NasdaqGS:ECHO

Stock Analysis Report

Executive Summary

Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Echo Global Logistics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.3%

ECHO

-3.4%

US Logistics

-0.2%

US Market


1 Year Return

-22.7%

ECHO

-3.3%

US Logistics

16.1%

US Market

Return vs Industry: ECHO underperformed the US Logistics industry which returned -3.3% over the past year.

Return vs Market: ECHO underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

ECHOIndustryMarket
7 Day-7.3%-3.4%-0.2%
30 Day-13.0%0.2%3.7%
90 Day0.2%5.8%8.5%
1 Year-22.7%-22.7%-1.1%-3.3%18.7%16.1%
3 Year-25.2%-25.2%9.6%2.6%46.9%37.4%
5 Year-31.8%-31.8%21.9%9.3%61.8%44.0%

Price Volatility Vs. Market

How volatile is Echo Global Logistics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Echo Global Logistics undervalued compared to its fair value and its price relative to the market?

25.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECHO ($19.12) is trading above our estimate of fair value ($14.1)

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


Price To Earnings Ratio

PE vs Industry: ECHO is poor value based on its PE Ratio (25.4x) compared to the Logistics industry average (20.7x).

PE vs Market: ECHO is poor value based on its PE Ratio (25.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ECHO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ECHO is good value based on its PB Ratio (1.3x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is Echo Global Logistics forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECHO's forecast earnings growth (29.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ECHO's earnings (29.8% 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: ECHO's revenue (4.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ECHO's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECHO's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Echo Global Logistics performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECHO has high quality earnings.

Growing Profit Margin: ECHO's current net profit margins (0.9%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ECHO's earnings have grown significantly by 21.9% per year over the past 5 years.

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

Earnings vs Industry: ECHO had negative earnings growth (-42.1%) over the past year, making it difficult to compare to the Logistics industry average (-8.7%).


Return on Equity

High ROE: ECHO's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Echo Global Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: ECHO's short term assets ($353.9M) exceeds its short term liabilities ($254.9M)

Long Term Liabilities: ECHO's short term assets ($353.9M) exceeds its long term liabilities (209.3M)


Debt to Equity History and Analysis

Debt Level: ECHO's debt to equity ratio (40.4%) is considered high.

Reducing Debt: ECHO's debt to equity ratio has increased from 9.2% to 40.4% over the past 5 years.

Debt Coverage: ECHO's debt is well covered by operating cash flow (64.3%).

Interest Coverage: ECHO's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: ECHO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECHO's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Echo Global Logistics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ECHO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ECHO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ECHO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ECHO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECHO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Echo Global Logistics's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Doug Waggoner (60yo)

12.9yrs

Tenure

US$5,592,713

Compensation

Mr. Douglas R. Waggoner, also known as Doug, has been the Chief Executive Officer of Echo Global Logistics, Inc. since December 2006 and has been its Chairman of the Board since June 2015. Mr. Waggoner has ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD5.59M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Doug's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ECHO's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

53yo

Average Age

Experienced Board: ECHO's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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.


Management Team

  • Dave Menzel (57yo)

    President & COO

    • Tenure: 5.3yrs
    • Compensation: US$2.89m
  • Doug Waggoner (60yo)

    Chairman & CEO

    • Tenure: 12.9yrs
    • Compensation: US$5.59m
  • Kyle Sauers (47yo)

    CFO & Secretary

    • Tenure: 6.1yrs
    • Compensation: US$2.33m
  • Chris Clemmensen

    Senior Vice President of Marketing

    • Tenure: 4.3yrs
  • Peter Rogers

    VP of Finance & Financial Controller

    • Tenure: 0yrs
  • Sean Burke

    Chief Commercial Officer

    • Tenure: 0yrs
  • Paula Frey

    Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Miles English

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Sam Skinner (81yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$207.51k
  • Matt Ferguson (52yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$192.51k
  • Doug Waggoner (60yo)

    Chairman & CEO

    • Tenure: 12.9yrs
    • Compensation: US$5.59m
  • Bill Farrow (64yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$181.51k
  • Dave Habiger (50yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$194.01k
  • Nelda Connors (53yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$189.01k
  • Ginnie Henkels (50yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$73.80k

Company Information

Echo Global Logistics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Echo Global Logistics, Inc.
  • Ticker: ECHO
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$521.877m
  • Shares outstanding: 27.29m
  • Website: https://www.echo.com

Number of Employees


Location

  • Echo Global Logistics, Inc.
  • 600 West Chicago Avenue
  • Suite 725
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECHONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2009
AOZDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2009

Biography

Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. It utilizes a proprietary technology platform to compile and analyze data  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/23 00:21
End of Day Share Price2019/11/22 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.