ECOVYST INC (ECVT) Stock Fundamental Analysis
NYSE:ECVT - New York Stock Exchange, Inc. - US27923Q1094 - Common Stock - Currency: USD
Taking everything into account, ECVT scores 4 out of 10 in our fundamental rating. ECVT was compared to 85 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ECVT was profitable.
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 worse Return On Assets (-0.64%) than 63.53% of its industry peers.
ECVT has a worse Return On Equity (-1.64%) than 60.00% of its industry peers.
The Return On Invested Capital of ECVT (4.75%) 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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.64% | ||
| ROIC | 4.75% |
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 13.04%. This is in the better half of the industry: ECVT outperforms 71.76% of its industry peers.
ECVT's Operating Margin has improved in the last couple of years.
ECVT has a Gross Margin (26.61%) which is in line with its industry peers.
ECVT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.61% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECVT is destroying value.
The number of shares outstanding for ECVT has been increased compared to 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 1.12, we must say that ECVT is in the distress zone and has some risk of bankruptcy.
ECVT's Altman-Z score of 1.12 is on the low side compared to the rest of the industry. ECVT is outperformed by 78.82% of its industry peers.
ECVT has a debt to FCF ratio of 17.97. This is a negative value and a sign of low solvency as ECVT would need 17.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.97, ECVT is in line with its industry, outperforming 50.59% of the companies in the same industry.
A Debt/Equity ratio of 1.22 is on the high side and indicates that ECVT has dependencies on debt financing.
ECVT has a Debt to Equity ratio of 1.22. This is in the lower half of the industry: ECVT underperforms 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.53
WACC8.91%
2.3 Liquidity
A Current Ratio of 2.81 indicates that ECVT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.81, ECVT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ECVT has a Quick Ratio of 2.24. This indicates that ECVT is financially healthy and has no problem in meeting its short term obligations.
ECVT has a Quick ratio of 2.24. This is amongst the best in the industry. ECVT outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The earnings per share for ECVT have decreased strongly by -25.68% 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 2.23%.
Measured over the past years, ECVT shows a small growth in Revenue. The Revenue has been growing by 5.75% on average per year.
EPS 1Y (TTM)-25.68%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%-75%
Revenue 1Y (TTM)2.23%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%1.06%
3.2 Future
Based on estimates for the next years, ECVT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.25% on average per year.
The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y10.62%
EPS Next 2Y26.59%
EPS Next 3Y26.25%
EPS Next 5YN/A
Revenue Next Year10.93%
Revenue Next 2Y7.92%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ECVT is valuated correctly with a Price/Earnings ratio of 15.78.
68.24% of the companies in the same industry are more expensive than ECVT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ECVT to the average of the S&P500 Index (27.30), we can say ECVT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 9.34, the valuation of ECVT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ECVT is valued cheaper than 82.35% of the companies in the same industry.
ECVT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
ECVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECVT is cheaper than 63.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECVT indicates a somewhat cheap valuation: ECVT is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ECVT's earnings are expected to grow with 26.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y26.59%
EPS Next 3Y26.25%
5. Dividend
5.1 Amount
ECVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.68
-0.17 (-1.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.48%
Inst Owner Change0%
Ins Owners1.44%
Ins Owner Change2.77%
Market Cap1.02B
Analysts85
Price Target9.77 (12.56%)
Short Float %5.89%
Short Ratio5.12
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)71.92%
Min EPS beat(2)15.13%
Max EPS beat(2)128.72%
EPS beat(4)2
Avg EPS beat(4)29.05%
Min EPS beat(4)-17.17%
Max EPS beat(4)128.72%
EPS beat(8)3
Avg EPS beat(8)10.28%
EPS beat(12)6
Avg EPS beat(12)9.88%
EPS beat(16)10
Avg EPS beat(16)13.54%
Revenue beat(2)0
Avg Revenue beat(2)-6.61%
Min Revenue beat(2)-7.53%
Max Revenue beat(2)-5.69%
Revenue beat(4)0
Avg Revenue beat(4)-6.08%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)-5.54%
Revenue beat(8)0
Avg Revenue beat(8)-5.63%
Revenue beat(12)2
Avg Revenue beat(12)-3.46%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)0.12%
PT rev (3m)-2.07%
EPS NQ rev (1m)-10.79%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)3.28%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 9.34 | ||
| P/S | 1.44 | ||
| P/FCF | 21.31 | ||
| P/OCF | 8.24 | ||
| P/B | 1.46 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)0.55
EY6.34%
EPS(NY)0.93
Fwd EY10.71%
FCF(TTM)0.41
FCFY4.69%
OCF(TTM)1.05
OCFY12.13%
SpS6.01
BVpS5.95
TBVpS1.69
PEG (NY)1.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.64% | ||
| ROCE | 5.47% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 7.58% | ||
| OM | 13.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.61% | ||
| FCFM | 6.77% |
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 | 17.97 | ||
| Debt/EBITDA | 4.66 | ||
| Cap/Depr | 83.75% | ||
| Cap/Sales | 10.74% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 1.12 |
F-Score4
WACC8.91%
ROIC/WACC0.53
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)-25.68%
EPS 3Y4.38%
EPS 5Y-9.01%
EPS Q2Q%-75%
EPS Next Y10.62%
EPS Next 2Y26.59%
EPS Next 3Y26.25%
EPS Next 5YN/A
Revenue 1Y (TTM)2.23%
Revenue growth 3Y4.85%
Revenue growth 5Y5.75%
Sales Q2Q%1.06%
Revenue Next Year10.93%
Revenue Next 2Y7.92%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
EBIT growth 1Y-15.43%
EBIT growth 3Y17.3%
EBIT growth 5Y7.72%
EBIT Next Year80.24%
EBIT Next 3Y28.36%
EBIT Next 5YN/A
FCF growth 1Y-59.31%
FCF growth 3Y5.01%
FCF growth 5Y-10.41%
OCF growth 1Y-32.91%
OCF growth 3Y4.89%
OCF growth 5Y-10.96%