tiprankstipranks
Trending News
More News >
Eleco (GB:ELCO)
LSE:ELCO

Eleco (ELCO) AI Stock Analysis

Compare
3 Followers

Top Page

GB

Eleco

(LSE:ELCO)

Rating:74Outperform
Price Target:
169.00p
▲( 10.82% Upside)
Eleco scores well due to its strong financial performance, characterized by growth and profitability, and positive corporate events that underscore strategic growth. However, the technical analysis suggests caution due to potential overbought conditions, and the valuation indicates a premium pricing, which could limit upside potential in the near term.

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

Eleco Business Overview & Revenue Model

Company DescriptionEleco (ELCO) is a UK-based company that specializes in software and services for the architectural, engineering, and construction (AEC) sectors. The company provides a range of innovative software solutions designed to enhance project management, planning, and collaboration for construction professionals. Eleco's core products include project management software, 3D visualization tools, and construction site management applications, all aimed at improving efficiency and productivity in the construction industry.
How the Company Makes MoneyEleco generates revenue primarily through the sale of its software products and associated services. The company's key revenue streams include software licenses, subscription fees, and maintenance contracts. Eleco also offers training and consultancy services, which contribute to its earnings. Significant partnerships with construction firms and industry stakeholders play a role in expanding its market reach and customer base, further driving revenue growth. Additionally, Eleco's focus on continual software innovation and updates ensures sustained demand and customer retention.

Eleco Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
30.77M28.01M26.57M27.34M25.23M25.40M
Gross Profit
27.81M22.75M21.88M22.86M21.05M21.31M
EBIT
3.91M3.56M2.75M4.99M3.95M4.06M
EBITDA
6.09M5.89M4.97M7.44M6.47M6.40M
Net Income Common Stockholders
2.91M2.65M2.40M2.73M3.16M2.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.58M10.90M12.14M10.05M10.67M7.24M
Total Assets
21.99M45.98M41.59M39.22M40.59M37.47M
Total Debt
3.88M1.46M1.68M2.04M6.95M8.38M
Net Debt
1.30M-9.44M-10.46M-8.02M-3.72M1.15M
Total Liabilities
12.27M18.62M15.75M15.38M19.07M19.54M
Stockholders Equity
9.72M27.36M25.84M23.85M21.52M17.92M
Cash FlowFree Cash Flow
7.80M3.44M3.74M4.69M5.45M4.00M
Operating Cash Flow
7.91M5.89M5.53M6.70M7.15M5.35M
Investing Cash Flow
-4.33M-5.81M-1.74M-1.95M-1.63M-1.28M
Financing Cash Flow
-1.12M-1.61M-1.15M-5.33M-2.41M-2.68M

Eleco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price152.50
Price Trends
50DMA
127.99
Positive
100DMA
135.56
Positive
200DMA
136.10
Positive
Market Momentum
MACD
8.09
Negative
RSI
78.86
Negative
STOCH
87.06
Negative
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 152.5 is above the 20-day moving average (MA) of 136.45, above the 50-day MA of 127.99, and above the 200-day MA of 136.10, indicating a bullish trend. The MACD of 8.09 indicates Negative momentum. The RSI at 78.86 is Negative, neither overbought nor oversold. The STOCH value of 87.06 is Negative, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIGP
78
Outperform
£101.13M15.9551.83%64.99%270.77%
GBEYE
76
Outperform
£116.58M14.5525.61%1.47%
74
Outperform
£126.02M37.2811.59%0.56%15.67%25.62%
72
Outperform
£129.91M251.460.76%0.56%1.71%-89.07%
GBTRB
69
Neutral
£87.74M15.9510.98%1.51%4.97%3.63%
60
Neutral
$11.59B10.34-7.15%2.94%7.49%-10.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ELCO
Eleco
152.50
47.25
44.89%
GB:TRB
Tribal Group plc
41.00
-16.19
-28.31%
GB:IGP
Intercede
162.50
54.00
49.77%
GB:EYE
Eagle Eye Solutions
384.00
-96.00
-20.00%
GB:TRCS
Tracsis
450.00
-469.68
-51.07%

Eleco Corporate Events

Business Operations and Strategy
Jupiter Fund Management Reduces Stake in Eleco PLC
Neutral
May 14, 2025

Eleco PLC, a UK-based company, has announced a change in its shareholder structure. Jupiter Fund Management PLC has reduced its voting rights in Eleco from 5.43% to 4.825%, as of May 13, 2025. This adjustment in voting rights could impact Eleco’s decision-making processes and influence within the company, potentially affecting its strategic direction and stakeholder interests.

