| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | US Ecology Interest Expense | 828,000 | 10,677,000 | 23,370,000 | 21,033,000 | 12,519,569 | US Ecology Gross Profit | 78,986,000 | 145,786,000 | 171,410,000 | 154,269,000 | 170,090,000 |
Is US Ecology price pull out misleading?
 | By Ellen Johnson | Macroaxis Story |
Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in US Ecology. I will summarize the rationale of why US Ecology stakeholders should not be insulted by the new pull out. US Ecology Piotroski F Score is 5 - Healthy. Given the investment horizon of 30 days, US Ecology is expected to under-perform the market. In addition to that, the company is 2.98 times more volatile than its market benchmark. It trades about -0.11 of its total potential returns per unit of risk. The market is currently generating roughly 0.24 per unit of volatility. What is US Ecology Target Price Odds to finish over Current Price? Out from normal probability distribution, the odds of US Ecology to move above current price in 30 days from now is about 53.65%. The US Ecology probability density function shows the probability of US Ecology Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, US Ecology has beta of 0.7643 suggesting as returns on market go up, US Ecology average returns are expected to increase less than the benchmark. However during bear market, the loss on holding US Ecology will be expected to be much smaller as well. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. US Ecology is significantly underperforming S&P 500.
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Reviewed by Rifka Kats
AMER ECOLOGY currently holds roughly 31.97M in cash with 22.61M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.45. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.36 per share. Earning per share calculations of the stock is based on official Zacks consensus of 4 analysts regarding US Ecology future annual earnings. Given the historical accuracy of 73.49%, the future earnings per share of the company is estimated to be 1.624 with lowest and highest values of 1.55 and 1.8 respectively. Please note that this consensus of annual earnings estimates for the organisation is an estimate of EPS before non-recurring items and including employee stock options expenses.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as US Ecology. Your research has to be compared to or analyzed against US Ecology's peers to derive any actionable benefits. When done correctly, US Ecology's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in US Ecology.
Investing in US Ecology, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding US Ecology along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of US Ecology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is US Ecology's Liquidity
US Ecology financial leverage refers to using borrowed capital as a funding source to finance US Ecology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. US Ecology financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to US Ecology's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of US Ecology's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between US Ecology's total debt and its cash.
US Ecology Correlation with Peers
Investors in ECOL can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in US Ecology. Diversification will allow for the same portfolio return with reduced risk. The correlation table of US Ecology and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities ECOL is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of ECOL for more details
A Deeper look at ECOL
US Ecology price decrease over the last few months could raise concerns from investors as the company closed today at a share price of 57.33 on 15804 in volume. The company executives were not very successful in positioning the company components to exploit market volatility in March. However, diversifying your holdings with US Ecology or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.856. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. US Ecology maintains price to earning of 25.26x. US Ecology is trading at 58.39 which is 1.87 percent increase. Opened at 58.39. US Ecology Trade and Non Trade Payables is increasing over the last 5 years. The new value of US Ecology Trade and Non Trade Payables is 12,398,747. Also, US Ecology Tangible Assets Book Value per Share is considerably stable at the moment.
To sum up, our analysis show that US Ecology Follows market closely. The business is fairly valued and projects odds of financial distress below average for the next 2 years. Our immediate buy vs hold vs sell advice on the business is Strong Hold.
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