| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.12 | 1462 |
| Intrinsic value (DCF) | 1420.91 | 66924 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
cyan AG is a Munich-based cybersecurity and telecommunications solutions provider specializing in intelligent IT security and BSS/OSS services. Operating globally across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific, cyan AG serves mobile virtual network operators (MVNOs), telecom providers, and financial institutions with its innovative security solutions. The company's product portfolio includes OnNet Security, a network-based cybersecurity solution, OnDevice Security for endpoint protection, child protection applications, and Clean Pipe DNS solutions for filtering malicious content. Founded in 2017, cyan AG has positioned itself as a niche player in the cybersecurity and telecom infrastructure space, leveraging its expertise to offer tailored security solutions. Despite its relatively recent establishment, the company has carved out a presence in the competitive cybersecurity market, focusing on telecom and financial service providers. With increasing cyber threats and regulatory demands, cyan AG's specialized offerings cater to a growing need for robust digital security.
cyan AG presents a high-risk, high-reward investment opportunity in the cybersecurity sector. The company operates in a rapidly growing industry with increasing demand for IT security solutions, particularly in telecom and financial services. However, its financials reveal significant challenges, including a net loss of €20.7 million in FY 2023 and negative operating cash flow of €4.01 million. While the company has a modest market cap of €62 million and a beta close to 1, indicating market-average volatility, its negative EPS (-€1.1) and lack of dividends suggest it is still in a growth or restructuring phase. Investors should weigh the potential upside from cybersecurity industry tailwinds against the company's current financial instability and competitive pressures.
cyan AG operates in the highly competitive cybersecurity and telecom infrastructure markets, where it faces established players with broader product portfolios and greater financial resources. The company differentiates itself through specialized solutions for MVNOs and telecom providers, such as OnNet Security and Clean Pipe DNS, which leverage existing network infrastructure. However, its niche focus may limit scalability compared to larger competitors offering enterprise-wide security suites. cyan AG's competitive advantage lies in its telecom-centric approach, but its relatively small size and negative profitability raise concerns about long-term sustainability. The company must continue innovating and expanding its customer base to compete effectively against well-funded rivals. Additionally, its BSS/OSS segment provides a complementary revenue stream but is subject to margin pressures from larger telecom service providers. Strategic partnerships or acquisitions could enhance its market position, but current financial constraints may limit such opportunities.