ENXTBR:ECONB

Stock Analysis Report

Executive Summary

Econocom Group SE provides digital transformation solutions.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Econocom Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECONB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.3%

ECONB

-9.5%

BE IT

-12.1%

BE Market


1 Year Return

-33.1%

ECONB

8.8%

BE IT

-6.2%

BE Market

Return vs Industry: ECONB underperformed the Belgian IT industry which returned 8.8% over the past year.

Return vs Market: ECONB underperformed the Belgian Market which returned -6.2% over the past year.


Shareholder returns

ECONBIndustryMarket
7 Day-8.3%-9.5%-12.1%
30 Day-0.7%-8.0%-11.1%
90 Day7.6%0.1%-11.5%
1 Year-31.2%-33.1%12.1%8.8%-4.4%-6.2%
3 Yearn/a51.4%39.3%-16.4%-21.8%
5 Yearn/a107.8%85.5%-17.5%-26.9%

Price Volatility Vs. Market

How volatile is Econocom Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Econocom Group undervalued compared to its fair value and its price relative to the market?

12.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECONB (€2.59) is trading above our estimate of fair value (€2.08)

Significantly Below Fair Value: ECONB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ECONB is good value based on its PE Ratio (12.7x) compared to the IT industry average (21x).

PE vs Market: ECONB is good value based on its PE Ratio (12.7x) compared to the Belgian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: ECONB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ECONB is good value based on its PB Ratio (1.7x) compared to the XE IT industry average (2.5x).


Next Steps

Future Growth

How is Econocom Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECONB's forecast earnings growth (9% per year) is above the savings rate (0.7%).

Earnings vs Market: ECONB's earnings (9% per year) are forecast to grow faster than the Belgian market (7.9% per year).

High Growth Earnings: ECONB's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECONB's revenue (3.4% per year) is forecast to grow faster than the Belgian market (2.7% per year).

High Growth Revenue: ECONB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECONB's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Econocom Group performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECONB has a large one-off loss of €31.9M impacting its June 30 2019 financial results.

Growing Profit Margin: ECONB's current net profit margins (1.6%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: ECONB's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: ECONB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ECONB had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the IT industry average (12.8%).


Return on Equity

High ROE: ECONB's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Econocom Group's financial position?


Financial Position Analysis

Short Term Liabilities: ECONB's short term assets (€2.1B) exceed its short term liabilities (€1.8B).

Long Term Liabilities: ECONB's short term assets (€2.1B) exceed its long term liabilities (€747.6M).


Debt to Equity History and Analysis

Debt Level: ECONB's debt to equity ratio (199.9%) is considered high.

Reducing Debt: ECONB's debt to equity ratio has increased from 96% to 199.9% over the past 5 years.

Debt Coverage: ECONB's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: ECONB's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet

Inventory Level: ECONB has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECONB's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Econocom Group's current dividend yield, its reliability and sustainability?

4.74%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.2%markettop25%4.6%industryaverage1.9%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: ECONB's dividend (4.64%) is higher than the bottom 25% of dividend payers in the Belgian market (2.19%).

High Dividend: ECONB's dividend (4.64%) is in the top 25% of dividend payers in the Belgian market (4.59%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ECONB has been paying a dividend for less than 10 years.

Growing Dividend: ECONB has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), ECONB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECONB's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Jean-Louis Bouchard 0

1.1yrs

Tenure

0

Mr. Jean-Louis Bouchard serves as the Chairman of Econocom Group SE and has been its Chief Executive Officer since March 2, 2004. Mr. Bouchard also serves as Chairman of Econocom International NV, the majo ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bouchard
Vice Chairman0yrsno datano data
Jean-Louis Bouchard
Chairman & CEO1.1yrsno datano data
Angel Benguigui
Group Finance Director0.8yrsno datano data
Bruno Grossi
MD of Strategy & Acquisitions and Executive Director0yrsno datano data
Laura Barracco
Deputy Managing Director of Technology Management & Financing Division3.3yrsno datano data
Sébastien Musset
Executive Director & MD of Transformation & Resources0yrsno datano data
Martine Bayens
Executive Director & MD of Satellites0yrsno datano data
Julie Verlingue
Group Deputy Chief Executive Officer1.8yrsno datano data
Stéphane Pailler
Head of Internal Audit0yrsno datano data
Laurent Roudil
Managing Director of Services France & Deputy Managing Director France0yrsno datano data

1.1yrs

Average Tenure

39yo

Average Age

Experienced Management: ECONB's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Bouchard
Vice Chairman0yrsno datano data
Jean-Louis Bouchard
Chairman & CEO1.1yrsno datano data
Bruno Grossi
MD of Strategy & Acquisitions and Executive Director0yrsno datano data
Walter Butler
Independent Director0yrsno datano data
Rafi Kouyoumdjian
Non-Executive Director8.2yrsno datano data
Jean-Philippe Roesch
Non-Executive Director0yrsno datano data
Gaspard Dürrleman
Non Executive Director8.2yrsno datano data
Jean Mounet
Independent Director8.2yrsno datano data
Véronique di Benedetto
Non-Executive Director8.2yrsno datano data
Philippe Capron
Independent Director0yrsno datano data

8.2yrs

Average Tenure

62yo

Average Age

Experienced Board: ECONB's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Econocom Group SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Econocom Group SE
  • Ticker: ECONB
  • Exchange: ENXTBR
  • Founded: 1982
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €554.634m
  • Shares outstanding: 219.05m
  • Website: https://www.econocom.com

Number of Employees


Location

  • Econocom Group SE
  • 40, quai de Dion Bouton
  • Puteaux
  • Ile-de-France
  • 92800
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECONBENXTBR (Euronext Brussels)YesBearer and Registered SharesBEEURMay 2017
1e+91BST (Boerse-Stuttgart)YesBearer and Registered SharesDEEURMay 2017
0RPXLSE (London Stock Exchange)YesBearer and Registered SharesGBEURMay 2017
ECOG.FOTCPK (Pink Sheets LLC)YesBearer and Registered SharesUSUSDMay 2017
ECONBBBATS-CHIXE (BATS 'Chi-X Europe')YesBearer and Registered SharesGBEURMay 2017

Biography

Econocom Group SE provides digital transformation solutions. It operates through three segments: Technology Management & Financing, Products & Solutions, and Services. The Technology Management & Financing segment offers financing solutions for the administrative and financial management of a business's ICT and digital assets. The Products & Solutions segment provides design and rollout services of architecture solutions; and sells hardware and software, PCs, tablets, servers, printers, licenses, digital devices and signage, video-conference rooms, smart buildings, etc., as well as offers systems integration services. The Services segment provides consultancy, infrastructure management, application development, and digital solution integration services. It also offers Wi-Fi and professional mobility solutions for retail and logistics sectors. The company serves healthcare, B2C, education, and industry sectors. It operates in 19 countries, including Europe, Morocco, Brazil, Mexico, Canada, and the United States. The company sells its products and services under the Econocom brand name. Econocom Group was founded in 1982 and is headquartered in Puteaux, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 23:02
End of Day Share Price2020/02/28 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.