OB:ECIT

Stock Analysis Report

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Market Cap

kr4.7b

Last Updated

2021/07/31 16:22 UTC

Data Sources

Company Financials

Executive Summary

ECIT AS provides accounting, payroll, and IT services in Norway and internationally. More Details


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ECIT is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: Insufficient data to determine ECIT's volatility change over the past year.


Market Performance


7 Day Return

1.0%

ECIT

-0.3%

NO IT

0.2%

NO Market


1 Year Return

n/a

ECIT

37.3%

NO IT

31.8%

NO Market

Return vs Industry: Insufficient data to determine how ECIT performed against the Norwegian IT industry.

Return vs Market: Insufficient data to determine how ECIT performed against the Norwegian Market.


Shareholder returns

ECITIndustryMarket
7 Day1.0%-0.3%0.2%
30 Day31.7%3.4%-0.8%
90 Dayn/a-0.9%2.1%
1 Yearn/a38.7%37.3%36.7%31.8%
3 Yearn/a68.1%59.1%18.7%5.2%
5 Yearn/a102.2%82.5%77.4%44.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

35.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECIT (NOK10.6) is trading above our estimate of fair value (NOK3.73)

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


Price To Earnings Ratio

PE vs Industry: ECIT is poor value based on its PE Ratio (35.5x) compared to the Norwegian IT industry average (26x).

PE vs Market: ECIT is poor value based on its PE Ratio (35.5x) compared to the Norwegian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ECIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ECIT's PB Ratio (5.9x) is in line with the NO IT industry average.


Future Growth

How is ECIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ECIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has ECIT performed over the past 5 years?

115.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ECIT has a large one-off gain of NOK42.9M impacting its March 31 2021 financial results.

Growing Profit Margin: ECIT's current net profit margins (6.8%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ECIT's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare ECIT's past year earnings growth to its 5-year average.

Earnings vs Industry: ECIT earnings growth over the past year (115.9%) exceeded the IT industry 34.8%.


Return on Equity

High ROE: ECIT's Return on Equity (13.8%) is considered low.


Financial Health

How is ECIT's financial position?


Financial Position Analysis

Short Term Liabilities: ECIT's short term assets (NOK617.0M) do not cover its short term liabilities (NOK727.0M).

Long Term Liabilities: ECIT's short term assets (NOK617.0M) exceed its long term liabilities (NOK336.0M).


Debt to Equity History and Analysis

Debt Level: ECIT's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ECIT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ECIT's debt is well covered by operating cash flow (169.6%).

Interest Coverage: ECIT's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ECIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ECIT'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 ECIT's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

PL Lauring (62 yo)

8.17yrs

Tenure

Mr. Peter Lauring is also known as PL is Founder at ECIT AS since 2013 and has been its Chief Executive Officer and Director since May 2013. He has been with the Company since May 2013. He has experience f...


Leadership Team

Experienced Management: ECIT's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: ECIT's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ECIT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: ECIT only recently listed within the past 12 months.


Top Shareholders

Company Information

ECIT AS's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ECIT AS
  • Ticker: ECIT
  • Exchange: OB
  • Founded: 2013
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr4.697b
  • Shares outstanding: 443.01m
  • Website: https://www.ecit.com

Number of Employees


Location

  • ECIT AS
  • Rolfsbuktveien 4A
  • Fornebu
  • 1364
  • Norway

Listings


Biography

ECIT AS provides accounting, payroll, and IT services in Norway and internationally. The company provides accounting and bookkeeping, payroll administration and HR, and financial advisory services, as well...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 16:22
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.