EMERALD HOLDING INC (EEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EEX - US29103W1045 - Common Stock
4.58 USD
-0.14 (-2.97%)
EEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 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.
- In the past year EEX had a positive cash flow from operations.
- EEX had negative earnings in 4 of the past 5 years.
- Of the past 5 years EEX 4 years had a positive operating cash flow.
1.2 Ratios
- EEX has a better Return On Assets (0.38%) than 65.22% of its industry peers.
- Looking at the Return On Equity, with a value of 1.24%, EEX is in the better half of the industry, outperforming 66.30% of the companies in the same industry.
- The Return On Invested Capital of EEX (7.18%) is better than 82.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EEX is in line with the industry average of 7.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.24% | ||
| ROIC | 7.18% |
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
- EEX's Profit Margin of 1.05% is fine compared to the rest of the industry. EEX outperforms 66.30% of its industry peers.
- Looking at the Operating Margin, with a value of 19.34%, EEX belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
- EEX's Operating Margin has been stable in the last couple of years.
- EEX has a Gross Margin of 63.18%. This is in the better half of the industry: EEX outperforms 75.00% of its industry peers.
- 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 | 19.34% | ||
| PM (TTM) | 1.05% | ||
| GM | 63.18% |
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
- EEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 0.45. 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 0.45, EEX is in line with its industry, outperforming 40.22% of the companies in the same industry.
- The Debt to FCF ratio of EEX is 11.85, which is on the high side as it means it would take EEX, 11.85 years of fcf income to pay off all of its debts.
- EEX's Debt to FCF ratio of 11.85 is fine compared to the rest of the industry. EEX outperforms 64.13% of its industry peers.
- A Debt/Equity ratio of 1.35 is on the high side and indicates that EEX has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.35, EEX is in line with its industry, outperforming 42.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.85 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.82
WACC8.78%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that EEX may have some problems paying its short term obligations.
- With a Current ratio value of 0.81, EEX is not doing good in the industry: 66.30% of the companies in the same industry are doing better.
- A Quick Ratio of 0.81 indicates that EEX may have some problems paying its short term obligations.
- EEX's Quick ratio of 0.81 is on the low side compared to the rest of the industry. EEX is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 105.88% over the past year.
- The Revenue has grown by 11.18% in the past year. This is quite good.
- 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)105.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-250%
Revenue 1Y (TTM)11.18%
Revenue growth 3Y39.95%
Revenue growth 5Y2.02%
Sales Q2Q%6.75%
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 247.85% 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 11.09% on average per year.
EPS Next Y403%
EPS Next 2Y247.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.38%
Revenue Next 2Y11.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EEX is valuated quite expensively with a Price/Earnings ratio of 152.67.
- Compared to the rest of the industry, the Price/Earnings ratio of EEX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, EEX is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 22.67, the valuation of EEX can be described as rather expensive.
- EEX's Price/Forward Earnings ratio is in line with the industry average.
- EEX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.67 | ||
| Fwd PE | 22.67 |
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 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.27 | ||
| EV/EBITDA | 11.74 |
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.
- The decent profitability rating of EEX may justify a higher PE ratio.
- A more expensive valuation may be justified as EEX's earnings are expected to grow with 247.85% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y247.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.27%, EEX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.22, EEX pays a bit more dividend than its industry peers.
- EEX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
- EEX pays out 260.87% of its income as dividend. This is not a sustainable payout ratio.
DP260.87%
EPS Next 2Y247.85%
EPS Next 3YN/A
EMERALD HOLDING INC / EEX FAQ
What is the fundamental rating for EEX stock?
ChartMill assigns a fundamental rating of 4 / 10 to EEX.
What is the valuation status of EMERALD HOLDING INC (EEX) stock?
ChartMill assigns a valuation rating of 5 / 10 to EMERALD HOLDING INC (EEX). This can be considered as Fairly Valued.
How profitable is EMERALD HOLDING INC (EEX) stock?
EMERALD HOLDING INC (EEX) has a profitability rating of 6 / 10.
What is the expected EPS growth for EMERALD HOLDING INC (EEX) stock?
The Earnings per Share (EPS) of EMERALD HOLDING INC (EEX) is expected to grow by 403% in the next year.
How sustainable is the dividend of EMERALD HOLDING INC (EEX) stock?
The dividend rating of EMERALD HOLDING INC (EEX) is 2 / 10 and the dividend payout ratio is 260.87%.