US Ecology Inc

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ECOL : NASDAQ : Industrial Goods
$43.83 | %
Today's Range: 43.83 - 45.55
Avg. Daily Volume: 90,400
09/23/16 - 4:00 PM ET

Financial Analysis


US ECOLOGY 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. Even though sales decreased, the net income has increased, representing an increase to the bottom line. US ECOLOGY INC has strong liquidity. Currently, the Quick Ratio is 1.68 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.82% 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 ($mil)122.35139.73
EBITDA ($mil)26.9630.93
EBIT ($mil)17.0918.93
Net Income ($mil)8.942.14


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)12.7913.08
Total Assets ($mil)778.25863.07
Total Debt ($mil)287.05360.79
Equity ($mil)267.14250.08


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.2338.27
EBITDA Margin22.0322.13
Operating Margin13.9713.55
Sales Turnover0.670.7
Return on Assets4.373.47
Return on Equity12.7512.0
Debt Q2 FY16 Q2 FY15
Current Ratio1.781.74
Debt/Capital0.520.59
Interest Expense4.35.43
Interest Coverage3.973.48


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)21.7721.71
Div / share0.180.18
EPS0.410.1
Book value / share12.2711.52
Institutional Own % n/a n/a
Avg Daily Volume91472.093133.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 44.52 for the Commercial Services & Supplies industry and a premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 3.74 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 5.15. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, US ECOLOGY 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
ECOL 29.24 Peers 44.52   ECOL 16.70 Peers 17.23

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ECOL is trading at a significant discount 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.

ECOL 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
ECOL 22.61 Peers 24.44   ECOL 0.54 Peers 3.64

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

ECOL 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.

ECOL 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
ECOL 3.74 Peers 5.15   ECOL 13.76 Peers 12.86

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.

ECOL is trading at a significant discount to its peers.

 

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

ECOL is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECOL 1.91 Peers 2.34   ECOL -13.58 Peers 4.43

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.

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

 

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

ECOL significantly trails its peers on the basis of sales growth

 

 

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