ECOVYST INC (ECVT) Stock Fundamental Analysis
NYSE:ECVT - New York Stock Exchange, Inc. - US27923Q1094 - Common Stock - Currency: USD
ECVT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and the financial health of ECVT get a neutral evaluation. Nothing too spectacular is happening here. ECVT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
ECVT had positive earnings in the past year.
In the past year ECVT had a positive cash flow from operations.
In multiple years ECVT reported negative net income over the last 5 years.
Each year in the past 5 years ECVT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.37%, ECVT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
ECVT's Return On Equity of -0.95% is on the low side compared to the rest of the industry. ECVT is outperformed by 61.18% of its industry peers.
ECVT's Return On Invested Capital of 5.44% is in line compared to the rest of the industry. ECVT outperforms 57.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECVT is in line with the industry average of 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.95% | ||
| ROIC | 5.44% |
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
ECVT has a better Operating Margin (15.01%) than 81.18% of its industry peers.
ECVT's Operating Margin has improved in the last couple of years.
ECVT's Gross Margin of 28.61% is in line compared to the rest of the industry. ECVT outperforms 52.94% of its industry peers.
In the last couple of years the Gross Margin of ECVT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | N/A | ||
| GM | 28.61% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECVT is destroying value.
The number of shares outstanding for ECVT has been increased compared to 1 year ago.
Compared to 5 years ago, ECVT has less shares outstanding
The debt/assets ratio for ECVT is higher compared to a year ago.
2.2 Solvency
ECVT has an Altman-Z score of 0.99. 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 0.99 is on the low side compared to the rest of the industry. ECVT is outperformed by 74.12% of its industry peers.
ECVT has a debt to FCF ratio of 10.64. This is a negative value and a sign of low solvency as ECVT would need 10.64 years to pay back of all of its debts.
ECVT has a Debt to FCF ratio of 10.64. This is comparable to the rest of the industry: ECVT outperforms 58.82% 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.
Looking at the Debt to Equity ratio, with a value of 1.22, ECVT is doing worse than 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.64 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.62
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.64 indicates that ECVT has no problem at all paying its short term obligations.
ECVT has a Current ratio of 2.64. This is in the better half of the industry: ECVT outperforms 76.47% of its industry peers.
ECVT has a Quick Ratio of 2.14. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ECVT (2.14) is better than 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
ECVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.68%.
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.
The Revenue has been growing slightly by 1.94% in the past year.
Measured over the past years, ECVT shows a small growth in Revenue. The Revenue has been growing by 5.75% on average per year.
EPS 1Y (TTM)-25.68%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%-75%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%1.06%
3.2 Future
ECVT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.61% yearly.
ECVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y5.54%
EPS Next 2Y25.02%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue Next Year8.55%
Revenue Next 2Y6.84%
Revenue Next 3Y5.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.05, the valuation of ECVT can be described as correct.
Based on the Price/Earnings ratio, ECVT is valued a bit cheaper than 76.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.10, ECVT is valued rather cheaply.
The Price/Forward Earnings ratio is 7.31, which indicates a rather cheap valuation of ECVT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECVT indicates a rather cheap valuation: ECVT is cheaper than 91.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ECVT to the average of the S&P500 Index (20.74), we can say ECVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECVT is valued a bit cheaper than 69.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECVT is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ECVT's earnings are expected to grow with 26.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.18
PEG (5Y)N/A
EPS Next 2Y25.02%
EPS Next 3Y26.61%
5. Dividend
5.1 Amount
ECVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.63
+0.02 (+0.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change-0.44%
Ins Owners1.5%
Ins Owner Change2.34%
Market Cap778.30M
Analysts84.62
Price Target9.98 (50.53%)
Short Float %4.18%
Short Ratio4.19
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)1
Avg EPS beat(2)-1.02%
Min EPS beat(2)-17.17%
Max EPS beat(2)15.13%
EPS beat(4)1
Avg EPS beat(4)-7.89%
Min EPS beat(4)-19.03%
Max EPS beat(4)15.13%
EPS beat(8)3
Avg EPS beat(8)-4.12%
EPS beat(12)6
Avg EPS beat(12)-0.7%
EPS beat(16)10
Avg EPS beat(16)121.8%
Revenue beat(2)0
Avg Revenue beat(2)-6.53%
Min Revenue beat(2)-7.53%
Max Revenue beat(2)-5.54%
Revenue beat(4)0
Avg Revenue beat(4)-5.83%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)-4.69%
Revenue beat(8)0
Avg Revenue beat(8)-5.01%
Revenue beat(12)3
Avg Revenue beat(12)-2.95%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)0%
PT rev (3m)-3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-139.7%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-27.13%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 7.31 | ||
| P/S | 1.1 | ||
| P/FCF | 9.62 | ||
| P/OCF | 5.19 | ||
| P/B | 1.11 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)0.55
EY8.3%
EPS(NY)0.91
Fwd EY13.67%
FCF(TTM)0.69
FCFY10.4%
OCF(TTM)1.28
OCFY19.26%
SpS6
BVpS5.97
TBVpS1.69
PEG (NY)2.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.95% | ||
| ROCE | 6.27% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 8.84% | ||
| OM | 15.01% | ||
| PM (TTM) | N/A | ||
| GM | 28.61% | ||
| FCFM | 11.49% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.64 | ||
| Debt/EBITDA | 4.37 | ||
| Cap/Depr | 77.16% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 76.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 0.99 |
F-Score5
WACC8.78%
ROIC/WACC0.62
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)-25.68%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%-75%
EPS Next Y5.54%
EPS Next 2Y25.02%
EPS Next 3Y26.61%
EPS Next 5YN/A
Revenue 1Y (TTM)1.94%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%1.06%
Revenue Next Year8.55%
Revenue Next 2Y6.84%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y-0.56%
EBIT growth 3Y17.3%
EBIT growth 5Y7.72%
EBIT Next Year78.36%
EBIT Next 3Y28.3%
EBIT Next 5YN/A
FCF growth 1Y12%
FCF growth 3Y5.01%
FCF growth 5Y-10.41%
OCF growth 1Y8.93%
OCF growth 3Y4.89%
OCF growth 5Y-10.96%