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Arcontech Group plc (GB:ARC)
:ARC
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Arcontech (ARC) AI Stock Analysis

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GB:ARC

Arcontech

(LSE:ARC)

Rating:73Outperform
Price Target:
100.00p
▲(11.73%Upside)
Arcontech's overall score is supported by strong financial performance characterized by solid revenue growth and profitability, as well as a stable balance sheet. The valuation is attractive with a low P/E ratio, although the dividend yield is atypically high. Technical analysis indicates neutral to slightly bullish momentum.

Arcontech (ARC) vs. iShares MSCI United Kingdom ETF (EWC)

Arcontech Business Overview & Revenue Model

Company DescriptionArcontech (ARC) is a UK-based company specializing in providing real-time financial market data distribution and management solutions. The company operates in the financial technology sector, serving global financial institutions including banks, brokers, and hedge funds. Arcontech's core products and services include software solutions that facilitate the aggregation, dissemination, and integration of market data across various platforms, enhancing the efficiency of clients' trading and risk management operations.
How the Company Makes MoneyArcontech makes money primarily through the licensing of its software solutions to financial institutions. The company's revenue model is largely based on recurring subscription fees for its software products, which are tailored to meet the specific needs of its clients in the financial services industry. Key revenue streams include license fees, maintenance and support contracts, and professional services. Significant partnerships with leading financial institutions and continuous product innovation contribute to Arcontech's earnings by expanding its client base and enhancing its service offerings.

Arcontech Financial Statement Overview

Summary
Arcontech demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet shows financial stability with low leverage and high equity. Cash flows are robust, supporting operational and investment activities.
Income Statement
82
Very Positive
Arcontech demonstrates strong profitability with a consistent increase in revenue over the years, achieving a revenue growth rate of 6.6% in the latest year. The company maintains impressive gross and net profit margins, with a net profit margin improving to 36.7% in 2024. EBIT and EBITDA margins also reflect strong operational efficiency. These metrics highlight the company's solid revenue generation and cost management capabilities.
Balance Sheet
78
Positive
The balance sheet is robust with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio stands at 78.3%, showing a strong equity position. Return on equity at 12.9% reflects good profitability on shareholders' investments. However, slight increases in liabilities and debt warrant caution for future financial planning.
Cash Flow
75
Positive
Arcontech's cash flow statements show positive trends, particularly strong free cash flow growth of 5% over the last year. The operating cash flow to net income ratio of 0.97 indicates effective conversion of income into cash. The free cash flow to net income ratio is slightly above 0.96, supporting ongoing operational investments. Although cash flows are strong, the decline in financing cash flow suggests a reduction in external financing.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.97M2.91M2.73M2.76M2.99M2.96M
Gross Profit2.91M2.91M2.58M2.76M2.99M2.96M
EBITDA866.75K1.25M1.14M925.78K1.21M1.22M
Net Income1.05M1.07M980.11K610.57K1.05M1.22M
Balance Sheet
Total Assets10.66M10.56M9.03M8.78M8.57M8.04M
Cash, Cash Equivalents and Short-Term Investments7.17M7.16M6.41M6.03M5.40M5.01M
Total Debt483.64K537.67K40.32K195.85K344.30K486.00K
Total Liabilities2.37M2.30M1.42M1.80M1.99M2.34M
Stockholders Equity8.29M8.27M7.61M6.97M6.58M5.70M
Cash Flow
Free Cash Flow1.75M1.02M974.92K1.12M813.13K1.34M
Operating Cash Flow1.76M1.04M978.40K1.12M814.62K1.36M
Investing Cash Flow243.20K236.26K-3.48K-2.69K-1.48K-12.75K
Financing Cash Flow-575.35K-522.92K-590.14K-487.18K-424.64K-398.83K

Arcontech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.50
Price Trends
50DMA
87.37
Positive
100DMA
83.25
Positive
200DMA
99.35
Negative
Market Momentum
MACD
0.74
Positive
RSI
57.47
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARC, the sentiment is Positive. The current price of 89.5 is below the 20-day moving average (MA) of 89.57, above the 50-day MA of 87.37, and below the 200-day MA of 99.35, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ARC.

Arcontech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£9.08M33.332.83%7.98%
73
Outperform
£11.97M11.4313.09%418.99%5.35%-8.63%
63
Neutral
£505.90M23.92-8.45%170.41%4.53%-18.72%
52
Neutral
£14.37M-26.44%17.06%-78.26%
50
Neutral
£13.76M-43.12%-25.63%-202.60%
50
Neutral
£13.40M-28.36%-11.33%-139.92%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ARC
Arcontech
89.50
-6.00
-6.28%
GB:ZOO
Zoo Digital
14.00
-50.00
-78.13%
GB:PEN
Pennant International
31.00
7.00
29.17%
GB:CRDL
Cordel Group PLC
6.62
1.80
37.34%
GB:S247
Smarttech247 Group PLC
8.00
-9.00
-52.94%

Arcontech Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Arcontech Secures Key ISO Certifications for Enhanced Security and Continuity
Positive
Mar 14, 2025

Arcontech Group PLC has achieved ISO/IEC 27001:2022 and ISO/IEC 22301:2019 certifications, demonstrating compliance with international standards for information security and business continuity management. This achievement underscores Arcontech’s commitment to meeting rigorous client requirements and enhancing its reputation as a reliable partner in the financial technology sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025