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Eurocell

ECEL.L
57
Manufacturing - Miscellaneous · Industrials
Price
118.00 GBp
-1.50 (-1.26%)
Market Cap
£116.3M
Exchange
London Stock Exchange
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Strong
Stability
Strong
Valuation
Strong
Dividends
Good

Share count falling — buybacks

9.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 112.2M (2021) → 101.8M (2025)

Winston Score History

The full picture

Eurocell is a UK company that makes and sells plastic window frames, doors, and roofline products used in homes and buildings. Its main customers are builders, contractors, and home improvement companies across Britain. Eurocell is unusual because it both manufactures the plastic profiles and runs its own network of trade branches that sell directly to installers.

The company earns money by selling its plastic building products through roughly 220 trade branches and through wholesale distribution. It operates entirely in the UK, making it a small, domestically focused business with a vertically integrated model — meaning it controls production and distribution, which helps protect margins. The key growth driver is demand for energy-efficient window and door replacements, but the main risk is that Eurocell's sales are closely tied to the health of the UK housing and renovation market, which slows sharply when interest rates rise or consumer confidence falls.

Growth Profile

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

Revenue Growth

+15.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+46.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

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

Insider Activity

9.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£6M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Eurocell is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
50.5%
Healthy — 50.5% gross margin
Profit after running costs
Operating Margin
6.7%
Modest — 6.7% operating margin
Return on the money invested
ROCE
15.2%
Strong — 15.2% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+12.7%
Fast-growing sales (+12.7% YoY)
Profit growth
EPS YoY
-2.8%
Earnings shrinking (-2.8% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
494%
Turns 494% of profit into real cash
Spare cash per sale
FCF Margin
8.7%
Modest free cash flow (8.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.26
Conservative — low debt load (0.26)
Covers its interest
Interest Cover
3.94x
Tight — interest eats into profit (3.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
12.3x
Attractive valuation — P/E 12.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+5.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (12.3 → 6.9)

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Dividends

Dividend
Dividend Yield
5.42%
Healthy income — 5.42% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
-1.4%
Dividend cut (-1.4% YoY) — warning sign

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