Arcontech (ARC) AI Stock Analysis

• Market Cap: £11.17M
• Dividend Yield: 4.49%
• Average Volume (3M): 8.07K
• Price to Earnings (P/E): 10.7
• Beta (1Y): -0.07
• Revenue Growth: 5.35%
• EPS Growth: -8.63%
• Country: UK
• Employees: 17
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 13,372,811
• 10 Day Avg. Volume: 8,242
• 30 Day Avg. Volume: 8,069
• PEG Ratio: -1.48
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• 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: 77 Outperform
• Price Target: 99.00p ▲(17.86%Upside)

Arcontech's strong financial performance and attractive valuation are the primary drivers of its score. Positive corporate events further enhance confidence in the company's future. Technical analysis provides mixed signals, with potential for short-term volatility due to overbought conditions.

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 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 shows a solid financial profile with consistent revenue growth and strong profitability margins. The balance sheet reflects financial stability with low leverage and high equity ratios, while cash flows support operational and investment activities. However, some caution is warranted for future financial planning due to slight increases in liabilities and a decline in financing cash flow.

Income Statement

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

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

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.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.91M	2.73M	2.76M	2.99M	2.96M
	Gross Profit
2.91M	2.58M	2.76M	2.99M	2.96M
	EBIT
869.69K	805.21K	758.27K	1.04M	1.04M
	EBITDA
1.25M	1.14M	925.78K	1.21M	1.22M
	Net Income Common Stockholders
1.07M	980.11K	610.57K	1.05M	1.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.16M	6.41M	6.03M	5.40M	5.01M
	Total Assets
10.56M	9.03M	8.78M	8.57M	8.04M
	Total Debt
537.67K	40.32K	195.85K	344.30K	486.00K
	Net Debt
-6.62M	-6.37M	-5.83M	-5.05M	-4.52M
	Total Liabilities
2.30M	1.42M	1.80M	1.99M	2.34M
	Stockholders Equity
8.27M	7.61M	6.97M	6.58M	5.70M
Cash Flow		Free Cash Flow
1.02M	974.92K	1.12M	813.13K	1.34M
	Operating Cash Flow
1.04M	978.40K	1.12M	814.62K	1.36M
	Investing Cash Flow
236.26K	-3.48K	-2.69K	-1.48K	-12.75K
	Financing Cash Flow
-522.92K	-590.14K	-487.18K	-424.64K	-398.83K

Arcontech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 is below the 20-day moving average (MA) of 85.22, above the 50-day MA of 80.75, and below the 200-day MA of 103.45, indicating a neutral trend. The MACD of 1.23 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.87 is Positive, 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	77 Outperform	£11.17M	10.66	13.09%	4.49%	5.35%	-8.63%
S247	68 Neutral	£10.22M	37.50	2.83%	―	7.98%	―
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
ING		£9.14M	7.15	21.16%	6.51%	―	―
CRDL	59 Neutral	£17.63M	―	-26.44%	―	17.06%	-78.26%
ZOO	50 Neutral	£10.08M	―	-43.12%	―	-25.63%	-202.60%
PEN	46 Neutral	£12.62M	―	-28.36%	―	-11.33%	-139.92%

Arcontech Corporate Events

Arcontech Secures Key ISO Certifications for Enhanced Security and Continuity

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.