# Eleco Plc (ELCO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 134p, market value 112 millionp.

## Valuation
- **P/E (trailing): 67.2×** (5-yr avg 3876.1×, 3-yr avg 4738.6×). Eleco Plc trades at 67.2× trailing earnings, well below its own five-year average of 3876.1×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.9×**. Each dollar of revenue is priced at 2.9×.
- **Price / book: 3.5×**. The shares trade at 3.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.7×**. Enterprise value is 13.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 10.8%** (5-yr avg 0.1%). Free cash flow equals 10.8% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 1.5%**. The inverse of the P/E: 1.5% of the price is earned each year.

## Profitability
- **Gross margin: 81.3%**. Eleco Plc keeps 81.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 14.1%**. 14.1% of revenue is left after running the business.
- **Net margin: 3.4%**. 3.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.2%**. 4.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 16.6%**. Return on all capital, debt included, is 16.6%: comfortably above what that capital costs.
- **Return on assets: 2.2%**. Each dollar of assets produces 2.2% of profit.

## Growth
- **Revenue growth (1 yr): 19.8%** (3-yr 13.5%/yr, 5-yr 9.0%/yr). Revenue grew 19.8% over the last year, against 9.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -60.5%** (3-yr -18.2%/yr, 5-yr -16.4%/yr). Earnings per share fell 60.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 47.8%/yr**. Free cash flow has compounded at 47.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.04**. Debt is 0.04 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Eleco Plc holds more cash than debt.
- **Interest coverage: 23.0×**. Operating profit covers interest 23.0× over, a safe margin.
- **Current ratio: 1.00** (quick 1.00). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.06**. A Z-score of 4.06 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.89%** (0p per share, trailing). Eleco Plc yields 0.89%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 66%** (7% of free cash flow). 66% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 0.7%**. Dividends plus net buybacks return 0.7% of the market value a year.

## Price and momentum
- **Total return (1 yr): -18.0%** (YTD 6.8%, 3-mo 5.5%). The shares are down 18.0% over twelve months including dividends.
- **From 52-week high: -19.0%** (33.0% above the low). Trading 19% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 67**. An RSI of 67 is neutral.
- **Beta (1 yr): 0.30** (volatility 38%). Beta of 0.30 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ELCO.L · Page: https://foliofundamentals.com/stocks/elco.l

Not investment advice.