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Econocom Group

ENXTBR:ECONB
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ECONB
ENXTBR
€897M
Market Cap
  1. Home
  2. BE
  3. Software
Company description

Econocom Group SE provides digital transformation solutions. The last earnings update was 1 day ago. More info.


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ECONB Share Price and Events
7 Day Returns
5.1%
ENXTBR:ECONB
7.9%
BE IT
1.7%
BE Market
1 Year Returns
-28.5%
ENXTBR:ECONB
-28.3%
BE IT
-4.1%
BE Market
ECONB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Econocom Group (ECONB) 5.1% 9.8% 24% -28.5% - -
BE IT 7.9% 3.4% 19.9% -28.3% 63.6% 97.5%
BE Market 1.7% 5% 14.5% -4.1% -10.6% 11.8%
1 Year Return vs Industry and Market
  • ECONB underperformed the Market in Belgium which returned -4.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Econocom Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Econocom Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Econocom Group.

ENXTBR:ECONB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year BE Government Bond Rate 0.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTBR:ECONB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year BE Govt Bond Rate 0.8%
Equity Risk Premium S&P Global 6.7%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 33%) (95.84%))
1.49
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.49
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.77% + (1.49 * 6.65%)
10.68%

Discounted Cash Flow Calculation for ENXTBR:ECONB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Econocom Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTBR:ECONB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 10.68%)
2019 49.00 Analyst x1 44.27
2020 69.90 Analyst x1 57.06
2021 87.23 Est @ 24.79% 64.34
2022 102.56 Est @ 17.58% 68.35
2023 115.43 Est @ 12.54% 69.50
2024 125.82 Est @ 9.01% 68.45
2025 134.05 Est @ 6.54% 65.89
2026 140.49 Est @ 4.81% 62.39
2027 145.54 Est @ 3.6% 58.40
2028 149.54 Est @ 2.75% 54.21
Present value of next 10 years cash flows €612.86
ENXTBR:ECONB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €149.54 × (1 + 0.77%) ÷ (10.68% – 0.77%)
€1,520.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €1,520.78 ÷ (1 + 10.68%)10
€551.33
ENXTBR:ECONB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €612.86 + €551.33
€1,164.19
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €1,164.19 / 230.23
€5.06
ENXTBR:ECONB Discount to Share Price
Calculation Result
Value per share (EUR) From above. €5.06
Current discount Discount to share price of €3.90
= -1 x (€3.90 - €5.06) / €5.06
22.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Econocom Group is available for.
Intrinsic value
23%
Share price is €3.9 vs Future cash flow value of €5.06
Current Discount Checks
For Econocom Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Econocom Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Econocom Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Econocom Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Econocom Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTBR:ECONB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.17
ENXTBR:ECONB Share Price ** ENXTBR (2019-04-18) in EUR €3.9
Europe IT Industry PE Ratio Median Figure of 147 Publicly-Listed IT Companies 20.33x
Belgium Market PE Ratio Median Figure of 86 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Econocom Group.

ENXTBR:ECONB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTBR:ECONB Share Price ÷ EPS (both in EUR)

= 3.9 ÷ 0.17

22.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Econocom Group is overvalued based on earnings compared to the Europe IT industry average.
  • Econocom Group is overvalued based on earnings compared to the Belgium market.
Price based on expected Growth
Does Econocom Group's expected growth come at a high price?
Raw Data
ENXTBR:ECONB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
30.6%per year
Europe IT Industry PEG Ratio Median Figure of 83 Publicly-Listed IT Companies 1.56x
Belgium Market PEG Ratio Median Figure of 40 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

ENXTBR:ECONB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.93x ÷ 30.6%

0.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Econocom Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Econocom Group's assets?
Raw Data
ENXTBR:ECONB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €1.75
ENXTBR:ECONB Share Price * ENXTBR (2019-04-18) in EUR €3.9
Europe IT Industry PB Ratio Median Figure of 208 Publicly-Listed IT Companies 2.56x
Belgium Market PB Ratio Median Figure of 119 Publicly-Listed Companies 1.51x
ENXTBR:ECONB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTBR:ECONB Share Price ÷ Book Value per Share (both in EUR)

