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 ?

High Management Efficiency with a high ROCE of 22.14%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 4.09 times

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at EUR 262 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 129.63%
RAW MATERIAL COST(Y) Fallen by -25.58% (YoY)

With ROE of 13.29%, it has a Very Attractive valuation with a 0.57 Price to Book Value

Over the past year, while the stock has generated a return of -21.48%, its profits have risen by 37.7% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 22.7

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

-21.48%

-1.15

29.38%

Belgium BEL 20

24.74%

1.55

15.93%

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)

3.83

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

2.85

Tax Ratio

43.45%

Dividend Payout Ratio

110.07%

Pledged Shares

Institutional Holding

ROCE (avg)

22.14%

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

0.57

EV to EBIT

3.05

EV to EBITDA

2.28

EV to Capital Employed

0.64

EV to Sales

0.12

PEG Ratio

0.04

Dividend Yield

22.72%

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 262 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 129.63%

RAW MATERIAL COST(Y)

Fallen by -25.58% (YoY

CASH AND EQV(HY)

Highest at EUR 523.4 MM

DEBT-EQUITY RATIO (HY)

Lowest at 50.59 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.37 times

NET SALES(Q)

Highest at EUR 1,501.9 MM

OPERATING PROFIT(Q)

Highest at EUR 90.7 MM

-3What is not working for the Company

INTEREST(HY)

At EUR 16.4 MM has Grown at 26.15%

DIVIDEND PER SHARE(HY)

Lowest at EUR 3.37

Here's what is working for Econocom Group SE

Operating Cash Flow

Highest at EUR 262 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Net Sales

Highest at EUR 1,501.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit

Highest at EUR 90.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Cash and Eqv

Highest at EUR 523.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 50.59 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 129.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -25.58% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Econocom Group SE

Interest

At EUR 16.4 MM has Grown at 26.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Dividend per share

Lowest at EUR 3.37

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (EUR)