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Eleco (GB:ELCO)
LSE:ELCO
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Eleco (ELCO) AI Stock Analysis

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GB:ELCO

Eleco

(LSE:ELCO)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
155.00 p
▲(0.32% Upside)
Action:Upgraded
Date:05/10/26
The score is driven primarily by strong financial health—low leverage and robust free cash flow alongside solid revenue growth—partly offset by the sharp 2025 net income decline. Technically, the stock shows positive trend strength but is near overbought levels, and valuation is average with a modest dividend yield.
Positive Factors
Consistent Revenue Growth
Sustained double-digit top-line growth across multiple years indicates durable demand for Eleco's specialist built-environment software and services. Persistent revenue expansion supports recurring-license and support economics, underpins investment in product development, and reduces reliance on one-off deals over the medium term.
Negative Factors
Net Income Decline
A material fall in net income while revenue rose signals margin compression or non-operating charges that undermine earnings quality. If persistent, the earnings decline could erode return metrics, limit reinvestment capacity, and weaken confidence in the sustainability of profit delivery.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained double-digit top-line growth across multiple years indicates durable demand for Eleco's specialist built-environment software and services. Persistent revenue expansion supports recurring-license and support economics, underpins investment in product development, and reduces reliance on one-off deals over the medium term.
Read all positive factors

Eleco (ELCO) vs. iShares MSCI United Kingdom ETF (EWC)

Eleco Business Overview & Revenue Model

Company Description
Eleco Plc provides software and related services in the United Kingdom, Scandinavia, Germany, the rest of Europe, the United States, and internationally. The company offers CAD architecture software under the Arcon Evo; Bidcon, a construction esti...
How the Company Makes Money
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Eleco Financial Statement Overview

Summary
Strong overall fundamentals supported by consistent revenue growth, a conservatively levered balance sheet with declining debt, and very strong 2025 operating/free cash flow. The key offset is weaker 2025 earnings conversion, with net income falling sharply despite higher revenue, raising questions about margin pressure and earnings quality consistency.
Income Statement
73
Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue34.50M38.82M32.39M28.01M26.57M27.34M
Gross Profit30.53M31.56M28.91M25.15M21.88M22.86M
EBITDA8.26M9.50M7.55M5.89M5.22M6.55M
Net Income3.71M1.32M3.33M2.65M2.40M2.73M
Balance Sheet
Total Assets57.32M59.99M51.81M45.98M41.59M39.22M
Cash, Cash Equivalents and Short-Term Investments12.23M16.29M13.97M10.90M12.14M10.05M
Total Debt1.36M1.20M1.46M1.46M1.68M2.04M
Total Liabilities25.63M28.36M21.64M18.62M15.75M15.38M
Stockholders Equity31.70M31.64M30.17M27.36M25.84M23.85M
Cash Flow
Free Cash Flow5.91M12.07M5.65M5.76M3.74M4.69M
Operating Cash Flow9.24M12.15M8.96M5.89M5.53M6.70M
Investing Cash Flow-8.02M-8.93M-4.25M-5.81M-1.74M-1.95M
Financing Cash Flow-1.34M-1.37M-1.34M-1.61M-1.15M-5.33M

Eleco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price154.50
Price Trends
50DMA
120.89
Positive
100DMA
129.41
Positive
200DMA
139.91
Negative
Market Momentum
MACD
2.66
Negative
RSI
56.66
Neutral
STOCH
45.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ELCO, the sentiment is Positive. The current price of 154.5 is above the 20-day moving average (MA) of 127.38, above the 50-day MA of 120.89, and above the 200-day MA of 139.91, indicating a neutral trend. The MACD of 2.66 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ELCO.

Eleco Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£109.80M79.034.16%0.79%19.82%-60.20%
68
Neutral
£213.25M37.635.22%0.80%19.00%-53.85%
68
Neutral
£155.40M-33.80-2.11%31.86%-115.22%
65
Neutral
£327.56M41.807.57%1.04%2.55%16.38%
64
Neutral
£106.59M6,693.301.51%0.80%4.66%88.89%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ELCO
Eleco
130.50
-21.01
-13.87%
GB:IDOX
Idox plc
71.00
14.60
25.89%
GB:NET
Netcall
125.00
16.92
15.66%
GB:TRCS
Tracsis
355.00
-91.63
-20.52%
GB:AOM
ActiveOps plc
225.00
99.50
79.28%

Eleco Corporate Events

DividendsRegulatory Filings and ComplianceShareholder Meetings
Eleco Sets AGM Date and Confirms Final Dividend Timetable
Positive
May 7, 2026
Eleco plc, a specialist software provider to the built environment with operations across the UK, Ireland, Sweden, Germany, the Netherlands, Romania, Australia and the U.S., delivers digital solutions that span planning, construction and ongoing p...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Eleco lifts recurring revenues, sharpens software focus with Pemac and Kivue deals
Positive
Apr 28, 2026
Eleco reported strong 2025 trading, with revenue rising 20% to £38.8m and annualised recurring revenue up 29% to £34.3m, driving a 32% increase in adjusted EBITDA and 35% growth in adjusted profit before tax. Despite a non-cash impairmen...
Business Operations and StrategyFinancial Disclosures
Eleco sets April date for 2025 results and ramps up investor outreach
Neutral
Apr 14, 2026
Eleco plc, an AIM-quoted software provider to the global built environment sector, delivers project management, BIM, estimation and property management solutions through its Elecosoft, BestOutcome, Pemac and Eleco Technologies brands from hubs in ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Eleco Sheds Loss-Making Veeuze Unit to Sharpen Focus on Core Building Lifecycle Software
Positive
Apr 10, 2026
Eleco has sold its German-based visualisation subsidiary Veeuze GmbH to 3A Consult UG in a management buy-out, as it sharpens its focus on higher-growth building lifecycle software for core customer verticals. The deal, structured with a nominal u...
Business Operations and StrategyM&A Transactions
Eleco expands project portfolio management offering with £2.3m Kivue acquisition
Positive
Feb 10, 2026
Eleco plc, an AIM-listed specialist software provider to the built environment, delivers solutions spanning project management, estimation, visualisation, BIM and property management across the entire building lifecycle. Operating under brands suc...
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: May 10, 2026