Arcontech (ARC) AI Stock Analysis

• Market Cap: £11.30M
• Dividend Yield: 4.73%
• Average Volume (3M): 26.00K
• Price to Earnings (P/E): 12.0
• Beta (1Y): -0.12
• Revenue Growth: 6.76%
• EPS Growth: -11.53%
• Country: UK
• Employees: 17
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 13,372,811
• 10 Day Avg. Volume: 14,417
• 30 Day Avg. Volume: 25,997
• PEG Ratio: -1.08
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 3.81
• P/FCF Ratio: 19.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 95.00p ▲(12.43% Upside)

Arcontech's overall stock score is driven by its strong financial performance and attractive valuation, supported by positive corporate events. However, bearish technical indicators and cash flow challenges present risks. The company's strategic focus on core markets and dividend increase are positive signs for future growth.

Positive Factors

Strong Gross Profit Margin

A 100% gross profit margin indicates effective cost management, allowing Arcontech to maintain profitability and reinvest in growth opportunities.

Low Leverage

Minimal leverage enhances financial stability and provides Arcontech with flexibility to navigate economic fluctuations and invest in strategic initiatives.

Revenue Growth

Consistent revenue growth, though modest, reflects Arcontech's ability to expand its market presence and adapt its offerings to meet client needs.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests potential challenges in maintaining profitability, which could impact long-term financial health if not addressed.

Decreased Free Cash Flow

A significant drop in free cash flow may indicate liquidity issues, limiting Arcontech's ability to fund operations and invest in growth without external financing.

Reduced Cash Generation Efficiency

Reduced cash generation efficiency can strain Arcontech's operational capabilities, potentially impacting its ability to sustain and grow its business over time.

Arcontech Business Overview & Revenue Model

Company Description

Arcontech Group Plc, together with its subsidiaries, develops and sells proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australia, and the Asia Pacific. Its products include CityVision, a market data platform for real-time data reception, transformation, and publishing; CityVision Multi Vendor Contribution System, which enables the user to contribute data automatically and simultaneously to various destinations; and CityVision Cache, a real-time data repository. The company also offers Excelerator, a vendor independent system that enables real time reception and publishing of market data, as well as provides flexibility and control to manipulate data from various sources through Excel's mathematical and display features. In addition, it provides CityVision Relay, a real-time data distribution engine; CityVision Symbol Mapper, a real-time data conversion system that allows market data managers to separate data integration from the data source; and CityVision API that develops real-time market data applications, as well as offers computer consultancy services. The company was formerly known as Knowledge Technology Solutions PLC and changed its name to Arcontech Group plc in February 2009. Arcontech Group plc was founded in 1979 and is based in London, the United Kingdom.

How the Company Makes Money

Arcontech generates revenue through a combination of software licensing fees, subscription services, and support contracts. The company primarily earns money by selling licenses for its software products to financial institutions, trading firms, and other stakeholders in the financial markets. Additionally, recurring subscription fees from clients using its cloud-based services contribute significantly to its revenue. Arcontech also engages in partnerships with key players in the financial technology space, which can enhance its market reach and provide additional revenue opportunities through integrated solutions. The company may also benefit from consulting and technical support services, which add to its overall earnings.

Arcontech Financial Statement Overview

Summary

Arcontech shows strong profitability with a 100% gross profit margin and a stable balance sheet with low leverage. However, declining net profit margins and significant cash flow challenges, such as a 65.84% decrease in free cash flow, could pose risks.

Income Statement

Arcontech shows a strong gross profit margin consistently at 100%, indicating effective cost management. However, the net profit margin has decreased from 36.69% in 2024 to 30.36% in 2025, suggesting a decline in profitability. Revenue growth is modest at 4.52% in 2025, following a slight increase in 2024. EBIT and EBITDA margins have also decreased, reflecting potential challenges in operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.049, indicating minimal leverage and financial stability. Return on equity has decreased slightly to 10.80% in 2025, which is still a healthy level, but shows a downward trend. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Free cash flow has significantly decreased by 65.84% in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio has also declined, suggesting reduced cash generation efficiency. However, the free cash flow to net income ratio remains high at 98.50%, indicating that most of the net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.11M	3.11M	2.91M	2.73M	2.76M	2.99M
Gross Profit	3.05M	3.11M	2.91M	2.58M	2.76M	2.99M
EBITDA	785.10K	785.10K	1.25M	1.14M	925.78K	1.21M
Net Income	943.43K	943.43K	1.07M	980.11K	610.57K	1.05M
Balance Sheet
Total Assets	10.82M	10.82M	10.56M	9.03M	8.78M	8.57M
Cash, Cash Equivalents and Short-Term Investments	7.40M	7.40M	7.16M	6.41M	6.03M	5.40M
Total Debt	427.36K	427.36K	537.67K	40.32K	195.85K	344.30K
Total Liabilities	2.09M	2.09M	2.30M	1.42M	1.80M	1.99M
Stockholders Equity	8.73M	8.73M	8.27M	7.61M	6.97M	6.58M
Cash Flow
Free Cash Flow	597.31K	597.31K	1.02M	974.92K	1.12M	813.13K
Operating Cash Flow	606.41K	606.41K	1.04M	978.40K	1.12M	814.62K
Investing Cash Flow	-9.11K	240.71K	236.26K	73.50K	11.22K	11.78K
Financing Cash Flow	-611.79K	-611.79K	-522.92K	-590.14K	-487.18K	-424.64K

Arcontech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARC, the sentiment is Negative. The current price of 84.5 is below the 20-day moving average (MA) of 87.47, below the 50-day MA of 91.92, and below the 200-day MA of 85.90, indicating a bearish trend. The MACD of -2.20 indicates Positive momentum. The RSI at 25.64 is Positive, neither overbought nor oversold. The STOCH value of 54.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ARC.

Arcontech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	70 Outperform	£11.30M	11.97	11.10%	4.73%	6.76%	-11.53%
S247	67 Neutral	£4.54M	16.67	―	―	7.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PEN	47 Neutral	£10.22M	-2.11	-52.41%	―	-31.21%	-292.31%
ZOO	47 Neutral	£10.82M	-1.72	-32.23%	―	-7.72%	54.13%
CRDL	45 Neutral	£13.83M	-33.55	-14.44%	―	7.86%	70.77%

Arcontech Corporate Events

Arcontech Group PLC Releases Annual Report and AGM Notice

Arcontech Group PLC has announced the posting of its Annual Report and Accounts for the year ending 30 June 2025, along with the Notice of its Annual General Meeting (AGM). The AGM is scheduled for 15 October 2025 at the company’s London offices. This announcement is a routine disclosure, ensuring transparency and engagement with shareholders, and may impact stakeholder perceptions of the company’s operational transparency and governance.

Arcontech Reports Revenue Growth and Dividend Increase Amidst Competitive Market

Arcontech Group PLC reported a 6.8% increase in turnover for the year ending June 30, 2025, despite a 10.1% decline in profit before taxation due to increased staffing costs. The company strengthened its market position by securing a new high-end customer and enhancing its product offerings, which contributed to a robust pipeline of prospective clients. Arcontech’s strategy of focusing on its core market has helped maintain a high level of recurring revenue and customer retention, positioning the company for future growth. The company also announced a 6.7% increase in its final dividend, reflecting confidence in its financial stability and growth prospects.