Echo Global Logistics Inc

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ECHO : NASDAQ : Services
$23.07 | %
Today's Range: 22.91 - 23.58
Avg. Daily Volume: 261,600
09/23/16 - 4:00 PM ET

Financial Analysis


ECHO GLOBAL LOGISTICS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ECHO GLOBAL LOGISTICS INC has strong liquidity. Currently, the Quick Ratio is 1.63 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 remained virtually unchanged only decreasing by 3.26% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)443.83371.64
EBITDA ($mil)17.7814.25
EBIT ($mil)10.189.0
Net Income ($mil)1.93-0.68


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)40.1257.65
Total Assets ($mil)760.01781.82
Total Debt ($mil)200.06220.33
Equity ($mil)368.5380.93


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin19.1918.71
EBITDA Margin4.03.83
Operating Margin2.292.42
Sales Turnover2.251.63
Return on Assets0.971.63
Return on Equity2.03.34
Debt Q2 FY16 Q2 FY15
Current Ratio1.671.8
Debt/Capital0.350.37
Interest Expense3.534.35
Interest Coverage2.892.07


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)28.6529.7
Div / share0.00.0
EPS0.07-0.03
Book value / share12.8612.83
Institutional Own % n/a n/a
Avg Daily Volume253366.0293675.0

Valuation


HOLD. ECHO GLOBAL LOGISTICS INC's P/E ratio indicates a significant premium compared to an average of 21.50 for the Air Freight & Logistics industry and a significant premium compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 1.83 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 20.16. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECHO 94.04 Peers 21.50   ECHO 9.87 Peers 10.70

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ECHO is trading at a significant premium to its peers.

 

Average. 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 valuation on par 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 16.22 Peers 17.45   ECHO 0.28 Peers 2.32

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ECHO is trading at a valuation on par with its peers.

 

Discount. 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.

ECHO trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ECHO 1.83 Peers 20.16   ECHO -53.71 Peers 39.73

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 0.39 Peers 1.24   ECHO 33.74 Peers 9.43

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ECHO has a sales growth rate that significantly exceeds its peers.

 

 

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