Environmental Tectonics Corporation
Environmental Tectonics Corporation Fundamental Analysis
Environmental Tectonics Corporation (ETCC) shows strong financial fundamentals with a PE ratio of 1.34, profit margin of 15.91%, and ROE of 70.94%. The company generates $0.0B in annual revenue with strong year-over-year growth of 45.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ETCC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentETCC demonstrates superior asset utilization.
Valuation Score
ExcellentETCC trades at attractive valuation levels.
Growth Score
ModerateETCC shows steady but slowing expansion.
Financial Health Score
ModerateETCC shows balanced financial health with some risks.
Profitability Score
ModerateETCC maintains healthy but balanced margins.
Key Financial Metrics
Is ETCC Expensive or Cheap?
P/E Ratio
ETCC trades at 1.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETCC's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values Environmental Tectonics Corporation at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.48 times EBITDA. This is generally considered low.
How Well Does ETCC Make Money?
Net Profit Margin
For every $100 in sales, Environmental Tectonics Corporation keeps $15.91 as profit after all expenses.
Operating Margin
Core operations generate 11.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $70.94 in profit for every $100 of shareholder equity.
ROA
Environmental Tectonics Corporation generates $16.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Environmental Tectonics Corporation generates limited operating cash flow of $-37.21K, signaling weaker underlying cash strength.
Free Cash Flow
Environmental Tectonics Corporation generates weak or negative free cash flow of $-345.84K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
ETCC converts -6.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.71
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How ETCC Stacks Against Its Sector Peers
| Metric | ETCC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.34 | 26.49 | Better (Cheaper) |
| ROE | 70.94% | 1307.00% | Weak |
| Net Margin | 15.91% | -5131.00% (disorted) | Strong |
| Debt/Equity | 1.23 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.20 | 10.48 | Neutral |
| ROA | 16.29% | -1549792.00% (disorted) | Strong |
ETCC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Environmental Tectonics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.08%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
425.05%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
58.54%
Industry Style: Cyclical, Value, Infrastructure
High Growth