Echo Global Logistics Inc

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ECHO : NASDAQ : Services
$18.15 up 0.35 | 2.0%
Today's Range: 17.775 - 18.2
Avg. Daily Volume: 413600.0
09/22/17 - 3:59 PM ET

Financial Analysis

ECHO GLOBAL LOGISTICS INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ECHO GLOBAL LOGISTICS INC has average liquidity. Currently, the Quick Ratio is 1.42 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.59% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)470.09443.83
EBITDA ($mil)11.6117.78
EBIT ($mil)3.6310.18
Net Income ($mil)-0.251.93

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)20.0340.12
Total Assets ($mil)803.76760.01
Total Debt ($mil)207.18200.06
Equity ($mil)347.87368.5

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin17.3619.19
EBITDA Margin2.464.0
Operating Margin0.772.29
Sales Turnover2.182.25
Return on Assets-0.460.97
Return on Equity-1.062.0
Debt Q2 FY17 Q2 FY16
Current Ratio1.481.67
Interest Expense3.683.53
Interest Coverage0.992.89

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)27.7628.65
Div / share0.00.0
Book value / share12.5312.86
Institutional Own % n/a n/a
Avg Daily Volume405422.0256087.0


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.26 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 38.78. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ECHO GLOBAL LOGISTICS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECHO NM Peers 26.89   ECHO 8.47 Peers 19.84

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ECHO's P/E is negative making this valuation measure meaningless.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ECHO is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ECHO 18.05 Peers 18.61   ECHO NA Peers 0.60

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ECHO is trading at a significant premium to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ECHO 1.26 Peers 38.78   ECHO -152.00 Peers 17.21

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ECHO is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ECHO is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECHO 0.25 Peers 1.50   ECHO 2.73 Peers 11.15

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ECHO is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ECHO significantly trails its peers on the basis of sales growth



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