ECOVYST INC (ECVT) Stock Fundamental Analysis
NYSE:ECVT - New York Stock Exchange, Inc. - US27923Q1094 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ECVT. ECVT was compared to 85 industry peers in the Chemicals industry. ECVT has only an average score on both its financial health and profitability. ECVT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ECVT was profitable.
ECVT had a positive operating cash flow in the past year.
In multiple years ECVT reported negative net income over the last 5 years.
ECVT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.64%, ECVT is doing worse than 60.00% of the companies in the same industry.
ECVT's Return On Equity of -1.64% is in line compared to the rest of the industry. ECVT outperforms 43.53% of its industry peers.
The Return On Invested Capital of ECVT (4.75%) is comparable to the rest of the industry.
ECVT had an Average Return On Invested Capital over the past 3 years of 5.69%. This is in line with the industry average of 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.64% | ||
| ROIC | 4.75% |
ROA(3y)2.47%
ROA(5y)-1.71%
ROE(3y)6.52%
ROE(5y)-4.23%
ROIC(3y)5.69%
ROIC(5y)4.4%
1.3 Margins
With a decent Operating Margin value of 13.04%, ECVT is doing good in the industry, outperforming 71.76% of the companies in the same industry.
ECVT's Operating Margin has improved in the last couple of years.
The Gross Margin of ECVT (26.61%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ECVT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.61% |
OM growth 3Y11.88%
OM growth 5Y1.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.35%
GM growth 5Y-1.84%
2. Health
2.1 Basic Checks
ECVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ECVT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ECVT has been reduced compared to 5 years ago.
The debt/assets ratio for ECVT is higher compared to a year ago.
2.2 Solvency
ECVT has an Altman-Z score of 1.08. This is a bad value and indicates that ECVT is not financially healthy and even has some risk of bankruptcy.
ECVT's Altman-Z score of 1.08 is on the low side compared to the rest of the industry. ECVT is outperformed by 75.29% of its industry peers.
ECVT has a debt to FCF ratio of 17.97. This is a negative value and a sign of low solvency as ECVT would need 17.97 years to pay back of all of its debts.
ECVT's Debt to FCF ratio of 17.97 is in line compared to the rest of the industry. ECVT outperforms 48.24% of its industry peers.
ECVT has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
ECVT's Debt to Equity ratio of 1.22 is on the low side compared to the rest of the industry. ECVT is outperformed by 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.53
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.81 indicates that ECVT has no problem at all paying its short term obligations.
ECVT has a better Current ratio (2.81) than 81.18% of its industry peers.
ECVT has a Quick Ratio of 2.24. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
ECVT has a Quick ratio of 2.24. This is amongst the best in the industry. ECVT outperforms 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
ECVT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.51%.
Measured over the past years, ECVT shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.01% on average per year.
ECVT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.94%.
The Revenue has been growing slightly by 5.75% on average over the past years.
EPS 1Y (TTM)-3.51%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%0%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%9.46%
3.2 Future
Based on estimates for the next years, ECVT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.96% on average per year.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y10.62%
EPS Next 2Y27.36%
EPS Next 3Y26.96%
EPS Next 5YN/A
Revenue Next Year11.53%
Revenue Next 2Y8.27%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.38 indicates a correct valuation of ECVT.
Based on the Price/Earnings ratio, ECVT is valued a bit cheaper than the industry average as 69.41% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.48. ECVT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 8.99, the valuation of ECVT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ECVT is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.04. ECVT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
ECVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECVT is cheaper than 62.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECVT is valued a bit cheaper than 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.77 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ECVT's earnings are expected to grow with 26.96% in the coming years.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y27.36%
EPS Next 3Y26.96%
5. Dividend
5.1 Amount
ECVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.46
+0.26 (+3.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.48%
Inst Owner Change-0.38%
Ins Owners1.44%
Ins Owner Change0%
Market Cap993.20M
Analysts85
Price Target10.2 (20.57%)
Short Float %4.28%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.92%
Min EPS beat(2)15.13%
Max EPS beat(2)128.72%
EPS beat(4)2
Avg EPS beat(4)29.05%
Min EPS beat(4)-17.17%
Max EPS beat(4)128.72%
EPS beat(8)3
Avg EPS beat(8)10.28%
EPS beat(12)6
Avg EPS beat(12)9.88%
EPS beat(16)10
Avg EPS beat(16)13.54%
Revenue beat(2)0
Avg Revenue beat(2)-6.61%
Min Revenue beat(2)-7.53%
Max Revenue beat(2)-5.69%
Revenue beat(4)0
Avg Revenue beat(4)-6.08%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)-5.54%
Revenue beat(8)0
Avg Revenue beat(8)-5.63%
Revenue beat(12)2
Avg Revenue beat(12)-3.46%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)4.35%
PT rev (3m)2.19%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)-34.78%
EPS NY rev (1m)0%
EPS NY rev (3m)4.81%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 8.99 | ||
| P/S | 1.41 | ||
| P/FCF | 20.77 | ||
| P/OCF | 8.03 | ||
| P/B | 1.42 | ||
| P/tB | 5 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)0.55
EY6.5%
EPS(NY)0.94
Fwd EY11.12%
FCF(TTM)0.41
FCFY4.81%
OCF(TTM)1.05
OCFY12.45%
SpS6.01
BVpS5.95
TBVpS1.69
PEG (NY)1.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.64% | ||
| ROCE | 5.47% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 7.58% | ||
| OM | 13.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.61% | ||
| FCFM | 6.77% |
ROA(3y)2.47%
ROA(5y)-1.71%
ROE(3y)6.52%
ROE(5y)-4.23%
ROIC(3y)5.69%
ROIC(5y)4.4%
ROICexc(3y)6.1%
ROICexc(5y)4.71%
ROICexgc(3y)9.02%
ROICexgc(5y)6.89%
ROCE(3y)6.55%
ROCE(5y)5.06%
ROICexcg growth 3Y19.33%
ROICexcg growth 5Y28.08%
ROICexc growth 3Y19.89%
ROICexc growth 5Y30.34%
OM growth 3Y11.88%
OM growth 5Y1.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.35%
GM growth 5Y-1.84%
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 17.97 | ||
| Debt/EBITDA | 4.66 | ||
| Cap/Depr | 83.75% | ||
| Cap/Sales | 10.74% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 1.08 |
F-Score4
WACC9.02%
ROIC/WACC0.53
Cap/Depr(3y)76.28%
Cap/Depr(5y)73.6%
Cap/Sales(3y)8.81%
Cap/Sales(5y)11.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.51%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%0%
EPS Next Y10.62%
EPS Next 2Y27.36%
EPS Next 3Y26.96%
EPS Next 5YN/A
Revenue 1Y (TTM)1.94%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%9.46%
Revenue Next Year11.53%
Revenue Next 2Y8.27%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y-15.43%
EBIT growth 3Y17.3%
EBIT growth 5Y7.72%
EBIT Next Year81.32%
EBIT Next 3Y28.82%
EBIT Next 5YN/A
FCF growth 1Y-59.31%
FCF growth 3Y5.01%
FCF growth 5Y-10.41%
OCF growth 1Y-32.91%
OCF growth 3Y4.89%
OCF growth 5Y-10.96%