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1. Company Snapshot

1.a. Company Description

Econocom Group SE conceives, finances, and facilitates the digital transformation of large firms and public organizations.It operates in two segments, Technology Management and Financing, and Digital Services and Solutions.The Technology Management and Financing segment offers financing solutions for the administrative and financial management of the ICT and digital assets of the businesses.


The Digital Services and Solutions segment provides consulting, infrastructure management, applications development, and digital and systems integration solutions, as well as design and roll-out solutions; and sells hardware and software, such as PCs, tablets, servers, printers, licences, digital devices, etc.The company serves healthcare, retail, education, and industry sectors.It operates in 18 countries, including Europe, Morocco, Brazil, Mexico, Canada, and the United States.


The company sells its products and services under the Econocom brand name.The company was incorporated in 1982 and is headquartered in Puteaux, France.

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1.b. Last Insights on ECONB

Econocom Group SE faced challenges in its recent performance, driven by difficulties in the PNS segment and the ongoing restructuring of Sino Trade. Despite a 6.6% revenue increase, largely fueled by TMF activity, the company navigates a complex business environment. The PNS segment's struggles and Sino Trade's restructuring weigh on short-term prospects. Additionally, the company must address these issues to sustain growth momentum. Econocom's H1 2025 earnings call highlighted these concerns. (Source: Econocom Group SE H1 2025 Earnings Call Highlights, July 25, 2025)

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Econocom Group SE (XBRU:ECONB) (H1 2025) Earnings Call Highlights: Strong Revenue Growth Amid ...

Jul -25

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Econocom Group SE (XBRU:ECONB) Q4 2024 Earnings Call Highlights: Strong Organic Growth and ...

Feb -20

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Undiscovered Gems Promising Stocks To Explore In January 2025

Jan -07

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Discovering Undiscovered Gems on None This November 2024

Nov -19

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.74%)

6. Segments

Products & Solutions

Expected Growth: 3.5%

Econocom Group SE's 3.5% growth in Products & Solutions is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Additionally, the company's focus on sustainable IT and circular economy offerings resonates with environmentally conscious clients. Strong partnerships with leading technology vendors and a robust services portfolio also contribute to this growth.

Technology Management and Financing

Expected Growth: 3.8%

Econocom Group SE's Technology Management and Financing segment growth of 3.8% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Additionally, the company's financing solutions for IT equipment and services, as well as its managed services offerings, contribute to the growth. The segment's expansion is also fueled by strategic acquisitions and partnerships, enhancing its market presence and capabilities.

Services

Expected Growth: 4.2%

Econocom Group SE's 4.2% growth in services is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Additionally, the company's strategic acquisitions and partnerships have expanded its offerings, enhancing its competitive position. Furthermore, the growing need for IT services in various industries, such as healthcare and finance, has contributed to the segment's growth.

7. Detailed Products

Digital Workplace

Econocom's Digital Workplace solution provides a comprehensive suite of services and tools to enable employees to work efficiently and effectively in a digital environment.

Cybersecurity Services

Econocom's Cybersecurity Services provide a range of solutions to protect businesses from cyber threats, including threat detection, incident response, and security consulting.

Data Analytics

Econocom's Data Analytics solutions help businesses make data-driven decisions by providing insights and intelligence from their data.

Cloud Services

Econocom's Cloud Services provide scalable and flexible cloud infrastructure solutions to support business growth and agility.

Digital Transformation Consulting

Econocom's Digital Transformation Consulting services help businesses develop and implement digital strategies to drive innovation and growth.

IT Financing

Econocom's IT Financing solutions provide flexible financing options for businesses to acquire the technology they need to drive growth.

Managed Services

Econocom's Managed Services provide ongoing support and maintenance for businesses' IT infrastructure and systems.

8. Econocom Group SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Econocom Group SE is moderate, as there are alternative products and services available in the market, but they are not significantly cheaper or better.

Bargaining Power Of Customers

The bargaining power of customers for Econocom Group SE is low, as the company operates in a niche market with limited competition, giving customers limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Econocom Group SE is moderate, as the company relies on a few key suppliers, but they do not have significant bargaining power.

Threat Of New Entrants

The threat of new entrants for Econocom Group SE is low, as the company operates in a niche market with high barriers to entry, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Econocom Group SE is high, as the company operates in a competitive market with several established players, leading to intense competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.94%
Debt Cost 7.62%
Equity Weight 48.06%
Equity Cost 10.78%
WACC 9.14%
Leverage 108.07%

11. Quality Control: Econocom Group SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Econocom

A-Score: 6.2/10

Value: 10.0

Growth: 5.6

Quality: 2.6

Yield: 9.4

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
SNP

A-Score: 6.2/10

Value: 3.6

Growth: 9.3

Quality: 6.6

Yield: 0.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Sygnity

A-Score: 4.9/10

Value: 0.9

Growth: 6.7

Quality: 8.6

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Gofore

A-Score: 4.8/10

Value: 5.4

Growth: 9.0

Quality: 5.9

Yield: 4.4

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Exsitec Holding

A-Score: 3.8/10

Value: 2.2

Growth: 8.7

Quality: 5.4

Yield: 1.2

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Digital Value

A-Score: 3.6/10

Value: 8.0

Growth: 4.3

Quality: 5.1

Yield: 3.1

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.59$

Current Price

1.59$

Potential

-0.00%

Expected Cash-Flows