Echo Global Logistics Inc

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ECHO : NASDAQ : Services
$18.55 | %
Today's Range: 18.5 - 18.8
Avg. Daily Volume: 276300.0
05/26/17 - 4:00 PM ET

Financial Analysis


ECHO GLOBAL LOGISTICS INC's gross profit margin for the first 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 strong liquidity. Currently, the Quick Ratio is 1.53 which shows 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 6.51% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)415.75405.28
EBITDA ($mil)7.3512.6
EBIT ($mil)-0.695.07
Net Income ($mil)-2.870.26


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)24.2643.52
Total Assets ($mil)774.28742.76
Total Debt ($mil)205.36198.35
Equity ($mil)355.85380.66


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin17.9219.94
EBITDA Margin1.763.1
Operating Margin-0.171.25
Sales Turnover2.232.2
Return on Assets-0.190.64
Return on Equity-0.431.25
Debt Q1 FY17 Q1 FY16
Current Ratio1.591.8
Debt/Capital0.370.34
Interest Expense3.623.5
Interest Coverage-0.191.45


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)28.2428.99
Div / share0.00.0
EPS-0.10.01
Book value / share12.613.13
Institutional Own % n/a n/a
Avg Daily Volume272637.0228241.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.47 indicates a significant discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 76.48. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECHO NM Peers 29.75   ECHO 8.69 Peers 25.00

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ECHO 15.23 Peers 17.04   ECHO NA Peers 9.71

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 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ECHO 1.47 Peers 76.48   ECHO -133.33 Peers 24.08

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECHO 0.30 Peers 1.47   ECHO 5.66 Peers 9.59

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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