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Corero Network Security

CNS.L
33
Software - Infrastructure · Technology
Price
7.25 GBp
+0.00 (+0.00%)
Market Cap
£37.1M
Exchange
London Stock Exchange
Winston Score
33
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Winston Score History

The full picture

Corero Network Security is a cybersecurity company that protects internet service providers and data centers from a type of cyberattack called a DDoS attack. A DDoS attack floods a network with fake traffic to knock it offline. Corero builds hardware and software that detects and blocks these attacks automatically, in real time, before they cause damage.

The company earns money through a mix of product sales and recurring subscription or maintenance contracts, which helps explain its high gross margins. Corero is headquartered in the UK and operates mainly in North America and Europe, serving a relatively small but specialized customer base. Its focus on a narrow problem — automated DDoS defense at the network edge — gives it technical depth, but its small size means it competes against much larger cybersecurity vendors with bigger sales teams and broader product portfolios, which remains a key risk to growth.

Growth Profile

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

Revenue Growth

+18.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+126.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2M/ year

Rising (+41% vs prior year)

8.0% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

93.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$4M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

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

Growth + cash flow

Corero Network Security is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

0.6% over 4y

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

Diluted shares outstanding: 513.8M (2021) → 510.4M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
80.1%
Premium pricing power — 80.1% gross margin
Profit after running costs
Operating Margin
11.8%
Modest — 11.8% operating margin
Return on the money invested
ROCE
-3.5%
Weak — -3.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+4.1%
Slow sales growth (+4.1% YoY)
Profit growth
EPS YoY
-230.0%
Earnings shrinking (-230.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
8.5%
Modest free cash flow (8.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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