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ECK

EckohAIM:ECK Stock Report

Market Cap

UK£151.7m

7D

-0.8%

1Y

-9.1%

Updated

30 Nov, 2021

Data

Company Financials +
ECK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends3/6

ECK Stock Overview

Eckoh plc, together with its subsidiaries, provides secure payment products and customer contact solutions in the United Kingdom, the United States, and internationally.

Rewards

Revenue is forecast to grow 7.21% per year

Risk Analysis

No risks detected for ECK from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Eckoh
Historical stock prices
Current Share PriceUK£0.60
52 Week HighUK£0.83
52 Week LowUK£0.46
Beta0.24
1 Month Change16.51%
3 Month Change1.70%
1 Year Change-9.09%
3 Year Change60.00%
5 Year Change54.84%
Change since IPO-76.88%

Recent News & Updates

Nov 11
Eckoh (LON:ECK) Is Looking To Continue Growing Its Returns On Capital

Eckoh (LON:ECK) Is Looking To Continue Growing Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Aug 26
Eckoh plc's (LON:ECK) CEO Looks Like They Deserve Their Pay Packet

Eckoh plc's (LON:ECK) CEO Looks Like They Deserve Their Pay Packet

The performance at Eckoh plc ( LON:ECK ) has been quite strong recently and CEO Nik Philpot has played a role in it...

May 21
Eckoh plc's (LON:ECK) Intrinsic Value Is Potentially 22% Below Its Share Price

Eckoh plc's (LON:ECK) Intrinsic Value Is Potentially 22% Below Its Share Price

In this article we are going to estimate the intrinsic value of Eckoh plc ( LON:ECK ) by estimating the company's...

Shareholder Returns

ECKGB ITGB Market
7D-0.8%1.1%-2.6%
1Y-9.1%27.1%10.9%

Return vs Industry: ECK underperformed the UK IT industry which returned 29.7% over the past year.

Return vs Market: ECK underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is ECK's price volatile compared to industry and market?
ECK volatility
ECK Average Weekly Movement4.6%
IT Industry Average Movement5.0%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: ECK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ECK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997230Nik Philpothttps://www.eckoh.com

Eckoh plc, together with its subsidiaries, provides secure payment products and customer contact solutions in the United Kingdom, the United States, and internationally. It offers customer engagement solutions, such as advanced interactive voice response (IVR), speech recognition IVR, visual IVR, chatbots, AI customer service. The company also provides secure payment solutions, which include CallGuard, an automated IVR system; DataGuard for payments made over the web or a mobile; ChatGuard for payments made through a web chat or chatbot; online payments, payment methods, personal customer data, remote agent payments; and payment card industry compliance solutions.

Eckoh Fundamentals Summary

How do Eckoh's earnings and revenue compare to its market cap?
ECK fundamental statistics
Market CapUK£151.70m
Earnings (TTM)UK£2.79m
Revenue (TTM)UK£30.49m

54.3x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ECK income statement (TTM)
RevenueUK£30.49m
Cost of RevenueUK£6.29m
Gross ProfitUK£24.20m
ExpensesUK£21.40m
EarningsUK£2.79m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.011
Gross Margin79.36%
Net Profit Margin9.16%
Debt/Equity Ratio4.8%

How did ECK perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

54.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECK (£0.6) is trading above our estimate of fair value (£0.55)

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


Price To Earnings Ratio

PE vs Industry: ECK is poor value based on its PE Ratio (54.3x) compared to the UK IT industry average (42.6x).

PE vs Market: ECK is poor value based on its PE Ratio (54.3x) compared to the UK market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ECK is overvalued based on its PB Ratio (7.4x) compared to the GB IT industry average (4.3x).


Future Growth

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

7.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ECK's forecast earnings growth is above the savings rate (0.9%).

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

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

Revenue vs Market: ECK's revenue (7.2% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: ECK's revenue (7.2% 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 ECK's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Eckoh performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECK has high quality earnings.

Growing Profit Margin: ECK's current net profit margins (9.2%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: ECK's earnings have grown by 15.1% per year over the past 5 years.

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

Earnings vs Industry: ECK had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the IT industry average (13.9%).


Return on Equity

High ROE: ECK's Return on Equity (13.7%) is considered low.


Financial Health

How is Eckoh's financial position?


Financial Position Analysis

Short Term Liabilities: ECK's short term assets (£26.2M) exceed its short term liabilities (£20.0M).

Long Term Liabilities: ECK's short term assets (£26.2M) exceed its long term liabilities (£1.1M).


Debt to Equity History and Analysis

Debt Level: ECK has more cash than its total debt.

Reducing Debt: ECK's debt to equity ratio has reduced from 25.3% to 4.8% over the past 5 years.

Debt Coverage: ECK's debt is well covered by operating cash flow (439.8%).

Interest Coverage: ECK's interest payments on its debt are well covered by EBIT (91x coverage).


Balance Sheet


Dividend

What is Eckoh current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECK's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: ECK's dividend (1.02%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: ECK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.3%), ECK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECK's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Nik Philpot (57 yo)

15.17yrs

Tenure

UK£338,000

Compensation

Mr. Nicholas Barnaby Philpot, also known as Nik, is a Founder of Eckoh Plc, Chief Executive Officer since September 21, 2006 and Executive Director since February 02, 1999. He has served as the Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Nik's total compensation ($USD447.53K) is about average for companies of similar size in the UK market ($USD560.47K).

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


Leadership Team

Experienced Management: ECK's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: ECK's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Eckoh plc's employee growth, exchange listings and data sources


Key Information

  • Name: Eckoh plc
  • Ticker: ECK
  • Exchange: AIM
  • Founded: 1997
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£151.697m
  • Shares outstanding: 252.83m
  • Website: https://www.eckoh.com

Number of Employees


Location

  • Eckoh plc
  • Telford House
  • Corner Hall
  • Hemel Hempstead
  • Hertfordshire
  • HP3 9HN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:33
End of Day Share Price2021/11/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.