ecotel communication (E4C) AI Stock Analysis

• Market Cap: €46.08M
• Dividend Yield: 3.56%
• Average Volume (3M): 339.00
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.24
• Revenue Growth: 9.59%
• EPS Growth: -37.13%
• Country: DE
• Employees: 220
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 3,517,820
• 10 Day Avg. Volume: 414
• 30 Day Avg. Volume: 339
• PEG Ratio: 0.13
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: €13.50 ▲(3.05%Upside)

The most significant factor is the company's robust revenue growth and solid equity base, which supports its financial stability. However, declining profitability and inconsistent free cash flow are concerning. Technical analysis reflects mixed signals with potential resistance levels, while the valuation suggests the stock may be overvalued. The lack of earnings call data and corporate events limits additional insights.

ecotel communication Business Overview & Revenue Model

Company Description

ecotel communication ag provides marketing information and telecommunication solutions in Germany. The company operates through ecotel Business Customers, ecotel Wholesale, Easybell, and Nacamar segments. The ecotel Business Customers segment offers voice and data services; and products as a supplier for other ICT companies. The ecotel Wholesale Solutions segment provides cross-network trading services in telephone minutes and marketing data lines for national and international carriers. The Easybell segment offers telephone systems for business customers, and a router rental model, as well as call-by-call services for domestic and international phone calls. The Nacamar segment provides content delivery network streaming services for media companies. ecotel communication ag was founded in 1998 and is headquartered in Düsseldorf, Germany.

How the Company Makes Money

Ecotel Communication (E4C) generates revenue primarily through subscription-based models where customers pay for mobile and internet services on a recurring basis. Key revenue streams include monthly or annual subscriptions for phone plans, data packages, and broadband services. Additionally, E4C profits from business contracts for enterprise communication solutions, which often involve long-term agreements and bundled service offerings. The company may also engage in strategic partnerships with technology firms and other service providers to offer bundled services, enhancing its value proposition and driving additional revenue through cross-selling opportunities.

ecotel communication Financial Statement Overview

Summary

Ecotel Communication exhibits strong revenue growth and maintains a solid equity base, which are positive indicators. However, declining profitability metrics and inconsistent free cash flow generation pose potential challenges. The company should focus on improving its cost structure and managing debt levels to enhance financial stability and investor confidence.

Income Statement

The company has shown a consistent increase in total revenue over the years, with a substantial growth rate from 2022 to 2023. However, the net income has fluctuated, showing a decline in the most recent period. Gross profit margin has been healthy, but the net profit margin has decreased, which could indicate rising costs or operational inefficiencies. The company needs to focus on improving its profitability metrics.

Balance Sheet

The balance sheet is relatively strong with a stable equity ratio, indicating a good portion of assets funded by equity. However, there is an increasing trend in debt, as observed from the debt-to-equity ratio. The return on equity has declined recently, which may affect investor confidence. Overall, the company maintains a solid equity base but should manage its debt levels carefully.

Cash Flow

The operating cash flow has shown a positive trend, but free cash flow growth is inconsistent, with a sharp decline in the most recent period. The free cash flow to net income ratio suggests that the company is generating sufficient cash relative to its earnings, though the recent drop in free cash flow is concerning. The company should aim to stabilize its free cash flow generation to support future investments and debt obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.54M	106.29M	93.33M	95.87M	98.30M
Gross Profit	33.14M	32.53M	31.72M	46.74M	38.02M
EBITDA	7.74M	12.95M	23.50M	9.65M	11.56M
Net Income	2.01M	7.43M	12.16M	7.27M	2.63M
Balance Sheet
Total Assets	54.23M	47.33M	108.41M	61.08M	53.93M
Cash, Cash Equivalents and Short-Term Investments	2.79M	3.70M	67.67M	13.00M	8.41M
Total Debt	6.82M	6.43M	5.90M	10.05M	13.23M
Total Liabilities	30.02M	23.60M	26.17M	32.03M	30.54M
Stockholders Equity	24.21M	23.73M	82.24M	24.24M	19.83M
Cash Flow
Free Cash Flow	553.16K	2.18M	22.98M	10.25M	4.30M
Operating Cash Flow	7.47M	6.10M	28.49M	15.43M	10.26M
Investing Cash Flow	-6.90M	-2.14M	44.03M	-4.92M	-5.85M
Financing Cash Flow	-1.93M	-67.19M	-18.22M	-5.64M	-4.90M

ecotel communication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:E4C, the sentiment is Positive. The current price of 13.1 is above the 20-day moving average (MA) of 12.85, above the 50-day MA of 12.87, and below the 200-day MA of 13.23, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:E4C.

ecotel communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E4C	63 Neutral	€46.08M	23.04	8.24%	3.56%	9.59%	-37.13%
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.94%	2.29%	-73.14%
0NXT		€17.44M	202.94	2.93%	―	―	―
GGS		€3.97M	―		―	―	―
0O45		€26.18M	―	-18.53%	―	―	―
C1V		€11.17M	―	-136.71%	―	―	―
IFS		€61.65M	163.10	3.46%	0.73%	―	―