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 Analysis

Excellent balance sheet with solid 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.5%

ECK

-0.09%

GB IT

-0.5%

GB Market


1 Year Return

91.3%

ECK

40.9%

GB IT

6.0%

GB Market

Return vs Industry: ECK exceeded the UK IT industry which returned 40.9% over the past year.

Return vs Market: ECK exceeded the UK Market which returned 6% over the past year.


Shareholder returns

ECKIndustryMarket
7 Day6.5%-0.09%-0.5%
30 Day9.1%1.2%-1.8%
90 Day14.8%6.4%2.4%
1 Year93.8%91.3%44.1%40.9%11.5%6.0%
3 Year79.2%72.5%120.6%105.6%18.2%3.5%
5 Year74.8%65.0%124.3%106.1%34.3%3.5%

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?

53.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECK (£0.66) is trading above our estimate of fair value (£0.42)

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 (53.5x) compared to the IT industry average (29.9x).

PE vs Market: ECK is poor value based on its PE Ratio (53.5x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ECK is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: ECK is overvalued based on its PB Ratio (8.6x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECK's forecast earnings growth (8.2% per year) is above the savings rate (0.5%).

Earnings vs Market: ECK's earnings (8.2% per year) are forecast to grow slower than the UK market (13.1% per year).

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

Revenue vs Market: ECK's revenue (8.7% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: ECK's revenue (8.7% 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


Next Steps

Past Performance

How has Eckoh performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECK has high quality earnings.

Growing Profit Margin: ECK's current net profit margins (9.4%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ECK's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: ECK's earnings growth over the past year (678.5%) exceeds its 5-year average (22.1% per year).

Earnings vs Industry: ECK earnings growth over the past year (678.5%) exceeded the IT industry 12.3%.


Return on Equity

High ROE: ECK's Return on Equity (16.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eckoh's financial position?


Financial Position Analysis

Short Term Liabilities: ECK's short term assets (£27.9M) exceed its short term liabilities (£22.2M).

Long Term Liabilities: ECK's short term assets (£27.9M) exceed its long term liabilities (£2.1M).


Debt to Equity History and Analysis

Debt Level: ECK's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: ECK's debt to equity ratio has increased from 0.2% to 13.3% over the past 5 years.

Debt Coverage: ECK's debt is well covered by operating cash flow (389.8%).

Interest Coverage: ECK's interest payments on its debt are well covered by EBIT (213.2x coverage).


Balance Sheet

Inventory Level: ECK has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECK's debt is covered by short term assets (assets are 10.7x debt).


Next Steps

Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.8%markettop25%5.0%industryaverage2.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: ECK's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: ECK's dividend (0.92%) is low compared to the top 25% of dividend payers in the UK market (5.03%).


Stability and Growth of Payments

Stable Dividend: ECK is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: ECK is not paying a notable dividend for the UK market, therefore no need to check if payments are 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?

2.8yrs

Average management tenure


CEO

Nik Philpot (55yo)

13.4yrs

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

Compensation vs Market: Nik's total compensation ($USD593.31K) is about average for companies of similar size in the UK market ($USD592.05K).

Compensation vs Earnings: Nik's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Philpot
CEO & Director13.4yrsUK£459.00k2.77% £4.6m
Christine Herbert
CFO, Company Secretary & Director2.8yrsUK£288.00k0.0079% £13.2k
Todd Funk
Senior Executive VP of US Operations & President of Eckoh Customer Contact Solutions1.1yrsno data0.14% £225.9k
Dan Arntz
President of US Operations7.8yrsno datano data
Archie Leroy Messenger
Senior Vice President of Contact Center Services0yrsno datano data
David Bird
Head of Finance2.1yrsno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: ECK's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Philpot
CEO & Director13.4yrsUK£459.00k2.77% £4.6m
Christine Herbert
CFO, Company Secretary & Director2.8yrsUK£288.00k0.0079% £13.2k
David Coghlan
Non-Executive Director2.2yrsUK£35.00kno data
Guy Millward
Non-Executive Director3.3yrsUK£35.00kno data
Christopher Humphrey
Non-Executive Chairman2.4yrsUK£61.00k0.20% £330.0k

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ECK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.3%.


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£166.445m
  • Shares outstanding: 252.19m
  • 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 offers customer engagement solutions, such as chatbots, hosted and visual interactive voice response, natural language speech recognition, and identification and verification; and Web chat, instant callback, social media agent, co-browsing, smart SMS, and external knowledge base. The company also provides payment card industry (PCI) compliance solutions, such as agent assisted payment solutions to eliminate contact center fraud; IVR payments that enable customers to make multi-channel payments through a secure and automated solution; and Web and mobile payments. In addition, it offers operational solutions, which include third party support; call routing, email management, internal knowledge base, social media monitoring, workflow, and listening solutions; and agent desktop solutions. Further, the company offers speech and support solutions; and cloud-based software solutions. It serves clients in insurance, retail and distribution, financial services, transport and travel, healthcare, and utilities industries. Eckoh plc was incorporated in 1997 and is based in Hemel Hempstead, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:46
End of Day Share Price2020/02/24 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.