OTCPK:EENE.F

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 Analysis

Flawless balance sheet established dividend payer.


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

Stable Share Price: EENE.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EENE.F

-3.7%

US Electronic

-2.0%

US Market


1 Year Return

n/a

EENE.F

-27.0%

US Electronic

-15.1%

US Market

Return vs Industry: Insufficient data to determine how EENE.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how EENE.F performed against the US Market.


Shareholder returns

EENE.FIndustryMarket
7 Day0%-3.7%-2.0%
30 Day0%-23.6%-19.7%
90 Dayn/a-32.5%-23.2%
1 Yearn/a-26.3%-27.0%-13.4%-15.1%
3 Year35.1%35.1%-3.7%-6.4%10.9%3.7%
5 Yearn/a16.2%10.5%28.4%14.4%

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

No news available

Valuation

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

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EENE.F ($7.97) is trading below our estimate of fair value ($8.02)

Significantly Below Fair Value: EENE.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EENE.F is poor value based on its PE Ratio (14.8x) compared to the Electronic industry average (14.3x).

PE vs Market: EENE.F is poor value based on its PE Ratio (14.8x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: EENE.F is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: EENE.F is overvalued based on its PB Ratio (3.2x) compared to the US Electronic industry average (1.4x).


Next Steps

Future Growth

How is Electrocomponents forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EENE.F's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: EENE.F's earnings (6.3% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: EENE.F's revenue (2.3% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: EENE.F's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EENE.F's Return on Equity is forecast to be high in 3 years time (23.9%)


Next Steps

Past Performance

How has Electrocomponents performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EENE.F has high quality earnings.

Growing Profit Margin: EENE.F's current net profit margins (7.5%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: EENE.F's earnings have grown significantly by 26.3% per year over the past 5 years.

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

Earnings vs Industry: EENE.F had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Electronic industry average (0.03%).


Return on Equity

High ROE: EENE.F's Return on Equity (22%) is considered high.


Next Steps

Financial Health

How is Electrocomponents's financial position?


Financial Position Analysis

Short Term Liabilities: EENE.F's short term assets (£938.7M) exceed its short term liabilities (£606.7M).

Long Term Liabilities: EENE.F's short term assets (£938.7M) exceed its long term liabilities (£226.1M).


Debt to Equity History and Analysis

Debt Level: EENE.F's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: EENE.F's debt to equity ratio has reduced from 49.2% to 38.9% over the past 5 years.

Debt Coverage: EENE.F's debt is well covered by operating cash flow (50.1%).

Interest Coverage: EENE.F's interest payments on its debt are well covered by EBIT (46x coverage).


Balance Sheet

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

Debt Coverage by Assets: EENE.F's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

3.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EENE.F's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: EENE.F's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

Stable Dividend: EENE.F's dividends per share have been stable in the past 10 years.

Growing Dividend: EENE.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47%), EENE.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EENE.F's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Lindsley Ruth (48yo)

0.17

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 was ...


CEO Compensation Analysis

Compensation vs Market: Lindsley's total compensation ($USD5.17M) is about average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lindsley Ruth
CEO & Director0.17yrUK£4.23m0.17% £4.6m
David Egan
CFO & Director4.08yrsUK£2.57m0.055% £1.5m
Simon Ramskill
Chief Technology Officer1.25yrsno datano data
Polly Elvin
Vice President of Investor Relationsno datano datano data
Lynn Webster-Scott
Head of Corporate Public Relationsno datano datano data
Michael Cramb
Senior Vice President of Corporate Development3.5yrsno datano data
Ian Haslegrave
President Group Professional Services & Peopleno datano datano data
Kenneth Bradley
Interim President of Allied Electronics & Automation1.25yrsno datano data
Debbie Lentz
President of Global Supply Chain3.25yrsno datano data
Mike England
President of EMEA - RS Components2.25yrsno datano data

1.8yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Lindsley Ruth
CEO & Director0.17yrUK£4.23m0.17% £4.6m
David Egan
CFO & Director4.08yrsUK£2.57m0.055% £1.5m
Ian Haslegrave
President Group Professional Services & Peopleno datano datano data
Simon Pryce
Independent Non-Executive Director3.58yrsUK£62.08k0.0063% £165.9k
Peter Johnson
Independent Chairman of the Board7.42yrsUK£260.00k0.038% £992.7k
David John Sleath
Senior Independent Director0.58yrno datano data
Karen Guerra
Independent Non-Executive Director7.25yrsUK£55.00k0.011% £292.2k
Bertrand Bodson
Independent Non-Executive Director4.83yrsUK£55.00k0.0045% £118.4k
Qianling Lee
Independent Non-Executive Director1.08yrsUK£4.58kno data
Louisa Burdett
Independent Non-Executive Director3.17yrsUK£65.00kno data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: EENE.F's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EENE.F 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

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


Key Information

  • Name: Electrocomponents plc
  • Ticker: EENE.F
  • Exchange: OTCPK
  • Founded: 1928
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£2.158b
  • Listing Market Cap: UK£2.642b
  • Shares outstanding: 446.05m
  • 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 provides industrial interconnect and test, industrial automation and control, board-level electronics, and single-board computing products, as well as tools, consumables, and facilities maintenance products. The company offers automation and control products, including programmable logic controllers, safety devices, sensors, cables, and pneumatic cylinders for the food and beverage, packaging, manufacturing, marine, and oil and gas industries; and tools and consumables, such as workbench equipment, mechanical tools and personal protective equipment, 3D printers, USB Flash-drives, and fluorescent tubes for the research, development, maintenance, and repair of production plants, buildings, and machineries. It also provides thermal imaging cameras, oscilloscopes, multi-meters, data loggers, gas leak detectors, and particle counters for use in various areas of engineering; and interconnect, passive, and electromechanical systems. In addition, the company offers semiconductors comprising microcontrollers, voltage regulators, transistors, and diodes; and single-board computers for use in automation and process control in industries, as well as teaching of computer programming in schools. Further, it operates DesignSpark, an online design community and resource center for makers, students, and design engineers. The company markets its products through digital, trade counter, customer service, and sales support channels under the RS Components, Allied Electronics & Automation, RS PRO, OKdo, IESA, and Monition brands to electronic design engineers, machine and panel builders, and maintenance engineers, as well as buyers. Electrocomponents plc was founded in 1928 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 05:13
End of Day Share Price2020/03/05 00:00
Earnings2019/09/30
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.