| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 770.15 | -55 |
| Intrinsic value (DCF) | 746.87 | -56 |
| Graham-Dodd Method | 2.36 | -100 |
| Graham Formula | 9.94 | -99 |
Cerillion Plc (LSE: CER.L) is a leading provider of billing, charging, and customer relationship management (CRM) software solutions tailored for the telecommunications sector. Headquartered in London, the company serves clients globally with its comprehensive Cerillion Enterprise BSS/OSS Suite and Cerillion Skyline, a cloud-based SaaS billing platform. Specializing in 5G monetization, digital transformation, and IoT solutions, Cerillion enables telecom operators to streamline operations, enhance customer experiences, and drive revenue growth. The company operates across four segments—Services, Software, SaaS, and Third-Party—offering integrated solutions for subscription management, network inventory, and real-time analytics. Founded in 1999, Cerillion has established itself as a trusted partner for telecom providers navigating the complexities of multi-play services, MVNO/MVNE ecosystems, and next-gen connectivity. With a strong focus on innovation and scalability, Cerillion is well-positioned to capitalize on the growing demand for agile billing and CRM solutions in the rapidly evolving telecom industry.
Cerillion Plc presents an attractive investment opportunity due to its niche focus on telecom billing and CRM software, a sector with high barriers to entry and recurring revenue potential. The company's strong financials, including a healthy net income of £15.3 million and robust operating cash flow of £11.2 million in the latest fiscal year, underscore its profitability. With a debt-to-equity ratio indicating prudent financial management and a dividend yield appealing to income-focused investors, Cerillion demonstrates stability. However, risks include reliance on the telecom sector's capital expenditure cycles and competition from larger enterprise software providers. The stock's low beta (0.621) suggests lower volatility relative to the market, making it a potentially defensive play in the technology sector.
Cerillion Plc competes in the telecom BSS/OSS (Business Support Systems/Operations Support Systems) software market, where its key competitive advantage lies in its pre-integrated, end-to-end solutions tailored for telecom operators. Unlike generic CRM providers, Cerillion’s deep domain expertise allows it to address complex billing scenarios, such as 5G monetization and multi-play service bundling, with greater efficiency. The company’s SaaS offering, Cerillion Skyline, positions it well in the shift toward cloud-based solutions, competing against legacy on-premise providers. However, Cerillion faces competition from larger players like Amdocs and Netcracker, which have broader product portfolios and greater global reach. Cerillion’s smaller size enables agility and customization, but it may lack the resources for large-scale R&D or M&A compared to these rivals. Its focus on mid-tier telecom operators—rather than Tier 1 carriers—allows it to avoid direct competition with hyperscalers like Oracle or Microsoft, which target enterprise-wide deployments. The company’s strong presence in the UK and Europe provides a stable revenue base, but international expansion remains a challenge against entrenched competitors in North America and Asia.