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

0.4%

ECM

-2.5%

GB Electronic

-0.3%

GB Market


1 Year Return

7.1%

ECM

8.4%

GB Electronic

3.0%

GB Market

Return vs Industry: ECM exceeded the UK Electronic industry which returned 8.4% over the past year.

Return vs Market: ECM exceeded the UK Market which returned 3% over the past year.


Shareholder returns

ECMIndustryMarket
7 Day0.4%-2.5%-0.3%
30 Day1.5%-5.9%-0.9%
90 Day10.3%-5.9%-2.0%
1 Year9.9%7.1%10.2%8.4%8.0%3.0%
3 Year91.7%79.1%47.4%40.7%18.0%3.6%
5 Year258.9%203.3%122.8%103.5%35.8%6.4%

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 compared to its fair value and its price relative to the market?

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ECM (£6.55) is trading below our estimate of fair value (£7.27)

Significantly Undervalued: ECM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ECM is good value based on its PE Ratio (19.6x) compared to the Electronic industry average (19.6x).

PE vs Market: ECM is poor value based on its PE Ratio (19.6x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ECM is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ECM is overvalued based on its PB Ratio (4.9x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECM's forecast earnings growth (9.8% per year) is above the savings rate (1.2%).

Earnings vs Market: ECM's earnings (9.8% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: ECM's revenue (4.6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ECM's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ECM's Return on Equity is forecast to be high in 3 years time (23.2%)


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

Earnings Trend: ECM's earnings have grown significantly by 24.2% per year over the past 5 years.

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

Earnings vs Industry: ECM had negative earnings growth (-1%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: ECM's Return on Equity (25.1%) is considered high.


Return on Assets

ROA vs Industry: ECM has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: ECM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Electrocomponents's financial position?


Financial Position Analysis

Short Term Liabilities: ECM's short term assets (£935.9M) exceeds its short term liabilities (£487.5M)

Long Term Liabilities: ECM's short term assets (935.9M) exceeds its long term liabilities (322.2M)


Debt to Equity History and Analysis

Debt Level: ECM's debt to equity ratio (43%) is considered high

Reducing Debt: ECM's debt to equity ratio has increased from 40.7% to 43% over the past 5 years.

Debt Coverage: ECM's debt is well covered by operating cash flow (50.2%).

Interest Coverage: ECM's interest payments on its debt are well covered by EBIT (34.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: ECM's debt is covered by short term assets (assets are 3.693370x debt).


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ECM's dividend (2.26%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: ECM's dividend (2.26%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: ECM's dividend payments have been volatile in the past 10 years.

Growing Dividend: ECM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), ECM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECM's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Lindsley Ruth (48yo)

4.5yrs

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

Compensation vs. Market: Lindsley's total compensation ($USD5.44M) is about average for companies of similar size in the UK market ($USD2.31M).

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


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: ECM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

57yo

Average Age

Experienced Board: ECM's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£49,43005 Jun 19
Peter Johnson
EntityIndividual
Role
Chairman of the Board
Independent 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
Independent Non-Executive Director
Shares20,000
Max PriceUK£5.01
BuyUK£41,16804 Dec 18
Simon Pryce
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares8,000
Max PriceUK£5.15
BuyUK£56,05720 Nov 18
Lindsley Ruth
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUK£5.61

Ownership Breakdown


Management Team

  • Kurt Colehower

    President of Electronics

    • Tenure: 0.8yrs
  • Ian Haslegrave (50yo)

    President Group Professional Services & People & Company Secretary

    • Tenure: 0.8yrs
  • David Egan (51yo)

    CFO & Director

    • Tenure: 3.6yrs
    • Compensation: UK£2.57m
  • Polly Elvin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Lindsley Ruth (48yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: UK£4.23m
  • Debbie Lentz

    President of Global Supply Chain

    • Tenure: 2.8yrs
  • Michael Cramb

    Senior Vice President of Corporate Development

    • Tenure: 3yrs
  • Ken Bradley

    Interim President of Allied Electronics & Automation

    • Tenure: 0.8yrs
  • Lynn Webster-Scott

    Head of Corporate Public Relations

    • Tenure: 0yrs
  • Simon Ramskill

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Simon Pryce (57yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£62.08k
  • Peter Johnson (72yo)

    Independent Chairman of the Board

    • Tenure: 6.9yrs
    • Compensation: UK£260.00k
  • David John Sleath (58yo)

    Senior Independent Director

    • Tenure: 0.08yrs
  • Karen Guerra (63yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£55.00k
  • Bertrand Bodson (44yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£55.00k
  • David Egan (51yo)

    CFO & Director

    • Tenure: 3.6yrs
    • Compensation: UK£2.57m
  • Bessie Lee

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£4.58k
  • Louisa Burdett

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: UK£65.00k
  • Lindsley Ruth (48yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: UK£4.23m

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£2.921b
  • Shares outstanding: 445.84m
  • Website: https://www.electrocomponents.com

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 Analysis2019/10/18 20:37
End of Day Share Price2019/10/18 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.