Echo Global Logistics, Inc. [NASDAQ:ECHO]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Echo Global Logistics, Inc. [ECHO], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give ECHO an Outperform rating. Its stock price has been found in the range of 8.24 to 16.95. This is compared to its latest closing price of $23.33.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Echo Global Logistics, Inc. [ECHO] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Dec-18 Echo Global Logistics, Inc. [ECHO] generated $0.58 billion in sales. That’s 0.65% lower than the average estimate of $0.59 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 24 Apr (In 73 Days).
Fundamental Analysis of Echo Global Logistics, Inc. [ECHO]
Now let’s turn to look at profitability: with a current Operating Margin for Echo Global Logistics, Inc. [ECHO] sitting at +1.03 and its Gross Margin at +15.76, this company’s Net Margin is now 1.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 3.55, and its Return on Invested Capital has reached 3.20%. Its Return on Equity is 3.52, and its Return on Assets is 1.57. These metrics suggest that this Echo Global Logistics, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Echo Global Logistics, Inc. [ECHO] has generated a Total Debt to Total Equity ratio of 58.77. Similarly, its Total Debt to Total Capital is 37.02, while its Total Debt to Total Assets stands at 25.17. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 58.77, and its Long-Term Debt to Total Capital is 37.02. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.90 and its Total Debt to EBITDA Value is 3.99. The Enterprise Value to Sales for this firm is now 0.33, and its Total Debt to Enterprise Value stands at 0.22. Echo Global Logistics, Inc. [ECHO] has a Price to Book Ratio of 2.13, a Price to Cash Flow Ratio of 16.11 and P/E Ratio of 23.21. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Echo Global Logistics, Inc. [ECHO] earns $792,126 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.01 and its Total Asset Turnover is 2.42. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.49 and its Current Ratio is 1.49. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Echo Global Logistics, Inc. [ECHO] has 28.06M shares outstanding, amounting to a total market cap of $670.91M. Its stock price has been found in the range of 18.83 to 36.75. At its current price, it has moved by -34.94% from its 52-week high, and it has moved 27.01% from its 52-week low.
This stock’s Beta value is currently 1.90, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.67. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Echo Global Logistics, Inc. [ECHO] a Reliable Buy?
Echo Global Logistics, Inc. [ECHO] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.