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ARC

Arcontech Group AIM:ARC Stock Report

Last Price

UK£0.74

Market Cap

UK£10.0m

7D

0%

1Y

-56.8%

Updated

15 Aug, 2022

Data

Company Financials +
ARC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends3/6

ARC Stock Overview

Arcontech Group Plc, together with its subsidiaries, develops and sells proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australia, and the Asia Pacific.

Arcontech Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arcontech Group
Historical stock prices
Current Share PriceUK£0.74
52 Week HighUK£1.74
52 Week LowUK£0.69
Beta0.29
1 Month Change-1.97%
3 Month Change-6.29%
1 Year Change-56.81%
3 Year Change-51.47%
5 Year Change15.50%
Change since IPO-89.14%

Recent News & Updates

Oct 14
A Look At The Intrinsic Value Of Arcontech Group plc (LON:ARC)

A Look At The Intrinsic Value Of Arcontech Group plc (LON:ARC)

How far off is Arcontech Group plc ( LON:ARC ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

ARCGB SoftwareGB Market
7D0%2.9%0.03%
1Y-56.8%-18.9%-8.3%

Return vs Industry: ARC underperformed the UK Software industry which returned -19.8% over the past year.

Return vs Market: ARC underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is ARC's price volatile compared to industry and market?
ARC volatility
ARC Average Weekly Movement3.6%
Software Industry Average Movement5.2%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: ARC is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
197917Matthew Jeffshttps://www.arcontech.com

Arcontech Group Plc, together with its subsidiaries, develops and sells proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australia, and the Asia Pacific. Its products include CityVision, a market data platform for real-time data reception, transformation, and publishing; CityVision Multi Vendor Contribution System, which enables the user to contribute data automatically and simultaneously to various destinations; and CityVision Cache, a real-time data repository. The company also offers Excelerator, a vendor independent system that enables real time reception and publishing of market data, as well as provides flexibility and control to manipulate data from various sources through Excel’s mathematical and display features.

Arcontech Group Fundamentals Summary

How do Arcontech Group's earnings and revenue compare to its market cap?
ARC fundamental statistics
Market CapUK£9.96m
Earnings (TTM)UK£969.80k
Revenue (TTM)UK£2.90m

10.3x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARC income statement (TTM)
RevenueUK£2.90m
Cost of RevenueUK£0
Gross ProfitUK£2.90m
Other ExpensesUK£1.93m
EarningsUK£969.80k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.073
Gross Margin100.00%
Net Profit Margin33.46%
Debt/Equity Ratio0%

How did ARC perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

38%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ARC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARC?

Other financial metrics that can be useful for relative valuation.

ARC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA4.7x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

How does ARC's PE Ratio compare to its peers?

ARC PE Ratio vs Peers
The above table shows the PE ratio for ARC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.6x
PEB Pebble Beach Systems Group
8.2x8.0%UK£11.9m
IGP Intercede Group
35.1xn/aUK£25.3m
ITIM Itim Group
101xn/aUK£25.4m
PEG Petards Group
6.2xn/aUK£5.4m
ARC Arcontech Group
10.3x-29.9%UK£10.0m

Price-To-Earnings vs Peers: ARC is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (37.6x).


Price to Earnings Ratio vs Industry

How does ARC's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: ARC is good value based on its Price-To-Earnings Ratio (10.3x) compared to the UK Software industry average (49.4x)


Price to Earnings Ratio vs Fair Ratio

What is ARC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: ARC is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


Share Price vs Fair Value

What is the Fair Price of ARC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARC (£0.75) is trading above our estimate of fair value (£0.66)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-29.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARC's earnings are forecast to decline over the next 3 years (-29.9% per year).

Earnings vs Market: ARC's earnings are forecast to decline over the next 3 years (-29.9% per year).

High Growth Earnings: ARC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARC's revenue is expected to decline over the next 3 years (-4.6% per year).

High Growth Revenue: ARC's revenue is forecast to decline over the next 3 years (-4.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has Arcontech Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARC has high quality earnings.

Growing Profit Margin: ARC's current net profit margins (33.5%) are lower than last year (38.4%).


Past Earnings Growth Analysis

Earnings Trend: ARC's earnings have grown by 16.1% per year over the past 5 years.

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

Earnings vs Industry: ARC had negative earnings growth (-16.6%) over the past year, making it difficult to compare to the Software industry average (-13.1%).


Return on Equity

High ROE: ARC's Return on Equity (14.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Arcontech Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARC's short term assets (£5.9M) exceed its short term liabilities (£1.7M).

Long Term Liabilities: ARC's short term assets (£5.9M) exceed its long term liabilities (£119.0K).


Debt to Equity History and Analysis

Debt Level: ARC is debt free.

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

Debt Coverage: ARC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ARC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ARC's dividend (3.69%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: ARC's dividend (3.69%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARC has been paying a dividend for less than 10 years.

Growing Dividend: ARC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.8%), ARC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.6%), ARC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

9.3yrs

Average board tenure


CEO

Matthew Jeffs (60 yo)

9.33yrs

Tenure

UK£186,178

Compensation

Mr. Matthew David Jeffs has been the Chief Executive Officer of Arcontech Group Plc since April 29, 2013. Mr. Jeffs spent ten years with Dow Jones and then six years with Reuters in a variety of roles. He...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD224.84K) is below average for companies of similar size in the UK market ($USD338.23K).

Compensation vs Earnings: Matthew's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: ARC's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Arcontech Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Arcontech Group plc
  • Ticker: ARC
  • Exchange: AIM
  • Founded: 1979
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: UK£9.963m
  • Shares outstanding: 13.37m
  • Website: https://www.arcontech.com

Number of Employees


Location

  • Arcontech Group plc
  • 11-21 Paul Street
  • 1st Floor
  • London
  • Greater London
  • EC2A 4JU
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.