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Eurocell
(LSE:ECEL)
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Rating:68Neutral
Price Target:
156.00 p
▲(28.93% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improving financial performance supported by steady free cash flow, though tempered by thinner margins versus prior peaks and higher leverage. Technicals add support with a clear uptrend and positive momentum indicators. Valuation is mixed (strong yield but a higher P/E), while the latest earnings call was constructive on momentum and cost-savings execution, balanced by pricing/inflation pressures and restructuring/ERP costs.
Positive Factors
Strategic initiative growth
Strategic initiatives are converting growth into higher-quality earnings: windows and doors and e-commerce expanded strongly, while the initiatives produced a 16% EBIT margin. This mix can broaden Eurocell’s routes to market and support profitability beyond legacy profile demand.
Negative Factors
Higher leverage
The sharp increase in leverage reduces Eurocell’s room to absorb weaker trading or fund additional investment without relying more heavily on cash generation. Higher debt also makes finance costs and disciplined capital allocation more important to sustaining shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic initiative growth
Strategic initiatives are converting growth into higher-quality earnings: windows and doors and e-commerce expanded strongly, while the initiatives produced a 16% EBIT margin. This mix can broaden Eurocell’s routes to market and support profitability beyond legacy profile demand.
Read all positive factors
Eurocell (ECEL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£142.90M
Dividend Yield4.62%
Average Volume (3M)205.54K
Price to Earnings (P/E)25.5
Beta (1Y)0.49
Revenue Growth10.68%
EPS Growth-25.87%
CountryUK
Employees2,179
SectorIndustrials
Sector Strength72
IndustryManufacturing - Miscellaneous
Share Statistics
EPS (TTM)0.06
Shares Outstanding99,270,170
10 Day Avg. Volume268,814
30 Day Avg. Volume205,541
Financial Highlights & Ratios
PEG Ratio-4.09
Price to Book (P/B)1.25
Price to Sales (P/S)0.33
P/FCF Ratio3.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£240.00Price Target Upside98.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.17
Revenue Forecast (FY)£427.30M
Eurocell Business Overview & Revenue Model
Company Description
Founded in 1974 and based in Alfreton, UK, Eurocell plc specializes in the manufacturing, distribution, and recycling of polyvinyl chloride (PVC) products for the building industry, specifically windows, doors, and roofline components, throughout ...
How the Company Makes Money
Eurocell makes money primarily by selling building products, with revenue generated through a combination of (1) manufacturing and selling uPVC profile systems and related components, and (2) distributing and retailing a wider range of building pr...
Eurocell Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 25, 2027
Earnings Call Sentiment Positive
The call was broadly positive, with revenue, adjusted operating profit, organic volumes, Q2 and second-half sales momentum, Alunet, branch initiatives, digital sales, shareholder returns and balance-sheet strength all improving. These positives were tempered by difficult market conditions, a 5% Profiles sales decline, competitive pricing pressure, inflation, restructuring and ERP charges, weaker cash generation versus the prior year and a safety-performance setback.Positive Updates
Group Revenue and Operating Profit Growth
Group revenues increased 6% year over year, from GBP 193 million to GBP 205 million, while adjusted operating profit rose 10% from GBP 10.1 million to GBP 11.1 million, supported by Alunet, cost control and restructuring benefits.
Negative Updates
Challenging Market Conditions
Weak consumer confidence, uncertainty from geopolitical events, high interest rates, falling house prices and reduced end demand continued to weigh on activity in Eurocell's key markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue and Operating Profit Growth
Group revenues increased 6% year over year, from GBP 193 million to GBP 205 million, while adjusted operating profit rose 10% from GBP 10.1 million to GBP 11.1 million, supported by Alunet, cost control and restructuring benefits.
Read all positive updates
Company Guidance
Eurocell expects full-year depreciation and amortization to be in the region of GBP 29 million, a slightly lower full-year tax rate of 24%, total CapEx of up to GBP 13 million, including GBP 3 million for strategic initiatives, GBP 3 million for site consolidation and GBP 3 million for facilities, welfare and safety improvements, and non-underlying ERP costs of approximately GBP 14 million for the 2024 to '27 period; the 3 major restructuring projects should deliver more than GBP 5 million of annual savings with GBP 2 million realized this year, the ERP transition is on track to take place at the end of the year, Power Up has a target of 15,000 by the year-end, Alunet is expected to sustain a low-teen operating margin, the company intends to continue share buybacks in due course subject to maintaining a strong financial position, and net debt is generally not to exceed 1x EBITDA unless there was a clear short-term deleveraging plan in place; management also said it remains committed to the GBP 250 million medium-term ambition and is confident it will deliver further progress in 2026.Eurocell Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 415.50M | 403.50M | 357.90M | 364.50M | 381.20M | 339.80M |
| Gross Profit | 208.00M | 204.00M | 188.30M | 173.80M | 182.70M | 170.20M |
| EBITDA | 53.90M | 51.50M | 41.90M | 39.60M | 53.00M | 52.40M |
| Net Income | 5.60M | 9.60M | 10.50M | 9.60M | 19.70M | 21.10M |
Balance Sheet | ||||||
| Total Assets | 294.30M | 287.80M | 223.80M | 223.80M | 254.90M | 240.20M |
| Cash, Cash Equivalents and Short-Term Investments | 7.60M | 6.30M | 400.00K | 400.00K | 5.10M | 6.60M |
| Total Debt | 101.20M | 103.80M | 62.90M | 58.60M | 84.00M | 76.30M |
| Total Liabilities | 195.90M | 183.00M | 118.40M | 109.50M | 140.00M | 134.00M |
| Stockholders Equity | 98.40M | 104.80M | 105.40M | 114.30M | 114.90M | 106.20M |
Cash Flow | ||||||
| Free Cash Flow | 35.00M | 34.20M | 33.90M | 43.70M | 21.50M | 13.50M |
| Operating Cash Flow | 46.00M | 46.50M | 44.20M | 52.80M | 33.90M | 29.00M |
| Investing Cash Flow | -14.30M | -33.10M | -10.30M | -8.30M | -12.10M | -15.50M |
| Financing Cash Flow | -30.20M | -4.50M | -36.90M | -49.20M | -17.40M | -15.40M |
Eurocell Technical Analysis
Positive
121.00
Price Trends
121.86
Positive
114.01
Positive
114.27
Positive
Market Momentum
6.31
Negative
73.00
Negative
90.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ECEL, the sentiment is Positive. The current price of 121 is below the 20-day moving average (MA) of 130.26, below the 50-day MA of 121.86, and above the 200-day MA of 114.27, indicating a bullish trend. The MACD of 6.31 indicates Negative momentum. The RSI at 73.00 is Negative, neither overbought nor oversold. The STOCH value of 90.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ECEL.
