AIM:ECSC

Stock Analysis Report

Executive Summary

ECSC Group plc provides information and cyber security services.

Rewards

Revenue is forecast to grow 20.78% per year

Risk Analysis

Earnings have declined by -23.57% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet with limited growth.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.6%

ECSC

-3.8%

GB IT

-3.0%

GB Market


1 Year Return

-6.5%

ECSC

43.7%

GB IT

11.0%

GB Market

Return vs Industry: ECSC underperformed the UK IT industry which returned 41.4% over the past year.

Return vs Market: ECSC underperformed the UK Market which returned 12.4% over the past year.


Shareholder returns

ECSCIndustryMarket
7 Day-24.6%-3.8%-3.0%
30 Day-21.8%-6.4%-2.4%
90 Day48.3%13.3%3.9%
1 Year-6.5%-6.5%47.0%43.7%16.8%11.0%
3 Year-50.0%-50.0%110.3%96.3%20.0%4.7%
5 Yearn/a111.1%90.4%38.9%6.8%

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?

17.19x

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 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 (24.4x) compared to the GB IT industry average (2.8x).


Next Steps

Future Growth

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

20.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ECSC's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if ECSC'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: ECSC's revenue (20.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ECSC's revenue (20.8% 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 ECSC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ECSC Group performed over the past 5 years?

-23.6%

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 -23.6% 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 (12.3%).


Return on Equity

High ROE: ECSC has a negative Return on Equity (-173.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ECSC Group's financial position?


Financial Position Analysis

Short Term Liabilities: ECSC's short term assets (£1.7M) do not cover its short term liabilities (£2.1M).

Long Term Liabilities: ECSC's short term assets (£1.7M) exceed its long term liabilities (£828.0K).


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

Inventory Level: ECSC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ECSC's debt is covered by short term assets.


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ECSC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.1%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.8yrs

Average board tenure


CEO

Ian Mann (51yo)

1.3yrs

Tenure

UK£255,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD331.58K) is about average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Ian's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: ECSC's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Mathewson (71yo)

    Non-Executive Chairman & Company Secretary

    • Tenure: 1.8yrs
    • Compensation: UK£69.00k
  • Ian Mann (51yo)

    Founder

    • Tenure: 1.3yrs
    • Compensation: UK£255.00k
  • Lucy Sharp (39yo)

    COO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£163.00k

Board Members

  • David Mathewson (71yo)

    Non-Executive Chairman & Company Secretary

    • Tenure: 1.8yrs
    • Compensation: UK£69.00k
  • Elizabeth Gooch (57yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£30.00k
  • Ian Mann (51yo)

    Founder

    • Tenure: 1.3yrs
    • Compensation: UK£255.00k
  • Lucy Sharp (39yo)

    COO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£163.00k

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£9.781m
  • Shares outstanding: 9.10m
  • 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. The company offers services, such as managed, consultancy, testing, incident response, and vendor solutions. It also provides a range of solutions, including firewalls, intrusion prevention, and detection systems, log analysis, anti-virus, file integrity monitoring, web filtering, vulnerability scanning, email filtering, LAN switching/routing, cloud access security, and PCI desktops. It offers solutions and services to various sectors, including education, retail, legal, financial, and local authorities in the United Kingdom. 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 Analysis2020/01/27 22:56
End of Day Share Price2020/01/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.