AIM:ECK

Stock Analysis Report

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Executive Summary

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

Rewards

Revenue is forecast to grow 20.69% per year

Risk Analysis

ECK passed our risk checks.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: ECK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

ECK

3.3%

GB IT

-0.5%

GB Market


1 Year Return

5.8%

ECK

11.7%

GB IT

-8.2%

GB Market

Return vs Industry: ECK underperformed the UK IT industry which returned 11.1% over the past year.

Return vs Market: ECK exceeded the UK Market which returned -7.7% over the past year.


Shareholder returns

ECKIndustryMarket
7 Day0.8%3.3%-0.5%
30 Day1.6%6.2%3.0%
90 Day-4.5%16.3%14.1%
1 Year6.7%5.8%13.2%11.7%-4.5%-8.2%
3 Year60.1%54.2%75.9%67.4%3.7%-9.0%
5 Year52.4%43.8%175.1%147.9%42.1%14.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

51.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECK (£0.64) is trading above our estimate of fair value (£0.4)

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 (51.7x) compared to the GB IT industry average (42.6x).

PE vs Market: ECK is poor value based on its PE Ratio (51.7x) compared to the UK market (23.1x).


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 (7.8x) compared to the GB IT industry average (2.8x).


Next Steps

Future Growth

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

20.7%

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 (1%).

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 (20.7% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: ECK's revenue (20.7% per year) is forecast to grow faster 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


Next Steps

Past Performance

How has Eckoh performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECK has high quality earnings.

Growing Profit Margin: ECK's current net profit margins (10.2%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: ECK has become profitable over the past 5 years, growing earnings by 24.1% per year.

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 (-0.4%) over the past year, making it difficult to compare to the IT industry average (10.5%).


Return on Equity

High ROE: ECK's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Eckoh's financial position?


Financial Position Analysis

Short Term Liabilities: ECK's short term assets (£27.4M) exceed its short term liabilities (£19.9M).

Long Term Liabilities: ECK's short term assets (£27.4M) exceed its long term liabilities (£1.3M).


Debt to Equity History and Analysis

Debt Level: ECK's debt to equity ratio (9.3%) is considered satisfactory.

Reducing Debt: ECK's debt to equity ratio has reduced from 12.3% to 9.3% over the past 5 years.

Debt Coverage: ECK's debt is well covered by operating cash flow (309.4%).

Interest Coverage: ECK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.36%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: ECK is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nik Philpot (56 yo)

14.33yrs

Tenure

UK£454,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Nik's total compensation ($USD620.31K) is about average for companies of similar size in the UK market ($USD588.09K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Philpot
CEO & Executive Director14.33yrsUK£454.00k2.78%
£ 4.5m
Christine Herbert
CFO, Company Secretary & Executive Director3.67yrsUK£292.00k0.014%
£ 22.4k
Ed Johnson
Chief Operating Officer of UKno datano data0.12%
£ 194.9k
Keith Ward
Technical Directorno datano datano data
Steve Butler
Legal Counsel & Data Protection Officerno datano datano data
Mark Holmes
Head of Sales - UKno datano datano data
Nicky Hjerpe
Head of Marketingno datano datano data
Peter Hros
Head of Human Resourcesno datano datano data
Todd Funk
Senior Executive VP of US Operations & President of Eckoh Customer Contact Solutions2yrsno data0.14%
£ 219.0k
Dan Arntz
President of US Operations8.67yrsno datano data
David Bird
Head of Finance3yrsno datano data
Lyndsay Lang
Head of Human Resources - US1yrno datano data

3.3yrs

Average Tenure

Experienced Management: ECK's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Philpot
CEO & Executive Director14.33yrsUK£454.00k2.78%
£ 4.5m
Christine Herbert
CFO, Company Secretary & Executive Director3.67yrsUK£292.00k0.014%
£ 22.4k
David Coghlan
Independent Non-Executive Director3.08yrsUK£36.00kno data
Guy Millward
Independent Non-Executive Director4.25yrsUK£36.00kno data
Christopher Humphrey
Independent Non-Executive Chairman3.33yrsUK£62.00k0.21%
£ 336.0k

3.7yrs

Average Tenure

56yo

Average Age

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


Ownership

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


Insider Trading Volume

Insider Buying: ECK 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 company bio, 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£161.125m
  • Shares outstanding: 251.76m
  • Website: https://www.eckoh.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECKAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1999
TZ5ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1999

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 19:25
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.