EACO (EACO) AI Stock Analysis

• Market Cap: $172.59M
• Dividend Yield: N/A
• Average Volume (3M): 40.00
• Price to Earnings (P/E): 10.1
• Beta (1Y): -0.14
• Revenue Growth: 14.40%
• EPS Growth: 10.25%
• Country: US
• Employees: 605
• Sector: Technology
• Sector Strength: 42
• Industry: Technology Distributors
• EPS (TTM): 4.10
• Shares Outstanding: 4,861,590
• 10 Day Avg. Volume: 51
• 30 Day Avg. Volume: 40
• PEG Ratio: 0.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.57
• Price to Cash Flow (P/CF): 26.00
• P/FCF Ratio: 27.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

EACO's strong financial performance, combined with reasonable valuation, supports a positive outlook. However, technical indicators suggest caution due to potential overbought conditions, and the lack of recent earnings call insights limits visibility into future prospects. The company's stable financial position and growth trajectory are key strengths, but ongoing monitoring of operational costs is recommended.

EACO Business Overview & Revenue Model

Company Description

EACO Corporation is a diversified holding company operating primarily in the distribution sector, with a focus on providing a variety of electrical and electronic components. The company is known for its comprehensive inventory and efficient distribution network, catering to a wide range of industries including manufacturing, telecommunications, and consumer electronics.

How the Company Makes Money

EACO makes money primarily through the distribution and sale of electrical and electronic components. Their revenue model is based on purchasing these components from manufacturers and suppliers at wholesale prices and selling them at a markup to various industries that require these components for their operations. The company leverages its extensive distribution network to ensure timely delivery and broad accessibility to its products. Additionally, EACO may have significant partnerships with leading manufacturers, allowing them to secure favorable pricing and exclusive distribution rights, further boosting profitability.

EACO Financial Statement Overview

Summary

EACO demonstrates strong financial health with consistent revenue and profit growth, healthy margins, and effective cash flow management. The company has a solid balance sheet with low leverage and strong equity ratios. However, it needs to keep an eye on operational costs and capital expenditures.

Income Statement

EACO's income statement shows strong performance with a consistent increase in total revenue over the years, peaking at $369.9 million in the TTM (Trailing-Twelve-Months) period. The gross profit margin has remained robust, reaching approximately 29.8% in the TTM period. The company has managed to improve its net profit margin to 5.4% in the TTM period, indicating enhanced profitability. However, there was a slight dip in EBIT margin from previous years, suggesting some operational cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a healthy equity ratio of 65.6% in the TTM period, indicating significant funding through equity. The company has managed to reduce its debt over time, with a favorable debt-to-equity ratio of 0.09 in the TTM period. Return on equity stands at 15.4%, showcasing effective use of shareholder funds. However, the company must continue to monitor its liabilities to ensure sustained financial stability.

Cash Flow

EACO's cash flow statements demonstrate robust operating cash flows, with a positive trajectory in free cash flow growth. The operating cash flow to net income ratio is strong, indicating efficient conversion of income into cash. Despite a previous dip in annual free cash flow, the TTM period shows a recovery, suggesting effective cash management. Nevertheless, fluctuations in investing cash flows warrant attention to maintain balanced capital expenditures.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
369.90M	356.23M	319.40M	292.56M	237.96M	225.25M
	Gross Profit
110.42M	106.21M	92.42M	83.50M	60.78M	61.38M
	EBIT
27.73M	21.34M	27.48M	29.53M	12.71M	10.44M
	EBITDA
29.25M	23.15M	28.88M	31.02M	14.24M	11.66M
	Net Income Common Stockholders
20.04M	14.95M	21.18M	21.31M	8.39M	7.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.03M	15.59M	35.79M	21.31M	8.20M	7.45M
	Total Assets
42.83M	188.54M	162.24M	139.68M	110.39M	106.45M
	Total Debt
4.80M	11.94M	14.64M	15.15M	15.89M	24.47M
	Net Debt
766.00K	11.10M	6.08M	-2.23M	11.43M	18.39M
	Total Liabilities
19.00M	64.91M	53.52M	51.93M	43.26M	47.63M
	Stockholders Equity
23.83M	123.63M	108.72M	87.75M	67.12M	58.82M
Cash Flow		Free Cash Flow
14.75M	-18.53M	12.46M	15.16M	7.87M	-3.92M
	Operating Cash Flow
15.79M	14.08M	13.42M	16.87M	8.82M	2.78M
	Investing Cash Flow
-17.24M	-20.45M	-23.82M	-2.10M	-7.04M	4.05M
	Financing Cash Flow
-4.59M	-1.37M	1.70M	-1.23M	-6.31M	-3.10M

EACO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EACO, the sentiment is Neutral. The current price of 41.49 is below the 20-day moving average (MA) of 43.60, below the 50-day MA of 44.79, and above the 200-day MA of 38.14, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 19.75 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EACO.

EACO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EACO	76 Outperform	$172.59M	10.12	16.71%	―	14.40%	10.25%
SANM	74 Outperform	$4.13B	18.95	10.55%	―	-8.92%	-12.11%
PLXS	73 Outperform	$3.45B	30.15	9.27%	―	-3.53%	-3.90%
AEIS	64 Neutral	$3.59B	66.42	4.80%	0.42%	-10.49%	-57.78%
JBL	63 Neutral	$14.94B	32.64	24.10%	0.23%	-14.45%	-64.32%
MRCY	61 Neutral	$2.60B	―	-6.10%	―	-1.21%	-4.63%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%