Join our community of smart investors

Power up your portfolio with Electrocomponents

The industrial and electronics products specialist has increased its market share during the pandemic - now for the margin improvement
Power up your portfolio with Electrocomponents
  • Electrocomponents is expanding beyond distribution into higher margin value-added services
  • The fragmented global market should throw up more opportunities for earnings boosting acquisitions
IC TIP: Buy at 1015p
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points

Competes in fragmented markets

Profit margins improving

Fund manager pick

Analyst upgrades

Bear points

Cyclical exposure

Recent cost pressures

Founded in 1937 as a business selling spare parts for radios, Electrocomponents (ECM) has become one of the world’s leading distributors of industrial and electronic products. Working with more than 2,500 suppliers, the group stocks over 650,000 items, acting as a ‘one-stop shop’ for designers, builders and maintainers of industrial equipment and operations. Its 1.2m-plus customers come from a wide variety of sectors – running the gamut from healthcare to mining – and it provides them with everything from calibration instruments to personal protective equipment (PPE).

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in