ECOVYST INC (ECVT) Stock Fundamental Analysis
USA - NYSE:ECVT - US27923Q1094 - Common Stock
9.36 USD
+0.11 (+1.19%)
9.36 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ECVT. ECVT was compared to 83 industry peers in the Chemicals industry. ECVT has a medium profitability rating, but doesn't score so well on its financial health evaluation. ECVT is not valued too expensively and it also shows a decent growth rate.
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
ECVT has a Return On Assets of -0.77%. This is in the lower half of the industry: ECVT underperforms 61.45% of its industry peers.
Looking at the Return On Equity, with a value of -1.99%, ECVT is in line with its industry, outperforming 43.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.44%, ECVT is in line with its industry, outperforming 55.42% of the companies in the same 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 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.77% | ||
| ROE | -1.99% | ||
| ROIC | 4.44% |
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
The Operating Margin of ECVT (11.85%) is better than 63.86% of its industry peers.
In the last couple of years the Operating Margin of ECVT has grown nicely.
The Gross Margin of ECVT (25.43%) is comparable to the rest of the industry.
ECVT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.85% | ||
| PM (TTM) | N/A | ||
| GM | 25.43% |
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.
ECVT has more shares outstanding than it did 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
Based on the Altman-Z score of 1.11, we must say that ECVT is in the distress zone and has some risk of bankruptcy.
ECVT has a Altman-Z score of 1.11. This is in the lower half of the industry: ECVT underperforms 77.11% of its industry peers.
The Debt to FCF ratio of ECVT is 13.20, which is on the high side as it means it would take ECVT, 13.20 years of fcf income to pay off all of its debts.
ECVT has a Debt to FCF ratio (13.20) which is in line with its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ECVT has dependencies on debt financing.
The Debt to Equity ratio of ECVT (1.22) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 13.2 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.49
WACC9.02%
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 61.45% of the companies in the same industry.
ECVT has a Quick Ratio of 1.69. This is a normal value and indicates that ECVT is financially healthy and should not expect problems in meeting its short term obligations.
ECVT has a better Quick ratio (1.69) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for ECVT have decreased by -3.51% in the last year.
The Earnings Per Share has been decreasing by -9.01% on average over the past years.
ECVT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.93%.
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)4.93%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%9.46%
3.2 Future
The Earnings Per Share is expected to grow by 26.77% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y13.17%
EPS Next 2Y25.46%
EPS Next 3Y26.77%
EPS Next 5YN/A
Revenue Next Year10.68%
Revenue Next 2Y6.69%
Revenue Next 3Y4.75%
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 17.02, the valuation of ECVT can be described as rather expensive.
ECVT's Price/Earnings ratio is a bit cheaper when compared to the industry. ECVT is cheaper than 63.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of ECVT to the average of the S&P500 Index (27.41), we can say ECVT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.25, the valuation of ECVT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ECVT is valued cheaper than 84.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. ECVT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
ECVT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECVT indicates a somewhat cheap valuation: ECVT is cheaper than 74.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.5 | ||
| EV/EBITDA | 10.4 |
4.3 Compensation for Growth
ECVT's 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 26.77% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y25.46%
EPS Next 3Y26.77%
5. Dividend
5.1 Amount
ECVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.36
+0.11 (+1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.32%
Inst Owner Change11.13%
Ins Owners1.44%
Ins Owner Change0%
Market Cap1.07B
Analysts85
Price Target12.24 (30.77%)
Short Float %3.64%
Short Ratio2.54
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)74.49%
Min EPS beat(2)20.26%
Max EPS beat(2)128.72%
EPS beat(4)3
Avg EPS beat(4)36.73%
Min EPS beat(4)-17.17%
Max EPS beat(4)128.72%
EPS beat(8)3
Avg EPS beat(8)12.26%
EPS beat(12)6
Avg EPS beat(12)9.79%
EPS beat(16)10
Avg EPS beat(16)11.07%
Revenue beat(2)0
Avg Revenue beat(2)-4.48%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-3.26%
Revenue beat(4)0
Avg Revenue beat(4)-5.5%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)-3.26%
Revenue beat(8)0
Avg Revenue beat(8)-4.98%
Revenue beat(12)1
Avg Revenue beat(12)-4.48%
Revenue beat(16)5
Avg Revenue beat(16)-1.77%
PT rev (1m)20%
PT rev (3m)25.37%
EPS NQ rev (1m)-19.91%
EPS NQ rev (3m)-35.42%
EPS NY rev (1m)2.31%
EPS NY rev (3m)5.67%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 10.25 | ||
| P/S | 1.48 | ||
| P/FCF | 16.5 | ||
| P/OCF | 7.3 | ||
| P/B | 1.55 | ||
| P/tB | 5.61 | ||
| EV/EBITDA | 10.4 |
EPS(TTM)0.55
EY5.88%
EPS(NY)0.91
Fwd EY9.75%
FCF(TTM)0.57
FCFY6.06%
OCF(TTM)1.28
OCFY13.7%
SpS6.32
BVpS6.05
TBVpS1.67
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.77% | ||
| ROE | -1.99% | ||
| ROCE | 5.11% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 6.73% | ||
| OM | 11.85% | ||
| PM (TTM) | N/A | ||
| GM | 25.43% | ||
| FCFM | 8.97% |
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 | 13.2 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 88.11% | ||
| Cap/Sales | 11.31% | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | 82.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 1.11 |
F-Score4
WACC9.02%
ROIC/WACC0.49
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 Y13.17%
EPS Next 2Y25.46%
EPS Next 3Y26.77%
EPS Next 5YN/A
Revenue 1Y (TTM)4.93%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%9.46%
Revenue Next Year10.68%
Revenue Next 2Y6.69%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y-14.53%
EBIT growth 3Y17.3%
EBIT growth 5Y7.72%
EBIT Next Year81.32%
EBIT Next 3Y28.82%
EBIT Next 5YN/A
FCF growth 1Y-36.69%
FCF growth 3Y5.01%
FCF growth 5Y-10.41%
OCF growth 1Y-16.06%
OCF growth 3Y4.89%
OCF growth 5Y-10.96%