EMERALD HOLDING INC (EEX) Stock Fundamental Analysis
NYSE:EEX - New York Stock Exchange, Inc. - US29103W1045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EEX. EEX was compared to 98 industry peers in the Media industry. While EEX is still in line with the averages on profitability rating, there are concerns on its financial health. EEX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EEX was profitable.
EEX had a positive operating cash flow in the past year.
In the past 5 years EEX reported 4 times negative net income.
Of the past 5 years EEX 4 years had a positive operating cash flow.
1.2 Ratios
EEX has a Return On Assets of 0.38%. This is in the better half of the industry: EEX outperforms 60.20% of its industry peers.
EEX has a Return On Equity of 1.15%. This is in the better half of the industry: EEX outperforms 60.20% of its industry peers.
EEX has a Return On Invested Capital of 6.99%. This is in the better half of the industry: EEX outperforms 73.47% of its industry peers.
EEX had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.15% | ||
| ROIC | 6.99% |
ROA(3y)-0.96%
ROA(5y)-15.03%
ROE(3y)-2.63%
ROE(5y)-41.72%
ROIC(3y)8.99%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of EEX (1.09%) is better than 60.20% of its industry peers.
EEX has a Operating Margin of 19.78%. This is amongst the best in the industry. EEX outperforms 90.82% of its industry peers.
EEX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 63.35%, EEX is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
In the last couple of years the Gross Margin of EEX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.78% | ||
| PM (TTM) | 1.09% | ||
| GM | 63.35% |
OM growth 3YN/A
OM growth 5Y-0.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5Y-1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EEX is creating some value.
Compared to 1 year ago, EEX has more shares outstanding
Compared to 5 years ago, EEX has more shares outstanding
The debt/assets ratio for EEX is higher compared to a year ago.
2.2 Solvency
EEX has an Altman-Z score of 0.77. This is a bad value and indicates that EEX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.77, EEX is in line with its industry, outperforming 44.90% of the companies in the same industry.
EEX has a debt to FCF ratio of 11.78. This is a negative value and a sign of low solvency as EEX would need 11.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.78, EEX is in the better half of the industry, outperforming 60.20% of the companies in the same industry.
EEX has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
EEX's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. EEX is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 11.78 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.78
WACC8.91%
2.3 Liquidity
EEX has a Current Ratio of 1.59. This is a normal value and indicates that EEX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EEX (1.59) is better than 63.27% of its industry peers.
EEX has a Quick Ratio of 1.59. This is a normal value and indicates that EEX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EEX (1.59) is better than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
EEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.00%, which is quite impressive.
The Revenue has been growing slightly by 4.87% in the past year.
Measured over the past years, EEX shows a small growth in Revenue. The Revenue has been growing by 2.02% on average per year.
EPS 1Y (TTM)108%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4980%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y39.95%
Revenue growth 5Y2.02%
Sales Q2Q%10.72%
3.2 Future
Based on estimates for the next years, EEX will show a very strong growth in Earnings Per Share. The EPS will grow by 240.51% on average per year.
Based on estimates for the next years, EEX will show a quite strong growth in Revenue. The Revenue will grow by 9.84% on average per year.
EPS Next Y630.25%
EPS Next 2Y240.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.38%
Revenue Next 2Y9.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 85.83, which means the current valuation is very expensive for EEX.
EEX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of EEX to the average of the S&P500 Index (28.04), we can say EEX is valued expensively.
With a Price/Forward Earnings ratio of 26.84, EEX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as EEX.
When comparing the Price/Forward Earnings ratio of EEX to the average of the S&P500 Index (37.64), we can say EEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.83 | ||
| Fwd PE | 26.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EEX.
EEX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EEX is cheaper than 60.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.82 | ||
| EV/EBITDA | 11.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EEX's earnings are expected to grow with 240.51% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y240.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EEX has a Yearly Dividend Yield of 1.14%.
EEX's Dividend Yield is a higher than the industry average which is at 4.63.
With a Dividend Yield of 1.14, EEX pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of EEX decreases each year by -17.89%.
EEX has been paying a dividend for over 5 years, so it has already some track record.
The dividend of EEX decreased recently.
Dividend Growth(5Y)-17.89%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
202.22% of the earnings are spent on dividend by EEX. This is not a sustainable payout ratio.
DP202.22%
EPS Next 2Y240.51%
EPS Next 3YN/A
5.15
-0.08 (-1.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners5.8%
Inst Owner Change0%
Ins Owners0.52%
Ins Owner Change33.04%
Market Cap1.02B
Analysts80
Price Target8.06 (56.5%)
Short Float %6.94%
Short Ratio8.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.11
Dividend Growth(5Y)-17.89%
DP202.22%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.36%
Min EPS beat(2)-15.13%
Max EPS beat(2)21.86%
EPS beat(4)3
Avg EPS beat(4)34.8%
Min EPS beat(4)-15.13%
Max EPS beat(4)82%
EPS beat(8)5
Avg EPS beat(8)-98.07%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.32%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)8.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-9.81%
Max Revenue beat(4)8.72%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)-30%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.83 | ||
| Fwd PE | 26.84 | ||
| P/S | 2.48 | ||
| P/FCF | 23.82 | ||
| P/OCF | 19.66 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.62 |
EPS(TTM)0.06
EY1.17%
EPS(NY)0.19
Fwd EY3.73%
FCF(TTM)0.22
FCFY4.2%
OCF(TTM)0.26
OCFY5.09%
SpS2.08
BVpS1.97
TBVpS-1.84
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.15% | ||
| ROCE | 8.85% | ||
| ROIC | 6.99% | ||
| ROICexc | 9.99% | ||
| ROICexgc | N/A | ||
| OM | 19.78% | ||
| PM (TTM) | 1.09% | ||
| GM | 63.35% | ||
| FCFM | 10.41% |
ROA(3y)-0.96%
ROA(5y)-15.03%
ROE(3y)-2.63%
ROE(5y)-41.72%
ROIC(3y)8.99%
ROIC(5y)N/A
ROICexc(3y)12.17%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.38%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y16.36%
OM growth 3YN/A
OM growth 5Y-0.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5Y-1.13%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 11.78 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 32.97% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.67% | ||
| Profit Quality | 955.56% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 0.77 |
F-Score6
WACC8.91%
ROIC/WACC0.78
Cap/Depr(3y)25.83%
Cap/Depr(5y)19.92%
Cap/Sales(3y)2.87%
Cap/Sales(5y)3.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4980%
EPS Next Y630.25%
EPS Next 2Y240.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y39.95%
Revenue growth 5Y2.02%
Sales Q2Q%10.72%
Revenue Next Year13.38%
Revenue Next 2Y9.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y47.47%
EBIT growth 3YN/A
EBIT growth 5Y1.01%
EBIT Next Year163.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.33%
FCF growth 3Y-23.73%
FCF growth 5Y-10.35%
OCF growth 1Y-65.5%
OCF growth 3Y-19.59%
OCF growth 5Y-7.15%