Eleco (ELCO) AI Stock Analysis

• Market Cap: £139.54M
• Dividend Yield: 0.6%
• Average Volume (3M): 115.78K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.71
• Revenue Growth: 15.67%
• EPS Growth: 25.62%
• Country: UK
• Employees: 273
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 83,557,396
• 10 Day Avg. Volume: 66,688
• 30 Day Avg. Volume: 115,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £176.00
• Price Target Upside: 5.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 176.00p ▲(5.39% Upside)

Eleco's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. However, technical analysis indicates potential short-term weakness, and the high P/E ratio suggests the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Eleco Business Overview & Revenue Model

Company Description

Eleco (ELCO) is a UK-based technology company specializing in software solutions for the construction and architectural sectors. The company provides a range of products designed to improve project efficiency and collaboration, including building information modeling (BIM) software, project management tools, and cost estimation applications. With a focus on innovation, Eleco serves a diverse clientele, including contractors, architects, and engineering firms, aiming to enhance productivity across the construction lifecycle.

How the Company Makes Money

Eleco generates revenue primarily through the sale of its software products and services. The company operates on a subscription-based model, where clients pay recurring fees for access to its software platforms, which may include additional features, updates, and support. Key revenue streams include software licenses, consultancy services, training programs, and maintenance contracts. Additionally, Eleco has established partnerships with industry leaders and organizations, which help to expand its market reach and enhance its product offerings, contributing significantly to its earnings.

Eleco Financial Statement Overview

Summary

Eleco demonstrates strong financial health with robust revenue growth, high profitability, minimal leverage, and strong cash flow generation. These factors provide a solid foundation for future growth in the software application industry.

Income Statement

Eleco's income statement reveals robust revenue growth, with a 15.7% increase from 2023 to 2024, driven by strong market demand and strategic expansion. The gross profit margin remains high at 89.2%, reflecting efficient cost management. The net profit margin improved to 10.3%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 12.5% and 23.3%, respectively, showcasing operational efficiency. Overall, Eleco demonstrates strong growth and profitability in its income statement.

Balance Sheet

The balance sheet highlights a solid financial position for Eleco, with an equity ratio of 58.2%, indicating a strong equity base. The debt-to-equity ratio is low at 0.05, showcasing minimal leverage and financial risk. Return on equity improved to 11%, reflecting efficient use of shareholder funds. While the company maintains a healthy cash position, continuous monitoring of liabilities is essential to maintain financial stability.

Cash Flow

Eleco's cash flow statement shows impressive free cash flow growth of 64.2%, underscoring strong cash generation capabilities. The operating cash flow to net income ratio is robust at 2.69, highlighting efficient conversion of income to cash. The free cash flow to net income ratio of 1.69 further emphasizes Eleco's ability to generate cash beyond profit levels. The company's cash flow management is strong, supporting future growth investments and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.39M	28.01M	26.57M	27.34M	25.23M
Gross Profit	28.91M	25.15M	21.88M	22.86M	21.05M
EBITDA	7.55M	5.89M	4.97M	7.44M	6.47M
Net Income	3.33M	2.65M	2.40M	2.73M	3.16M
Balance Sheet
Total Assets	51.81M	45.98M	41.59M	39.22M	40.59M
Cash, Cash Equivalents and Short-Term Investments	13.97M	10.90M	12.14M	10.05M	10.67M
Total Debt	1.46M	1.46M	1.68M	2.04M	6.95M
Total Liabilities	21.64M	18.62M	15.75M	15.38M	19.07M
Stockholders Equity	30.17M	27.36M	25.84M	23.85M	21.52M
Cash Flow
Free Cash Flow	5.65M	3.44M	3.74M	4.69M	5.45M
Operating Cash Flow	8.96M	5.89M	5.53M	6.70M	7.15M
Investing Cash Flow	-4.25M	-5.81M	-1.74M	-1.95M	-1.63M
Financing Cash Flow	-1.34M	-1.61M	-1.15M	-5.33M	-2.41M

