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. ECVT has an average financial health and profitability rating. ECVT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ECVT had positive earnings in the past year.
ECVT had a positive operating cash flow in the past year.
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 has a Return On Assets of 2.92%. This is in the better half of the industry: ECVT outperforms 62.65% of its industry peers.
The Return On Equity of ECVT (7.36%) is better than 63.86% of its industry peers.
ECVT has a Return On Invested Capital of 4.61%. This is comparable to the rest of the industry: ECVT outperforms 55.42% of its industry peers.
ECVT had an Average Return On Invested Capital over the past 3 years of 4.57%. This is below the industry average of 6.81%.
The last Return On Invested Capital (4.61%) for ECVT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.36% | ||
| ROIC | 4.61% |
ROA(3y)0.18%
ROA(5y)-1.27%
ROE(3y)0.54%
ROE(5y)-3.15%
ROIC(3y)4.57%
ROIC(5y)3.35%
1.3 Margins
Looking at the Profit Margin, with a value of 7.72%, ECVT is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
ECVT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.27%, ECVT is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
In the last couple of years the Operating Margin of ECVT has grown nicely.
ECVT has a Gross Margin of 28.03%. This is comparable to the rest of the industry: ECVT outperforms 51.81% of its industry peers.
In the last couple of years the Gross Margin of ECVT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.27% | ||
| PM (TTM) | 7.72% | ||
| GM | 28.03% |
OM growth 3Y8.79%
OM growth 5Y5.41%
PM growth 3YN/A
PM growth 5Y16.76%
GM growth 3Y-2.02%
GM growth 5Y3.02%
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 less 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
ECVT has an Altman-Z score of 1.07. This is a bad value and indicates that ECVT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ECVT (1.07) is worse than 73.49% of its industry peers.
ECVT has a debt to FCF ratio of 8.05. This is a slightly negative value and a sign of low solvency as ECVT would need 8.05 years to pay back of all of its debts.
ECVT has a Debt to FCF ratio (8.05) which is in line with its industry peers.
ECVT has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ECVT (1.17) is worse than 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.56
WACC8.21%
2.3 Liquidity
A Current Ratio of 2.54 indicates that ECVT has no problem at all paying its short term obligations.
ECVT has a better Current ratio (2.54) than 67.47% of its industry peers.
ECVT has a Quick Ratio of 2.06. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.06, ECVT is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for ECVT have decreased strongly by -34.18% in the last year.
ECVT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.67% yearly.
ECVT shows a decrease in Revenue. In the last year, the revenue decreased by -0.81%.
Measured over the past years, ECVT shows a very negative growth in Revenue. The Revenue has been decreasing by -10.87% on average per year.
EPS 1Y (TTM)-34.18%
EPS 3Y-13.88%
EPS 5Y-2.67%
EPS Q2Q%-26.32%
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y11.7%
Revenue growth 5Y-10.87%
Sales Q2Q%3.4%
3.2 Future
Based on estimates for the next years, ECVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.31% on average per year.
The Revenue is expected to grow by 4.64% on average over the next years.
EPS Next Y-27.5%
EPS Next 2Y5.24%
EPS Next 3Y10.31%
EPS Next 5YN/A
Revenue Next Year3.97%
Revenue Next 2Y4.44%
Revenue Next 3Y4.64%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.58, which indicates a correct valuation of ECVT.
65.06% of the companies in the same industry are more expensive than ECVT, based on the Price/Earnings ratio.
ECVT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.36.
With a Price/Forward Earnings ratio of 9.62, the valuation of ECVT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ECVT is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
ECVT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 9.62 |
4.2 Price Multiples
63.86% of the companies in the same industry are more expensive than ECVT, based on the Enterprise Value to EBITDA ratio.
