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Echo Global Logistics Inc (ECHO) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ECHO -

48.24
+0.02 (+0.04%)
Last: 11/22/2021, 8:04:49 PM
48.26
+0.02 (+0.04%)
After Hours: 11/22/2021, 8:04:49 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ECHO. ECHO was compared to 23 industry peers in the Air Freight & Logistics industry. ECHO has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, ECHO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year ECHO was profitable.
ECHO Yearly Net Income VS EBIT VS OCF VS FCFECHO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 20M 40M 60M 80M

1.2 Ratios

Industry RankSector Rank
ROA 5.27%
ROE 12.89%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ECHO Yearly ROA, ROE, ROICECHO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2 4 6

1.3 Margins

Industry RankSector Rank
OM 2.36%
PM (TTM) 1.68%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ECHO Yearly Profit, Operating, Gross MarginsECHO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 5 10 15

3

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, ECHO has less shares outstanding
  • ECHO has a better debt/assets ratio than last year.
ECHO Yearly Shares OutstandingECHO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 5M 10M 15M 20M 25M
ECHO Yearly Total Debt VS Total AssetsECHO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 4.98 indicates that ECHO is not in any danger for bankruptcy at the moment.
  • ECHO has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 4.98
ROIC/WACCN/A
WACCN/A
ECHO Yearly LT Debt VS Equity VS FCFECHO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 100M 200M 300M

2.3 Liquidity

  • A Current Ratio of 1.30 indicates that ECHO should not have too much problems paying its short term obligations.
  • A Quick Ratio of 1.30 indicates that ECHO should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.3
ECHO Yearly Current Assets VS Current LiabilitesECHO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 100M 200M 300M 400M

6

3. Growth

3.1 Past

  • ECHO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 182.69%, which is quite impressive.
  • The Earnings Per Share has been growing slightly by 4.60% on average over the past years.
  • The Revenue has grown by 51.83% in the past year. This is a very strong growth!
  • The Revenue has been growing by 10.68% on average over the past years. This is quite good.
EPS 1Y (TTM)182.69%
EPS 3Y15.49%
EPS 5Y4.6%
EPS Q2Q%132.5%
Revenue 1Y (TTM)51.83%
Revenue growth 3Y8.93%
Revenue growth 5Y10.68%
Sales Q2Q%42.53%

3.2 Future

  • ECHO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
  • Based on estimates for the next years, ECHO will show a small growth in Revenue. The Revenue will grow by 6.42% on average per year.
EPS Next Y119.3%
EPS Next 2Y38.33%
EPS Next 3Y25.15%
EPS Next 5Y11.57%
Revenue Next Year43.39%
Revenue Next 2Y16.94%
Revenue Next 3Y12.18%
Revenue Next 5Y6.42%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ECHO Yearly Revenue VS EstimatesECHO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ECHO Yearly EPS VS EstimatesECHO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.41, which indicates a correct valuation of ECHO.
  • ECHO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
  • ECHO is valuated rather expensively with a Price/Forward Earnings ratio of 18.81.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ECHO is valued a bit cheaper.
Industry RankSector Rank
PE 16.41
Fwd PE 18.81
ECHO Price Earnings VS Forward Price EarningsECHO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.52
ECHO Per share dataECHO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • ECHO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ECHO's earnings are expected to grow with 25.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)3.56
EPS Next 2Y38.33%
EPS Next 3Y25.15%

0

5. Dividend

5.1 Amount

  • ECHO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

Echo Global Logistics Inc / ECHO FAQ

Can you provide the ChartMill fundamental rating for Echo Global Logistics Inc?

ChartMill assigns a fundamental rating of 5 / 10 to ECHO.


What is the valuation status for ECHO stock?

ChartMill assigns a valuation rating of 6 / 10 to Echo Global Logistics Inc (ECHO). This can be considered as Fairly Valued.


How profitable is Echo Global Logistics Inc (ECHO) stock?

Echo Global Logistics Inc (ECHO) has a profitability rating of 4 / 10.


What are the PE and PB ratios of Echo Global Logistics Inc (ECHO) stock?

The Price/Earnings (PE) ratio for Echo Global Logistics Inc (ECHO) is 16.41 and the Price/Book (PB) ratio is 2.87.


How financially healthy is Echo Global Logistics Inc?

The financial health rating of Echo Global Logistics Inc (ECHO) is 6 / 10.