CHANNELADVISOR CORP (ECOM)
US1591791009 - Common Stock
We assign a fundamental rating of 3 out of 10 to ECOM. ECOM was compared to 277 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.
1. Profitability
1.1 Basic Checks
In the past year ECOM was profitable.
In the past year ECOM had a positive cash flow from operations.
In multiple years ECOM reported negative net income over the last 5 years.
ECOM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
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.
The debt/assets ratio for ECOM is higher compared to a year ago.
2.2 Solvency
ECOM has an Altman-Z score of 8.49. This indicates that ECOM is financially healthy and has little risk of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.49 |
ROIC/WACC0.59
WACC10.72%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.79 |
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%.
ECOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.18% yearly.
EPS 1Y (TTM)-13.27%
EPS 3Y102.06%
EPS 5YN/A
EPS growth Q2Q9.52%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.53%
Revenue growth 5Y8.18%
Revenue growth Q2Q4.61%
3.2 Future
Based on estimates for the next years, ECOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.37% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.16, which means the current valuation is very expensive for ECOM.
Compared to an average S&P500 Price/Earnings ratio of 28.05, ECOM is valued at the same level.
With a Price/Forward Earnings ratio of 22.33, ECOM is valued on the expensive side.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.30, ECOM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.44 | ||
| EV/EBITDA | 29.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.19%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
No dividends for ECOM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHANNELADVISOR CORP
NYSE:ECOM (11/14/2022, 7:16:17 PM)
After market: 23.09 0 (0%)23.09
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap667.68M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 22.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.84% | ||
| ROE | 22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.04% | ||
| PM (TTM) | 21.39% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.27%
EPS 3Y102.06%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y