Echo Energy (ECHO.L): It Is Important To Know Before Investing

After more than 50% gain in April 2021, Echo Energy’s shares return to former values of 0.65 GBP. On July 14, the company’s share price is fixed at 0.65 GBP experiencing a 0.76% loss. With a market capitalization of 8.442 million GBP, Echo Energy has a high beta score of 3.44. Even though the company performs stably, it is still considered a risky investment, according to experts.
Recently, the analysts have evaluated the potential risks of investing in Echo Energy. They are as follows: 1) In the past 5 years, the company’s profit has fallen by 31.6% annually. In the last year, ECHO lagged UK Oil and Gas industry with 27.8% return. 2) The liquidation trajectory is less than one year suggesting the firm has insufficient cash runway. 3) Shareholders were significantly deprived of ownership proportions last year. 4) The company has negative equity of -2.4000 implying high liabilities as well.

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Thus, based on the severity of risks and their quantity, I would not recommend you buying Echo’s shares now. However, do not take this investment advice personally; please, read more articles regarding the company on our website as well as do your own research to have a better understanding of the company’s overall performance.

Lora Nilsson

Finance and Business reporter After graduating high school. Lora decided to travel and blog as a part-timer. Today she enjoys what she loves and works remotely as our finance and business reporter

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