EACO Corporation
EACO Corporation Fundamental Analysis
EACO Corporation (EACO) shows strong financial fundamentals with a PE ratio of 12.00, profit margin of 8.14%, and ROE of 23.44%. The company generates $0.5B in annual revenue with strong year-over-year growth of 20.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EACO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEACO demonstrates superior asset utilization.
Valuation Score
ExcellentEACO trades at attractive valuation levels.
Growth Score
ModerateEACO shows steady but slowing expansion.
Financial Health Score
ExcellentEACO maintains a strong and stable balance sheet.
Profitability Score
ModerateEACO maintains healthy but balanced margins.
Key Financial Metrics
Is EACO Expensive or Cheap?
P/E Ratio
EACO trades at 12.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EACO's PEG of 1.38 indicates fair valuation.
Price to Book
The market values EACO Corporation at 2.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.70 times EBITDA. This is generally considered low.
How Well Does EACO Make Money?
Net Profit Margin
For every $100 in sales, EACO Corporation keeps $8.14 as profit after all expenses.
Operating Margin
Core operations generate 10.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.44 in profit for every $100 of shareholder equity.
ROA
EACO Corporation generates $15.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EACO Corporation generates limited operating cash flow of $17.55M, signaling weaker underlying cash strength.
Free Cash Flow
EACO Corporation produces free cash flow of $14.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.07 in free cash annually.
FCF Yield
EACO converts 3.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.004
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How EACO Stacks Against Its Sector Peers
| Metric | EACO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.00 | 33.94 | Better (Cheaper) |
| ROE | 23.44% | 1002.00% | Weak |
| Net Margin | 8.14% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 3.54 | 5.74 | Strong Liquidity |
| ROA | 15.76% | -288341.00% (disorted) | Strong |
EACO outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EACO Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.98%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
313.42%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
516.92%
Industry Style: Growth, Innovation, High Beta
High Growth