= 3.9 ÷ 1.75

2.23x

* Primary Listing of Econocom Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Econocom Group is good value based on assets compared to the Europe IT industry average.
X
Value checks
We assess Econocom Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Econocom Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Econocom Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Econocom Group expected to grow at an attractive rate?
  • Econocom Group's earnings growth is expected to exceed the low risk savings rate of 0.8%.
Growth vs Market Checks
  • Econocom Group's earnings growth is expected to exceed the Belgium market average.
  • Econocom Group's revenue growth is expected to exceed the Belgium market average.
Annual Growth Rates Comparison
Raw Data
ENXTBR:ECONB Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTBR:ECONB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 30.6%
ENXTBR:ECONB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 4.7%
Europe IT Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
Europe IT Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Belgium Market Earnings Growth Rate Market Cap Weighted Average 16.1%
Belgium Market Revenue Growth Rate Market Cap Weighted Average 2.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTBR:ECONB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTBR:ECONB Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 3,130 116 77 4
2019-12-31 3,013 94 67 4
ENXTBR:ECONB Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 2,846 125 39
2018-09-30 2,815 28 45
2018-06-30 3,130 -69 51
2018-03-31 3,055 -62 69
2017-12-31 2,980 -55 86
2017-09-30 2,681 24 66
2017-06-30 2,493 104 47
2017-03-31 2,515 117 40
2016-12-31 2,536 131 33
2016-09-30 2,471 110 44
2016-06-30 2,405 89 55
2016-03-31 2,361 82 57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Econocom Group's earnings are expected to grow significantly at over 20% yearly.
  • Econocom Group's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTBR:ECONB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Econocom Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTBR:ECONB Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.34 0.43 0.29 3.00
2019-12-31 0.27 0.32 0.23 3.00
ENXTBR:ECONB Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.17
2018-09-30 0.19
2018-06-30 0.21
2018-03-31 0.29
2017-12-31 0.37
2017-09-30 0.29
2017-06-30 0.21
2017-03-31 0.18
2016-12-31 0.16
2016-09-30 0.21
2016-06-30 0.26
2016-03-31 0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Econocom Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Econocom Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Econocom Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Econocom Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Econocom Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Econocom Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Econocom Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Econocom Group's 1-year earnings growth is negative, it can't be compared to the Europe IT industry average.
Earnings and Revenue History
Econocom Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Econocom Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTBR:ECONB Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,845.90 39.40 216.80
2018-09-30 2,815.10 45.10 211.70
2018-06-30 3,129.70 50.80 208.30
2018-03-31 3,054.70 68.60 202.25
2017-12-31 2,979.70 86.40 196.20
2017-09-30 2,680.85 66.35 188.50
2017-06-30 2,493.40 47.00 180.80
2017-03-31 2,514.80 40.20 175.55
2016-12-31 2,536.20 33.40 170.30
2016-09-30 2,470.80 44.30 171.95
2016-06-30 2,405.40 55.20 173.60
2016-03-31 2,360.75 56.55 171.25
2015-12-31 2,316.10 57.90 168.90
2015-09-30 2,278.60 48.35 161.95
2015-06-30 2,241.10 38.80 155.00
2015-03-31 2,166.85 36.50 154.65
2014-12-31 2,092.60 34.20 154.30
2014-06-30 1,948.25 48.94 157.36
2014-03-31 1,857.49 46.83 145.35
2013-12-31 1,766.73 44.72 133.34
2013-09-30 1,683.16 44.60 120.15
2013-06-30 1,593.75 45.06 111.40
2013-03-31 1,566.04 45.82 108.02
2012-12-31 1,538.34 46.58 104.64
2012-09-30 1,547.89 39.53 100.96
2012-06-30 1,557.44 32.49 97.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Econocom Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Econocom Group used its assets less efficiently than the Europe IT industry average last year based on Return on Assets.
  • Econocom Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Econocom Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Econocom Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Econocom Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Econocom Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Econocom Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Econocom Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Econocom Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Econocom Group Company Filings, last reported 3 months ago.

