Econocom Group SE (ECONB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Econocom Group SE

Why is Econocom Group SE ?

With ROE of 13.29%, it has a Very Attractive valuation with a 0.56 Price to Book Value

Over the past year, while the stock has generated a return of -19.57%, its profits have risen by 24.7% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 23

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Econocom Group SE should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Econocom Group SE for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Econocom Group SE

-19.57%

-1.15

31.93%

Belgium BEL 20

22.63%

1.44

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.01%

EBIT Growth (5y)

-1.07%

EBIT to Interest (avg)

3.80

Debt to EBITDA (avg)

1.92

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

2.89

Tax Ratio

33.39%

Dividend Payout Ratio

110.07%

Pledged Shares

Institutional Holding

ROCE (avg)

16.37%

ROE (avg)

16.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.56

EV to EBIT

3.02

EV to EBITDA

2.25

EV to Capital Employed

0.64

EV to Sales

0.12

PEG Ratio

0.05

Dividend Yield

23.03%

ROCE (Latest)

21.12%

ROE (Latest)

13.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.41 times

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 231.07

RAW MATERIAL COST(Y)

Grown by 11.33% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 98.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.4 times

INTEREST(Q)

Highest at EUR 20.6 MM

OPERATING PROFIT(Q)

Lowest at EUR 47.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.4 %

PRE-TAX PROFIT(Q)

Lowest at EUR 16.5 MM

NET PROFIT(Q)

Lowest at EUR 11.89 MM

Here's what is working for Econocom Group SE

Debtors Turnover Ratio

Highest at 3.41 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at EUR 21.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (EUR MM)

Depreciation

At EUR 21.5 MM has Grown at 20.79%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for Econocom Group SE

Interest Coverage Ratio

Lowest at 231.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at EUR 20.6 MM

in the last five periods and Increased by 25.61% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Operating Profit

Lowest at EUR 47.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin

Lowest at 3.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at EUR 16.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Pre-Tax Profit

Fallen at -50.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR 11.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

Debt-Equity Ratio

Highest at 98.12 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 22.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales