BST:E3C

Stock Analysis Report

Executive Summary

ECSC Group plc provides information and cyber security services.


Snowflake Analysis

Adequate balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: E3C's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

E3C

3.4%

DE IT

2.2%

DE Market


1 Year Return

-16.5%

E3C

4.4%

DE IT

-17.2%

DE Market

Return vs Industry: E3C underperformed the German IT industry which returned -0% over the past year.

Return vs Market: E3C exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

E3CIndustryMarket
7 Day-3.4%3.4%2.2%
30 Day-30.0%-9.2%-15.7%
90 Day-52.1%-10.4%-24.0%
1 Year-16.5%-16.5%5.1%4.4%-14.9%-17.2%
3 Yearn/a81.5%76.0%-16.4%-23.3%
5 Yearn/a167.3%156.0%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

17.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate E3C's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate E3C's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: E3C is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: E3C is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate E3C's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E3C is overvalued based on its PB Ratio (17.2x) compared to the DE IT industry average (3.2x).


Next Steps

Future Growth

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

13.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if E3C's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if E3C's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: E3C's revenue (13.1% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: E3C's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if E3C's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ECSC Group performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E3C is currently unprofitable.

Growing Profit Margin: E3C is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E3C is unprofitable, and losses have increased over the past 5 years at a rate of -9% per year.

Accelerating Growth: Unable to compare E3C's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E3C is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (2.5%).


Return on Equity

High ROE: E3C has a negative Return on Equity (-209.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is ECSC Group's financial position?


Financial Position Analysis

Short Term Liabilities: E3C's short term assets (£1.9M) do not cover its short term liabilities (£2.3M).

Long Term Liabilities: E3C's short term assets (£1.9M) exceed its long term liabilities (£880.0K).


Debt to Equity History and Analysis

Debt Level: E3C is debt free.

Reducing Debt: E3C has not had any debt for past 5 years.


Balance Sheet

Inventory Level: E3C has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if E3C's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: E3C has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: E3C has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate E3C's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E3C's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if E3C's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E3C's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of E3C's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Ian Mann (51yo)

1.42s

Tenure

UK£255,000

Compensation

Mr. Ian Charles Mann is the Founder of ECSC Group plc and its Chief Executive Officer since September 11, 2018. Mr. Mann served as an Executive Officer of ECSC Group plc since April 5, 2018 and served as i ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD316.34K) is about average for companies of similar size in the German market ($USD431.45K).

Compensation vs Earnings: Ian's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
David Mathewson
Non-Executive Chairman & Company Secretary1.83yrsUK£69.00k0.39% £27.9k
Ian Mann
Founder1.42yrsUK£255.00k36.46% £2.6m
Lucy Sharp
COO & Executive Director3.25yrsUK£163.00k2.67% £191.0k
Gemma Basharan
CFO & Directorno datano data0.046% £3.3k
Ian Castle
Chief Technology Officer & Directorno datano datano data
Elizabeth Gooch
Non-Executive Director1.83yrsUK£30.00k0.55% £39.4k

1.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: E3C's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

ECSC Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ECSC Group plc
  • Ticker: E3C
  • Exchange: BST
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£6.369m
  • Listing Market Cap: UK£7.162m
  • Shares outstanding: 9.10m
  • Website: https://www.ecsc.co.uk

Number of Employees


Location

  • ECSC Group plc
  • 28 Campus Road
  • Listerhills Science Park
  • Bradford
  • West Yorkshire
  • BD7 1HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECSCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2016
E3CBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2016

Biography

ECSC Group plc provides information and cyber security services. The company offers services, such as managed, consultancy, testing, incident response, and vendor solutions. It also provides a range of solutions, including firewalls, intrusion prevention, and detection systems, log analysis, anti-virus, file integrity monitoring, web filtering, vulnerability scanning, email filtering, LAN switching/routing, cloud access security, and PCI desktops. It offers solutions and services to various sectors, including education, retail, legal, financial, and local authorities in the United Kingdom. The company was founded in 2000 and is based in Bradford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:16
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.