ENXTBR:ECONB Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 491.30 860.10 608.40
2018-09-30 491.30 860.10 608.40
2018-06-30 470.70 674.00 278.50
2018-03-31 470.70 674.00 278.50
2017-12-31 483.20 516.60 237.90
2017-09-30 483.20 516.60 237.90
2017-06-30 440.20 419.30 215.20
2017-03-31 440.20 419.30 215.20
2016-12-31 279.00 534.00 348.70
2016-09-30 279.00 534.00 348.70
2016-06-30 270.80 476.80 191.70
2016-03-31 270.80 476.80 191.70
2015-12-31 280.50 396.10 209.60
2015-09-30 280.50 396.10 209.60
2015-06-30 261.20 382.90 132.20
2015-03-31 261.20 382.90 132.20
2014-12-31 281.30 313.20 207.30
2014-06-30 274.67 310.60 135.03
2014-03-31 274.67 310.60 135.03
2013-12-31 259.97 189.43 150.14
2013-09-30 259.97 189.43 150.14
2013-06-30 146.01 163.72 67.20
2013-03-31 146.01 163.72 67.20
2012-12-31 155.16 110.65 79.85
2012-09-30 155.16 110.65 79.85
2012-06-30 133.99 147.03 75.53
  • Econocom Group's level of debt (175.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (73.3% vs 175.1% today).
  • Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
X
Financial health checks
We assess Econocom Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Econocom Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.08%
Current annual income from Econocom Group dividends. Estimated to be 2.46% next year.
If you bought €2,000 of Econocom Group shares you are expected to receive €62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Econocom Group's pays a higher dividend yield than the bottom 25% of dividend payers in Belgium (1.99%).
  • Econocom Group's dividend is below the markets top 25% of dividend payers in Belgium (4.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTBR:ECONB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe IT Industry Average Dividend Yield Market Cap Weighted Average of 101 Stocks 1.7%
Belgium Market Average Dividend Yield Market Cap Weighted Average of 79 Stocks 3.4%
Belgium Minimum Threshold Dividend Yield 10th Percentile 1.2%
Belgium Bottom 25% Dividend Yield 25th Percentile 2%
Belgium Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTBR:ECONB Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.10 3.00
2019-12-31 0.09 3.00
ENXTBR:ECONB Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-04-16 0.120 3.583
2017-05-31 0.100 1.546

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Econocom Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Econocom Group only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Econocom Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
X
Income/ dividend checks
We assess Econocom Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Econocom Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Econocom Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Econocom Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jean-Louis Bouchard
COMPENSATION €0
TENURE AS CEO 0.3 years
CEO Bio

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 majority shareholder of Econocom Group.

CEO Compensation
  • Insufficient data for Jean-Louis to compare compensation growth.
  • Insufficient data for Jean-Louis to establish whether their remuneration is reasonable compared to companies of similar size in Belgium.
Management Team Tenure

Average tenure of the Econocom Group management team in years:

0.6
Average Tenure
  • The average tenure for the Econocom Group management team is less than 2 years, this suggests a new team.
Management Team

Jean-Philippe Roesch

TITLE
Executive Director

Jean-Louis Bouchard

TITLE
Chairman & CEO
TENURE
0.3 yrs

Robert Bouchard

TITLE
Vice Chairman
COMPENSATION
€27K
TENURE
0.3 yrs

Eric Bazile

TITLE
Chief Financial Officer
AGE
48

Julie Verlingue

TITLE
International MD & Member of Executive Board
TENURE
0.9 yrs

Laura Barracco

TITLE
Deputy Managing Director of Technology Management & Financing Division
TENURE
2.4 yrs

Sébastien Musset

TITLE
Executive Director & MD of Transformation & Resources
AGE
38

Martine Bayens

TITLE
Executive Director & MD of Satellites

Stéphane Pailler

TITLE
Head of Internal Audit

David Krieff

TITLE
Group Executive Director & MD of Finance
Board of Directors Tenure

Average tenure and age of the Econocom Group board of directors in years:

7.3
Average Tenure
62
Average Age
  • The tenure for the Econocom Group board of directors is about average.
Board of Directors

