ecotel communication (E4C) AI Stock Analysis

• Market Cap: €42.92M
• Dividend Yield: 2.38%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.17
• Revenue Growth: 5.40%
• EPS Growth: 193.69%
• Country: DE
• Employees: 220
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.15
• Shares Outstanding: 3,517,820
• 10 Day Avg. Volume: 821
• 30 Day Avg. Volume: 1,049
• PEG Ratio: -0.32
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 85.22
• 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
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): €103.32M

• Rating: 59 Neutral
• Price Target: €14.00 ▲(8.53% Upside)

The overall stock score of 59 reflects the company's financial challenges, particularly in revenue and cash flow, which are the most significant factors. Technical analysis indicates a neutral to slightly bearish trend, and valuation metrics suggest the stock is moderately valued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Business Model Diversification

A diversified business model with multiple revenue streams, including internet, VoIP, and cloud services, enhances resilience and growth potential.

Stable Balance Sheet

Low leverage and a healthy equity ratio indicate financial stability, providing a solid foundation for future investments and growth.

EPS Growth

Significant EPS growth suggests improved profitability and operational efficiency, enhancing shareholder value over the medium term.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates challenges in market demand or competitive positioning, impacting long-term financial health.

Cash Flow Constraints

Severe cash flow constraints limit the company's ability to invest in growth opportunities and may affect operational sustainability.

Profit Margin Pressure

Decreasing profit margins reflect operational inefficiencies or pricing pressures, which could hinder long-term profitability and competitiveness.

ecotel communication Business Overview & Revenue Model

Company Description

Ecotel Communication (E4C) is a telecommunications company specializing in providing innovative communication solutions tailored for both businesses and consumers. Operating primarily in the telecom sector, E4C offers a wide range of services including internet connectivity, voice over IP (VoIP), mobile and fixed telephony, and cloud-based communication solutions. The company is committed to enhancing connectivity and communication efficiency through state-of-the-art technology and customer-centric service delivery.

How the Company Makes Money

Ecotel Communication generates revenue through multiple streams, primarily by offering subscription-based services for internet and telephony solutions to businesses and residential customers. Key revenue streams include monthly fees for broadband internet access, VoIP services, and mobile plans. Additionally, E4C may earn income from value-added services such as cloud storage, data management, and consultation services. The company also forms strategic partnerships with technology providers and local businesses, allowing it to expand its service offerings and reach a broader customer base, which further contributes to its earnings.

ecotel communication Financial Statement Overview

Summary

The company faces challenges with declining revenue and profitability, as well as cash flow constraints. The balance sheet remains stable with low leverage, but the reduced return on equity and cash flow issues could pose risks if not addressed. Strategic improvements in revenue generation and cost management are necessary to enhance financial performance.

Income Statement

The income statement shows a mixed performance. The gross profit margin is stable around 30%, but the net profit margin has declined to 1.73% in the TTM, indicating pressure on profitability. Revenue growth has been negative recently, with a -18.3% decline in the TTM, which is concerning. EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The balance sheet is relatively strong with a manageable debt-to-equity ratio of 0.34 in the TTM, indicating low leverage. However, the return on equity has decreased significantly from previous years, now at 8.32%, suggesting reduced efficiency in generating returns for shareholders. The equity ratio remains healthy, indicating a stable financial structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate at -85.47% in the TTM. The operating cash flow to net income ratio has decreased, indicating less cash generation relative to net income. The negative free cash flow to net income ratio highlights cash flow constraints, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.80M	115.54M	106.29M	93.33M	70.89M	98.30M
Gross Profit	34.64M	33.14M	32.53M	31.72M	17.80M	38.02M
EBITDA	7.81M	7.74M	12.45M	23.50M	9.65M	11.56M
Net Income	2.01M	2.01M	7.43M	67.54M	4.78M	1.00M
Balance Sheet
Total Assets	51.27M	54.23M	47.33M	108.41M	61.08M	53.93M
Cash, Cash Equivalents and Short-Term Investments	1.19M	2.79M	3.70M	66.93M	12.64M	7.76M
Total Debt	8.47M	6.82M	6.43M	5.90M	10.05M	13.23M
Total Liabilities	26.34M	30.02M	23.60M	26.17M	32.03M	30.54M
Stockholders Equity	24.92M	24.21M	23.73M	82.24M	24.24M	19.83M
Cash Flow
Free Cash Flow	-471.84K	553.16K	2.18M	22.98M	10.25M	4.30M
Operating Cash Flow	3.83M	7.47M	6.10M	28.49M	15.43M	10.26M
Investing Cash Flow	-4.29M	-6.90M	-2.14M	44.03M	-4.92M	-5.85M
Financing Cash Flow	-984.18K	-1.93M	-67.19M	-18.22M	-5.64M	-4.90M

ecotel communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:E4C, the sentiment is Negative. The current price of 12.9 is above the 20-day moving average (MA) of 12.53, below the 50-day MA of 12.95, and above the 200-day MA of 12.88, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:E4C.

ecotel communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E4C	59 Neutral	€42.92M	16.18	11.24%	2.38%	5.40%	193.69%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LSX	53 Neutral	€22.13M	-8.25	-18.53%	―	-3.15%	-44.42%
TGT	46 Neutral	€14.82M	―	-14.65%	―	-3.43%	72.86%