Calnex Solutions

CLX.L

Communication Equipment · Technology

Price

58.00 GBp

-0.50 (-0.85%)

Market Cap

51.1M GBp

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 27, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Strong

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Mixed

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Winston Score History

The full picture

Calnex Solutions makes specialized test and measurement equipment used by telecom companies and network equipment makers. Its products help engineers check that timing and synchronization signals in communication networks are working correctly. The company is based in Linlithgow, Scotland, and is one of a small number of firms worldwide focused on this niche area of network testing.

Calnex earns revenue primarily by selling hardware instruments and related software licenses to customers across the globe, including major telecom operators and chip manufacturers. With a market cap around $100 million, it is a small company, but its deep expertise in packet network synchronization gives it a strong position in a specialized market. Growth depends on the continued rollout of 5G networks and the expansion of cloud infrastructure, though its small size and narrow product focus make it vulnerable to spending slowdowns among telecom customers.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+20.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

£0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

29.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

£9M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Calnex Solutions grew revenue 25% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.3% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 90.8M (2022) → 90.6M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

56.0%

Premium pricing power — 56.0% gross margin

Profit after running costs

Operating Margin

11.1%

Modest — 11.1% operating margin

Return on the money invested

ROCE

0.3%

Weak — 0.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+19.0%

Fast-growing sales (+19.0% YoY)

Profit growth

EPS YoY

+277.3%

Earnings growing fast (+277.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

799%

Turns 799% of profit into real cash

Spare cash per sale

FCF Margin

26.1%

Converts sales into free cash efficiently (26.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

1.24x

Dangerous — barely covers interest (1.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

69.9x

Expensive — P/E 69.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+23.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (69.9 → 46.5)

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Dividends

Dividend

Dividend Yield

1.70%

Small dividend — 1.70% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+3.2%

Dividend growing modestly (3.2% YoY)

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