NYSE:EV

Stock Analysis Report

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Executive Summary

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Eaton Vance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EV is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: EV's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

4.7%

EV

4.3%

US Capital Markets

2.8%

US Market


1 Year Return

45.7%

EV

12.1%

US Capital Markets

20.9%

US Market

Return vs Industry: EV exceeded the US Capital Markets industry which returned 12.1% over the past year.

Return vs Market: EV exceeded the US Market which returned 20.9% over the past year.


Shareholder returns

EVIndustryMarket
7 Day4.7%4.3%2.8%
30 Day14.9%16.3%12.8%
90 Day67.5%10.6%6.6%
1 Year50.9%45.7%14.9%12.1%23.6%20.9%
3 Year35.9%23.8%30.1%20.2%47.3%37.6%
5 Year120.5%89.9%83.0%60.4%94.3%72.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eaton Vance undervalued compared to its fair value and its price relative to the market?

54.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EV ($68.72) is trading above our estimate of fair value ($43.7)

Significantly Below Fair Value: EV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EV is poor value based on its PE Ratio (54.4x) compared to the US Capital Markets industry average (23.5x).

PE vs Market: EV is poor value based on its PE Ratio (54.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: EV is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: EV is overvalued based on its PB Ratio (5.7x) compared to the US Capital Markets industry average (4.6x).


Next Steps

Future Growth

How is Eaton Vance forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EV's forecast earnings growth (18.2% per year) is above the savings rate (2.2%).

Earnings vs Market: EV's earnings (18.2% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: EV's earnings are forecast to grow, but not significantly.

Revenue vs Market: EV's revenue (6% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: EV's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EV's Return on Equity is forecast to be very high in 3 years time (40%).


Next Steps

Past Performance

How has Eaton Vance performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EV has a large one-off gain of $39.4M impacting its October 31 2020 financial results.

Growing Profit Margin: EV's current net profit margins (8%) are lower than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: EV's earnings have grown by 7.9% per year over the past 5 years.

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

Earnings vs Industry: EV had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the Capital Markets industry average (3%).


Return on Equity

High ROE: EV's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Eaton Vance's financial position?


Financial Position Analysis

Short Term Liabilities: EV's short term assets ($3.5B) exceed its short term liabilities ($373.1M).

Long Term Liabilities: EV's short term assets ($3.5B) exceed its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: EV's debt to equity ratio (42.6%) is considered high.

Reducing Debt: EV's debt to equity ratio has reduced from 80.8% to 42.6% over the past 5 years.

Debt Coverage: EV's debt is well covered by operating cash flow (58.7%).

Interest Coverage: EV's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Eaton Vance current dividend yield, its reliability and sustainability?

2.18%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EV's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: EV's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

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

Growing Dividend: EV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.7%), EV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EV's dividends in 3 years are forecast to be well covered by earnings (40.6% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Thomas Faust (62 yo)

13yrs

Tenure

US$13,370,078

Compensation

Mr. Thomas E. Faust, Jr., CFA, also known as Tom, serves as a member of the Eaton Vance Fund Boards since 2007. He is Director and President of Eaton Vance, Inc., Chief Executive Officer and President of E...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD13.37M) is above average for companies of similar size in the US market ($USD6.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Faust
Chairman13yrsUS$13.37m2.96%
$ 222.1m
Laurie Hylton
VP & CFO8.67yrsUS$3.39m0.22%
$ 16.2m
Frederick Marius
VP, Corporate Secretary & Chief Legal Officer12.42yrsUS$2.35m0.051%
$ 3.8m
Matthew Witkos
President of Eaton Vance Distributors Inc13.5yrsUS$5.66m0.21%
$ 15.8m
Julie Rozen
VP & Chief Accounting Officer3.83yrsno data0.0093%
$ 701.1k
John Shea
Chief Information Officerno datano data0.017%
$ 1.3m
Daniel Cataldo
VP & Chief Administrative Officer2.5yrsno data0.18%
$ 13.8m
Pierric Senay
VP, Treasurer & Director of Investor Relations2.5yrsno datano data
Richard Froio
VP & Chief Compliance Officer3.08yrsno datano data
Robyn Tice
Director of Media Relationsno datano datano data
Jessica Kung
Chief Human Resources Officer0.58yrno datano data
George Saltonstall
President Emeritus of Eaton Vance Investment Counsel16.83yrsno datano data

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: EV's management team is seasoned and experienced (6.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Eaton Vance Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eaton Vance Corp.
  • Ticker: EV
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$7.514b
  • Shares outstanding: 109.34m
  • Website: https://www.eatonvance.com

Number of Employees


Location

  • Eaton Vance Corp.
  • Two International Place
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVNYSE (New York Stock Exchange)YesNon-Voting Common StockUSUSDJan 1969
EVCNDB (Deutsche Boerse AG)YesNon-Voting Common StockDEEURJan 1969

Biography

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:43
End of Day Share Price2020/11/27 00:00
Earnings2020/10/31
Annual Earnings2020/10/31


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.