ECONOCOM GROUP (ECONB.BR) Stock Fundamental Analysis
EBR:ECONB - Euronext Brussels - BE0974313455 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ECONB. ECONB was compared to 70 industry peers in the IT Services industry. Both the profitability and the financial health of ECONB get a neutral evaluation. Nothing too spectacular is happening here. ECONB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year ECONB was profitable.
In the past year ECONB had a positive cash flow from operations.
ECONB had positive earnings in each of the past 5 years.
ECONB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ECONB has a Return On Assets (2.69%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.32%, ECONB is in the better half of the industry, outperforming 70.67% of the companies in the same industry.
With a Return On Invested Capital value of 6.68%, ECONB perfoms like the industry average, outperforming 45.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ECONB is below the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 15.32% | ||
| ROIC | 6.68% |
ROA(3y)2.71%
ROA(5y)2.28%
ROE(3y)16.23%
ROE(5y)14.22%
ROIC(3y)7.4%
ROIC(5y)7.08%
1.3 Margins
With a Profit Margin value of 2.28%, ECONB perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
ECONB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.82%, ECONB is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ECONB has grown nicely.
ECONB's Gross Margin of 22.21% is on the low side compared to the rest of the industry. ECONB is outperformed by 74.67% of its industry peers.
ECONB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.82% | ||
| PM (TTM) | 2.28% | ||
| GM | 22.21% |
OM growth 3Y-3.8%
OM growth 5Y3.22%
PM growth 3Y8.53%
PM growth 5Y12.52%
GM growth 3Y-2.63%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
ECONB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ECONB has less shares outstanding
The number of shares outstanding for ECONB has been reduced compared to 5 years ago.
ECONB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that ECONB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.50, ECONB is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
ECONB has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as ECONB would need 2.69 years to pay back of all of its debts.
ECONB has a Debt to FCF ratio of 2.69. This is in the better half of the industry: ECONB outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that ECONB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, ECONB is doing worse than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.44
WACC4.64%
2.3 Liquidity
A Current Ratio of 1.09 indicates that ECONB should not have too much problems paying its short term obligations.
ECONB has a Current ratio (1.09) which is comparable to the rest of the industry.
ECONB has a Quick Ratio of 1.02. This is a normal value and indicates that ECONB is financially healthy and should not expect problems in meeting its short term obligations.
ECONB has a Quick ratio (1.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.77% over the past year.
The Earnings Per Share has been growing by 16.36% on average over the past years. This is quite good.
Looking at the last year, ECONB shows a decrease in Revenue. The Revenue has decreased by -3.46% in the last year.
ECONB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.22% yearly.
EPS 1Y (TTM)13.77%
EPS 3Y16.51%
EPS 5Y16.36%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y2.08%
Revenue growth 5Y-2.22%
Sales Q2Q%2.98%
3.2 Future
ECONB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.86% yearly.
ECONB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y-11.6%
EPS Next 2Y-2.23%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue Next Year-0.31%
Revenue Next 2Y1.2%
Revenue Next 3Y2.08%
Revenue Next 5Y2.09%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.15, the valuation of ECONB can be described as very cheap.
ECONB's Price/Earnings ratio is rather cheap when compared to the industry. ECONB is cheaper than 97.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ECONB is valued rather cheaply.
A Price/Forward Earnings ratio of 4.05 indicates a rather cheap valuation of ECONB.
ECONB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECONB is cheaper than 98.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ECONB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECONB indicates a rather cheap valuation: ECONB is cheaper than 96.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ECONB is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.62 | ||
| EV/EBITDA | 3.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-2.23%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
ECONB has a Yearly Dividend Yield of 5.55%, which is a nice return.
ECONB's Dividend Yield is rather good when compared to the industry average which is at 4.29. ECONB pays more dividend than 89.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ECONB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
The dividend of ECONB decreases each year by -1.72%.
Dividend Growth(5Y)-1.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-2.23%
EPS Next 3Y2.86%
EBR:ECONB (3/7/2025, 7:00:00 PM)
1.804
+0 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.42%
Inst Owner ChangeN/A
Ins Owners49.79%
Ins Owner ChangeN/A
Market Cap301.36M
Analysts42
Price Target2.26 (25.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend0.1
Dividend Growth(5Y)-1.72%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.91%
PT rev (3m)1.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.26%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 4.05 | ||
| P/S | 0.11 | ||
| P/FCF | 1.62 | ||
| P/OCF | 1.46 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.1 |
EPS(TTM)0.35
EY19.4%
EPS(NY)0.45
Fwd EY24.69%
FCF(TTM)1.11
FCFY61.65%
OCF(TTM)1.23
OCFY68.36%
SpS16.04
BVpS2.39
TBVpS-1.02
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 15.32% | ||
| ROCE | 10.62% | ||
| ROIC | 6.68% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 30.84% | ||
| OM | 3.82% | ||
| PM (TTM) | 2.28% | ||
| GM | 22.21% | ||
| FCFM | 6.93% |
ROA(3y)2.71%
ROA(5y)2.28%
ROE(3y)16.23%
ROE(5y)14.22%
ROIC(3y)7.4%
ROIC(5y)7.08%
ROICexc(3y)11.53%
ROICexc(5y)12.25%
ROICexgc(3y)140.77%
ROICexgc(5y)N/A
ROCE(3y)11.57%
ROCE(5y)11.46%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-9.66%
ROICexc growth 3Y-17.51%
ROICexc growth 5Y1.59%
OM growth 3Y-3.8%
OM growth 5Y3.22%
PM growth 3Y8.53%
PM growth 5Y12.52%
GM growth 3Y-2.63%
GM growth 5Y-0.57%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 49.27% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 5.5 | ||
| Cash Conversion | 143.75% | ||
| Profit Quality | 304.09% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.5 |
F-Score7
WACC4.64%
ROIC/WACC1.44
Cap/Depr(3y)51.87%
Cap/Depr(5y)46.91%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.76%
Profit Quality(3y)83.26%
Profit Quality(5y)182.9%
High Growth Momentum
Growth
EPS 1Y (TTM)13.77%
EPS 3Y16.51%
EPS 5Y16.36%
EPS Q2Q%-7.14%
EPS Next Y-11.6%
EPS Next 2Y-2.23%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y2.08%
Revenue growth 5Y-2.22%
Sales Q2Q%2.98%
Revenue Next Year-0.31%
Revenue Next 2Y1.2%
Revenue Next 3Y2.08%
Revenue Next 5Y2.09%
EBIT growth 1Y-11.27%
EBIT growth 3Y-1.8%
EBIT growth 5Y0.93%
EBIT Next Year37.67%
EBIT Next 3Y17.23%
EBIT Next 5YN/A
FCF growth 1Y193.52%
FCF growth 3Y-62.49%
FCF growth 5Y-31.86%
OCF growth 1Y152.14%
OCF growth 3Y-47.01%
OCF growth 5Y-22.16%