ECVT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 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 has a decent growth rate and is not valued too expensively.

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.
In the past year ECVT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ECVT reported negative net income in multiple 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 75.61% of its industry peers.
Looking at the Return On Equity, with a value of -17.58%, ECVT is doing worse than 71.95% of the companies in the same industry.
ECVT has a Return On Invested Capital (4.78%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ECVT 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 better Operating Margin (11.78%) than 63.41% of its industry peers.
ECVT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.21%, ECVT is in line with its industry, outperforming 42.68% of the companies in the same industry.
ECVT's Gross Margin has declined in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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 1.19. This is a bad value and indicates that ECVT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, ECVT is doing worse than 73.17% of the companies in the same industry.
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 60.98% of the companies in the same industry.
ECVT has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.39, ECVT is not doing good in the industry: 73.17% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.39
Debt/FCF	11.56
Altman-Z	1.19

ROIC/WACC0.42

WACC11.4%

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 63.41% of the companies in the same industry.
ECVT has a Quick Ratio of 2.07. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
ECVT's Quick ratio of 2.07 is amongst the best of the industry. ECVT outperforms 80.49% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	2.07

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
ECVT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.74%.
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-12.13%

EPS Next 2Y5.84%

EPS Next 3Y15.47%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.58, which indicates a rather expensive current valuation of ECVT.
Based on the Price/Earnings ratio, ECVT is valued a bit cheaper than 60.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. ECVT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.16, ECVT is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ECVT.
ECVT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	18.58
Fwd PE	17.16

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECVT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ECVT is valued a bit cheaper than 75.61% of the companies in the same industry.