio. Summary On the whole, we feel that Celebrus Technologies' performance has been quite good. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
14-06-2025
- Business
- Yahoo
This could be one of the cheapest UK stocks I've seen
In a market where technology stocks often command sky-high valuations, Celebrus Technologies (LSE:CLBS) appears to be a genuine anomaly. This AIM-listed software specialist is trading at a valuation that looks almost too cheap for me to ignore, even compared to UK stocks. Let's take a closer look at it. Celebrus currently trades at an enterprise value-to-EBITDA (EV-to-EBITDA) ratio of just over five times. This is a fraction of the broader sector average, which hovers around 14 times. And this is why I think it's one of the cheapest stocks I've seen. The combination of low price-to-earnings (8.6) and cash — as we discover later — makes it very attractive. For context, companies in the cybersecurity space also typically trade much higher, with CrowdStrike and Snowflake both with EV-to-EBITDA ratios around or above 100. Why's it so cheap? Part of the answer lies in recent trading updates. Celebrus warned that FY25 revenues are expected to dip to $38.6m from $40.9m in FY24, citing delays in customer decision-making amid global uncertainty. Yet, despite this revenue softness, adjusted pre-tax profits are set to rise thanks to higher-margin software sales and tight cost controls. This suggests the company is actively improving its earnings quality, not just chasing top-line growth. One upside to the forecast — if correct — is that delayed customer spending this year could turn into additional spending next year. We'll have to wait and see. What really sets Celebrus apart however, is its balance sheet. The company sits on a net cash pile of around $31m (about £24m), with no debt. To put this in perspective, the current market-cap is about £61.3m. That means cash accounts for roughly 40% of the company's entire valuation. This is an unusually high figure for a growth-focused tech stock. By 2027, net cash is projected to reach £41m, just £20m shy of the current market-cap. This cash buffer offers significant protection for shareholders and gives Celebrus the flexibility to invest in growth or weather any further macroeconomic turbulence. Most small-cap tech firms are forced to rely on debt to fund expansion. Celebrus' technology — which enables real-time, granular customer data capture and analysis — is protected by patents until 2034. The company's shifting from perpetual software licenses to a subscription-based model, which may temporarily slow revenue growth but should drive more predictable, recurring income over time. However, the broader market for customer data platforms is forecast to grow at nearly 28% annually until 2033, giving Celebrus a substantial runway for expansion. Despite Celebrus having a clear niche platform, competition's fierce. What's more, the company's exposed to customer spending cycles and as an AIM-listed stock, it may also be overlooked by many institutional investors, which can contribute to its persistent discount. At 8.6 times forward earnings, and with a debt-free, cash-rich balance sheet, Celebrus could be fundamentally mispriced in its sector. Of course, investors are going to want to see this revenue contract turnaround soon though. If it does, the stock could shoot higher. If it doesn't, the share price may languish where it is, at around 150p. I took a leap of faith and added this one to my portfolio recently. The post This could be one of the cheapest UK stocks I've seen appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Celebrus Technologies. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-03-2025
- Business
- Yahoo
As tariffs shake the stock market, here are 2 discounted shares to consider buying
The time to buy shares is when they trade at discount prices. And with US tariffs shaking stocks on both sides of the Atlantic, I think there are some nice-looking opportunities for investors at the moment. I've got an eye on two stocks in particular. The underlying businesses are very different but they have one important thing in common – the shares look like good value to me. I thought I'd missed my chance on WH Smith (LSE:SMWH). I was looking at the stock with interest at the start of the year, but the share price jumped 14% at the end of January. Since then though, the shares have fallen back and I've seized the opportunity to add the stock to my portfolio at what I think is a bargain price. The thing with WH Smith is it's actually two businesses – a high street division and a travel division. The first isn't particularly attractive, but the second is. WH Smith has announced plans to focus on its travel business. This is risky, as it's much more vulnerable to a recession weighing on discretionary spending – like holidays. But I think the decision is the right one. The travel ops generated £189m in profits last year and could alone be worth the current £1.4bn market cap. If I'm right, investors might well have a margin of safety built into the current share price. And anything the company can get for its high street stores is a nice bonus. Celebrus Technologies (LSE:CLBS) is much less of a household name. And it's a very different type of investment – this one is about consistent growth going forward. The stock is actually higher than it was at the start of February. But zoom out a bit and the share price is down 18% since the start of the year, so it's trading at a discount to that level. Celebrus is a software firm with a product that allows businesses to see what customers are doing on their website or app in real-time. And it has been growing very impressively. Source: Celebrus The company operates on a subscription model and since 2021, annualised recurring revenues have been increasing by at least 20% per year. I think that's impressive, but there are risks. Celebrus has some significant competition and it gives away a lot in terms of size against some of its rivals. That's something investors should keep in mind. I think, however, this is reflected in a price-to-sales (P/S) ratio of below 3. Compared to CoStar Group (11), Guidewire Software (16), or Tyler Technologies (13), the multiple is incredibly low. Both WH Smith and Celebrus shares trade at a price-to-earnings (P/E) ratio of 23. But that's where the similarities end, from my perspective. WH Smith is a well-known business, but I think there's more to the stock than meets the eye. And Celebrus doesn't get much attention, but I've been buying it for my portfolio. Noise from the US and its tariff threats have created uncertainty in the stock market. As a result, I think this is a great time to be looking for potential opportunities. The post As tariffs shake the stock market, here are 2 discounted shares to consider buying appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright positions in Celebrus Technologies and WH Smith. The Motley Fool UK has recommended CoStar Group, Tyler Technologies, and WH Smith. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
