This Small UK Stock Looks Like A Buy

Published first at https://www.3minutebreakdowns.com Eurocell stock analysis. Ticker: $ECEL.L This small cap stock from the UK looks like a buy. Eurocell plc recycles and manufactures plastics that are used to create doors, windows, roof lights and garden rooms. The company supplies raw materials to fabricators as well as producing finished goods for tradesmen and homebuilders. At the latest price, Eurocell has a market value of 160 million pounds and the enterprise value is roughly the same. Revenue last year was 365 million with 9.6 million pounds of net income and 44 million of free cash flow. So the stock is currently valued at just under 17 times earnings but only 3.6 times free cash flow. Eurocell is under pressure right now thanks to higher interest rates and inflation which are affecting the housing market. Total revenues fell 4% last year and ebitda margins dropped 3 percentage points to 7%. This performance comes as the market for building materials and new home builds has softened. In fact, industry pressures forced two of Eurocell’s competitors, Duraflex and Safestyle to close down last year. #investing #stockanalysis #stockstobuy