Why is Eleco Plc ?
1
Poor long term growth as Operating profit has grown by an annual rate 3.15% of over the last 5 years
2
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at GBP 17.52 MM
- ROCE(HY) Highest at 12.39%
- INTEREST COVERAGE RATIO(Q) Highest at 11,328.57
3
With ROE of 12.47%, it has a attractive valuation with a 3.55 Price to Book Value
- Over the past year, while the stock has generated a return of -13.26%, its profits have risen by 27.4% ; the PEG ratio of the company is 1.1
4
Underperformed the market in the last 1 year
- Even though the market (FTSE 100) has generated returns of 15.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.26% returns
How much should you hold?
- Overall Portfolio exposure to Eleco Plc should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eleco Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eleco Plc
-13.26%
0.04
34.36%
FTSE 100
13.98%
1.15
13.60%
Quality key factors
Factor
Value
Sales Growth (5y)
6.74%
EBIT Growth (5y)
3.15%
EBIT to Interest (avg)
3.83
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.44
Sales to Capital Employed (avg)
1.03
Tax Ratio
22.36%
Dividend Payout Ratio
24.69%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.52%
ROE (avg)
11.60%
Valuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
3.55
EV to EBIT
20.97
EV to EBITDA
11.90
EV to Capital Employed
5.03
EV to Sales
2.93
PEG Ratio
1.05
Dividend Yield
77.63%
ROCE (Latest)
23.99%
ROE (Latest)
12.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 17.52 MM
ROCE(HY)
Highest at 12.39%
INTEREST COVERAGE RATIO(Q)
Highest at 11,328.57
NET SALES(Q)
Highest at GBP 18.35 MM
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.69% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.33 times
Here's what is working for Eleco Plc
Interest Coverage Ratio
Highest at 11,328.57
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at GBP 17.52 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 18.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Depreciation
Highest at GBP 1.94 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Eleco Plc
Debtors Turnover Ratio
Lowest at 5.33 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.69% (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






