Taking everything into account, ECVT scores 3 out of 10 in our fundamental rating. ECVT was compared to 83 industry peers in the Chemicals industry. ECVT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECVT is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years ECVT always reported a positive cash flow from operatings.

1.2 Ratios

ECVT's Return On Assets of -6.16% is on the low side compared to the rest of the industry. ECVT is outperformed by 75.90% of its industry peers.
ECVT's Return On Equity of -17.58% is on the low side compared to the rest of the industry. ECVT is outperformed by 72.29% of its industry peers.
ECVT has a Return On Invested Capital (4.78%) which 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 6.11%.

		Industry Rank	Sector Rank
ROA	-6.16%
ROE	-17.58%
ROIC	4.78%

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 Operating Margin of 11.78%. This is in the better half of the industry: ECVT outperforms 63.86% of its industry peers.
ECVT's Operating Margin has improved in the last couple of years.
ECVT has a Gross Margin of 24.21%. This is comparable to the rest of the industry: ECVT outperforms 43.37% of its industry peers.
In the last couple of years the Gross Margin of ECVT has declined.

		Industry Rank	Sector Rank
OM	11.78%
PM (TTM)	N/A
GM	24.21%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECVT is destroying value.
Compared to 1 year ago, ECVT has more shares outstanding
The number of shares outstanding for ECVT has been reduced compared to 5 years ago.
Compared to 1 year ago, ECVT has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.17, we must say that ECVT is in the distress zone and has some risk of bankruptcy.
ECVT's Altman-Z score of 1.17 is on the low side compared to the rest of the industry. ECVT is outperformed by 74.70% of its industry peers.
ECVT has a debt to FCF ratio of 11.56. This is a negative value and a sign of low solvency as ECVT would need 11.56 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 11.56, ECVT is doing good in the industry, outperforming 60.24% of the companies in the same industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that ECVT has dependencies on debt financing.
ECVT's Debt to Equity ratio of 1.39 is on the low side compared to the rest of the industry. ECVT is outperformed by 73.49% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.39
Debt/FCF	11.56
Altman-Z	1.17

ROIC/WACC0.42

WACC11.28%

2.3 Liquidity

ECVT has a Current Ratio of 2.25. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.25, ECVT is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
A Quick Ratio of 2.07 indicates that ECVT has no problem at all paying its short term obligations.
ECVT has a Quick ratio of 2.07. This is in the better half of the industry: ECVT outperforms 79.52% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	2.07

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WACC

Debt/Equity

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.38% over the past year.
The Earnings Per Share has been decreasing by -9.01% on average over the past years.
The Revenue has been growing slightly by 7.74% in the past year.
The Revenue has been growing slightly by 5.75% on average over the past years.

EPS 1Y (TTM)15.38%

EPS 3Y4.38%

EPS 5Y-9.01%

EPS Q2Q%35.71%

Revenue 1Y (TTM)7.74%

Revenue growth 3Y4.85%

Revenue growth 5Y5.75%

Sales Q2Q%14.34%

3.2 Future

ECVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.54% yearly.
Based on estimates for the next years, ECVT will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.

EPS Next Y-15.66%

EPS Next 2Y3.18%

EPS Next 3Y13.73%

EPS Next 5Y11.54%

Revenue Next Year4.5%

Revenue Next 2Y2.7%

Revenue Next 3Y4.04%

Revenue Next 5Y4.37%

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 decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.88, ECVT is valued on the expensive side.
60.24% of the companies in the same industry are more expensive than ECVT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.60. ECVT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.38, which indicates a rather expensive current valuation of ECVT.
The rest of the industry has a similar Price/Forward Earnings ratio as ECVT.
When comparing the Price/Forward Earnings ratio of ECVT to the average of the S&P500 Index (25.83), we can say ECVT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.88
Fwd PE	17.38

4.2 Price Multiples

ECVT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ECVT is valued a bit cheaper than the industry average as 75.90% of the companies are valued more expensively.