Eaco Corp Valuation

Eaco Corp Investor Information

About 96.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.66. Some equities with similar Price to Book (P/B) outperform the market in the long run. Eaco Corp had not issued any dividends in recent years. The entity had 1:25 split on the 25th of March 2010. Based on the analysis of Eaco Corp's profitability, liquidity, and operating efficiency, Eaco Corp is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in January.

Eaco Corp Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Eaco Corp has an asset utilization ratio of 215.57 percent. This suggests that the Company is making $2.16 for each dollar of assets. An increasing asset utilization means that Eaco Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Eaco Corp Ownership Allocation

The market capitalization of Eaco Corp is $139.77 Million. Eaco Corp shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 95.91 percent of Eaco Corp outstanding shares that are owned by insiders denotes they have been buying or selling the stock in recent months in anticipation of some upcoming event. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the firm is less than the current market value, you may not be able generate positive returns on investment in the long run.

Eaco Corp Profitability Analysis

The company reported the previous year's revenue of 237.96 M. Net Income was 8.39 M with profit before overhead, payroll, taxes, and interest of 83.5 M.

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.

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If you are still planning to invest in Eaco Corp check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Eaco Corp's history and understand the potential risks before investing.