AIM:ECSC

Stock Analysis Report

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Executive Summary

ECSC Group plc provides information and cyber security services.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ECSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

ECSC

0.6%

GB IT

-0.8%

GB Market


1 Year Return

-12.9%

ECSC

-6.3%

GB IT

-15.5%

GB Market

Return vs Industry: ECSC underperformed the UK IT industry which returned -6.3% over the past year.

Return vs Market: ECSC exceeded the UK Market which returned -15.5% over the past year.


Shareholder returns

ECSCIndustryMarket
7 Day-5.6%0.6%-0.8%
30 Day12.5%6.5%0.3%
90 Day-3.6%10.8%5.6%
1 Year-12.9%-12.9%-5.3%-6.3%-11.5%-15.5%
3 Year-73.0%-73.0%68.3%57.8%-4.6%-16.3%
5 Yearn/a121.3%103.6%12.5%-12.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ECSC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ECSC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ECSC is unprofitable, so we can't compare its PE Ratio to the GB IT industry average.

PE vs Market: ECSC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ECSC is overvalued based on its PB Ratio (16.6x) compared to the GB IT industry average (2.5x).


Next Steps

Future Growth

How is ECSC Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ECSC Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ECSC Group performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECSC is currently unprofitable.

Growing Profit Margin: ECSC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ECSC is unprofitable, and losses have increased over the past 5 years at a rate of -9% per year.

Accelerating Growth: Unable to compare ECSC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ECSC is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (10%).


Return on Equity

High ROE: ECSC has a negative Return on Equity (-209.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is ECSC Group's financial position?


Financial Position Analysis

Short Term Liabilities: ECSC's short term assets (£1.9M) do not cover its short term liabilities (£2.3M).

Long Term Liabilities: ECSC's short term assets (£1.9M) exceed its long term liabilities (£880.0K).


Debt to Equity History and Analysis

Debt Level: ECSC is debt free.

Reducing Debt: ECSC has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ECSC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ECSC is forecast to have sufficient cash runway for 11 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is ECSC Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ECSC'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 ECSC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECSC'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?

0.3yrs

Average management tenure


CEO

Ian Mann (52yo)

1.83yrs

Tenure

UK£214,000

Compensation

Mr. Ian Charles Mann is the Founder of ECSC Group plc and has been its Chief Executive Officer since September 11, 2018. Mr. Mann served as an Executive Officer of ECSC Group plc since April 5, 2018 and se ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD270.58K) is about average for companies of similar size in the UK market ($USD347.71K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Mathewson
Independent Non-Executive Chairman & Company Secretary2.25yrsUK£89.00k0.35% £23.9k
Ian Mann
Founder1.83yrsUK£214.00k33.45% £2.3m
Lucy Sharp
COO & Executive Director3.67yrsUK£181.00k2.42% £163.8k
Gemma Basharan
CFO & Director0.33yrno data0.042% £2.8k
Ian Castle
Chief Technology Officer & Director0.33yrno data2.31% £155.8k

0.3yrs

Average Tenure

52yo

Average Age

Experienced Management: ECSC's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Mathewson
Independent Non-Executive Chairman & Company Secretary2.25yrsUK£89.00k0.35% £23.9k
Ian Mann
Founder1.83yrsUK£214.00k33.45% £2.3m
Lucy Sharp
COO & Executive Director3.67yrsUK£181.00k2.42% £163.8k
Gemma Basharan
CFO & Director0.33yrno data0.042% £2.8k
Ian Castle
Chief Technology Officer & Director0.33yrno data2.31% £155.8k
Elizabeth Gooch
Independent Non-Executive Director2.25yrsUK£48.00k0.50% £33.7k

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ECSC's board of directors are not considered experienced ( 2.2 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: ECSC 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 10%.


Top Shareholders

Company Information

ECSC Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ECSC Group plc
  • Ticker: ECSC
  • Exchange: AIM
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£6.755m
  • Shares outstanding: 10.01m
  • Website: https://www.ecsc.co.uk

Number of Employees


Location

  • ECSC Group plc
  • 28 Campus Road
  • Listerhills Science Park
  • Bradford
  • West Yorkshire
  • BD7 1HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECSCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2016
E3CBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2016

Biography

ECSC Group plc provides information and cyber security services. It operates through three segments: Consulting, Managed Services, and Vendor Products. The company offers services, such as managed, consultancy, testing, incident response, and vendor solutions. It also provides a range of solutions, including firewalls, intrusion detection systems, log analysis/ security information and event management (SIEM), cloud SIEM / SOAR, file integrity monitoring, vulnerability scanning, and PCI desktops. It offers solutions and services to various sectors, including education, retail, legal, financial, and local authorities. The company was founded in 2000 and is based in Bradford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 21:03
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.