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ELCO

ElecoAIM:ELCO Stock Report

Market Cap

UK£91.3m

7D

-1.3%

1Y

42.7%

Updated

22 Oct, 2021

Data

Company Financials +
ELCO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends0/6

ELCO Overview

Eleco Plc provides software and related services in the United Kingdom, Scandinavia, Germany, the rest of Europe, the United States, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Eleco
Historical stock prices
Current Share PriceUK£1.12
52 Week HighUK£0.73
52 Week LowUK£1.47
Beta1.16
1 Month Change-12.50%
3 Month Change-15.15%
1 Year Change42.68%
3 Year Change46.41%
5 Year Change296.46%
Change since IPO133.33%

Recent News & Updates

Sep 04
Estimating The Fair Value Of Eleco Plc (LON:ELCO)

Estimating The Fair Value Of Eleco Plc (LON:ELCO)

How far off is Eleco Plc ( LON:ELCO ) from its intrinsic value? Using the most recent financial data, we'll take a look...

Shareholder Returns

ELCOGB SoftwareGB Market
7D-1.3%1.0%-0.08%
1Y42.7%5.5%24.4%

Return vs Industry: ELCO exceeded the UK Software industry which returned 5.5% over the past year.

Return vs Market: ELCO exceeded the UK Market which returned 24.4% over the past year.

Price Volatility

Is ELCO's price volatile compared to industry and market?
ELCO volatility
ELCO Beta1.16
Industry Beta0.75
Market Beta1

Stable Share Price: ELCO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ELCO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1895246Jonathan Hunterhttps://www.elecosoft.com

Eleco Plc provides software and related services in the United Kingdom, Scandinavia, Germany, the rest of Europe, the United States, and internationally. The company offers CAD architecture software under the Arcon Evo, Staircon, o2c names; construction cost estimation software under the Bidcon name; building information management solution under the IconSystem name; interior room configuration software under the Interiorstudio name; product information management and digital asset management solutions under the MarketingManager name; and Materialo, a flooring visualizer software. It also provides project management software under the Powerproject, Memmo, and Project Viewer names; ShireSystem, a combined CMMS and CAFM software; project planning software under the Easyplan name; Framing, a design tool for timber frame and floor construction; and Tilos, a time chainage software for time-location planning.

Eleco Fundamentals Summary

How do Eleco's earnings and revenue compare to its market cap?
ELCO fundamental statistics
Market CapUK£91.29m
Earnings (TTM)UK£3.44m
Revenue (TTM)UK£26.85m

26.7x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELCO income statement (TTM)
RevenueUK£26.85m
Cost of RevenueUK£2.55m
Gross ProfitUK£24.30m
ExpensesUK£20.86m
EarningsUK£3.44m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.042
Gross Margin90.51%
Net Profit Margin12.83%
Debt/Equity Ratio16.0%

How did ELCO perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

14%

Payout Ratio

Valuation

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

26.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELCO (£1.12) is trading above our estimate of fair value (£0.54)

Significantly Below Fair Value: ELCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ELCO is good value based on its PE Ratio (26.7x) compared to the UK Software industry average (59.2x).

PE vs Market: ELCO is poor value based on its PE Ratio (26.7x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: ELCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ELCO is good value based on its PB Ratio (4x) compared to the GB Software industry average (4.4x).


Future Growth

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

-30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELCO's earnings are forecast to decline over the next 3 years (-30.6% per year).

Earnings vs Market: ELCO's earnings are forecast to decline over the next 3 years (-30.6% per year).

High Growth Earnings: ELCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ELCO's revenue (5.6% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: ELCO's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELCO's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Eleco performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELCO has high quality earnings.

Growing Profit Margin: ELCO's current net profit margins (12.8%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: ELCO's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: ELCO's earnings growth over the past year (17.6%) is below its 5-year average (21.9% per year).

Earnings vs Industry: ELCO earnings growth over the past year (17.6%) exceeded the Software industry -1.9%.


Return on Equity

High ROE: ELCO's Return on Equity (14.9%) is considered low.


Financial Health

How is Eleco's financial position?


Financial Position Analysis

Short Term Liabilities: ELCO's short term assets (£15.8M) exceed its short term liabilities (£12.9M).

Long Term Liabilities: ELCO's short term assets (£15.8M) exceed its long term liabilities (£5.1M).


Debt to Equity History and Analysis

Debt Level: ELCO's debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: ELCO's debt to equity ratio has reduced from 22.7% to 16% over the past 5 years.

Debt Coverage: ELCO's debt is well covered by operating cash flow (171.3%).

Interest Coverage: ELCO's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Dividend

What is Eleco current dividend yield, its reliability and sustainability?

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELCO's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: ELCO's dividend (0.36%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

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

Growing Dividend: ELCO 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: ELCO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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

0.6yrs

Average management tenure


CEO

Jonathan Hunter (42 yo)

1.08yrs

Tenure

UK£265,000

Compensation

Mr. Jonathan Albert Hunter, BBus BMm, serves as Chief Executive Officer at Eleco Plc since February 2021 and Director since June 14, 2016. He served as an Interim Chief Executive Officer of Eleco plc since...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD364.78K) is about average for companies of similar size in the UK market ($USD329.57K).

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


Leadership Team

Experienced Management: ELCO's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ELCO's board of directors are not considered experienced ( 0.6 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: ELCO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Eleco Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Eleco Plc
  • Ticker: ELCO
  • Exchange: AIM
  • Founded: 1895
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£91.294m
  • Shares outstanding: 82.25m
  • Website: https://www.elecosoft.com

Number of Employees


Location

  • Eleco Plc
  • 6 Bevis Marks
  • London
  • Greater London
  • EC3A 7BA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 20:56
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.