Company Overview
Cycurion, Inc. operates within the technology sector, specifically providing information technology security solutions through consulting, advisory services, security control assessments, risk management, and staff augmentation. As a provider of these specialized services, the company functions within the Information Technology Services industry, where it delivers cybersecurity awareness training and engineering solutions to clients. The enterprise currently maintains a market capitalization of $4.40M, generates annual revenue of $15.67M, and employs a workforce of 46 individuals. These financial figures indicate that the company is a small-cap entity with a relatively modest operational scale, suggesting it occupies a niche position within the broader market for IT security services rather than holding a dominant market share.
Financial Health
The company reported revenue of $15.67M over the trailing twelve months, yet this generated a net income of $-17,440,668, revealing a cost structure where expenses significantly outweigh gross revenue and creating a substantial operating loss. Despite the net loss, the company reported an EBITDA of $-5,827,294, which serves as a measure of operational profitability before interest and taxes, while the free cash flow stands at $17.18M, indicating a unique financial state where cash generation exceeds reported net income, likely due to significant non-cash charges or adjustments. The gross margin is 17.4%, reflecting the proportion of revenue remaining after direct costs, while the operating margin is -118.2% and the profit margin is -111.3%, both indicating that the company is currently operating at a loss on an operational and total profit basis. In terms of liquidity, the company holds $3.65M in cash against $9.15M in debt, resulting in a debt-to-equity ratio of 59.39, which suggests a highly leveraged balance sheet where liabilities significantly exceed equity. Furthermore, the current ratio is 0.42, a figure below 1.0 that indicates the company's current assets are insufficient to cover its current liabilities, pointing to potential short-term liquidity challenges. Finally, the return on equity is -162.2% and the return on assets is -13.3%, metrics that reveal management is currently generating negative returns on the capital invested in the business and the assets owned.
Valuation Assessment
The trailing P/E ratio is N/A due to the negative net income, while the forward P/E is -0.15, a negative valuation multiple that implies the market is pricing in future earnings expectations that are currently undefined or negative. The price-to-book ratio is 0.15, indicating that the company's market capitalization is trading at a significant discount to its book value, suggesting the market values the firm well below the replacement cost of its assets. Alternative valuation metrics include a price-to-sales ratio of 0.28 and an EV/EBITDA of -0.81, figures that suggest the company is valued based on revenue multiples rather than earnings multiples due to its lack of profitability. The stock price has historically ranged between a 52-week low of $0.95 and a 52-week high of $21.22, meaning the current trading price sits within a wide volatility range that reflects the uncertainty surrounding the company's future earnings potential. The beta value is 0.85, which indicates that the stock's price volatility is slightly lower than the broader market, moving with less intensity than the overall market index.
Growth & Income
The company experienced a revenue growth of -13.9% year-over-year, while earnings growth is N/A due to the lack of positive earnings to measure against prior periods, implying a contraction in top-line activity that has not yet been offset by any improvement in profitability. Since the company does not pay a dividend, with a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute cash to shareholders, meaning the company retains all earnings, although currently negative, for reinvestment or to reduce debt. The overall growth and income profile is characterized by a decline in revenue, a complete absence of profitability, and a lack of dividend income, presenting a scenario where the primary value proposition must come from potential future operational turnaround rather than current income generation.