EVERUS CONSTRUCTION GROUP (ECG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECG - US3004261034 - Common Stock
91.6 USD
+0.38 (+0.42%)
91.6 USD
0 (0%)
Overall ECG gets a fundamental rating of 5 out of 10. We evaluated ECG against 55 industry peers in the Construction & Engineering industry. ECG has an excellent financial health rating, but there are some minor concerns on its profitability. ECG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ECG had positive earnings in the past year.
- In the past year ECG had a positive cash flow from operations.
1.2 Ratios
- The Return On Assets of ECG (11.14%) is better than 78.18% of its industry peers.
- ECG has a better Return On Equity (31.58%) than 81.82% of its industry peers.
- ECG's Return On Invested Capital of 19.09% is amongst the best of the industry. ECG outperforms 83.64% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ECG is above the industry average of 15.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 31.58% | ||
| ROIC | 19.09% |
ROA(3y)11.72%
ROA(5y)N/A
ROE(3y)32.38%
ROE(5y)N/A
ROIC(3y)19.2%
ROIC(5y)N/A
1.3 Margins
- ECG has a better Profit Margin (5.18%) than 61.82% of its industry peers.
- ECG's Profit Margin has declined in the last couple of years.
- ECG has a Operating Margin of 6.92%. This is comparable to the rest of the industry: ECG outperforms 58.18% of its industry peers.
- In the last couple of years the Operating Margin of ECG has declined.
- ECG's Gross Margin of 12.10% is on the low side compared to the rest of the industry. ECG is outperformed by 63.64% of its industry peers.
- In the last couple of years the Gross Margin of ECG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 5.18% | ||
| GM | 12.1% |
OM growth 3Y-2.11%
OM growth 5YN/A
PM growth 3Y-1.91%
PM growth 5YN/A
GM growth 3Y-0.48%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ECG is creating value.
- The number of shares outstanding for ECG remains at a similar level compared to 1 year ago.
- ECG has a worse debt/assets ratio than last year.
2.2 Solvency
- ECG has an Altman-Z score of 6.06. This indicates that ECG is financially healthy and has little risk of bankruptcy at the moment.
- ECG has a better Altman-Z score (6.06) than 81.82% of its industry peers.
- ECG has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as ECG would need 2.14 years to pay back of all of its debts.
- ECG's Debt to FCF ratio of 2.14 is fine compared to the rest of the industry. ECG outperforms 76.36% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that ECG is not too dependend on debt financing.
- The Debt to Equity ratio of ECG (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 6.06 |
ROIC/WACC1.83
WACC10.44%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that ECG should not have too much problems paying its short term obligations.
- ECG has a Current ratio of 1.76. This is amongst the best in the industry. ECG outperforms 83.64% of its industry peers.
- ECG has a Quick Ratio of 1.69. This is a normal value and indicates that ECG is financially healthy and should not expect problems in meeting its short term obligations.
- ECG's Quick ratio of 1.69 is amongst the best of the industry. ECG outperforms 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- ECG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.30%.
- ECG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
- Looking at the last year, ECG shows a decrease in Revenue. The Revenue has decreased by -0.16% in the last year.
- Measured over the past years, ECG shows a quite strong growth in Revenue. The Revenue has been growing by 11.57% on average per year.
EPS 1Y (TTM)4.3%
EPS 3Y9.37%
EPS 5YN/A
EPS Q2Q%35.98%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y11.57%
Revenue growth 5YN/A
Sales Q2Q%29.68%
3.2 Future
- The Earnings Per Share is expected to grow by 17.18% on average over the next years. This is quite good.
- The Revenue is expected to grow by 15.00% on average over the next years. This is quite good.
EPS Next Y29.54%
EPS Next 2Y18.29%
EPS Next 3Y15.65%
EPS Next 5Y17.18%
Revenue Next Year30.24%
Revenue Next 2Y19.81%
Revenue Next 3Y16.23%
Revenue Next 5Y15%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- ECG is valuated quite expensively with a Price/Earnings ratio of 25.95.
- Based on the Price/Earnings ratio, ECG is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. ECG is around the same levels.
- The Price/Forward Earnings ratio is 23.21, which indicates a rather expensive current valuation of ECG.
- Based on the Price/Forward Earnings ratio, ECG is valued a bit cheaper than 76.36% of the companies in the same industry.
- ECG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ECG is valued a bit cheaper than 61.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ECG is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.01 | ||
| EV/EBITDA | 17.74 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ECG's earnings are expected to grow with 15.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y18.29%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
- ECG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EVERUS CONSTRUCTION GROUP / ECG FAQ
Can you provide the ChartMill fundamental rating for EVERUS CONSTRUCTION GROUP?
ChartMill assigns a fundamental rating of 5 / 10 to ECG.
What is the valuation status for ECG stock?
ChartMill assigns a valuation rating of 4 / 10 to EVERUS CONSTRUCTION GROUP (ECG). This can be considered as Fairly Valued.
How profitable is EVERUS CONSTRUCTION GROUP (ECG) stock?
EVERUS CONSTRUCTION GROUP (ECG) has a profitability rating of 4 / 10.
What is the valuation of EVERUS CONSTRUCTION GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EVERUS CONSTRUCTION GROUP (ECG) is 25.95 and the Price/Book (PB) ratio is 8.15.
What is the expected EPS growth for EVERUS CONSTRUCTION GROUP (ECG) stock?
The Earnings per Share (EPS) of EVERUS CONSTRUCTION GROUP (ECG) is expected to grow by 29.54% in the next year.