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Sovereign Cloud Holdings Ltd.
(Sydney:CYB)
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Rating:41Neutral
Price Target:
AU$0.04
▼(-51.25% Downside)
Action:Reiterated
Date:09/06/26
The score is primarily held down by weak financial performance—declining 2026 revenue, structurally negative profitability (including negative gross profit), and persistent negative free cash flow. Technicals are also soft with negative MACD and price below longer-term moving averages. Valuation provides limited offset because losses make the negative P/E less informative and there is no dividend yield support.
Positive Factors
Moderate Leverage
Debt-to-equity below 1.0 in 2026, together with improvement versus prior years, indicates leverage is not currently the primary balance-sheet constraint. This provides some flexibility to manage operating pressure, although it does not offset losses and asset contraction.
Negative Factors
Revenue Contraction
An approximately 18% revenue decline in the latest annual report interrupts the prior growth trajectory and raises questions about demand stability. Sustained contraction would reduce operating leverage, limit reinvestment capacity, and make future profitability harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate Leverage
Debt-to-equity below 1.0 in 2026, together with improvement versus prior years, indicates leverage is not currently the primary balance-sheet constraint. This provides some flexibility to manage operating pressure, although it does not offset losses and asset contraction.
Read all positive factors
Sovereign Cloud Holdings Ltd. (CYB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$8.56M
Dividend YieldN/A
Average Volume (3M)19.65K
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth-11.66%
EPS Growth89.02%
CountryAU
Employees64
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.12
Shares Outstanding208,747,620
10 Day Avg. Volume14,552
30 Day Avg. Volume19,647
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.47
Price to Sales (P/S)0.42
P/FCF Ratio-10.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sovereign Cloud Holdings Ltd. Business Overview & Revenue Model
Company Description
AUCyber Limited delivers a range of cloud computing and cybersecurity offerings to both private organizations and government bodies across Australia. Its operations are structured into Australian Cloud Services, Australian Cyber Security Services,...
Sovereign Cloud Holdings Ltd. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
21
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.19M | 19.85M | 22.47M | 10.23M | 6.48M |
| Gross Profit | -3.75M | -3.13M | 22.47M | 10.23M | 6.48M |
| EBITDA | -15.29M | -757.24K | -31.11M | -13.31M | -15.90M |
| Net Income | -21.72M | -4.78M | -37.56M | -19.72M | -21.28M |
Balance Sheet | |||||
| Total Assets | 12.08M | 9.98M | 16.79M | 55.80M | 33.94M |
| Cash, Cash Equivalents and Short-Term Investments | 1.97M | 1.18M | 3.94M | 8.39M | 11.64M |
| Total Debt | 3.69M | 2.86M | 4.72M | 5.09M | 5.25M |
| Total Liabilities | 6.62M | 6.60M | 8.91M | 13.06M | 9.04M |
| Stockholders Equity | 5.46M | 3.38M | 7.87M | 42.74M | 24.90M |
Cash Flow | |||||
| Free Cash Flow | -3.78M | -795.38K | -5.97M | -11.63M | -22.51M |
| Operating Cash Flow | -3.72M | -795.38K | 0.00 | 0.00 | 0.00 |
| Investing Cash Flow | -154.78K | -100.00K | 393.87K | -18.87M | -4.75M |
| Financing Cash Flow | 818.45K | -1.87M | 710.45K | 27.14M | 5.44M |
Sovereign Cloud Holdings Ltd. Technical Analysis
Negative
0.08
Price Trends
0.04
Negative
0.05
Negative
0.06
Negative
Market Momentum
>-0.01
Negative
41.95
Neutral
-5.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CYB, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of -5.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CYB.
Sovereign Cloud Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | AU$30.41M | -31.59 | -6.86% | ― | 33.71% | -277.88% | |
57 Neutral | AU$39.79M | 92.66 | 1.06% | 13.83% | 4.73% | ― | |
49 Neutral | AU$17.02M | -3.64 | -21.70% | ― | -3.00% | 74.39% | |
42 Neutral | AU$13.40M | -5.91 | 134.85% | ― | 23.92% | 79.84% | |
41 Neutral | AU$8.56M | -0.32 | -434.09% | ― | -11.66% | 89.02% | |
38 Underperform | AU$16.21M | -2.31 | 227.07% | ― | 74.49% | -5.00% |
* Technology Sector Average
AU:CYB
Sovereign Cloud Holdings Ltd.
0.04
-0.04
-47.44%
AU:FCT
FirstWave Cloud Technology
0.01
-0.01
-50.00%
AU:SEN
Senetas Corporation Limited
2.40
0.34
16.39%
AU:DWG
IXUP Ltd.
0.13
0.07
100.00%
AU:EXT
Excite Technology Services
0.01
0.00
0.00%
AU:RTH
RAS Technology Holdings Limited
0.64
-0.32
-33.85%
Sovereign Cloud Holdings Ltd. Corporate Events
AUCyber Files Updated ASX Governance Statement for FY2026
Aug 30, 2026
AUCyber Limited has lodged its updated corporate governance statement for the year ended 30 June 2026, confirming it follows the ASX Corporate Governance Council’s key principles and recommendations. The statement, current as of 28 August 20...
AUCyber Narrows Losses as Revenue Falls and Asset Backing Weakens
Aug 30, 2026
AUCyber Limited, part of Sovereign Cloud Holdings, operates in the cybersecurity and sovereign cloud services market, delivering secure cloud infrastructure and related security solutions tailored to Australian regulatory and data residency requir...
AUCyber boosts margins and customer receipts as it pivots to higher-value cybersecurity services
Jul 31, 2026
AUCyber reported Q4 FY26 customer receipts of $5.10 million, up from $4.79 million in the prior quarter, driven by wins in its GRC product suite and security operations contracts with government and large enterprise clients. The company has been s...
AUCYBER Plans Share Placement to Boost Capital for Cybersecurity Growth
Jul 31, 2026
AUCYBER LIMITED has notified the ASX of a proposed placement of up to 1,621,973 fully paid ordinary shares under its CYB ticker. The new securities are scheduled for issue on 31 August 2026, signalling a capital-raising move that may strengthen th...
AUCyber Moves to Finalise Outstanding Share Placement Payment
Jul 31, 2026
AUCyber Limited has reported progress on an outstanding share placement subscription linked to a 2024 agreement with Peerless Investments, a fund associated with former managing director and CEO Peter Maloney. Maloney has confirmed his intention t...
AUCYBER Issues New Executive Options Under Incentive Scheme
Jul 14, 2026
AUCYBER Limited has notified the market of the issuance of new unquoted executive options under its employee incentive scheme, which are not intended to be quoted on the ASX. The company is granting 1,050,000 options exercisable at $0.08 expiring ...
AUCyber Adopts New Share Trading Policy to Bolster Governance
Jun 26, 2026
AUCyber Limited, an ASX-listed cybersecurity firm, has updated its governance framework by adopting a new Share Trading Policy that applies immediately. The revised policy has been lodged with the ASX in line with listing requirements and is also ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.