Eleco (ELCO) AI Stock Analysis

• Market Cap: £130.12M
• Dividend Yield: 0.69%
• Average Volume (3M): 112.41K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.80
• 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: 86,410
• 30 Day Avg. Volume: 112,408
• 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: £176.00
• Price Target Upside: 13.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 165.00p ▲(6.80% Upside)

Eleco's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, the high valuation and mixed technical indicators suggest caution. The absence of earnings call and corporate events data limits further insights.

Eleco Business Overview & Revenue Model

Company Description

Eleco (ELCO) is a UK-based technology company specializing in software solutions for the construction and architectural sectors. The company provides a range of products designed to improve project efficiency and collaboration, including building information modeling (BIM) software, project management tools, and cost estimation applications. With a focus on innovation, Eleco serves a diverse clientele, including contractors, architects, and engineering firms, aiming to enhance productivity across the construction lifecycle.

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 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: Positive
• Last Price: 154.50
• 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 GB:ELCO, the sentiment is Positive. The current price of 154.5 is above the 20-day moving average (MA) of 150.35, above the 50-day MA of 153.28, and above the 200-day MA of 149.01, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.16 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	―	£137.53M	17.04	15.34%	1.76%	3.48%	318.89%
ELCO	―	£130.12M	34.79	12.39%	0.69%	12.10%	27.35%
EYE	―	£85.09M	51.82	4.88%	―	0.97%	-71.58%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TRCS	―	£102.60M	201.75	―	0.75%	1.71%	-89.07%
IGP	―	£87.92M	21.21	26.84%	―	-11.27%	-32.98%
SAAS	―	£135.08M	-171.32	-1.08%	1.57%	9.69%	-319.35%

Eleco Corporate Events

Eleco plc Issues New Shares Following CEO’s Option Exercise

Eleco plc announced the issuance and allotment of 100,000 new ordinary shares following the exercise of options by CEO Jonathan Hunter under the 2014 Share Option Plan. This move increases Hunter’s interest in the company to 148,361 shares, representing 0.177% of the issued share capital. The new shares are set to be admitted to trading on AIM, with Eleco’s total voting rights rising to 83,677,397. This development reflects Eleco’s ongoing commitment to strengthening its leadership’s stake in the company, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (GB:ELCO) stock is a Hold with a £167.00 price target. To see the full list of analyst forecasts on Eleco stock, see the GB:ELCO Stock Forecast page.

Eleco plc Reports Strong 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.