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ECON

Econocom GroupENXTBR:ECONB Stock Report

Last Price

€3.56

Market Cap

€671.4m

7D

-0.1%

1Y

30.2%

Updated

19 Jan, 2022

Data

Company Financials +
ECONB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

ECONB Stock Overview

Econocom Group SE conceives, finances, and facilitates the digital transformation of large firms and public organizations.

Econocom Group Competitors

Accenture

NYSE:ACN

US$217.2b

International Business Machines

NYSE:IBM

US$118.0b

Capgemini

ENXTPA:CAP

€35.3b

Orange

ENXTPA:ORA

€26.5b

Price History & Performance

Summary of all time highs, changes and price drops for Econocom Group
Historical stock prices
Current Share Price€3.56
52 Week High€3.94
52 Week Low€2.38
Beta1.53
1 Month Change1.71%
3 Month Change11.95%
1 Year Change30.17%
3 Year Change15.06%
5 Year Change-74.88%
Change since IPO2,763.95%

Recent News & Updates

Oct 21
Does Econocom Group (EBR:ECONB) Have A Healthy Balance Sheet?

Does Econocom Group (EBR:ECONB) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Oct 06
What Is Econocom Group SE's (EBR:ECONB) Share Price Doing?

What Is Econocom Group SE's (EBR:ECONB) Share Price Doing?

Econocom Group SE ( EBR:ECONB ), is not the largest company out there, but it saw significant share price movement...

Aug 26
The Returns At Econocom Group (EBR:ECONB) Aren't Growing

The Returns At Econocom Group (EBR:ECONB) Aren't Growing

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...

Shareholder Returns

ECONBBE ITBE Market
7D-0.1%-2.6%-0.3%
1Y30.2%7.2%12.3%

Return vs Industry: ECONB exceeded the Belgian IT industry which returned 7.5% over the past year.

Return vs Market: ECONB exceeded the Belgian Market which returned 13.2% over the past year.

Price Volatility

Is ECONB's price volatile compared to industry and market?
ECONB volatility
ECONB Average Weekly Movement4.1%
IT Industry Average Movement5.6%
Market Average Movement4.1%
10% most volatile stocks in BE Market5.9%
10% least volatile stocks in BE Market2.2%

Stable Share Price: ECONB is not significantly more volatile than the rest of Belgian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ECONB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19828,895Jean-Louis Bouchardhttps://www.econocom.com

Econocom Group SE conceives, finances, and facilitates the digital transformation of large firms and public organizations. It operates in two segments, Technology Management and Financing, and Digital Services and Solutions. The Technology Management and Financing segment offers financing solutions for the administrative and financial management of the ICT and digital assets of the businesses.

Econocom Group Fundamentals Summary

How do Econocom Group's earnings and revenue compare to its market cap?
ECONB fundamental statistics
Market Cap€671.41m
Earnings (TTM)€69.90m
Revenue (TTM)€2.57b

9.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ECONB income statement (TTM)
Revenue€2.57b
Cost of Revenue€2.28b
Gross Profit€289.90m
Expenses€220.00m
Earnings€69.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin11.27%
Net Profit Margin2.72%
Debt/Equity Ratio106.2%

How did ECONB perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECONB (€3.56) is trading below our estimate of fair value (€8.2)

Significantly Below Fair Value: ECONB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ECONB is good value based on its PE Ratio (9.6x) compared to the European IT industry average (25.7x).

PE vs Market: ECONB is good value based on its PE Ratio (9.6x) compared to the Belgian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: ECONB is poor value based on its PEG Ratio (9.3x)


Price to Book Ratio

PB vs Industry: ECONB is good value based on its PB Ratio (2x) compared to the XE IT industry average (3.9x).


Future Growth

How is Econocom Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECONB's forecast earnings growth (1% per year) is below the savings rate (1.2%).

Earnings vs Market: ECONB's earnings (1% per year) are forecast to grow slower than the Belgian market (13.6% per year).

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

Revenue vs Market: ECONB's revenue (0.4% per year) is forecast to grow slower than the Belgian market (7.9% per year).

High Growth Revenue: ECONB's revenue (0.4% 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 high in 3 years time (21.3%)


Past Performance

How has Econocom Group performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECONB has a large one-off loss of €25.7M impacting its June 30 2021 financial results.

Growing Profit Margin: ECONB's current net profit margins (2.7%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: ECONB's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: ECONB's earnings growth over the past year (33.4%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: ECONB earnings growth over the past year (33.4%) exceeded the IT industry 26.2%.


Return on Equity

High ROE: ECONB's Return on Equity (18.3%) is considered low.


Financial Health

How is Econocom Group's financial position?


Financial Position Analysis

Short Term Liabilities: ECONB's short term assets (€1.5B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: ECONB's short term assets (€1.5B) exceed its long term liabilities (€595.9M).


Debt to Equity History and Analysis

Debt Level: ECONB's net debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: ECONB's debt to equity ratio has reduced from 154.2% to 106.2% over the past 5 years.

Debt Coverage: ECONB's debt is well covered by operating cash flow (48.2%).

Interest Coverage: ECONB's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

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

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECONB's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Belgian market (1.46%).

High Dividend: ECONB's dividend (3.37%) is low compared to the top 25% of dividend payers in the Belgian market (4.71%).


Stability and Growth of Payments

Stable Dividend: ECONB's dividends per share have been stable in the past 10 years.

Growing Dividend: ECONB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), ECONB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECONB's dividends in 3 years are forecast to be well covered by earnings (29.3% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jean-Louis Bouchard

3yrs

Tenure

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

Experienced Management: ECONB's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ECONB's board of directors are considered experienced (6 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 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
  • Implied Market Cap: €671.411m
  • Shares outstanding: 188.60m
  • Website: https://www.econocom.com

Number of Employees


Location

  • Econocom Group SE
  • 11 square Léon Blum
  • Puteaux
  • Ile-de-France
  • 92800
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:14
End of Day Share Price2022/01/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.