Eleco (ELCO) AI Stock Analysis

Eleco

(LSE:ELCO)

Select Model

Rating:74Outperform

Price Target:GBX 256.00▲(10.82% Upside)

Action:reiterated

Date:09/11/26

The score is driven primarily by strong financial fundamentals (low leverage and strong cash generation) and very strong technical trend/momentum. These positives are materially offset by expensive valuation (very high P/E with a low dividend yield) and the key fundamental risk of weaker 2025 net income despite rising revenue.

Positive Factors

Consistent Revenue GrowthSustained revenue growth indicates improving demand and execution across Eleco’s built-environment software and services activities. Continued top-line expansion can support investment in product development, customer support, and market reach, strengthening the company’s earnings base over the next several quarters.

Negative Factors

Sharp 2025 Net Income DeclineThe decline in net income despite revenue growth shows that expansion is not currently converting into stronger bottom-line earnings. If the pressure persists, it could limit reinvestment capacity, weaken returns, and make future profit growth less dependable even while demand remains healthy.

Eleco (ELCO) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 192.84M
Dividend Yield: 0.52%
Average Volume (3M): 428.71K
Price to Earnings (P/E): 50.3
Beta (1Y): 0.47
Revenue Growth: 16.89%
EPS Growth: 2.68%
Country: UK
Employees: 316
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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’s products and solutions include IconSystem for the design standards and data manage...

How the Company Makes Money

Eleco makes money primarily by selling software and related services to customers in architecture, engineering, and construction (AEC) markets. Its core revenue streams typically include: (1) software licence and/or subscription revenue from propriet...

Eleco Financial Statement Overview

Summary

Strong overall financial health supported by consistent revenue growth, a conservatively positioned balance sheet with very low leverage, and robust operating/free cash flow. The main drawback is the sharp drop in 2025 net income despite higher revenue, creating an earnings-quality/consistency concern that caps the score.

Income Statement

73Positive

Balance Sheet

88Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.50M	38.82M	32.39M	28.01M	26.57M	27.34M
Gross Profit	30.53M	31.56M	28.91M	25.15M	21.88M	22.86M
EBITDA	8.26M	7.11M	7.55M	5.89M	5.22M	6.55M
Net Income	3.71M	1.32M	3.33M	2.65M	2.40M	2.73M
Balance Sheet
Total Assets	57.32M	59.99M	51.81M	45.98M	41.59M	39.22M
Cash, Cash Equivalents and Short-Term Investments	12.23M	16.29M	13.97M	10.90M	12.14M	10.05M
Total Debt	1.36M	1.20M	1.46M	1.46M	1.68M	2.04M
Total Liabilities	25.63M	28.36M	21.64M	18.62M	15.75M	15.38M
Stockholders Equity	31.70M	31.64M	30.17M	27.36M	25.84M	23.85M
Cash Flow
Free Cash Flow	5.91M	12.07M	5.65M	5.76M	3.74M	4.69M
Operating Cash Flow	9.24M	12.15M	8.96M	5.89M	5.53M	6.70M
Investing Cash Flow	-8.02M	-8.93M	-4.25M	-5.81M	-1.74M	-1.95M
Financing Cash Flow	-1.34M	-1.37M	-1.34M	-1.61M	-1.15M	-5.33M

Eleco Technical Analysis

Technical Analysis SentimentPositive

Last Price231.00

Price Trends

50DMA204.72Positive

100DMA163.76Positive

200DMA145.93Positive

Market Momentum

MACD5.80Positive

RSI94.10Negative

STOCH66.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ELCO, the sentiment is Positive. The current price of 231.00 is above the 20-day moving average (MA) of 230.40, above the 50-day MA of 204.72, and above the 200-day MA of 145.93, indicating a bullish trend. The MACD of 5.80 indicates Positive momentum. The RSI at 94.10 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ELCO.

Eleco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:ELCO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ELCO	74Outperform	GBP 194.94M	50.33	11.31%	0.52%	16.89%	2.68%
GB:NET	70Outperform	GBP 219.22M	138.17	3.23%	0.73%	20.24%	-62.04%
GB:TRCS	63Neutral	GBP 96.87M	100.31	1.51%	0.40%	4.66%	88.89%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GB:AOM	60Neutral	GBP 66.39M	-19.13	-26.19%	―	47.75%	-308.39%

* Technology Sector Average

Performance Comparison

GB:ELCO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:ELCO	Eleco Plc	231.00	76.59	49.60%
GB:NET	Netcall plc	128.50	3.57	2.86%
GB:TRCS	Tracsis plc	325.00	-7.99	-2.40%
GB:AOM	ActiveOps plc	92.50	-122.50	-56.98%

Eleco Corporate Events

Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsProduct-Related Announcements

Eleco posts record recurring revenue and sharpens focus with AI launches and rebrand

Positive

Jul 23, 2026

Eleco reported a strong first half, with annualised recurring revenue rising 16% to about £35.5m and organic ARR up 23%, marking a new record for the Group. Total recurring revenue grew 14% to around £16.9m, now representing 85% of total re...

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.

Date of analysis: Sep 11, 2026

Eleco AI Stock Analysis