Eleco (ELCO) AI Stock Analysis

• Market Cap: £111.71M
• Dividend Yield: 0.79%
• Average Volume (3M): 72.23K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.87
• Revenue Growth: 12.10%
• EPS Growth: 27.35%
• Country: UK
• Employees: 273
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 83,677,400
• 10 Day Avg. Volume: 74,850
• 30 Day Avg. Volume: 72,235
• PEG Ratio: 1.43
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 21.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.67
• Revenue Forecast (FY): £3.73B

• Rating: 68 Neutral
• Price Target: 146.00p ▼(-5.50% Downside)

Eleco's strong financial performance and positive corporate events are offset by bearish technical indicators and a high valuation. The company's robust revenue growth, profitability, and strategic initiatives support its competitive position, but technical analysis suggests caution due to potential downward pressure.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and successful strategic expansion, enhancing Eleco's market position and long-term prospects.

Cash Generation

Strong cash generation supports future growth investments and provides financial flexibility, ensuring Eleco can capitalize on strategic opportunities.

Profitability

High profitability margins demonstrate Eleco's effective cost management and operational efficiency, contributing to sustainable financial health.

Negative Factors

High Valuation

A high valuation may limit upside potential, making the stock less attractive to value-focused investors and potentially impacting future stock performance.

Limited Earnings Data

Lack of earnings call data limits transparency and investor insights into management's strategic vision and future outlook, potentially affecting investor confidence.

Mixed Technical Signals

Mixed technical signals suggest potential volatility, which could lead to uncertainty in stock performance and impact investor sentiment in the short to medium term.

Eleco Business Overview & Revenue Model

Company Description

Eleco (ELCO) is a UK-based company specializing in the development of software solutions for the construction and architectural sectors. The company focuses on providing tools that enhance project management and building information modeling (BIM), offering a range of products that include design, estimation, and project management software. Eleco serves a diverse clientele, including architects, engineers, and construction professionals, aiming to streamline workflows and improve efficiency in construction projects.

How the Company Makes Money

Eleco generates revenue primarily through the sale of software licenses and subscription services for its products, which are designed to assist in various stages of construction and architectural projects. Key revenue streams include one-time license fees for software purchases, ongoing subscription fees for cloud-based services, and maintenance contracts that provide customers with updates and technical support. Additionally, Eleco may earn revenue through partnerships with other industry players, enabling it to reach broader markets and enhance its product offerings. The company's focus on innovation and integration with emerging technologies also contributes to its financial performance by attracting new clients and retaining existing ones.

Eleco Financial Statement Overview

Summary

Eleco exhibits strong financial health with robust revenue growth, high profitability, minimal leverage, and strong cash flow generation. These factors position the company favorably within 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.50M	32.39M	28.01M	26.57M	27.34M	25.23M
Gross Profit	30.53M	28.91M	25.15M	21.88M	22.86M	21.05M
EBITDA	8.26M	7.55M	5.89M	5.22M	6.55M	6.67M
Net Income	3.71M	3.33M	2.65M	2.40M	2.73M	3.16M
Balance Sheet
Total Assets	57.32M	51.81M	45.98M	41.59M	39.22M	40.59M
Cash, Cash Equivalents and Short-Term Investments	12.23M	13.97M	10.90M	12.14M	10.05M	10.67M
Total Debt	1.36M	1.46M	1.46M	1.68M	2.04M	6.95M
Total Liabilities	25.63M	21.64M	18.62M	15.75M	15.38M	19.07M
Stockholders Equity	31.70M	30.17M	27.36M	25.84M	23.85M	21.52M
Cash Flow
Free Cash Flow	5.91M	5.65M	5.76M	3.74M	4.69M	5.45M
Operating Cash Flow	9.24M	8.96M	5.89M	5.53M	6.70M	7.15M
Investing Cash Flow	-8.02M	-4.25M	-5.81M	-1.74M	-1.95M	-1.63M
Financing Cash Flow	-1.34M	-1.34M	-1.61M	-1.15M	-5.33M	-2.41M

Eleco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 154.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 154.5 is above the 20-day moving average (MA) of 133.47, above the 50-day MA of 144.77, and above the 200-day MA of 148.77, indicating a neutral trend. The MACD of -3.54 indicates Negative momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ELCO.

Eleco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EYE	76 Outperform	£89.94M	54.55	4.88%	―	0.97%	-71.58%
TRB	70 Outperform	£141.41M	17.51	15.34%	1.71%	3.48%	318.89%
ELCO	68 Neutral	£111.71M	29.87	12.39%	0.79%	12.10%	27.35%
IGP	64 Neutral	£77.16M	20.65	23.08%	―	-19.19%	-41.12%
SAAS	63 Neutral	£111.89M	-141.91	-1.08%	1.91%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TRCS	61 Neutral	£90.44M	176.74	0.78%	0.84%	1.07%	11.25%

Eleco Corporate Events

Eleco plc Triumphs at Construction Computing Awards 2025

Eleco plc, a leading software provider for the built environment, has been honored with the ‘Company of the Year’ award and ‘Project Management Software of the Year’ for the twelfth consecutive year at the Construction Computing Awards 2025. These accolades highlight Eleco’s strong position in the construction technology industry, emphasizing the company’s commitment to innovation and customer satisfaction, driven by its talented teams.

Eleco plc Issues New Shares Following CEO’s Option Exercise

Eleco plc announced the issuance and allotment of 100,000 new ordinary shares following the exercise of options by CEO Jonathan Hunter under the 2014 Share Option Plan. This move increases Hunter’s interest in the company to 148,361 shares, representing 0.177% of the issued share capital. The new shares are set to be admitted to trading on AIM, with Eleco’s total voting rights rising to 83,677,397. This development reflects Eleco’s ongoing commitment to strengthening its leadership’s stake in the company, potentially enhancing its market position and investor confidence.

Eleco plc Reports Strong Interim Results with Record Recurring Revenue Growth

Eleco plc reported significant growth in its interim results for the first half of 2025, with a 19% increase in Annualised Recurring Revenue and a 23% rise in Total Recurring Revenue. The company achieved record recurring revenue growth, enhanced profitability, and expanded its market presence through strategic acquisitions, including the integration of PMI Software Ltd (PEMAC). This acquisition has strengthened Eleco’s CMMS offering and broadened its customer base and geographic reach. Despite challenging geopolitical and macroeconomic conditions, Eleco’s resilient business model and strategic initiatives have positioned it well for continued growth, with improved operational gearing and increased shareholder returns.

Eleco plc Issues New Shares to Strengthen Market Position

Eleco plc has announced the issuance and allotment of 20,000 new ordinary shares following the exercise of options under its 2014 Share Option Plan. The new shares will be admitted to trading on AIM, increasing the total number of voting rights to 83,577,397. This move reflects Eleco’s ongoing strategic activities to enhance its market presence and shareholder value.