ECONOCOM GROUP (ECONB.BR) Stock Fundamental Analysis
EBR:ECONB - Euronext Brussels - BE0974313455 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ECONB. ECONB was compared to 76 industry peers in the IT Services industry. ECONB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECONB is cheap, but on the other hand it scores bad on growth.
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.
In the past 5 years ECONB always reported a positive cash flow from operatings.
1.2 Ratios
ECONB has a worse Return On Assets (1.58%) than 60.53% of its industry peers.
With a Return On Equity value of 8.88%, ECONB perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
ECONB has a Return On Invested Capital of 5.29%. This is in the lower half of the industry: ECONB underperforms 63.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECONB is below the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 8.88% | ||
| ROIC | 5.29% |
ROA(3y)2.29%
ROA(5y)2.29%
ROE(3y)13.56%
ROE(5y)13.84%
ROIC(3y)6.23%
ROIC(5y)6.51%
1.3 Margins
Looking at the Profit Margin, with a value of 1.38%, ECONB is doing worse than 60.53% of the companies in the same industry.
ECONB's Profit Margin has declined in the last couple of years.
The Operating Margin of ECONB (3.20%) is worse than 60.53% of its industry peers.
ECONB's Operating Margin has declined in the last couple of years.
ECONB's Gross Margin of 22.57% is on the low side compared to the rest of the industry. ECONB is outperformed by 72.37% of its industry peers.
ECONB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 1.38% | ||
| GM | 22.57% |
OM growth 3Y-10.94%
OM growth 5Y-3.78%
PM growth 3Y-20.79%
PM growth 5Y-2.13%
GM growth 3Y-5.3%
GM growth 5Y-1.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECONB is still creating some value.
The number of shares outstanding for ECONB has been reduced compared to 1 year ago.
ECONB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ECONB has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that ECONB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ECONB (1.45) is worse than 69.74% of its industry peers.
ECONB has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as ECONB would need 3.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.05, ECONB is doing good in the industry, outperforming 60.53% of the companies in the same industry.
ECONB has a Debt/Equity ratio of 0.93. This is a neutral value indicating ECONB is somewhat dependend on debt financing.
ECONB's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. ECONB is outperformed by 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.03
WACC5.14%
2.3 Liquidity
A Current Ratio of 1.08 indicates that ECONB should not have too much problems paying its short term obligations.
The Current ratio of ECONB (1.08) is worse than 64.47% of its industry peers.
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.
The Quick ratio of ECONB (1.02) is worse than 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for ECONB have decreased strongly by -42.10% in the last year.
ECONB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.45% yearly.
The Revenue has been growing slightly by 3.91% in the past year.
ECONB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.20% yearly.
EPS 1Y (TTM)-42.1%
EPS 3Y-12.86%
EPS 5Y3.45%
EPS Q2Q%-64.08%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y5.05%
Revenue growth 5Y-1.2%
Sales Q2Q%4.81%
3.2 Future
The Earnings Per Share is expected to grow by 7.36% on average over the next years.
Based on estimates for the next years, ECONB will show a small growth in Revenue. The Revenue will grow by 3.66% on average per year.
EPS Next Y9.17%
EPS Next 2Y12.18%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y3.63%
Revenue Next 3Y3.66%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 9.46, which indicates a very decent valuation of ECONB.
ECONB's Price/Earnings ratio is rather cheap when compared to the industry. ECONB is cheaper than 96.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. ECONB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.42, the valuation of ECONB can be described as very cheap.
Based on the Price/Forward Earnings ratio, ECONB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
ECONB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
ECONB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ECONB is cheaper than 96.05% of the companies in the same industry.
98.68% of the companies in the same industry are more expensive than ECONB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 3.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)2.74
EPS Next 2Y12.18%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, ECONB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.98, ECONB pays a better dividend. On top of this ECONB pays more dividend than 80.26% of the companies listed in the same industry.
ECONB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y12.18%
EPS Next 3Y7.36%
EBR:ECONB (5/30/2025, 7:00:00 PM)
1.986
+0.01 (+0.3%)
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 Cap331.76M
Analysts42
Price Target2.18 (9.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
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)-3.39%
PT rev (3m)-3.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 4.42 | ||
| P/S | 0.12 | ||
| P/FCF | 2.1 | ||
| P/OCF | 1.9 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.11 |
EPS(TTM)0.21
EY10.57%
EPS(NY)0.45
Fwd EY22.65%
FCF(TTM)0.94
FCFY47.56%
OCF(TTM)1.04
OCFY52.57%
SpS16.43
BVpS2.55
TBVpS-0.85
PEG (NY)1.03
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 8.88% | ||
| ROCE | 9.08% | ||
| ROIC | 5.29% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 37.42% | ||
| OM | 3.2% | ||
| PM (TTM) | 1.38% | ||
| GM | 22.57% | ||
| FCFM | 5.75% |
ROA(3y)2.29%
ROA(5y)2.29%
ROE(3y)13.56%
ROE(5y)13.84%
ROIC(3y)6.23%
ROIC(5y)6.51%
ROICexc(3y)9.14%
ROICexc(5y)10.99%
ROICexgc(3y)101.75%
ROICexgc(5y)N/A
ROCE(3y)10.65%
ROCE(5y)11.25%
ROICexcg growth 3Y-29.74%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y-11.69%
ROICexc growth 5Y-1.33%
OM growth 3Y-10.94%
OM growth 5Y-3.78%
PM growth 3Y-20.79%
PM growth 5Y-2.13%
GM growth 3Y-5.3%
GM growth 5Y-1.24%
F-Score7
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 38.97% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 4.91 | ||
| Cash Conversion | 133.64% | ||
| Profit Quality | 417.46% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.45 |
F-Score7
WACC5.14%
ROIC/WACC1.03
Cap/Depr(3y)49.07%
Cap/Depr(5y)46.74%
Cap/Sales(3y)0.72%
Cap/Sales(5y)0.72%
Profit Quality(3y)199.73%
Profit Quality(5y)223.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.1%
EPS 3Y-12.86%
EPS 5Y3.45%
EPS Q2Q%-64.08%
EPS Next Y9.17%
EPS Next 2Y12.18%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue 1Y (TTM)3.91%
Revenue growth 3Y5.05%
Revenue growth 5Y-1.2%
Sales Q2Q%4.81%
Revenue Next Year3.37%
Revenue Next 2Y3.63%
Revenue Next 3Y3.66%
Revenue Next 5YN/A
EBIT growth 1Y-18.76%
EBIT growth 3Y-6.44%
EBIT growth 5Y-4.93%
EBIT Next Year42%
EBIT Next 3Y18.35%
EBIT Next 5YN/A
FCF growth 1Y2154.29%
FCF growth 3Y57.75%
FCF growth 5Y11.35%
OCF growth 1Y481.33%
OCF growth 3Y43.52%
OCF growth 5Y8.65%