AIM:ECK

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

ECK

0.8%

GB IT

0.05%

GB Market


1 Year Return

39.6%

ECK

-0.7%

GB IT

-0.7%

GB Market

ECK outperformed the IT industry which returned -0.7% over the past year.

ECK outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

ECKIndustryMarket
7 Day1.0%0.8%0.05%
30 Day5.4%-1.1%3.5%
90 Day6.0%-1.0%-0.1%
1 Year41.7%39.6%1.6%-0.7%4.1%-0.7%
3 Year23.4%19.0%67.4%55.2%21.2%6.7%
5 Year11.5%6.6%63.4%48.8%31.5%3.8%

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 based on future cash flows and its price relative to the stock market?

129.23x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Eckoh's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Eckoh's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Eckoh is overvalued based on earnings compared to the GB IT industry average.

Eckoh is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Eckoh is poor value based on expected growth next year.


Price Based on Value of Assets

Eckoh is overvalued based on assets compared to the GB IT industry average.


Next Steps

Future Growth

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

40.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Eckoh's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Eckoh's earnings are expected to grow significantly at over 20% yearly.

Eckoh's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Eckoh's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Eckoh's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Eckoh will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Eckoh performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Eckoh has delivered over 20% year on year earnings growth in the past 5 years.

Eckoh's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Eckoh's 1-year earnings growth is negative, it can't be compared to the GB IT industry average.


Return on Equity

Eckoh has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Eckoh used its assets less efficiently than the GB IT industry average last year based on Return on Assets.


Return on Capital Employed

Eckoh's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Eckoh's financial position?


Financial Position Analysis

Eckoh is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Eckoh's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Eckoh's level of debt (18.9%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Eckoh's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (223.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 29.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 7.8x debt.


Next Steps

Dividend

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

1.51%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Eckoh's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

Eckoh's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Whilst dividend payments have been stable, Eckoh has been paying a dividend for less than 10 years.

Dividend payments have increased, but Eckoh only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nik Philpot (55yo)

13yrs

Tenure

UK£459,000

Compensation

Mr. Nicholas Barnaby Philpot, also known as Nik, is a Founder of Eckoh Plc. He has served as the Chief Executive Officer since September 2006 and Director since February 2, 1999 and served as Chief Operati ...


CEO Compensation Analysis

Nik's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Nik's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

The tenure for the Eckoh management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Eckoh board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Eckoh individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£68,88705 Jul 19
Eckoh Plc, Share Incentive Plan
EntityCompany
Shares146,101
Max PriceUK£0.47
BuyUK£47,37504 Jul 19
Christopher Humphrey
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceUK£0.47
BuyUK£18,75022 Nov 18
Nicholas Philpot
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUK£0.38

Ownership Breakdown


Management Team

  • Nik Philpot (55yo)

    CEO & Director

    • Tenure: 13yrs
    • Compensation: UK£459.00k
  • Archie Messenger

    Senior Vice President of Contact Center Services

    • Tenure: 0yrs
  • Todd Funk

    Senior Executive VP of US Operations & President of Eckoh Customer Contact Solutions

    • Tenure: 0.7yrs
  • Tony Porter

    Head of Global Marketing

    • Tenure: 3.3yrs
  • Chris Rome

    Head of Sales

    • Tenure: 7.5yrs
  • Nancy Czarnick

    President of Secure Payments

    • Tenure: 3.3yrs
  • Dan Arntz

    President of US Operations

    • Tenure: 7.3yrs
  • Chrissie Herbert (48yo)

    CFO, Company Secretary & Director

    • Tenure: 2.3yrs
    • Compensation: UK£288.00k
  • Dave Bird

    Head of Finance

    • Tenure: 1.7yrs

Board Members

  • Nik Philpot (55yo)

    CEO & Director

    • Tenure: 13yrs
    • Compensation: UK£459.00k
  • David Coghlan (64yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£35.00k
  • Guy Millward (54yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£35.00k
  • Chris Humphrey (62yo)

    Non-Executive Chairman

    • Tenure: 2yrs
    • Compensation: UK£61.00k
  • Chrissie Herbert (48yo)

    CFO, Company Secretary & Director

    • Tenure: 2.3yrs
    • Compensation: UK£288.00k

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£121.218m
  • Shares outstanding: 252.54m
  • 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

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 Analysis2019/09/19 20:38
End of Day Share Price2019/09/19 00:00
Earnings2019/03/31
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.