LSE:ECM

Stock Analysis Report

Executive Summary

Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

LSE:ECM

-1.7%

GB Electronic

-2.0%

GB Market


1 Year Return

-25.5%

LSE:ECM

-6.0%

GB Electronic

-5.8%

GB Market

ECM underperformed the Electronic industry which returned -6.6% over the past year.

ECM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.4% over the past year.


Share holder returns

ECMIndustryMarket
7 Day0.1%-1.7%-2.0%
30 Day-7.0%-6.9%-5.1%
90 Day-10.8%-3.9%-3.3%
1 Year-23.6%-25.5%-4.4%-6.0%-1.5%-5.8%
3 Year93.9%81.2%54.3%47.4%17.7%3.9%
5 Year168.6%127.0%99.5%82.3%26.9%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Electrocomponents undervalued based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Electrocomponents's share price is below the future cash flow value, and at a moderate discount (> 20%).

Electrocomponents's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Electrocomponents is good value based on earnings compared to the GB Electronic industry average.

Electrocomponents is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Electrocomponents is poor value based on expected growth next year.


Price Based on Value of Assets

Electrocomponents is overvalued based on assets compared to the GB Electronic industry average.


Next Steps

Future Growth

How is Electrocomponents expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Electrocomponents's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Electrocomponents's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Electrocomponents's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Electrocomponents's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Electrocomponents's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Electrocomponents is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Electrocomponents performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Electrocomponents has delivered over 20% year on year earnings growth in the past 5 years.

Electrocomponents's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Electrocomponents's 1-year earnings growth is negative, it can't be compared to the GB Electronic industry average.


Return on Equity

Electrocomponents has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Electrocomponents used its assets more efficiently than the GB Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Electrocomponents has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Electrocomponents's financial position?


Financial Position Analysis

Electrocomponents is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Electrocomponents's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Electrocomponents's level of debt (43%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (40.7% vs 43% today).

Debt is well covered by operating cash flow (50.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 34.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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

3.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Electrocomponents's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Electrocomponents's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Lindsley Ruth (48yo)

4.3yrs

Tenure

UK£4,225,169

Compensation

Mr. Lindsley Ruth serves as an Independent Non-Executive Director of Ashtead Group plc since May 01, 2019. Mr. Ruth has been the Chief Executive Officer of Electrocomponents plc since April 1, 2015. He joi ...


CEO Compensation Analysis

Lindsley's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Lindsley's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

50yo

Average Age

The tenure for the Electrocomponents management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

The tenure for the Electrocomponents board of directors is about average.


Insider Trading

More shares have been bought than sold by Electrocomponents individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£49,43005 Jun 19
Peter Johnson
EntityIndividual
Role
Chairman of the Board
Shares8,200
Max PriceUK£6.03
BuyUK£100,16011 Dec 18
Karen Guerra
EntityIndividual
Role
Member of the Board of Directors
Shares20,000
Max PriceUK£5.01
BuyUK£41,16804 Dec 18
Simon Pryce
EntityIndividual
Role
Member of the Board of Directors
Shares8,000
Max PriceUK£5.15
BuyUK£56,05720 Nov 18
Lindsley Ruth
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares10,000
Max PriceUK£5.61
SellUK£372,33024 Aug 18
Lindsley Ruth
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares50,000
Max PriceUK£7.45

Ownership Breakdown


Management Team

  • Michael Cramb

    Senior Vice President of Corporate Development

    • Tenure: 2.8yrs
  • Frank Lee

    President of Asia Pacific - RS Components

    • Tenure: 1.6yrs
  • Guy Magrath

    Chief Digital Data & Technology Officer

    • Tenure: 0.6yrs
  • Debbie Lentz

    President of Global Supply Chain

    • Tenure: 2.6yrs
  • Kurt Colehower

    President of Electronics

    • Tenure: 0.6yrs
  • Polly Elvin

    Head of Investor Relations and Corporate PR

  • Ian Haslegrave (50yo)

    President Group Professional Services & People & Company Secretary

    • Tenure: 0.7yrs
  • Lindsley Ruth (48yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: £4.23m
  • Lynn Webster-Scott

    Head of Corporate Public Relations

  • David Egan (51yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: £2.57m

Board Members

  • Peter Johnson (72yo)

    Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: £260.00k
  • David John Sleath (58yo)

    Non-Executive Director

    • Tenure: 0.2yrs
  • Louisa Burdett

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: £65.00k
  • Simon Pryce (57yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: £62.08k
  • Karen Guerra (63yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: £55.00k
  • Bertrand Bodson (44yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: £55.00k
  • Bessie Lee

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: £4.58k
  • Lindsley Ruth (48yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: £4.23m
  • David Egan (51yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: £2.57m
  • John Pattullo (66yo)

    Senior Independent Director

    • Tenure: 3.1yrs
    • Compensation: £68.08k

Company Information

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


Key Information

  • Name: Electrocomponents plc
  • Ticker: ECM
  • Exchange: LSE
  • Founded: 1928
  • Industry: technology distributors
  • Sector: tech
  • Market Cap: UK£2.462b
  • Shares outstanding: 445.28m
  • Website: Click here

Number of Employees


Location

  • Electrocomponents plc
  • Two Pancras Square
  • Fifth Floor
  • London
  • Greater London
  • N1C 4AG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EENE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ECNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ECMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
ECMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas. It pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 20:37
End of Day Share Price2019/08/16 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.