Ecovyst Inc. (ECVT)
Valuation Overview•Is Ecovyst Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
ECVT struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-4.1% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 1538.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $215.0M | +2.7% | -4.1% | +7.8% | +6.4% | |
| EBITDA | $12.5M | — | -10.2% | — | — | |
| Net Income | $4.3M | -968.9% | — | — | — | |
| EPS (Diluted) | $0.04 | -916.7% | — | — | — | |
| Free Cash Flow | $0.00 | -13.6% | -18.2% | -16.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 22.6% | 26.4% | 27.1% | 27.0% |
| Operating Margin | 1538.3% | 12.3% | 11.7% | 11.2% |
| Net Margin | -7.7% | -0.2% | -2.9% | -5.6% |
| FCF Margin | 10.2% | 10.5% | 11.7% | 12.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.07 | $0.11 | +57.1% | ||
| Q1'26 | $0.15 | $0.29 | +90.2% | ||
| Q4'25 | $0.18 | $0.19 | +7.5% | ||
| Q3'25 | $0.11 | $0.12 | +9.1% | ||
| Q2'25 | $-0.03 | $0.01 | +133.3% | ||
| Q1'25 | $0.24 | $0.28 | +16.7% | ||
| Q4'24 | $0.17 | $0.14 | -17.6% | ||
| Q3'24 | $0.14 | $0.12 | -14.3% |
Total return is +60.3% (1Y), outperforming the benchmark by +35.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +29.4% | +20.1% | — |
| 1Y | +60.3% | +35.3% | — |
| 3YCAGR | +6.7% | -12.7% | — |
| 5YCAGR | +0.9% | -11.6% | +20.9% |
| 10YCAGR | +0.3% | -13.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ecovyst Inc. (ECVT) valuation, health, and returns.
Ecovyst Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +219.6% upside to DCF intrinsic value of $40.97)
Ecovyst Inc. has multiple valuation anchors: DCF Intrinsic Value: $40.97 | Peer Relative Fair Value: $16.80 | Wall Street Analyst Target: $9.67 (implying -24.6% upside). A convergence of these signals offers higher conviction.
Ecovyst Inc. displays fair financial health with a composite quality score of 45/100, supported by a Altman Z-Score of 1.5 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 4.2%.
Ecovyst Inc. returns capital via buybacks instead of dividends, carrying a 3.3% buyback yield and reducing outstanding shares by -0.7% in the last 12 months.
Ecovyst Inc.'s current growth trajectory is Accelerating. The company achieved +2.7% 1Y revenue growth and -916.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.1%.
Wall Street consensus is Buy based on 6 analysts, beating EPS expectations in 58% of recent quarters with a 6-quarter streak. The consensus price target represents a -24.6% change from current levels.
Investment risks for Ecovyst Inc. include: -16.3% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.81x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.