Arcontech (ARC) AI Stock Analysis

• Market Cap: £11.97M
• Dividend Yield: 418.99%
• Average Volume (3M): 7.74K
• Price to Earnings (P/E): 11.4
• Beta (1Y): -0.10
• Revenue Growth: 5.35%
• EPS Growth: -8.63%
• Country: UK
• Employees: 17
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 13,372,811
• 10 Day Avg. Volume: 9,224
• 30 Day Avg. Volume: 7,739
• PEG Ratio: 0.15
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.92
• 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: £98.00
• Price Target Upside: 9.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Arcontech (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 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 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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.97M	2.91M	2.73M	2.76M	2.99M	2.96M
Gross Profit	2.91M	2.91M	2.58M	2.76M	2.99M	2.96M
EBITDA	866.75K	1.25M	1.14M	925.78K	1.21M	1.22M
Net Income	1.05M	1.07M	980.11K	610.57K	1.05M	1.22M
Balance Sheet
Total Assets	10.66M	10.56M	9.03M	8.78M	8.57M	8.04M
Cash, Cash Equivalents and Short-Term Investments	7.17M	7.16M	6.41M	6.03M	5.40M	5.01M
Total Debt	483.64K	537.67K	40.32K	195.85K	344.30K	486.00K
Total Liabilities	2.37M	2.30M	1.42M	1.80M	1.99M	2.34M
Stockholders Equity	8.29M	8.27M	7.61M	6.97M	6.58M	5.70M
Cash Flow
Free Cash Flow	1.75M	1.02M	974.92K	1.12M	813.13K	1.34M
Operating Cash Flow	1.76M	1.04M	978.40K	1.12M	814.62K	1.36M
Investing Cash Flow	243.20K	236.26K	-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 Price: 89.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S247	74 Outperform	£9.08M	33.33	2.83%	―	7.98%	―
ARC	73 Outperform	£11.97M	11.43	13.09%	418.99%	5.35%	-8.63%
Sector *	63 Neutral	£505.90M	23.92	-8.45%	170.41%	4.53%	-18.72%
CRDL	52 Neutral	£14.37M	―	-26.44%	―	17.06%	-78.26%
ZOO	50 Neutral	£13.76M	―	-43.12%	―	-25.63%	-202.60%
PEN	50 Neutral	£13.40M	―	-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.