Company Overview
CISO Global Inc. operates as a specialized entity within the technology sector, specifically focusing on the software infrastructure industry, providing essential cybersecurity, compliance, and software solutions across the United States, Chile, and international markets. The company's core operational scope includes the delivery of security managed services that encompass compliance management, secured managed operations, cyber defense capabilities, culture education, enablement, as well as the provision of specialized tools and technology. In terms of scale, the company possesses a market capitalization of $14.49M and generates annual revenue totaling $27.74M, while maintaining an employee base of 141 individuals. These financial metrics indicate that the company operates as a mid-sized player with a relatively small market cap compared to its revenue generation, suggesting a structure where the market values the firm at a fraction of its total sales, which often characterizes companies in early growth phases or those facing significant operational headwinds within the software infrastructure landscape.
Financial Health
The company reported revenue of $27.74M for the trailing twelve months, yet this revenue generated a net income of $-11,522,255 and an EBITDA of $-7,210,314, revealing a substantial divergence where operating expenses significantly exceed gross revenue, indicating a highly leveraged cost structure that absorbs nearly all income before reaching the bottom line. This negative net income is further exacerbated by a free cash flow of $-8,777,216, which signifies a lack of financial flexibility as the company is burning through cash reserves rather than generating liquidity from its core business operations. The margin analysis shows a gross margin of 24.7%, which indicates that the company retains roughly a quarter of sales as gross profit before overhead, while the operating margin of -40.8% and profit margin of -41.0% demonstrate that after covering all operating expenses, the company is losing over 40% of every dollar in revenue. On the balance sheet, the company holds $1.11M in cash against $2.54M in debt, resulting in a debt-to-equity ratio of 15.53, which characterizes a highly leveraged position where debt obligations are more than fifteen times the equity base. Liquidity is constrained further by a current ratio of 0.36, indicating that the company's current assets are less than one-third of its current liabilities, which presents a challenging environment for meeting short-term obligations without external financing. Furthermore, the return on equity stands at -117.4% and the return on assets is -20.8%, metrics that reveal that management is currently destroying shareholder value and utilizing assets inefficiently, as both equity and assets are generating negative returns rather than positive yields.
Valuation Assessment
Valuation multiples for the company reflect its unprofitable status, with a trailing P/E ratio that is effectively N/A due to negative earnings, while the forward P/E is reported at -1.94, implying that the market expects earnings to remain negative or that traditional earnings-based valuation models are not applicable in the current fiscal cycle. The price-to-book ratio is 0.69, suggesting that the stock is trading at a discount to its book value, which often occurs when the market perceives significant risks or a lack of growth prospects that depress the price relative to the asset base. Alternative valuation metrics such as the price-to-sales ratio of 0.52 and the EV/EBITDA of -2.19 further illustrate that the market is pricing the company at a deep discount to its revenue generation, likely factoring in the high cash burn rate and negative EBITDA. Price action over the last year shows a 52-week high of $1.70 and a 52-week low of $0.30, providing a range within which the current trading price exists, though the specific current price is not explicitly listed in the source data, the wide range of $1.40 suggests significant volatility. The beta of 2.22 indicates that the stock is highly volatile and is expected to move with a magnitude more than twice that of the broader market, meaning it experiences amplified price swings during periods of market stability or turbulence.
Growth & Income
Revenue growth year-over-year has declined by -14.0%, while earnings growth is listed as N/A due to the absence of positive earnings to compare against, implying that the company is contracting in terms of top-line sales rather than expanding its market share. The gap between the negative earnings growth and the negative revenue growth suggests that the company is facing headwinds that are impacting both its sales volume and its ability to generate profit, though the specific relationship between the two rates cannot be quantified without positive earnings figures. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company does not distribute cash to shareholders, indicating that any retained earnings are being consumed by operational losses rather than being available for reinvestment or distribution. Consequently, the overall growth and income profile is characterized by negative revenue expansion, a complete absence of dividend income, and a capital structure that relies on cash reserves to fund operations amidst declining sales and negative cash flow.