Croma Security Solutions (CSSG) AI Stock Analysis

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Croma Security Solutions

(LSE:CSSG)

Select Model

Rating:62Neutral

Price Target:GBX 89.00▲(1.71% Upside)

Action:reiterated

Date:11/05/26

The score is driven primarily by a strong, low-debt balance sheet and improving 2026 revenue and free cash flow, which support financial stability. Offsetting this, profitability and returns declined in 2026 and cash flow consistency remains a concern. Technically, the stock is in a strong uptrend but appears extremely overbought, increasing near-term downside risk, while valuation is acceptable but not compelling given margin pressure.

Positive Factors

Conservative Balance SheetMinimal leverage and a stable-to-growing equity base reduce financial strain and preserve flexibility. This conservative balance sheet should help the company absorb operating volatility, fund contracted-service activity, and pursue opportunities without relying heavily on external borrowing.

Negative Factors

Margin CompressionThe decline in gross and net margins shows that revenue growth is currently translating into less profit. If higher costs or pricing pressure persist, weaker profitability could limit reinvestment, reduce earnings resilience, and make future growth less valuable to shareholders.

Croma Security Solutions (CSSG) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 12.05M
Dividend Yield: 5.37%
Average Volume (3M): 63.20K
Price to Earnings (P/E): 21.9
Beta (1Y): 0.11
Revenue Growth: 13.84%
EPS Growth: -30.24%
Country: UK
Employees: 90
Sector: Industrials
Sector Strength: 63
Industry: Security & Protection Services

Croma Security Solutions Business Overview & Revenue Model

Company Description

Croma Security Solutions Group plc, trading under the symbol CSSG.L, provides a comprehensive array of security provisions throughout the United Kingdom. The company organizes its operations into three primary divisions: Croma Vigilant, Croma Securit...

Croma Security Solutions Financial Statement Overview

Summary

Financials are stable but uneven. The balance sheet is strong with very low leverage (debt-to-equity ~0.03) and a solid equity base, reducing downside risk. However, profitability weakened in 2026 (gross margin ~36% vs ~43% in 2025; net margin ~5% vs ~8%), and ROE is modest (~3%). Cash flow improved with positive free cash flow in 2026, but multi-year free cash flow volatility and weaker cash conversion (~39% of net income) temper confidence.

Income Statement

58Neutral

Balance Sheet

86Very Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	10.97M	10.97M	9.63M	8.74M	8.03M	35.16M
Gross Profit	3.96M	3.96M	4.18M	3.54M	3.75M	6.40M
EBITDA	981.00K	981.00K	1.43M	1.28M	4.02M	866.00K
Net Income	549.00K	549.00K	786.00K	543.00K	3.70M	63.00K
Balance Sheet
Total Assets	19.22M	19.22M	18.42M	18.07M	17.72M	19.04M
Cash, Cash Equivalents and Short-Term Investments	4.91M	4.91M	4.33M	2.14M	2.14M	2.56M
Total Debt	420.00K	420.00K	568.00K	591.00K	659.00K	1.17M
Total Liabilities	3.28M	3.28M	2.69M	2.85M	2.57M	6.90M
Stockholders Equity	15.95M	15.95M	15.73M	15.22M	15.15M	12.14M
Cash Flow
Free Cash Flow	504.00K	504.00K	-656.00K	120.00K	862.00K	-2.08M
Operating Cash Flow	1.31M	1.31M	632.00K	913.00K	1.27M	-860.00K
Investing Cash Flow	-247.00K	-247.00K	1.74M	-328.00K	-967.00K	-1.28M
Financing Cash Flow	-478.00K	-478.00K	-187.00K	-587.00K	-718.00K	-738.00K

Croma Security Solutions Technical Analysis

Technical Analysis SentimentPositive

Last Price87.50

Price Trends

50DMA73.29Positive

100DMA71.07Positive

200DMA70.60Positive

Market Momentum

MACD3.38Negative

RSI95.57Negative

STOCH79.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CSSG, the sentiment is Positive. The current price of 87.50 is above the 20-day moving average (MA) of 75.65, above the 50-day MA of 73.29, and above the 200-day MA of 70.60, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 95.57 is Negative, neither overbought nor oversold. The STOCH value of 79.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CSSG.

Croma Security Solutions Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

GB:CSSG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:SNX	67Neutral	GBP 31.86M	47.56	1.64%	2.70%	-15.64%	-83.92%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:CSSG	62Neutral	GBP 11.54M	21.93	3.48%	5.37%	13.84%	-30.24%
GB:IGE	54Neutral	GBP 4.72M	22.67	14.23%	―	20.42%	―
GB:PEG	54Neutral	GBP 5.16M	-27.42	-3.14%	―	-4.46%	63.10%
GB:THRU	40Underperform	GBP 7.60M	-1.49	-67.80%	―	44.63%	59.14%

* Industrials Sector Average

Performance Comparison

GB:CSSG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:CSSG	Croma Security Solutions	87.50	10.40	13.49%
GB:THRU	Thruvision Group	1.70	0.70	70.00%
GB:IGE	Image Scan Holdings	3.40	2.00	142.86%
GB:PEG	Petards Group plc	8.50	1.00	13.33%
GB:SNX	Synectics plc	185.00	-90.46	-32.84%

Croma Security Solutions Corporate Events

Other

Croma Security Solutions Announces Fiorentino Family Share Redistribution

Neutral

Sep 21, 2026

Croma Security Solutions Group Plc, the AIM-listed, technology-led security provider, operates a network of 17 security centres spanning from Southampton to the Northwest. It delivers integrated locksmith, fire and security services to domestic and c...

Business Operations and StrategyRegulatory Filings and Compliance

Croma CEO Gifts Shares, Family Stake in AIM-Listed Security Group Unchanged

Neutral

Sep 11, 2026

Croma Security Solutions Group, the AIM-listed innovation-focused provider of locksmith, fire and security services, operates 17 security centres from Southampton through the Midlands to the Northwest. Backed by over 50 years of specialist experience...

Business Operations and StrategyFinancial DisclosuresM&A Transactions

Croma Security Solutions buys century-old London locksmith William Channon

Positive

Sep 1, 2026

Croma Security Solutions Group has acquired A. Butler & Sons, trading as William Channon, a long-established commercial locksmith and access control specialist based in Holborn, in a cash deal estimated at £1 million funded from existing res...

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.

Date of analysis: Nov 04, 2026

Croma Security Solutions AI Stock Analysis