Eurocell Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £1.28B | 25.12 | 18.46% | 1.75% | 26.72% | 29.51% | |
68 Neutral | £142.90M | 25.54 | 5.51% | 4.62% | 10.68% | -25.87% | |
68 Neutral | £87.65M | 11.92 | 16.97% | 6.20% | -5.55% | -22.10% | |
65 Neutral | £733.04M | 21.28 | 5.19% | 4.42% | 4.33% | -30.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | £1.30B | -7.54 | -9.63% | 1.97% | -0.49% | -208.37% | |
54 Neutral | £268.15M | 873.53 | 0.15% | 3.80% | 6.87% | -91.28% |
* Industrials Sector Average
GB:ECEL
Eurocell
143.00
15.86
12.47%
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Eurocell Corporate Events
Other
Eurocell CFO Exercises SAYE Options, Boosts Shareholding
Positive
Sep 30, 2026
Eurocell plc disclosed that Chief Financial Officer Michael Scott has exercised options over 16,245 ordinary shares under the company’s Save As You Earn 2015 scheme at an exercise price of £1.108 per share. The shares, which vested in J...
Regulatory Filings and Compliance
Eurocell Chair’s Associated Party Increases Stake with Share Purchase
Positive
Sep 23, 2026
Eurocell plc reported that Karen Mapp, a person closely associated with non-executive chair Derek Mapp, purchased 14,709 ordinary shares in the company at £1.35 per share on 22 September 2026. Following this transaction, Derek Mapp’s to...
Regulatory Filings and Compliance
Eurocell Discloses Share Purchase by CEO’s Closely Associated Person
Neutral
Sep 21, 2026
Eurocell plc has reported a share purchase involving a person closely associated with its Chief Executive Officer, William Truman. The transaction reflects routine compliance with UK rules on disclosing dealings by senior management and their asso...
Regulatory Filings and Compliance
Eurocell Chair Derek Mapp Increases Stake with Share Purchase
Positive
Sep 3, 2026
Eurocell plc has disclosed that its Non-Executive Chair of the Board, Derek Mapp, purchased 16,304 ordinary shares in the company on 3 September 2026 at a price of £1.22 per share. Following this transaction, Mapp’s total reportable hol...
Business Operations and StrategyRegulatory Filings and Compliance
Eurocell Non-Executive Directors Lift Stakes Under Share Purchase Plan
Positive
Sep 3, 2026
Eurocell has disclosed updated shareholdings for four non-executive directors following purchases made under its Non-executive Directors’ Share Purchase Plan on 1 September 2026. Chair Derek Mapp now holds 685,246 shares, while fellow non-ex...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Eurocell lifts underlying profits and sales as restructuring reshapes business
Positive
Sep 3, 2026
Eurocell reported a 6% rise in first-half revenue to £205.2m and a 10% increase in adjusted operating profit, driven by strong contributions from its Alunet division, improving branch network sales and tight cost control despite weak housing ...
Business Operations and StrategyFinancial Disclosures
Eurocell Sets Investor Calls Around September Half-Year Results
Neutral
Sep 1, 2026
Eurocell plc will announce its half-year results for the six months to 30 June 2026 on 3 September, accompanied by an audiocast presentation for analysts and investors. The materials, including a recording of the presentation, will be made availab...
Business Operations and Strategy
Eurocell Expands Employee Benefit Trust Shareholding
Positive
Aug 5, 2026
Eurocell has disclosed that its Employee Benefit Trust, managed by Equiniti Trust (Jersey) Limited, has acquired 100,000 ordinary shares at a weighted average price of 118.75 pence per share. The shares will be used to satisfy current and future a...
Business Operations and StrategyStock Buyback
Eurocell Expands Employee Benefit Trust With Additional Share Purchase
Positive
Jul 31, 2026
Eurocell plc has directed its Employee Benefit Trust, managed by Equiniti Trust (Jersey) Limited, to purchase 100,000 ordinary shares on the market. These shares will be held on an unallocated basis within the trust to support current and future a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.