NasdaqGS:ECOL

Stock Analysis Report

Executive Summary

US Ecology, Inc., through its subsidiaries, provides environmental services to commercial and government entities in the United States, Canada, and Mexico.

Rewards

Trading at 47.5% below its fair value

Earnings are forecast to grow 27.62% per year

Risk Analysis

Has a high level of debt

Profit margins (8.2%) are lower than last year (12.3%)



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has US Ecology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECOL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

ECOL

0.9%

US Commercial Services

0.06%

US Market


1 Year Return

-14.7%

ECOL

22.8%

US Commercial Services

19.4%

US Market

Return vs Industry: ECOL underperformed the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: ECOL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ECOLIndustryMarket
7 Day-4.3%0.9%0.06%
30 Day-3.3%3.7%1.1%
90 Day-2.8%9.5%8.9%
1 Year-13.7%-14.7%27.1%22.8%21.9%19.4%
3 Year61.2%55.2%65.4%54.5%48.9%39.3%
5 Year39.9%30.2%104.7%82.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is US Ecology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is US Ecology undervalued compared to its fair value and its price relative to the market?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECOL ($61.23) is trading below our estimate of fair value ($116.65)

Significantly Below Fair Value: ECOL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ECOL is poor value based on its PE Ratio (26.8x) compared to the Commercial Services industry average (26.4x).

PE vs Market: ECOL is poor value based on its PE Ratio (26.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ECOL is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ECOL is overvalued based on its PB Ratio (3.5x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is US Ecology forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECOL's forecast earnings growth (27.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ECOL's earnings (27.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ECOL's revenue (19.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ECOL's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECOL's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has US Ecology performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECOL has high quality earnings.

Growing Profit Margin: ECOL's current net profit margins (8.2%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: ECOL's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: ECOL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ECOL had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-1.3%).


Return on Equity

High ROE: ECOL's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is US Ecology's financial position?


Financial Position Analysis

Short Term Liabilities: ECOL's short term assets ($197.7M) exceed its short term liabilities ($97.2M).

Long Term Liabilities: ECOL's short term assets ($197.7M) do not cover its long term liabilities ($517.0M).


Debt to Equity History and Analysis

Debt Level: ECOL's debt to equity ratio (92.1%) is considered high.

Reducing Debt: ECOL's debt to equity ratio has reduced from 165.1% to 92.1% over the past 5 years.

Debt Coverage: ECOL's debt is well covered by operating cash flow (25.3%).

Interest Coverage: ECOL's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: ECOL has a high level of physical assets or inventory.

Debt Coverage by Assets: ECOL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is US Ecology's current dividend yield, its reliability and sustainability?

1.18%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: ECOL's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ECOL's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: ECOL's dividends per share have been stable in the past 10 years.

Growing Dividend: ECOL's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.5%), ECOL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECOL's dividends in 3 years are forecast to be well covered by earnings (31.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Jeff Feeler (49yo)

6.5yrs

Tenure

US$1,963,355

Compensation

Mr. Jeffrey R. Feeler, also known as Jeff, CPA has been the Chief Executive Officer and President at US Ecology, Inc. since May 2013. Mr. Feeler served as Acting President and Acting Chief Operating Office ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.96M) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Feeler
Chairman of the Board6.5yrsUS$1.96m0.29% $4.0m
Eric Gerratt
Executive VP7.1yrsUS$1.00m0.12% $1.7m
Simon Bell
Executive VP & COO3yrsUS$1.08m0.19% $2.6m
Steven Welling
Executive Vice President of Sales & Marketing6.5yrsUS$1.08m0.13% $1.8m
Andrew Marshall
Executive Vice President of Regulatory Compliance & Safety4.8yrsUS$786.50k0.060% $830.4k
Wayne Ipsen
VP, Compliance Officer0yrsno datano data
Betsy Sterk
Vice President of Human Resources0yrsno datano data

6.5yrs

Average Tenure

49yo

Average Age

Experienced Management: ECOL's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Feeler
Chairman of the Board6.5yrsUS$1.96m0.29% $4.0m
Stephen Romano
Independent Director17.8yrsUS$126.83k0.057% $790.0k
Joe Colvin
Independent Director11.5yrsUS$133.08k0.038% $516.5k
Glenn Eisenberg
Independent Director1.8yrsUS$158.29k0.014% $186.7k
Ronald Keating
Independent Director2.3yrsUS$133.50k0.017% $236.5k
Katina Dorton
Lead Independent Director4.5yrsUS$157.33k0.034% $466.8k
John Sahlberg
Independent Director4.5yrsUS$151.33k0.033% $454.7k
Daniel Fox
Independent Director9.8yrsUS$158.67k0.029% $400.8k
Melanie Steiner
Director0.3yrsno data0.0050% $68.4k

4.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ECOL's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

US Ecology, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: US Ecology, Inc.
  • Ticker: ECOL
  • Exchange: NasdaqGS
  • Founded: 1952
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$1.374b
  • Shares outstanding: 22.08m
  • Website: https://www.usecology.com

Number of Employees


Location

  • US Ecology, Inc.
  • 101 S. Capitol Boulevard
  • Suite 1000
  • Boise
  • Idaho
  • 83702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECOLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1984
AFHDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1984

Biography

US Ecology, Inc., through its subsidiaries, provides environmental services to commercial and government entities in the United States, Canada, and Mexico. It operates through two segments, Environmental Services, and Field & Industrial Services. The Environmental Services segment offers hazardous material management services, including transportation, recycling, treatment, and disposal of hazardous, non-hazardous, and radioactive waste at its landfill, wastewater, deep-well injection, and other treatment facilities. The Field & Industrial Services segment provides services, such as on-site management, waste characterization, transportation, and disposal of non-hazardous and hazardous waste; and specialty field services comprising industrial cleaning and maintenance, remediation, lab packs, retail, transportation, emergency response, and other services to commercial and industrial facilities, and government entities. US Ecology, Inc. serves oil refineries, chemical production plants, steel mills, real estate developers, waste brokers/aggregators serving small manufacturers, and other industrial customers. The company was formerly known as American Ecology Corporation and changed its name to US Ecology, Inc. in February 2010. US Ecology, Inc. was founded in 1952 and is headquartered in Boise, Idaho. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/01 23:31
End of Day Share Price2019/11/01 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.