Echo Global Profitability Analysis

ECHO -  USA Stock  

USD 48.18  0.09  0.19%

For Echo Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Echo Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Echo Global Logistic utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Echo Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Echo Global Logistic over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.

Echo Global Current Profitability Trends 

 
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Echo Global Price to Sales Ratio is quite stable at the moment as compared to the past year. The company's current value of Price to Sales Ratio is estimated at 0.34. Return on Sales is expected to rise to 0.0148 this year, although the value of Sales per Share will most likely fall to 81.45. Echo Global Consolidated Income is quite stable at the moment as compared to the past year. The company's current value of Consolidated Income is estimated at 15.98 Million. Net Income is expected to rise to about 16 M this year, although the value of Income Tax Expense will most likely fall to about 6.2 M.

Echo Global Revenues

2.17 BillionShare
Is Echo Global's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Echo Global. If investors know Echo Global will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Echo Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Echo Global Logistic is measured differently than its book value, which is the value of Echo Global that is recorded on the company's balance sheet. Investors also form their own opinion of Echo Global's value that differs from its market value or its book value, called intrinsic value, which is Echo Global's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Echo Global's market value can be influenced by many factors that don't directly affect Echo Global's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Echo Global's value and its price as these two are different measures arrived at by different means. Investors typically determine Echo Global value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Echo Global's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Echo Global Logistic Total Debt vs. Current Liabilities Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Echo Global's current stock value. Our valuation model uses many indicators to compare Echo Global value to that of its competitors to determine the firm's financial worth.
Echo Global Logistic is rated # 4 in current liabilities category among related companies. It is rated below average in total debt category among related companies making up about  1.09  of Total Debt per Current Liabilities. Echo Global Current Liabilities is quite stable at the moment as compared to the past year. The company's current value of Current Liabilities is estimated at 406.91 Million. Comparative valuation analysis is a catch-all model that can be used if you cannot value Echo Global by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Echo Global's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Echo Global's earnings, one of the primary drivers of an investment's value.

Echo Global Total Debt vs. Current Liabilities

Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.
Echo Global 
Current Liabilities 
 = 
Payables 
Accrued Debt 
137.39 M
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Echo Global 
Total Debt 
 = 
Bonds 
+  
Notes 
150.01 M
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Echo Global Total Debt vs Competition

Echo Global Logistic is rated below average in total debt category among related companies. Total debt of Integrated Freight & Logistics industry is currently estimated at about 4.37 Billion. Echo Global holds roughly 150.01 Million in total debt claiming about 3% of equities under Integrated Freight & Logistics industry.
Total debt  Revenue  Capitalization  Workforce  Valuation

Echo Global Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Echo Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Echo Global will eventually generate negative long term returns. The profitability progress is the general direction of Echo Global's change in net profit over the period of time. It can combine multiple indicators of Echo Global, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Consolidated Income15.8 M16 M
Net Income15.8 M16 M
Net Income Common Stock15.8 M16 M
Operating Income29.5 M30.1 M
Income Tax Expense7.7 M6.2 M
Net Income Per Employee6.1 K7.8 K
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. Echo Global Logistics, Inc. was founded in 2005 and is headquartered in Chicago, Illinois. Echo Global operates under Integrated Freight Logistics classification in the United States and is traded on NASDAQ Exchange. It employs 2736 people.

Echo Global Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Echo Global. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Echo Global position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Echo Global's important profitability drivers and their relationship over time.

Echo Global Profitability Trends

Echo Global profitability trend refers to the progression of profit or loss within a business. An upward trend means that Echo Global's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Echo Global's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Echo Global Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Echo Global different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Echo Global in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Echo Global's future profitability.

Use Echo Global in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Echo Global position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Echo Global will appreciate offsetting losses from the drop in the long position's value.

Echo Global Pair Trading

Echo Global Logistic Pair Trading Analysis

Correlation analysis and pair trading evaluation for Echo Global and Air T Inc. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Echo Global position

In addition to having Echo Global in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Manufacturing
Manufacturing Theme
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. Manufacturing theme has 20 constituents.
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Continue to Investing Opportunities. Note that the Echo Global Logistic information on this page should be used as a complementary analysis to other Echo Global's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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When running Echo Global Logistic price analysis, check to measure Echo Global's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Echo Global is operating at the current time. Most of Echo Global's value examination focuses on studying past and present price action to predict the probability of Echo Global's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Echo Global's price. Additionally, you may evaluate how the addition of Echo Global to your portfolios can decrease your overall portfolio volatility.
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To fully project Echo Global's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Echo Global Logistic at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Echo Global's income statement, its balance sheet, and the statement of cash flows.
Potential Echo Global investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Echo Global investors may work on each financial statement separately, they are all related. The changes in Echo Global's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Echo Global's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.