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ELCO

Eleco AIM:ELCO Stock Report

Last Price

UK£0.68

Market Cap

UK£55.9m

7D

3.8%

1Y

-41.4%

Updated

06 Oct, 2022

Data

Company Financials +
ELCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ELCO Stock Overview

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

Eleco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eleco
Historical stock prices
Current Share PriceUK£0.68
52 Week HighUK£1.18
52 Week LowUK£0.62
Beta0.96
1 Month Change-4.23%
3 Month Change-4.90%
1 Year Change-41.38%
3 Year Change-9.33%
5 Year Change54.55%
Change since IPO41.67%

Recent News & Updates

Shareholder Returns

ELCOGB SoftwareGB Market
7D3.8%0.9%2.1%
1Y-41.4%-16.3%-13.5%

Return vs Industry: ELCO underperformed the UK Software industry which returned -15.4% over the past year.

Return vs Market: ELCO underperformed the UK Market which returned -12.6% over the past year.

Price Volatility

Is ELCO's price volatile compared to industry and market?
ELCO volatility
ELCO Average Weekly Movement3.4%
Software Industry Average Movement5.1%
Market Average Movement5.6%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.9%

Stable Share Price: ELCO is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ELCO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1895245Jonathan 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; Bidcon, a construction estimating software; IconSystem, a cloud-based collaborative building information management software to record, specify, design, and manage building data; Interiorstudio, a room configuration and visualization interior design software; MarketingManager, which combines product information management and digital asset management to create an effective central database; and Materialo, a flooring visualizer software. It also provides Powerproject, a planning and project management software; Memmo, a project site management and collaboration software; ShireSystem, a combined CMMS and CAFM software to manage multiple locations and assets; Staircon, a CAD/CAM software for designing and manufacturing staircases; Statcon, a design software for structural engineering; 3D Architect, a software to support self-builders to plan and visualize small to large scale building design projects; Easyplan, an intuitive planning software for planning, managing, and delivery of smaller projects; Framing, a design tool for timber frame and floor construction; o2c, a CAD compression software to optimize 3D data for transfer; Project Viewer for viewing files without having a licensed copy of software on device; 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£55.93m
Earnings (TTM)UK£2.27m
Revenue (TTM)UK£26.95m

24.6x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELCO income statement (TTM)
RevenueUK£26.95m
Cost of RevenueUK£3.04m
Gross ProfitUK£23.91m
Other ExpensesUK£21.63m
EarningsUK£2.27m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.028
Gross Margin88.71%
Net Profit Margin8.43%
Debt/Equity Ratio0%

How did ELCO perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ELCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELCO?

Other financial metrics that can be useful for relative valuation.

ELCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA7.1x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does ELCO's PE Ratio compare to its peers?

ELCO PE Ratio vs Peers
The above table shows the PE ratio for ELCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average39.1x
OMG Oxford Metrics
41.6xn/aUK£108.4m
NET Netcall
53.9xn/aUK£129.3m
IGP Intercede Group
30.6xn/aUK£22.1m
QTX Quartix Technologies
30.1x7.0%UK£154.9m
ELCO Eleco
24.6x12.4%UK£55.9m

Price-To-Earnings vs Peers: ELCO is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (39.1x).


Price to Earnings Ratio vs Industry

How does ELCO's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: ELCO is good value based on its Price-To-Earnings Ratio (24.6x) compared to the UK Software industry average (35.3x)


Price to Earnings Ratio vs Fair Ratio

What is ELCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.6x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: ELCO is good value based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).


Share Price vs Fair Value

What is the Fair Price of ELCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELCO (£0.68) is trading above our estimate of fair value (£0.64)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELCO's forecast earnings growth (12.4% per year) is above the savings rate (0.9%).

Earnings vs Market: ELCO's earnings (12.4% per year) are forecast to grow faster than the UK market (8.7% per year).

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

Revenue vs Market: ELCO's revenue (7.8% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: ELCO's revenue (7.8% 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 (11%).


Discover growth companies

Past Performance

How has Eleco performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELCO has high quality earnings.

Growing Profit Margin: ELCO's current net profit margins (8.4%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: ELCO's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: ELCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELCO had negative earnings growth (-34%) over the past year, making it difficult to compare to the Software industry average (25.4%).


Return on Equity

High ROE: ELCO's Return on Equity (9.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Eleco's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELCO's short term assets (£15.8M) exceed its short term liabilities (£12.2M).

Long Term Liabilities: ELCO's short term assets (£15.8M) exceed its long term liabilities (£3.1M).


Debt to Equity History and Analysis

Debt Level: ELCO is debt free.

Reducing Debt: ELCO has no debt compared to 5 years ago when its debt to equity ratio was 28.4%.

Debt Coverage: ELCO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ELCO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.88%

Current Dividend Yield

Dividend Yield vs Market

Eleco Dividend Yield vs Market
How does Eleco dividend yield compare to the market?
SegmentDividend Yield
Company (Eleco)0.9%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.0%
Industry Average (Software)1.8%
Analyst forecast in 3 Years (Eleco)1.1%

Notable Dividend: ELCO's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.07%).

