Eleco (ELCO) AI Stock Analysis

• Market Cap: £124.11M
• Dividend Yield: 0.67%
• Average Volume (3M): 75.24K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.75
• 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: 83,577,400
• 10 Day Avg. Volume: 89,254
• 30 Day Avg. Volume: 75,243
• 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: £171.50
• Price Target Upside: 15.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: 167.00p ▲(12.46% Upside)

Eleco's strong financial performance is the most significant factor, showcasing robust growth and profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors collectively result in a moderate overall stock score.

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 estimating software; IconSystem, a cloud-based collaborative building information management software to record, specify, design, and manage building data; Interiorstudio, a room configuration and visualization interior design software; MarketingManager, which combines product information management and digital asset management to create an effective central database; and Materialo, a flooring visualizer software. It also provides Powerproject, a planning and project management software; Memmo, a project site management and collaboration software; ShireSystem, a combined CMMS and CAFM software to manage multiple locations and assets; Staircon, a CAD/CAM software for designing and manufacturing staircases; Statcon, a design software for structural engineering; 3D Architect, a software to support self-builders to plan and visualize small to large scale building design projects; Easyplan, an intuitive planning software for planning, managing, and delivery of smaller projects; Framing, a design tool for timber frame and floor construction; o2c, a CAD compression software to optimize 3D data for transfer; Project Viewer for viewing files without having a licensed copy of software on device; and Tilos, a time chainage software for time-location planning. In addition, the company offers training, consultancy, and technical support services. The company was formerly known as Elecosoft plc and changed its name to Eleco Plc in July 2020. Eleco Plc was founded in 1895 and is headquartered in London, the United Kingdom.

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: Negative
• Last Price: 148.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 148.5 is below the 20-day moving average (MA) of 159.03, below the 50-day MA of 166.85, and above the 200-day MA of 148.31, indicating a neutral trend. The MACD of -4.98 indicates Positive momentum. The RSI at 37.19 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, 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
TRB	79 Outperform	142.35M	17.64	10.66%	1.70%	3.48%	318.89%
EYE	76 Outperform	87.88M	53.45	0.00%	―	0.97%	-71.58%
IGP	68 Neutral	103.80M	25.25	23.81%	―	-11.27%	-32.98%
ELCO	61 Neutral	£124.11M	33.22	12.39%	0.67%	12.10%	27.35%
TRCS	59 Neutral	126.39M	248.54	0.00%	0.59%	1.71%	-89.07%
SAAS	57 Neutral	171.02M	-83.33	-2.86%	1.23%	10.82%	-230.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Eleco Corporate Events

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.

The most recent analyst rating on (GB:ELCO) stock is a Hold 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 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.

The most recent analyst rating on (GB:ELCO) stock is a Hold 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 to Announce Interim Results and Host Investor Presentations

Eleco plc announced that its interim results for the six months ending 30 June 2025 will be released on 16 September 2025. The company will host a live presentation for analysts and another for investors, showcasing its financial performance and strategic initiatives. These presentations aim to engage stakeholders and provide insights into Eleco’s operations and market positioning.

The most recent analyst rating on (GB:ELCO) stock is a Hold 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 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.