Eleco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 167 is above the 20-day moving average (MA) of 165.65, below the 50-day MA of 168.16, and above the 200-day MA of 146.79, indicating a neutral trend. The MACD of -2.52 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 57.72 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	79 Outperform	£124.15M	15.38	15.34%	1.95%	3.48%	318.89%
EYE	76 Outperform	£64.57M	8.18	25.61%	―	1.47%	―
IGP	68 Neutral	£102.02M	24.82	26.84%	―	-11.27%	-32.98%
ELCO	66 Neutral	£139.54M	41.23	11.59%	0.60%	15.67%	25.62%
TRCS	64 Neutral	£114.47M	225.15	0.76%	0.63%	1.71%	-89.07%
Sector *	61 Neutral	$35.43B	7.71	-10.08%	1.88%	8.71%	-9.18%
SAAS	57 Neutral	£151.89M	335.48	-2.78%	1.38%	10.82%	-230.15%

Eleco Corporate Events

Eleco plc Expands Share Capital with New Issuance

Eleco plc has announced the issuance and allotment of 100,000 new ordinary shares following the exercise of options under its 2014 Share Option Plan. These shares are set to be admitted to trading on AIM, with the total number of voting rights in the company reaching 83,557,397. This move reflects Eleco’s ongoing commitment to enhancing its market presence and operational capacity within the built environment software sector.

The most recent analyst rating on (GB:ELCO) stock is a Buy with a £176.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco plc Reports Strong H1 2025 Performance with Record Recurring Revenue Growth

Eleco plc reported a strong performance for the first half of 2025, with significant growth in total revenue and recurring revenues, despite geopolitical and macroeconomic challenges. The company achieved a 19% increase in Annualised Recurring Revenue and a 23% rise in Total Recurring Revenue, with recurring revenues now accounting for 81% of total revenues. The acquisition of PEMAC has expanded Eleco’s customer base in CMMS Asset Management and Maintenance, while measures have been implemented to address deferred pipelines in construction markets. The company remains confident in meeting market expectations for the full year.

The most recent analyst rating on (GB:ELCO) stock is a Buy with a £176.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco Director Increases Stake with Share Purchase

Eleco plc announced that its Non-executive Director, James Pellatt, has purchased 6,052 ordinary shares in the company, representing 0.007% of its issued share capital. This transaction, conducted on the AIM Market of the London Stock Exchange, signifies a vote of confidence in the company’s future prospects by its board member, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:ELCO) stock is a Buy with a £176.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco Chairman Increases Stake in Company

Eleco plc announced that its Non-executive Chairman, Mark Castle, has purchased 46,500 ordinary shares in the company, representing 0.06% of the issued share capital. This acquisition indicates a vote of confidence in the company’s future prospects by its leadership, potentially impacting investor perception and market positioning.

The most recent analyst rating on (GB:ELCO) stock is a Buy with a £140.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco plc AGM Resolutions Passed, Signaling Shareholder Confidence

Eleco plc announced that all resolutions proposed at its recent Annual General Meeting were approved by shareholders. This outcome reflects shareholder confidence in Eleco’s strategic direction and operational management, potentially strengthening its position in the software market for the built environment.

The most recent analyst rating on (GB:ELCO) stock is a Buy with a £176.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco plc Reports Strong Progress Amid Market Uncertainties

During the Annual General Meeting, Eleco plc reported strong progress in the first four months of 2025, despite political and market uncertainties. The company’s share price rose from 117p to over 163p, reflecting its robust trading performance. Eleco’s success is attributed to the construction industry’s shift towards sustainability and digitization, which drives demand for its products. The Board remains optimistic about the company’s outlook, with trading aligning with market expectations for the year.

Jupiter Fund Management Reduces Stake in Eleco PLC

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.

Eleco plc Releases 2024 Annual Report and Sets Dividend Dates

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.