Jean-Philippe Roesch

TITLE
Executive Director

Jean-Louis Bouchard

TITLE
Chairman & CEO

Robert Bouchard

TITLE
Vice Chairman
COMPENSATION
€27K

Bruno Grossi

TITLE
MD of Strategy & Acquisitions and Executive Director
AGE
60

Gaspard Dürrleman

TITLE
Non Executive Director
TENURE
7.3 yrs

Jean Mounet

TITLE
Independent Director
AGE
73
TENURE
7.3 yrs

Rafi Kouyoumdjian

TITLE
Non-Executive Director
TENURE
7.3 yrs

Veronique di Benedetto

TITLE
VP of France & Non-Executive Director
TENURE
7.3 yrs

Walter Butler

TITLE
Independent Director
AGE
62

Philippe Capron

TITLE
Independent Director
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Econocom Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Econocom Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Investors Should Know About Econocom Group SE's (EBR:ECONB) Financial Strength

Econocom Group SE (EBR:ECONB) is a small-cap stock with a market capitalization of €889m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

Is Econocom Group SE's (EBR:ECONB) Future Growth Already Accounted For In Today's Price?

Econocom Group SE (EBR:ECONB) closed yesterday at €3.59, which left some investors asking whether the high earnings potential can still be justified at this price. … What can we expect from Econocom Group in the future. … If you are bullish about Econocom Group's growth potential then you are certainly not alone

Simply Wall St -

Is Econocom Group SE (EBR:ECONB) A Great Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Econocom Group SE (EBR:ECONB) has recently paid dividends to shareholders, and currently yields 3.7%. … Does Econocom Group tick all the boxes of a great dividend stock?

Simply Wall St -

Why Econocom Group SE’s (EBR:ECONB) Return On Capital Employed Might Be A Concern

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Do You Like Econocom Group SE (EBR:ECONB) At This P/E Ratio?

To keep it practical, we'll show how Econocom Group SE's (EBR:ECONB) P/E ratio could help you assess the value on offer. … Econocom Group has a P/E ratio of 13.82, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Did Econocom Group SE (EBR:ECONB) Use Debt To Deliver Its ROE Of 13%?

Our data shows Econocom Group has a return on equity of 13% for the last year. … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Was Econocom Group SE's (EBR:ECONB) Earnings Growth Better Than The Industry's?

Assessing Econocom Group SE's (EBR:ECONB) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Econocom Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its it industry peers. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.1%, indicating the rate at which ECONB is growing has slowed down

Simply Wall St -

Are Econocom Group SE's (EBR:ECONB) Interest Costs Too High?

Econocom Group SE (EBR:ECONB) is a small-cap stock with a market capitalization of €710m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

What Kind Of Shareholder Owns Most Econocom Group SE (EBR:ECONB) Stock?

If you want to know who really controls Econocom Group SE (EBR:ECONB), then you'll have to look at the makeup of its share registry. … Econocom Group is a smaller company with a market capitalization of €685m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Econocom Group

Simply Wall St -

Is Econocom Group SE (EBR:ECONB) An Attractive Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Check out our latest analysis for Econocom Group … 5 questions I ask before picking a dividend stock

Simply Wall St -

Company Info

Description

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.

Details
Name: Econocom Group SE
ECONB
Exchange: ENXTBR
Founded: 1982
€897,454,728
230,234,666
Website: http://www.econocom.com
Address: Econocom Group SE
40, quai de Dion Bouton,
Puteaux,
Ile-de-France, 92800,
France
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTBR ECONB Bearer and Registered Shares Euronext Brussels BE EUR 31. May 2017
OTCPK ECOG.F Bearer and Registered Shares Pink Sheets LLC US USD 31. May 2017
LSE 0RPX Bearer and Registered Shares London Stock Exchange GB EUR 31. May 2017
BATS-CHIXE ECONBB Bearer and Registered Shares BATS 'Chi-X Europe' GB EUR 31. May 2017
Number of employees
Current staff
Staff numbers
11,068
Econocom Group employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:11
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.