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Elcom International

ELCO
Software - Application · Technology
Price
$35.00
+0.00 (+0.00%)
Market Cap
$17.6M
Winston Score
Winston looking sleepy
No score yet — Winston is napping.
We couldn’t gather enough financial data to score this stock reliably.

Share count rising — dilution

+1665.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 28K (2003) → 496K (2007)

Elcom International is a software company that builds procurement and e-commerce tools for businesses and government agencies. Its main products help organizations manage purchasing, supplier catalogs, and online transactions in one place. The company has historically focused on selling its software to public sector clients and large enterprises.

Elcom earns money by licensing its software and charging fees for related services, which explains its relatively high gross margin. It operates primarily in the United States and has a small market footprint, reflecting its niche focus rather than broad scale. The deeply negative operating margin signals that the company spends significantly more than it earns from operations, which is a key financial risk — the business would need to either grow revenue meaningfully or cut costs to reach sustainable profitability.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+44.1% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$766,000/ year

Declining (-38% vs prior year)

14.2% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.1%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~2 years

$2M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$2M cash & investments at current burn rate

Revenue declining

Elcom International's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
88.9%
Premium pricing power — 88.9% gross margin
Operating Margin
-10.1%
Losing money on operations — -10.1%
ROCE
N/A
Data not available

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Growth

Sales YoY
+45.3%
Fast-growing sales (45.3% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-44.0%
Burning cash (-44.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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