Arcontech (ARC) AI Stock Analysis

• Market Cap: £11.03M
• Dividend Yield: 4.52%
• Average Volume (3M): 48.46K
• Price to Earnings (P/E): 10.6
• Beta (1Y): -0.28
• Revenue Growth: 5.35%
• EPS Growth: -8.63%
• Country: UK
• Employees: 17
• Sector: Technology
• Sector Strength: 48
• Industry: Software
• EPS (TTM): 0.08
• Shares Outstanding: 13,372,811
• 10 Day Avg. Volume: 123,292
• 30 Day Avg. Volume: 48,456
• PEG Ratio: 1.53
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.73
• Price to Cash Flow (P/CF): 12.80
• P/FCF Ratio: 12.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Arcontech's strong financial performance and attractive valuation are major positives, supported by robust profitability margins and a low P/E ratio. However, technical analysis indicates significant weakness, with the stock in oversold territory and lacking momentum. Positive insider buying acts as a confidence booster, partially offsetting the technical concerns.

Arcontech Business Overview & Revenue Model

Company Description

Arcontech (ARC) is a UK-based company that specializes in providing real-time market data infrastructure and analytics software solutions for the financial services industry. The company focuses on enhancing the capabilities of financial institutions by offering high-performance software products that cater to the needs of traders, brokers, and financial analysts, enabling them to manage and utilize market data efficiently.

How the Company Makes Money

Arcontech makes money primarily through the sale and licensing of its proprietary software products. The company generates revenue by offering its clients tailored solutions that enhance market data distribution, trading analytics, and risk management. Key revenue streams include software licensing fees, subscription-based services, and maintenance and support fees. Arcontech's significant partnerships with financial institutions and its focus on delivering robust, scalable solutions contribute to its earnings by ensuring a steady demand for its products and services.

Arcontech Financial Statement Overview

Summary

Arcontech shows a solid financial profile with consistent revenue growth and strong profitability margins. The balance sheet reflects financial stability with low leverage and high equity ratios, while cash flows support operational and investment activities. However, some caution is warranted for future financial planning due to slight increases in liabilities and a decline in financing cash flow.

Income Statement

Arcontech demonstrates strong profitability with a consistent increase in revenue over the years, achieving a revenue growth rate of 6.6% in the latest year. The company maintains impressive gross and net profit margins, with a net profit margin improving to 36.7% in 2024. EBIT and EBITDA margins also reflect strong operational efficiency. These metrics highlight the company's solid revenue generation and cost management capabilities.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio stands at 78.3%, showing a strong equity position. Return on equity at 12.9% reflects good profitability on shareholders' investments. However, slight increases in liabilities and debt warrant caution for future financial planning.

Cash Flow

Arcontech's cash flow statements show positive trends, particularly strong free cash flow growth of 5% over the last year. The operating cash flow to net income ratio of 0.97 indicates effective conversion of income into cash. The free cash flow to net income ratio is slightly above 0.96, supporting ongoing operational investments. Although cash flows are strong, the decline in financing cash flow suggests a reduction in external financing.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.91M	2.73M	2.76M	2.99M	2.96M
	Gross Profit
2.91M	2.58M	2.76M	2.99M	2.96M
	EBIT
869.69K	805.21K	758.27K	1.04M	1.04M
	EBITDA
1.25M	1.14M	925.78K	1.21M	1.22M
	Net Income Common Stockholders
1.07M	980.11K	610.57K	1.05M	1.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.16M	6.41M	6.03M	5.40M	5.01M
	Total Assets
10.56M	9.03M	8.78M	8.57M	8.04M
	Total Debt
537.67K	40.32K	195.85K	344.30K	486.00K
	Net Debt
-6.62M	-6.37M	-5.83M	-5.05M	-4.52M
	Total Liabilities
2.30M	1.42M	1.80M	1.99M	2.34M
	Stockholders Equity
8.27M	7.61M	6.97M	6.58M	5.70M
Cash Flow		Free Cash Flow
1.02M	974.92K	1.12M	813.13K	1.34M
	Operating Cash Flow
1.04M	978.40K	1.12M	814.62K	1.36M
	Investing Cash Flow
236.26K	-3.48K	-2.69K	-1.48K	-12.75K
	Financing Cash Flow
-522.92K	-590.14K	-487.18K	-424.64K	-398.83K

Arcontech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARC, the sentiment is Negative. The current price of 82.5 is below the 20-day moving average (MA) of 94.10, below the 50-day MA of 107.27, and below the 200-day MA of 107.12, indicating a bearish trend. The MACD of -8.24 indicates Positive momentum. The RSI at 26.59 is Positive, neither overbought nor oversold. The STOCH value of 40.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ARC.

Arcontech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	67 Neutral	£11.03M	10.60	13.09%	4.52%	5.35%	-8.63%
TRCS	61 Neutral	£107.90M	194.44	0.72%	0.76%	-1.22%	-92.99%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
GBG	53 Neutral	£751.73M	95.03	1.33%	1.37%	1.63%	―
FDP	52 Neutral	£354.83M	―	-11.89%	―	-22.83%	-350.82%
RDT	41 Neutral	£2.70M	―	-117.29%	―	-3.60%	-729.74%

Arcontech Corporate Events

Arcontech CFO Increases Stake in Company Shares

Arcontech Group PLC announced that its Chief Financial Officer, Ben Hodges, has purchased 6,257 ordinary shares at a price of 79.90 pence per share, increasing his total holding to 13,023 shares, which represents approximately 0.10% of the company’s issued share capital. This transaction may indicate confidence in the company’s future prospects and could positively influence stakeholder perceptions of Arcontech’s market positioning.

Arcontech CEO’s Associate Increases Shareholding

Arcontech Group PLC announced that Suzanne Jeffs, closely associated with CEO Matthew Jeffs, purchased 18,000 ordinary shares at an average price of 80.12 pence per share. This transaction increases the beneficial interest of Matthew Jeffs and his associates to 1,013,000 ordinary shares, representing 7.57% of the company’s issued share capital. This move could indicate confidence in the company’s future prospects and may impact stakeholder perceptions positively.

Arcontech Announces Change in Major Shareholdings

Arcontech Group PLC, a company involved in the financial technology sector, has announced a change in major holdings. Nigel Ridge has acquired or disposed of voting rights, resulting in a total of 4.594% of voting rights attached to shares. This notification indicates a shift in the ownership structure of the company, potentially impacting its governance and strategic direction.

Arcontech Group Posts Revenue Growth Amidst Cautious Market

Arcontech Group PLC has reported a revenue increase of 4.3% to £1.51 million for the six months ended December 31, 2024, though profit before tax decreased by 3.8% due to rising staff costs. The company maintains a strong financial position with a net cash increase of 24.9% to £7.17 million, enabling continued investment in sales and product development. Despite cautious market conditions, Arcontech is confident in its future growth prospects with a robust pipeline of projects.