ENXTBR:ECONB

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Executive Summary

Econocom Group SE provides digital transformation solutions. More Details


Snowflake Analysis

Undervalued established dividend payer.


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

0.2%

ECONB

-3.7%

BE IT

-1.7%

BE Market


1 Year Return

1.1%

ECONB

28.3%

BE IT

-22.1%

BE Market

Return vs Industry: ECONB underperformed the Belgian IT industry which returned 28.2% over the past year.

Return vs Market: ECONB exceeded the Belgian Market which returned -22.9% over the past year.


Shareholder returns

ECONBIndustryMarket
7 Day0.2%-3.7%-1.7%
30 Day-10.4%-1.9%-2.2%
90 Day5.8%2.6%-2.0%
1 Year1.1%1.1%29.1%28.3%-20.8%-22.1%
3 Year-60.3%-62.7%15.3%7.2%-26.5%-30.9%
5 Year-67.9%-70.2%64.3%48.6%-18.0%-26.4%

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?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECONB (€2.37) is trading below our estimate of fair value (€3.16)

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 (10.7x) compared to the XE IT industry average (22.4x).

PE vs Market: ECONB is good value based on its PE Ratio (10.7x) compared to the Belgian market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: ECONB is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ECONB is good value based on its PB Ratio (1.2x) compared to the XE IT industry average (2.8x).


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECONB's forecast earnings growth (9.5% per year) is above the savings rate (1.6%).

Earnings vs Market: ECONB's earnings (9.5% per year) are forecast to grow slower than the Belgian market (28.5% per year).

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

Revenue vs Market: ECONB's revenue (3.6% per year) is forecast to grow slower than the Belgian market (7% per year).

High Growth Revenue: ECONB's revenue (3.6% 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 (16.6%).


Next Steps

Past Performance

How has Econocom Group performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECONB has a large one-off loss of €32.2M impacting its June 30 2020 financial results.

Growing Profit Margin: ECONB's current net profit margins (1.8%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: ECONB's earnings have grown by 2% 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 (-8.7%) over the past year, making it difficult to compare to the IT industry average (3.9%).


Return on Equity

High ROE: ECONB's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Econocom Group's financial position?


Financial Position Analysis

Short Term Liabilities: ECONB's short term assets (€1.8B) exceed its short term liabilities (€1.5B).

Long Term Liabilities: ECONB's short term assets (€1.8B) exceed its long term liabilities (€694.5M).


Debt to Equity History and Analysis

Debt Level: ECONB's debt to equity ratio (141.9%) is considered high.

Reducing Debt: ECONB's debt to equity ratio has increased from 130.1% to 141.9% over the past 5 years.

Debt Coverage: ECONB's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: ECONB's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECONB's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Belgian market (2.14%).

High Dividend: ECONB's dividend (5.07%) is low compared to the top 25% of dividend payers in the Belgian market (5.68%).


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 reasonable payout ratio (54.2%), 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 (33.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jean-Louis Bouchard

1.75yrs

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

NamePositionTenureCompensationOwnership
Robert Bouchard
Vice Chairmanno data€25.00kno data
Jean-Louis Bouchard
Chairman & CEO1.75yrsno datano data
Angel Benguigui
Group Finance Director1.5yrsno datano data
Antoinette Roche
Legal Director1.25yrsno datano data
Bruno Grossi
MD of Strategy & Acquisitions and Executive Directorno datano datano data
Laura Barracco
Deputy Managing Director of Technology Management & Financing Division3.92yrsno datano data
Sébastien Musset
Executive Director & MD of Transformation & Resourcesno datano datano data
Martine Bayens
Executive Director & MD of Satellitesno datano datano data
Julie Verlingue
Group Deputy Chief Executive Officer2.42yrsno datano data
Stéphane Pailler
Head of Internal Auditno datano datano data
Laurent Roudil
Managing Director of Services France & Deputy Managing Director Franceno datano datano data
Frances Weston
Managing Director of Econocom UK0.58yrno datano data

1.8yrs

Average Tenure

40yo

Average Age

Experienced Management: ECONB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Bouchard
Vice Chairmanno data€25.00kno data
Jean-Louis Bouchard
Chairman & CEO1.75yrsno datano data
Bruno Grossi
MD of Strategy & Acquisitions and Executive Directorno datano datano data
Walter Butler
Independent Directorno data€5.00kno data
Rafi Kouyoumdjian
Non-Executive Director8.83yrs€46.00kno data
Jean-Philippe Roesch
Non-Executive Directorno data€5.00kno data
Gaspard Dürrleman
Non Executive Director8.83yrs€48.00kno data
Marie-Christine Levet
Independent Director4.75yrs€48.00kno data
Adeline Challon-Kemoun
Independent Director4.75yrs€20.00kno data
Véronique di Benedetto
Non-Executive Director8.83yrsno datano data

8.8yrs

Average Tenure

59yo

Average Age

Experienced Board: ECONB's board of directors are considered experienced (8.8 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: €513.228m
  • Shares outstanding: 217.01m
  • Website: https://www.econocom.com

Number of Employees


Location

  • Econocom Group SE
  • 42-46, rue Médéric
  • Clichy
  • Ile-de-France
  • 92110
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECONBENXTBR (Euronext Brussels)YesBearer and Registered SharesBEEURJan 1992
1e+91BST (Boerse-Stuttgart)YesBearer and Registered SharesDEEURJan 1992
0RPXLSE (London Stock Exchange)YesBearer and Registered SharesGBEURJan 1992
ECOG.FOTCPK (Pink Sheets LLC)YesBearer and Registered SharesUSUSDJan 1992
ECONBBBATS-CHIXE (BATS 'Chi-X Europe')YesBearer and Registered SharesGBEURJan 1992

Biography

Econocom Group SE provides digital transformation solutions. It operates in two segments, Technology Management & Financing and Digital Services & Solutions. The Technology Management & Financing segment o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:34
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.