High Dividend: ELCO's dividend (0.88%) is low compared to the top 25% of dividend payers in the UK market (5.99%).


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.


Earnings Payout to Shareholders

Earnings Coverage: ELCO is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: ELCO is not paying a notable dividend for the UK market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Jonathan Hunter (43 yo)

6.33yrs

Tenure

UK£426,000

Compensation

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


CEO Compensation Analysis

Jonathan Hunter's Compensation vs Eleco Earnings
How has Jonathan Hunter's remuneration changed compared to Eleco's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£2m

Mar 31 2022n/an/a

UK£3m

Dec 31 2021UK£426kUK£200k

UK£3m

Sep 30 2021n/an/a

UK£3m

Jun 30 2021n/an/a

UK£3m

Mar 31 2021n/an/a

UK£3m

Dec 31 2020UK£265kUK£224k

UK£3m

Sep 30 2020n/an/a

UK£3m

Jun 30 2020n/an/a

UK£3m

Mar 31 2020n/an/a

UK£3m

Dec 31 2019UK£206kUK£175k

UK£3m

Sep 30 2019n/an/a

UK£2m

Jun 30 2019n/an/a

UK£2m

Mar 31 2019n/an/a

UK£2m

Dec 31 2018UK£188kUK£152k

UK£2m

Sep 30 2018n/an/a

UK£2m

Jun 30 2018n/an/a

UK£2m

Mar 31 2018n/an/a

UK£2m

Dec 31 2017UK£167kUK£134k

UK£2m

Sep 30 2017n/an/a

UK£2m

Jun 30 2017n/an/a

UK£2m

Mar 31 2017n/an/a

UK£1m

Dec 31 2016UK£55kUK£44k

UK£1m

Compensation vs Market: Jonathan's total compensation ($USD476.63K) is above average for companies of similar size in the UK market ($USD338.02K).

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


Leadership Team

Experienced Management: ELCO's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: ELCO's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of ELCO?
Owner TypeNumber of SharesOwnership Percentage
Private Companies17,5250.02%
Public Companies191,7880.2%
Employee Share Scheme907,8491.1%
General Public15,376,49518.7%
Individual Insiders19,168,48123.3%
Institutions46,584,66356.6%

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


Top Shareholders

Top 25 shareholders own 77.39% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.38%
John Henry Ketteley
9,359,957£6.4m0%no data
9.29%
Allen Holding Inc., Asset Management Arm
7,641,719£5.2m0%0.57%
6.64%
John Lee
5,462,064£3.7m0%no data
5.5%
Rights and Issues Investment Trust Public Limited Company
4,520,781£3.1m0%2.18%
5.16%
Herbert Allen
4,240,865£2.9m2.63%no data
4.76%
Fuchs & Associes Finance SA
3,918,563£2.7m0%1.59%
4.75%
Tikvah Management LLC
3,905,614£2.7m0%1.39%
3.83%
Janus Henderson Group plc
3,153,443£2.1m5.57%no data
3.63%
Charles Stanley & Co. Ltd, Asset Management Arm
2,985,265£2.0m-1.05%0.02%
3.52%
J O Hambro Capital Management Limited
2,891,013£2.0m44.55%0.01%
2.7%
Schroder Investment Management Limited
2,217,325£1.5m-10.13%no data
2.14%
J.M. Finn & Co. Ltd.
1,758,658£1.2m-0.47%0.03%
2.04%
Fiske Plc, Asset Management Arm
1,676,056£1.1m-2.61%0.47%
1.82%
Credit Suisse, Investment Banking and Securities Investments
1,493,957£1.0m0%no data
1.55%
A J Bell Holdings Limited, Asset Management Arm
1,274,881£866.9k1.61%0.01%
1.19%
UniCredit S.p.A., Private and Commercial Banking Arm
977,000£664.4k0%0.1%
1.1%
Eleco plc, ESOP
907,849£617.3k0%no data
1.06%
Discover Capital GmbH
873,632£594.1k0%0.52%
1.03%
Barclays Bank PLC, Wealth and Investment Management Division
849,443£577.6k0.92%0.01%
0.98%
Axxion S.A.
810,000£550.8k0%0.26%
0.85%
HSBC Global Asset Management (UK) Limited
700,460£476.3k-50.31%no data
0.84%
HBOS Investment Fund Managers Limited
689,753£469.0k0.48%0.01%
0.77%
M. D. Barnard & Co. Ltd., Asset Management Arm
635,088£431.9k195.39%0.57%
0.46%
Bankinter SA, Asset Management Arm
379,235£257.9k0%0.14%
0.4%
Avanza Fonder AB
327,836£222.9k-8.38%0.01%

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
  • Implied Market Cap: UK£55.928m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELCOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992
5H3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.