ECVT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ECVT is cheaper than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
The decent profitability rating of ECVT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.24%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
No dividends for ECVT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.1
-0.11 (-1.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change-3.03%
Ins Owners1.5%
Ins Owner Change2.34%
Market Cap943.73M
Analysts84.62
Price Target10.42 (28.64%)
Short Float %2.54%
Short Ratio3.97
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)0
Avg EPS beat(2)-13.83%
Min EPS beat(2)-17.17%
Max EPS beat(2)-10.49%
EPS beat(4)0
Avg EPS beat(4)-13.47%
Min EPS beat(4)-19.03%
Max EPS beat(4)-7.2%
EPS beat(8)3
Avg EPS beat(8)-5.05%
EPS beat(12)6
Avg EPS beat(12)-0.79%
EPS beat(16)10
Avg EPS beat(16)147.23%
Revenue beat(2)0
Avg Revenue beat(2)-5.55%
Min Revenue beat(2)-5.57%
Max Revenue beat(2)-5.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.96%
Min Revenue beat(4)-5.57%
Max Revenue beat(4)-0.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.75%
Revenue beat(12)4
Avg Revenue beat(12)-1.64%
Revenue beat(16)7
Avg Revenue beat(16)-3.76%
PT rev (1m)0.7%
PT rev (3m)5.15%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 9.62 | ||
| P/S | 1.36 | ||
| P/FCF | 8.81 | ||
| P/OCF | 5.53 | ||
| P/B | 1.29 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)0.52
EY6.42%
EPS(NY)0.84
Fwd EY10.39%
FCF(TTM)0.92
FCFY11.35%
OCF(TTM)1.46
OCFY18.08%
SpS5.97
BVpS6.26
TBVpS1.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.36% | ||
| ROCE | 5.74% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.96% | ||
| ROICexgc | 7.29% | ||
| OM | 14.27% | ||
| PM (TTM) | 7.72% | ||
| GM | 28.03% | ||
| FCFM | 15.41% |
ROA(3y)0.18%
ROA(5y)-1.27%
ROE(3y)0.54%
ROE(5y)-3.15%
ROIC(3y)4.57%
ROIC(5y)3.35%
ROICexc(3y)4.87%
ROICexc(5y)3.55%
ROICexgc(3y)7.22%
ROICexgc(5y)5.21%
ROCE(3y)5.69%
ROCE(5y)4.17%
ROICexcg growth 3Y56.14%
ROICexcg growth 5Y6.02%
ROICexc growth 3Y46.93%
ROICexc growth 5Y12.49%
OM growth 3Y8.79%
OM growth 5Y5.41%
PM growth 3YN/A
PM growth 5Y16.76%
GM growth 3Y-2.02%
GM growth 5Y3.02%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 8.05 | ||
| Debt/EBITDA | 4.54 | ||
| Cap/Depr | 71.32% | ||
| Cap/Sales | 9.13% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 90.65% | ||
| Profit Quality | 199.52% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 1.07 |
F-Score6
WACC8.21%
ROIC/WACC0.56
Cap/Depr(3y)75.63%
Cap/Depr(5y)72.19%
Cap/Sales(3y)8.82%
Cap/Sales(5y)14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.18%
EPS 3Y-13.88%
EPS 5Y-2.67%
EPS Q2Q%-26.32%
EPS Next Y-27.5%
EPS Next 2Y5.24%
EPS Next 3Y10.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y11.7%
Revenue growth 5Y-10.87%
Sales Q2Q%3.4%
Revenue Next Year3.97%
Revenue Next 2Y4.44%
Revenue Next 3Y4.64%
Revenue Next 5YN/A
EBIT growth 1Y-11.5%
EBIT growth 3Y21.51%
EBIT growth 5Y-6.06%
EBIT Next Year42.31%
EBIT Next 3Y19.17%
EBIT Next 5YN/A
FCF growth 1Y7.78%
FCF growth 3Y-17.03%
FCF growth 5Y-9.17%
OCF growth 1Y10.56%
OCF growth 3Y-14.94%
OCF growth 5Y-11.16%