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Arcontech Group PLC (GB:ARC)
LSE:ARC

Arcontech (ARC) AI Stock Analysis

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GB

Arcontech

(LSE:ARC)

Rating:77Outperform
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 (ARC) vs. iShares MSCI United Kingdom ETF (EWC)

Arcontech Business Overview & Revenue Model

Company DescriptionArcontech 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 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 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
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.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.91M2.73M2.76M2.99M2.96M
Gross Profit
2.91M2.58M2.76M2.99M2.96M
EBIT
869.69K805.21K758.27K1.04M1.04M
EBITDA
1.25M1.14M925.78K1.21M1.22M
Net Income Common Stockholders
1.07M980.11K610.57K1.05M1.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.16M6.41M6.03M5.40M5.01M
Total Assets
10.56M9.03M8.78M8.57M8.04M
Total Debt
537.67K40.32K195.85K344.30K486.00K
Net Debt
-6.62M-6.37M-5.83M-5.05M-4.52M
Total Liabilities
2.30M1.42M1.80M1.99M2.34M
Stockholders Equity
8.27M7.61M6.97M6.58M5.70M
Cash FlowFree Cash Flow
1.02M974.92K1.12M813.13K1.34M
Operating Cash Flow
1.04M978.40K1.12M814.62K1.36M
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 Price84.00
Price Trends
50DMA
80.75
Positive
100DMA
89.59
Negative
200DMA
103.45
Negative
Market Momentum
MACD
1.23
Positive
RSI
50.39
Neutral
STOCH
19.87
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBARC
77
Outperform
£11.17M10.6613.09%4.49%5.35%-8.63%
68
Neutral
£10.22M37.502.83%7.98%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
GBING
£9.14M7.1521.16%6.51%
59
Neutral
£17.63M-26.44%17.06%-78.26%
GBZOO
50
Neutral
£10.08M-43.12%-25.63%-202.60%
GBPEN
46
Neutral
£12.62M-28.36%-11.33%-139.92%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ARC
Arcontech
84.00
-9.56
-10.22%
GB:ING
Ingenta
63.00
-65.44
-50.95%
GB:PEN
Pennant International
29.20
3.20
12.31%
GB:ZOO
Zoo Digital
10.25
-48.75
-82.63%
GB:CRDL
Cordel Group PLC
7.12
2.42
51.49%
GB:S247
Smarttech247 Group PLC
9.00
-12.50
-58.14%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.