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

1.1%

ECK

0.07%

GB IT

-0.4%

GB Market


1 Year Return

22.9%

ECK

7.6%

GB IT

2.9%

GB Market

Return vs Industry: ECK exceeded the UK IT industry which returned 7.6% over the past year.

Return vs Market: ECK exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

ECKIndustryMarket
7 Day1.1%0.07%-0.4%
30 Day-3.1%-2.5%-1.4%
90 Day-4.6%-6.0%-2.1%
1 Year24.5%22.9%10.3%7.6%8.0%2.9%
3 Year35.6%30.6%74.2%61.3%18.0%3.6%
5 Year17.2%10.6%69.9%54.3%35.8%6.4%

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?

125.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECK (£0.47) is trading above our estimate of fair value (£0.3)

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 (125.2x) compared to the IT industry average (27.1x).

PE vs Market: ECK is poor value based on its PE Ratio (125.2x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: ECK is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: ECK is overvalued based on its PB Ratio (6.9x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

How is Eckoh forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECK's forecast earnings growth (40.1% per year) is above the savings rate (1.2%).

Earnings vs Market: ECK's earnings (40.1% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: ECK's revenue (10.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ECK's revenue (10.2% 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


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

Earnings Trend: ECK's earnings have grown significantly by 23.2% 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 (-30.2%) over the past year, making it difficult to compare to the IT industry average (4.2%).


Return on Equity

High ROE: ECK's Return on Equity (5.5%) is considered low.


Return on Assets

ROA vs Industry: ECK's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: ECK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Eckoh's financial position?


Financial Position Analysis

Short Term Liabilities: ECK's short term assets (£25.2M) exceeds its short term liabilities (£21.3M)

Long Term Liabilities: ECK's short term assets (25.2M) exceeds its long term liabilities (2.4M)


Debt to Equity History and Analysis

Debt Level: ECK's debt to equity ratio (18.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if ECK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ECK's debt is well covered by operating cash flow (223.4%).

Interest Coverage: ECK's interest payments on its debt are well covered by EBIT (29.9x 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 7.768920x debt).


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.6%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ECK's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: ECK's dividend (1.3%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

Growing Dividend: ECK's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (162.5%), ECK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECK's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Nik Philpot (55yo)

13.1yrs

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 ($USD590.83K) is about average for companies of similar size in the UK market ($USD642.11K).

Compensation vs Earnings: 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

3.4yrs

Average Tenure

Experienced Management: ECK's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: ECK's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 13.1yrs
    • 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: 0.8yrs
  • Tony Porter

    Head of Global Marketing

    • Tenure: 3.4yrs
  • Chris Rome

    Head of Sales

    • Tenure: 7.6yrs
  • Nancy Czarnick

    President of Secure Payments

    • Tenure: 3.3yrs
  • Dan Arntz

    President of US Operations

    • Tenure: 7.4yrs
  • Chrissie Herbert (48yo)

    CFO, Company Secretary & Director

    • Tenure: 2.4yrs
    • Compensation: UK£288.00k
  • Dave Bird

    Head of Finance

    • Tenure: 1.8yrs

Board Members

  • Nik Philpot (55yo)

    CEO & Director

    • Tenure: 13.1yrs
    • Compensation: UK£459.00k
  • David Coghlan (64yo)

    Non-Executive Director

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

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£35.00k
  • Chris Humphrey (62yo)

    Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: UK£61.00k
  • Chrissie Herbert (48yo)

    CFO, Company Secretary & Director

    • Tenure: 2.4yrs
    • 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£118.692m
  • 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 Analysis2019/10/20 20:41
End of Day Share Price2019/10/18 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.