EACO (EACO) AI Stock Analysis

• Market Cap: $291.14M
• Dividend Yield: N/A
• Average Volume (3M): 283.00
• Price to Earnings (P/E): 9.9
• Beta (1Y): -0.24
• Revenue Growth: 16.31%
• EPS Growth: 105.24%
• Country: US
• Employees: 627
• Sector: Technology
• Sector Strength: 90
• Industry: Technology Distributors
• EPS (TTM): 1.94
• Shares Outstanding: 4,861,590
• 10 Day Avg. Volume: 329
• 30 Day Avg. Volume: 283
• PEG Ratio: 0.08
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.37
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 2.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $70.00 ▲(16.90%Upside)

EACO's overall stock score is driven primarily by strong financial performance, with solid revenue growth and profitability, and a robust balance sheet. Technical analysis supports a bullish outlook, though caution is warranted due to overbought conditions. Valuation is favorable, enhancing investment appeal despite the lack of dividend yield.

EACO Business Overview & Revenue Model

Company Description

EACO (EACO) operates as a holding company with a focus on the distribution of fasteners, electronic components, and other industrial products. Through its subsidiaries, EACO serves various sectors, including electronics, aerospace, construction, and manufacturing, offering a wide range of products and services tailored to meet the needs of these industries.

How the Company Makes Money

EACO generates revenue primarily through the sale of fasteners, electronic components, and a variety of industrial products. Its business model is centered around efficient distribution and supply chain management, ensuring timely delivery and availability of products to its diverse client base. Revenue streams include direct sales to manufacturers and construction companies, as well as partnerships with suppliers to offer a comprehensive inventory of components. The company may also engage in strategic partnerships or acquisitions to enhance its product offerings and expand its market reach, contributing to its overall earnings.

EACO Financial Statement Overview

Summary

EACO exhibits a strong financial performance with impressive revenue growth and profitability. The income statement reflects robust demand and operational efficiency, while the balance sheet shows low leverage and strong equity. Cash flows are improving, although further optimization in cash conversion is advisable.

Income Statement

EACO's income statement shows strong revenue growth of 12.84% in TTM, reflecting robust demand in the tech distribution sector. The gross profit margin is solid at 30.11%, and the net profit margin has improved to 7.36%, indicating effective cost management. EBIT and EBITDA margins are healthy at 10.01% and 10.18%, respectively, showcasing operational efficiency. Overall, the company is on a positive growth trajectory with improving profitability metrics.

Balance Sheet

The balance sheet is stable with a favorable equity ratio of 67.65%, suggesting a strong capital structure. The debt-to-equity ratio is low at 0.08, highlighting prudent leverage management. Return on equity is robust at 20.17%, indicating efficient use of shareholders' equity. Overall, EACO maintains a solid financial position with low leverage and healthy equity levels.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 188.52%, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio is 0.58, indicating decent cash conversion efficiency. However, the free cash flow to net income ratio at 0.55 suggests room for improvement in cash retention. Overall, EACO's cash flow position is strengthening, but further enhancements in cash conversion are advisable.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	356.23M	319.40M	292.56M	237.96M	225.25M
Gross Profit	106.21M	92.42M	83.50M	60.78M	61.38M
EBITDA	23.15M	28.88M	31.02M	14.24M	11.66M
Net Income	14.95M	21.18M	21.31M	8.39M	7.79M
Balance Sheet
Total Assets	188.54M	162.24M	139.68M	110.39M	106.45M
Cash, Cash Equivalents and Short-Term Investments	15.59M	35.79M	21.31M	8.20M	7.45M
Total Debt	11.94M	14.64M	15.15M	15.89M	22.85M
Total Liabilities	64.91M	53.52M	51.93M	43.26M	47.63M
Stockholders Equity	123.63M	108.72M	87.75M	67.12M	58.82M
Cash Flow
Free Cash Flow	-18.53M	12.46M	15.16M	7.87M	-3.92M
Operating Cash Flow	14.08M	13.42M	16.87M	8.82M	2.78M
Investing Cash Flow	-20.45M	-23.82M	-2.10M	-7.04M	4.05M
Financing Cash Flow	-1.37M	1.70M	-1.23M	-6.31M	-3.10M

EACO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EACO, the sentiment is Positive. The current price of 59.88 is above the 20-day moving average (MA) of 54.23, above the 50-day MA of 46.07, and above the 200-day MA of 41.77, indicating a bullish trend. The MACD of 4.95 indicates Negative momentum. The RSI at 67.35 is Neutral, neither overbought nor oversold. The STOCH value of 46.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EACO.

EACO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	76 Outperform	$451.74M	23.02	22.21%	0.68%	42.25%	65.02%
EACO	75 Outperform	$291.14M	9.89	22.53%	―	16.31%	105.24%
CNXN	72 Outperform	$1.65B	20.05	10.11%	0.77%	4.21%	6.38%
SCSC	69 Neutral	$927.55M	14.80	7.32%	―	-14.07%	-9.65%
AVT	68 Neutral	$4.47B	15.43	6.42%	2.47%	-10.52%	-42.40%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%