Elco (ELCO) AI Stock Analysis

• Market Cap: 4.76B
• Dividend Yield: 4.02%
• Average Volume (3M): 16.70K
• Price to Earnings (P/E): 311.5
• Beta (1Y): 1.81
• Revenue Growth: 11.80%
• EPS Growth: N/A
• Country: IL
• Employees: 23,850
• Sector: Industrials
• Sector Strength: 73
• Industry: Conglomerates
• EPS (TTM): 111.40
• Shares Outstanding: 26,931,005
• 10 Day Avg. Volume: 12,389
• 30 Day Avg. Volume: 16,702
• 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: 18,128.00
• Price Target Upside: 4.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: 17,466.00 ▲(0.44% Upside)

Elco's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but is hindered by high leverage and profitability issues. The technical analysis suggests bearish momentum, and the valuation indicates potential overvaluation with a high P/E ratio, though the dividend yield offers some attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Elco's products and effective market penetration, supporting long-term business expansion.

Cash Flow Improvement

Improved cash generation from operations enhances financial stability and provides resources for reinvestment and debt reduction.

Operational Efficiency

Enhanced operational efficiency can lead to better cost management and profitability, strengthening Elco's competitive position.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term sustainability.

Low Shareholder Equity

Limited shareholder equity reduces financial resilience and may constrain future investment opportunities, affecting long-term growth prospects.

Profitability Challenges

Ongoing profitability challenges hinder the company's ability to generate sustainable earnings, impacting investor confidence and growth potential.

Elco Business Overview & Revenue Model

Company Description

Elco (ELCO) is a diversified corporation operating in the electronics and electrical equipment sectors. The company specializes in designing, manufacturing, and distributing electronic components and systems for a wide range of industries including automotive, telecommunications, and consumer electronics. With a focus on innovation and technology, Elco provides solutions that enhance performance and efficiency in electronic applications.

How the Company Makes Money

Elco makes money primarily through the sale of its electronic components and systems to various industries. The company generates revenue by manufacturing and distributing products such as semiconductors, circuit boards, and other electronic components. Key revenue streams include direct sales to manufacturers in the automotive and telecommunications industries, as well as partnerships with consumer electronics companies. Elco may also engage in licensing agreements and collaborations with other technology firms to expand its product offerings and market reach, contributing to its overall earnings.

Elco Financial Statement Overview

Summary

Elco demonstrates solid revenue growth but faces profitability challenges due to recurring net losses. The balance sheet shows high leverage, which could impact financial flexibility. However, cash flow management has improved, with a notable increase in operating cash flow and a return to positive free cash flow.

Income Statement

Elco's revenue has shown a consistent upward trend, with a notable growth rate of 10.2% from 2023 to 2024. However, the company has faced profitability challenges, as indicated by negative net income in recent years. The gross profit margin stands at 15.1% for 2024, reflecting moderate efficiency in cost management. EBIT and EBITDA margins have improved, suggesting better operational efficiency, but the net profit margin remains negative due to high expenses or other financial burdens.

Balance Sheet

Elco's balance sheet reveals a high debt-to-equity ratio of 5.88, indicating significant leverage which could pose financial risks. The equity ratio is relatively low at 8.1%, reflecting limited shareholder equity in proportion to total assets. Return on equity has been negative due to net losses, highlighting profitability concerns. Despite these challenges, the company has maintained a stable asset base, which is crucial for long-term growth.

Cash Flow

Elco's cash flow statement shows a positive trend in operating cash flow, increasing from $437 million in 2023 to $938 million in 2024, indicating improved cash generation from core operations. Free cash flow has turned positive in 2024, a significant improvement from previous years. The operating cash flow to net income ratio is strong, suggesting effective cash management despite net losses. However, the company should continue to focus on sustaining free cash flow growth to support financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.69B	20.61B	18.70B	18.70B	14.82B	10.97B
Gross Profit	3.26B	3.11B	2.73B	3.57B	2.70B	1.58B
EBITDA	1.75B	1.35B	934.52M	2.35B	1.98B	976.07M
Net Income	15.13M	-118.00M	-289.00M	429.54M	544.62M	284.05M
Balance Sheet
Total Assets	26.67B	26.05B	23.98B	22.85B	19.04B	11.67B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.80B	1.15B	1.33B	1.13B	1.40B
Total Debt	12.77B	12.38B	10.45B	9.34B	7.93B	3.57B
Total Liabilities	21.39B	20.93B	18.99B	17.40B	14.67B	8.65B
Stockholders Equity	2.15B	2.11B	2.25B	2.58B	2.06B	1.60B
Cash Flow
Free Cash Flow	-231.62M	22.00M	-561.91M	-234.67M	-610.50M	574.08M
Operating Cash Flow	875.48M	938.00M	437.48M	330.75M	-144.70M	916.10M
Investing Cash Flow	-1.08B	-1.32B	-1.24B	-945.40M	-1.24B	143.97M
Financing Cash Flow	743.18M	1.00B	624.80M	893.99M	1.12B	-578.17M

Elco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17390.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELCO, the sentiment is Positive. The current price of 17390 is above the 20-day moving average (MA) of 17289.78, below the 50-day MA of 18183.84, and above the 200-day MA of 16389.75, indicating a neutral trend. The MACD of -176.66 indicates Negative momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ELCO.

Elco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
ELCO	55 Neutral	4.76B	311.49		4.02%	11.80%	―
BSEN	―	5.76B	22.86		4.21%	―	―
YHNF	63 Neutral	4.19B	20.94		2.76%	10.81%	13.20%
TRPZ	60 Neutral	5.36B	79.13		0.58%	46.50%	27.19%
ISHI	55 Neutral	3.11B	64.68		0.64%	10.92%	-24.52%
ISCN	49 Neutral	4.84B	30.94		0.52%	―	―