Shareholder MeetingsDividendsFinancial Disclosures
Eleco plc Releases 2024 Annual Report and Sets Dividend Dates
Neutral
May 12, 2025

Eleco plc has announced the publication of its 2024 Annual Report and Accounts, along with the notice for its Annual General Meeting scheduled for June 3, 2025. The company also confirmed the final dividend dates, contingent on shareholder approval of Resolution 6, with the ex-dividend date set for June 12, 2025, the record date on June 13, 2025, and the payment date on June 27, 2025. This announcement underscores Eleco’s commitment to transparency and shareholder engagement, potentially impacting its financial operations and stakeholder relations.

Financial Disclosures
Eleco plc Announces Live Presentation of 2024 Final Results
Neutral
May 8, 2025

Eleco plc announced that CEO Jonathan Hunter and CFO Neil Pritchard will present the company’s final results for the year ended 31 December 2024 via a live presentation on 14 May 2025. This event, accessible to both existing and potential shareholders, reflects Eleco’s commitment to transparency and engagement with its investors, potentially impacting its market perception and stakeholder relations.

Business Operations and Strategy
Eleco plc Grants New Share Options to Drive Growth
Positive
May 6, 2025

Eleco plc has announced the grant of 1,465,000 new share options as part of its 2014 Share Option Plan. The options include 450,000 nominal cost options for senior executives and 1,015,000 market-priced options for other employees. This move aims to incentivize growth in revenue, profit, and share price, with options vesting after three years if performance criteria are met. The issuance represents approximately 5.76% of the company’s issued share capital, indicating a strategic effort to align employee interests with company performance.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Eleco plc Exceeds 2024 Market Expectations with Strategic Growth
Positive
May 1, 2025

Eleco plc reported strong financial results for 2024, surpassing market expectations in revenue, profitability, and cash generation. The company’s total revenue increased by 16% to £32.4m, with recurring revenues making up 77% of the total. Eleco’s strategic acquisitions, such as Vertical Digital and PEMAC, have enhanced its technical capabilities and expanded its asset management offerings. The company also achieved significant growth in adjusted EBITDA and profits, while maintaining a debt-free status with a cash position of £14.0m. Eleco’s continued focus on innovation and strategic growth positions it well for future expansion, despite current geopolitical and macroeconomic challenges.

Private Placements and FinancingBusiness Operations and Strategy
Eleco PLC Issues New Shares to Strengthen Market Position
Positive
Mar 10, 2025

Eleco plc has announced the issuance and allotment of 125,000 new ordinary shares following the exercise of options by an ex-employee under the 2014 Share Option Plan. These shares are expected to be admitted to trading on AIM by 14 March 2025, bringing the total number of ordinary shares in issue to 83,457,397, all with equal voting rights. This move reflects Eleco’s ongoing commitment to maintaining a robust capital structure and could potentially enhance its market positioning by increasing shareholder engagement.

Private Placements and FinancingBusiness Operations and Strategy
Eleco plc Issues New Shares Following CEO’s Option Exercise
Neutral
Mar 3, 2025

Eleco plc has announced the issuance and allotment of 20,000 new ordinary shares following the exercise of options by Jonathan Hunter, the company’s CEO, under the 2014 Share Option Plan. This move increases Hunter’s shareholding to 48,361 ordinary shares, representing 0.06% of the company’s issued share capital. The new shares are set to be admitted to trading on AIM, with the total number of voting rights in the company reaching 83,332,397. This development reflects Eleco’s ongoing commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

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.