EACO Corporation (EACO)
Technology · OID
Fundamentals
Valuation and ratings
EACO Corporation trades at USD101.00, which is 120% below the USD222.20 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 54 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 11.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About EACO Corporation
EACO Corporation, through its subsidiary, Bisco Industries, Inc., distributes and sells electronic components and fasteners in the United States, Asia, Canada, and internationally. The company offers electronic components, such as spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as various fasteners and hardware products. It also offers customized services and solutions for various production needs, including special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, integrated supply programs, and others. In addition, the company's supplies parts used in the manufacture of products to a range of industries, such as aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine sectors. EACO Corporation sells its products primarily to the original equipment manufacturers through its sales representatives and distribution centers. The company was founded in 1973 and is headquartered in Anaheim, California.
EACO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is EACO Corporation (EACO) undervalued?
Against our discounted cash flow estimate of USD222.20, EACO at USD101.00 is 120% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is EACO's P/E ratio?
EACO trades at 11.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for EACO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.