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CHANNELADVISOR CORP (ECOM) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ECOM - US1591791009 - Common Stock

23.09 USD
+0.01 (+0.04%)
Last: 11/14/2022, 8:16:17 PM
23.09 USD
0 (0%)
After Hours: 11/14/2022, 8:16:17 PM
Fundamental Rating

3

ECOM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While ECOM seems to be doing ok healthwise, there are quite some concerns on its profitability. ECOM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • ECOM had positive earnings in the past year.
  • In the past year ECOM had a positive cash flow from operations.
ECOM Yearly Net Income VS EBIT VS OCF VS FCFECOM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 20M 40M

1.2 Ratios

Industry RankSector Rank
ROA 16.84%
ROE 22%
ROIC 6.31%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ECOM Yearly ROA, ROE, ROICECOM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 -10 20 -20

1.3 Margins

Industry RankSector Rank
OM 8.04%
PM (TTM) 21.39%
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
ECOM Yearly Profit, Operating, Gross MarginsECOM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECOM is destroying value.
  • ECOM has more shares outstanding than it did 1 year ago.
  • ECOM has a worse debt/assets ratio than last year.
ECOM Yearly Shares OutstandingECOM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 10M 20M 30M
ECOM Yearly Total Debt VS Total AssetsECOM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M

2.2 Solvency

  • An Altman-Z score of 8.49 indicates that ECOM is not in any danger for bankruptcy at the moment.
  • There is no outstanding debt for ECOM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.49
ROIC/WACC0.59
WACC10.72%
ECOM Yearly LT Debt VS Equity VS FCFECOM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 50M 100M 150M

2.3 Liquidity

  • ECOM has a Current Ratio of 2.79. This indicates that ECOM is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 2.79 indicates that ECOM has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 2.79
Quick Ratio 2.79
ECOM Yearly Current Assets VS Current LiabilitesECOM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M

5

3. Growth

3.1 Past

  • ECOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.27%.
  • Measured over the past years, ECOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 102.06% on average per year.
  • ECOM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.03%.
  • Measured over the past years, ECOM shows a quite strong growth in Revenue. The Revenue has been growing by 8.18% on average per year.
EPS 1Y (TTM)-13.27%
EPS 3Y102.06%
EPS 5YN/A
EPS Q2Q%9.52%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.53%
Revenue growth 5Y8.18%
Sales Q2Q%4.61%

3.2 Future

  • ECOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.37% yearly.
  • ECOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y-13.87%
EPS Next 2Y2.19%
EPS Next 3Y10.23%
EPS Next 5Y15.37%
Revenue Next Year6.66%
Revenue Next 2Y8.19%
Revenue Next 3Y9.42%
Revenue Next 5Y6.87%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ECOM Yearly Revenue VS EstimatesECOM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
ECOM Yearly EPS VS EstimatesECOM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5 2

1

4. Valuation

4.1 Price/Earnings Ratio

  • ECOM is valuated quite expensively with a Price/Earnings ratio of 27.16.
  • Compared to an average S&P500 Price/Earnings ratio of 27.25, ECOM is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 22.33, the valuation of ECOM can be described as rather expensive.
  • When comparing the Price/Forward Earnings ratio of ECOM to the average of the S&P500 Index (25.98), we can say ECOM is valued inline with the index average.
Industry RankSector Rank
PE 27.16
Fwd PE 22.33
ECOM Price Earnings VS Forward Price EarningsECOM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF 29.44
EV/EBITDA 29.05
ECOM Per share dataECOM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.19%
EPS Next 3Y10.23%

0

5. Dividend

5.1 Amount

  • No dividends for ECOM!.
Industry RankSector Rank
Dividend Yield N/A

CHANNELADVISOR CORP / ECOM FAQ

What is the fundamental rating for ECOM stock?

ChartMill assigns a fundamental rating of 6 / 10 to ECOM.


What is the valuation status of CHANNELADVISOR CORP (ECOM) stock?

ChartMill assigns a valuation rating of 1 / 10 to CHANNELADVISOR CORP (ECOM). This can be considered as Overvalued.


What is the profitability of ECOM stock?

CHANNELADVISOR CORP (ECOM) has a profitability rating of 8 / 10.


What is the expected EPS growth for CHANNELADVISOR CORP (ECOM) stock?

The Earnings per Share (EPS) of CHANNELADVISOR CORP (ECOM) is expected to decline by -13.87% in the next year.