ECONOCOM GROUP (ECONB.BR) Stock Fundamental Analysis
EBR:ECONB - BE0974313455 - Common Stock
1.77 EUR
-0.02 (-0.9%)
Taking everything into account, ECONB scores 3 out of 10 in our fundamental rating. ECONB was compared to 73 industry peers in the IT Services industry. Both the profitability and financial health of ECONB have multiple concerns. ECONB is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years ECONB has been profitable.
In the past 5 years ECONB always reported a positive cash flow from operatings.
1.2 Ratios
ECONB has a worse Return On Assets (0.63%) than 65.75% of its industry peers.
ECONB has a worse Return On Equity (3.69%) than 63.01% of its industry peers.
ECONB's Return On Invested Capital of 4.71% is on the low side compared to the rest of the industry. ECONB is outperformed by 63.01% of its industry peers.
ECONB had an Average Return On Invested Capital over the past 3 years of 6.23%. This is significantly below the industry average of 11.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 3.69% | ||
| ROIC | 4.71% |
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 0.53%, ECONB is doing worse than 65.75% of the companies in the same industry.
In the last couple of years the Profit Margin of ECONB has declined.
ECONB has a Operating Margin of 3.23%. This is in the lower half of the industry: ECONB underperforms 64.38% of its industry peers.
In the last couple of years the Operating Margin of ECONB has declined.
ECONB's Gross Margin of 22.22% is on the low side compared to the rest of the industry. ECONB is outperformed by 73.97% of its industry peers.
In the last couple of years the Gross Margin of ECONB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.23% | ||
| PM (TTM) | 0.53% | ||
| GM | 22.22% |
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.
ECONB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ECONB has less shares outstanding
The debt/assets ratio for ECONB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that ECONB is in the distress zone and has some risk of bankruptcy.
ECONB's Altman-Z score of 1.56 is on the low side compared to the rest of the industry. ECONB is outperformed by 72.60% of its industry peers.
The Debt to FCF ratio of ECONB is 6.55, which is on the high side as it means it would take ECONB, 6.55 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.55, ECONB is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
ECONB has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
ECONB has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: ECONB underperforms 78.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.97
WACC4.86%
2.3 Liquidity
ECONB has a Current Ratio of 1.25. This is a normal value and indicates that ECONB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, ECONB perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that ECONB should not have too much problems paying its short term obligations.
ECONB has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for ECONB have decreased strongly by -77.32% in the last year.
Measured over the past 5 years, ECONB shows a small growth in Earnings Per Share. The EPS has been growing by 3.45% on average per year.
The Revenue has been growing slightly by 5.62% in the past year.
The Revenue has been decreasing by -1.20% on average over the past years.
EPS 1Y (TTM)-77.32%
EPS 3Y-12.86%
EPS 5Y3.45%
EPS Q2Q%-100%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y5.05%
Revenue growth 5Y-1.2%
Sales Q2Q%6.44%
3.2 Future
ECONB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.75% yearly.
The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y8.13%
EPS Next 2Y9.54%
EPS Next 3Y10.75%
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y4.22%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.13 indicates a rather expensive valuation of ECONB.
ECONB's Price/Earnings ratio is in line with the industry average.
ECONB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.58, the valuation of ECONB can be described as very cheap.
ECONB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECONB is cheaper than 98.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. ECONB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 3.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECONB is valued cheaper than 93.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECONB is valued cheaper than 95.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.14 | ||
| EV/EBITDA | 3.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECONB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.72
PEG (5Y)6.42
EPS Next 2Y9.54%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
ECONB has a Yearly Dividend Yield of 5.67%, which is a nice return.
ECONB's Dividend Yield is rather good when compared to the industry average which is at 7.19. ECONB pays more dividend than 83.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ECONB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y9.54%
EPS Next 3Y10.75%
EBR:ECONB (9/5/2025, 7:00:00 PM)
1.77
-0.02 (-0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.43%
Inst Owner ChangeN/A
Ins Owners53.37%
Ins Owner ChangeN/A
Market Cap295.68M
Analysts42
Price Target2.24 (26.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
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)2.57%
PT rev (3m)2.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 3.58 | ||
| P/S | 0.1 | ||
| P/FCF | 3.14 | ||
| P/OCF | 2.69 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.63 |
EPS(TTM)0.08
EY4.52%
EPS(NY)0.49
Fwd EY27.93%
FCF(TTM)0.56
FCFY31.89%
OCF(TTM)0.66
OCFY37.13%
SpS16.94
BVpS2.45
TBVpS-1.01
PEG (NY)2.72
PEG (5Y)6.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 3.69% | ||
| ROCE | 7.94% | ||
| ROIC | 4.71% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 20.28% | ||
| OM | 3.23% | ||
| PM (TTM) | 0.53% | ||
| GM | 22.22% | ||
| FCFM | 3.33% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.55 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 37.17% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 82.49% | ||
| Profit Quality | 624.5% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.56 |
F-Score7
WACC4.86%
ROIC/WACC0.97
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)-77.32%
EPS 3Y-12.86%
EPS 5Y3.45%
EPS Q2Q%-100%
EPS Next Y8.13%
EPS Next 2Y9.54%
EPS Next 3Y10.75%
EPS Next 5YN/A
Revenue 1Y (TTM)5.62%
Revenue growth 3Y5.05%
Revenue growth 5Y-1.2%
Sales Q2Q%6.44%
Revenue Next Year4.31%
Revenue Next 2Y4.22%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y-10.65%
EBIT growth 3Y-6.44%
EBIT growth 5Y-4.93%
EBIT Next Year42%
EBIT Next 3Y18.35%
EBIT Next 5YN/A
FCF growth 1Y86.36%
FCF growth 3Y57.75%
FCF growth 5Y11.35%
OCF growth 1Y42.23%
OCF growth 3Y43.52%
OCF growth 5Y8.65%