ecotel communication (E4C) AI Stock Analysis

• Market Cap: €25.86M
• Dividend Yield: 2.44%
• Average Volume (3M): 563.00
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.36
• Revenue Growth: 5.40%
• EPS Growth: 193.69%
• Country: DE
• Employees: 220
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -0.35
• Shares Outstanding: 3,542,980
• 10 Day Avg. Volume: 555
• 30 Day Avg. Volume: 563
• PEG Ratio: -836.29
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -205.85
• 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): €132.70M

• Rating: 47 Neutral
• Price Target: €7.00 ▼(-45.74% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is pressured primarily by weak profitability and declining cash-flow quality, alongside very bearish technical momentum (price far below key moving averages with negative MACD). A comparatively stable balance sheet and a ~4% dividend yield provide partial support but do not offset the operating/technical weakness.

Positive Factors

Improving leverage

Declining absolute debt and a sizable equity base indicate improving leverage and lower refinancing risk. This durable balance-sheet strength supports financial flexibility for network investment or operating cushions, reducing probability of distress during cyclical downturns.

Sustained revenue growth

Multi-year top-line growth shows persistent customer demand and market traction. Durable revenue expansion provides scale benefits, helps absorb fixed costs, and forms a foundation to restore margins through upsells, cross-sells, and operational leverage over the medium term.

Positive operating cash flow

Positive operating cash flow despite profit weakness indicates the business still converts sales into cash. This ongoing cash generation reduces near-term funding needs, supports the dividend and required capex, and gives management time to execute a structural recovery plan.

Negative Factors

Operating loss in 2025

A return to operating losses and essentially zero net income undermines the company's ability to self-fund growth or dividends. Persistent operating deficits would erode margins and reserves, forcing restructuring, higher financing, or reduced strategic investment over the medium term.

Free cash flow deterioration

Negative free cash flow after investment signals weakening cash conversion and tighter funding flexibility. Over months, continued FCF deficits constrain capital allocation, raise reliance on debt or equity, and limit the firm's ability to invest in network upgrades or competitive offerings.

Collapsed returns on equity

ROE collapsing to near zero indicates the company is not earning adequate returns on its capital base. That durable impairment in capital efficiency makes compounding shareholder value difficult and signals either pricing, cost, or investment allocation problems needing structural fixes.

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.

ecotel communication Financial Statement Overview

Summary

Financials are mixed. The income statement is weak (operating loss in 2025 and near-zero net income despite revenue growth), cash generation has softened with free cash flow turning slightly negative in 2025, but the balance sheet remains comparatively solid with declining debt and a strong equity base.

Income Statement

Revenue has generally grown from 2021–2025 (annual growth positive in 2022–2025), but profitability has deteriorated sharply after an exceptionally strong 2022. Net income fell from 7.4M (2023) to 2.0M (2024) and was essentially breakeven in 2025 (0.0005M), while operating profit turned negative in 2025 (EBIT -1.5M). Gross profit also compressed materially in 2025 versus 2024, pointing to margin pressure despite continued top-line growth.

Balance Sheet

Leverage appears manageable and improving: total debt declined from 6.8M (2024) to 5.1M (2025), and debt-to-equity was moderate in 2023–2024 (~0.27–0.28) after being higher in 2020–2021. Equity remains sizable versus debt, supporting balance-sheet stability. The key weakness is returns: return on equity collapsed to near zero in 2025, reflecting the earnings reset and reducing the balance sheet’s ability to compound value.

Cash Flow

Operating cash flow stayed positive in 2025 (4.2M), but cash generation has weakened versus 2024 (7.5M) and especially versus 2022’s elevated level. Free cash flow turned slightly negative in 2025 (-0.2M) after being modestly positive in 2024 (0.6M), suggesting higher investment needs and/or weaker underlying profitability conversion. Overall, cash flow is still providing some support, but consistency and cushion have declined.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	115.80M	124.21M	115.54M	106.29M	93.33M	70.89M
Gross Profit	34.64M	15.86M	33.14M	32.53M	31.72M	17.80M
EBITDA	7.81M	2.95M	7.74M	12.45M	23.50M	9.65M
Net Income	2.01M	500.00	2.01M	7.43M	67.54M	4.78M
Balance Sheet
Total Assets	51.27M	55.16M	54.23M	47.33M	108.41M	61.08M
Cash, Cash Equivalents and Short-Term Investments	1.19M	1.13M	2.79M	3.70M	66.93M	12.64M
Total Debt	8.47M	5.10M	6.82M	6.43M	5.90M	10.05M
Total Liabilities	26.34M	31.79M	30.02M	23.60M	26.17M	32.03M
Stockholders Equity	24.92M	23.36M	24.21M	23.73M	82.24M	24.24M
Cash Flow
Free Cash Flow	-471.84K	-203.10K	553.16K	2.18M	22.98M	10.25M
Operating Cash Flow	3.83M	4.23M	7.47M	6.10M	28.49M	15.43M
Investing Cash Flow	-4.29M	-2.13M	-6.90M	-2.14M	44.03M	-4.92M
Financing Cash Flow	-984.18K	-3.31M	-1.93M	-67.19M	-18.22M	-5.64M

ecotel communication Technical Analysis

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

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 8.99, above the 50-day MA of 10.39, and above the 200-day MA of 12.24, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 14.70 is Positive, neither overbought nor oversold. The STOCH value of 0.78 is Positive, 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
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LSX	54 Neutral	€20.97M	26.22	5.59%	―	-0.92%	―
TGT	48 Neutral	€16.40M	307.72	-14.06%	―	-3.43%	72.86%
E4C	47 Neutral	€25.86M	22.00	10.82%	2.44%	5.40%	193.69%