DB:ECN

Stock Analysis Report

Electrocomponents

Executive Summary

Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas.

Snowflake

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

ECN

-3.5%

DE Electronic

-0.3%

DE Market


1 Year Return

19.6%

ECN

6.5%

DE Electronic

10.9%

DE Market

Return vs Industry: ECN exceeded the German Electronic industry which returned 6.5% over the past year.

Return vs Market: ECN exceeded the German Market which returned 10.9% over the past year.


Shareholder returns

ECNIndustryMarket
7 Day-0.9%-3.5%-0.3%
30 Day-4.4%7.6%2.6%
90 Day15.9%24.8%11.8%
1 Year22.7%19.6%7.6%6.5%14.4%10.9%
3 Year54.0%43.9%61.8%57.9%24.1%13.2%
5 Year234.4%182.5%131.0%118.6%33.0%14.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECN (€7.33) is trading above our estimate of fair value (€7.26)

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


Price To Earnings Ratio

PE vs Industry: ECN is good value based on its PE Ratio (19.4x) compared to the Electronic industry average (23.4x).

PE vs Market: ECN is good value based on its PE Ratio (19.4x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: ECN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ECN is overvalued based on its PB Ratio (4.3x) compared to the DE Electronic industry average (2x).


Next Steps

Future Growth

How is Electrocomponents forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECN's forecast earnings growth (10.4% per year) is above the savings rate (0.2%).

Earnings vs Market: ECN's earnings (10.4% per year) are forecast to grow slower than the German market (12.8% per year).

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

Revenue vs Market: ECN's revenue (3.8% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: ECN's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECN's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has Electrocomponents performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECN has high quality earnings.

Growing Profit Margin: ECN's current net profit margins (7.5%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: ECN's earnings have grown significantly by 26.3% per year over the past 5 years.

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

Earnings vs Industry: ECN had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Electronic industry average (-5.4%).


Return on Equity

High ROE: ECN's Return on Equity (22%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Electrocomponents's financial position?


Financial Position Analysis

Short Term Liabilities: ECN's short term assets (£938.7M) exceeds its short term liabilities (£606.7M)

Long Term Liabilities: ECN's short term assets (£938.7M) exceeds its long term liabilities (226.1M)


Debt to Equity History and Analysis

Debt Level: ECN's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: ECN's debt to equity ratio has reduced from 46.2% to 38.9% over the past 5 years.

Debt Coverage: ECN's debt is well covered by operating cash flow (50.1%).

Interest Coverage: ECN's interest payments on its debt are well covered by EBIT (46x coverage).


Balance Sheet

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

Debt Coverage by Assets: ECN's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Electrocomponents before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: ECN's dividend (2.42%) is higher than the bottom 25% of dividend payers in the German market (1.4%).

High Dividend: ECN's dividend (2.42%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47%), ECN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECN's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

David Egan (51yo)

0yrs

Tenure

UK£2,567,800

Compensation

Mr. David John Egan serves as Chief Financial Officer at Electrocomponents plc since May 2019 and serves as its Interim Chief Executive Officer since November, 2019 and had been its Group Finance Director  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.29M) is about average for companies of similar size in the German market ($USD2.73M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: ECN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ECN's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£55,74905 Jun 19
Peter Johnson
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares8,200
Max PriceUK£6.80
BuyUK£110,48211 Dec 18
Karen Guerra
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceUK£5.52
BuyUK£46,40504 Dec 18
Simon Pryce
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares8,000
Max PriceUK£5.80

Ownership Breakdown

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


Management Team

  • Ian Haslegrave (50yo)

    President Group Professional Services & People & Company Secretary

    • Tenure: 0.9yrs
  • David Egan (51yo)

    CFO, Interim CEO & Director

    • Tenure: 0yrs
    • Compensation: UK£2.57m
  • Polly Elvin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Lindsley Ruth (48yo)

    CEO & Director (Leave of Absence)

    • Tenure: 4.6yrs
    • Compensation: UK£4.23m
  • Debbie Lentz

    President of Global Supply Chain

    • Tenure: 2.8yrs
  • Michael Cramb

    Senior Vice President of Corporate Development

    • Tenure: 3.1yrs
  • Ken Bradley

    Interim President of Allied Electronics & Automation

    • Tenure: 0.8yrs
  • Lynn Webster-Scott

    Head of Corporate Public Relations

    • Tenure: 0yrs
  • Mike England

    President of EMEA - RS Components

    • Tenure: 1.8yrs
  • Simon Ramskill

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Joan Wainwright (58yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Simon Pryce (57yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£62.08k
  • Peter Johnson (72yo)

    Independent Chairman of the Board

    • Tenure: 7yrs
    • Compensation: UK£260.00k
  • David John Sleath (58yo)

    Senior Independent Director

    • Tenure: 0.2yrs
  • Karen Guerra (63yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£55.00k
  • Bertrand Bodson (44yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£55.00k
  • David Egan (51yo)

    CFO, Interim CEO & Director

    • Tenure: 0yrs
    • Compensation: UK£2.57m
  • Bessie Lee

    Independent Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£4.58k
  • Louisa Burdett

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£65.00k
  • Lindsley Ruth (48yo)

    CEO & Director (Leave of Absence)

    • Tenure: 4.6yrs
    • Compensation: UK£4.23m

Company Information

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


Key Information

  • Name: Electrocomponents plc
  • Ticker: ECN
  • Exchange: DB
  • Founded: 1928
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£2.843b
  • Listing Market Cap: UK£3.306b
  • Shares outstanding: 445.96m
  • Website: https://www.electrocomponents.com

Number of Employees


Location

  • Electrocomponents plc
  • Two Pancras Square
  • Fifth Floor
  • London
  • Greater London
  • N1C 4AG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EENE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ECNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ECMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
ECMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas. It pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 20:38
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.