Eleco (ELCO) AI Stock Analysis

• Market Cap: £109.62M
• Dividend Yield: 0.79%
• Average Volume (3M): 72.04K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.91
• 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: 84,918
• 30 Day Avg. Volume: 72,042
• 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): N/A
• Revenue Forecast (FY): N/A

• 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 131.42, above the 50-day MA of 138.49, and above the 200-day MA of 148.89, indicating a bearish trend. The MACD of -2.02 indicates Negative momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.83 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
ELCO	68 Neutral	£109.62M	29.31	12.39%	0.79%	12.10%	27.35%
AOM	68 Neutral	£171.40M	-857.14	-2.20%	―	31.86%	-115.22%
IDOX	66 Neutral	£323.75M	51.82	8.06%	1.04%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£197.76M	47.35	9.59%	0.80%	22.80%	-32.13%
TRCS	61 Neutral	£90.01M	175.87	0.78%	0.80%	1.07%	11.25%
SPA	58 Neutral	£75.97M	2,266.67	0.15%	―	5.35%	-97.78%

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.

The most recent analyst rating on (GB:ELCO) stock is a Hold with a £165.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.