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EACO (EACO) AI Stock Analysis
EACO
(Other OTC:EACO)
EACO scores well on the strength of its financials: rapid revenue growth to ~$535 million, margin expansion across every line, net income of $48.2 million, and a virtually debt-free balance sheet generating a 23.6% return on equity. The principal risk is weak cash conversion — operating cash flow declined to $14.8 million despite surging profits — alongside a history of uneven margins that raises some normalization risk. Technically, the shares are in a clear uptrend above all key moving averages, though the rally is extended after a large run. Valuation at 15.2x earnings is reasonable for the growth delivered, albeit with no dividend income. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed to the remaining components.
EACO (EACO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $729.24M
- Dividend Yield
- ―
- Average Volume (3M)
- 438
- Price to Earnings (P/E)
- 15.2
- Beta (1Y)
- 0.04
- Revenue Growth
- 25.03%
- EPS Growth
- 49.35%
- Country
- US
- Employees
- 684
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Technology Distributors
EACO Business Overview & Revenue Model
Company Description
EACO Corporation, operating chiefly through its wholly owned subsidiary, Bisco Industries, Inc., specializes in the distribution and sale of electronic components and fasteners throughout the United States and Canada. Its extensive product catalog fe...
EACO Financial Statement Overview
Summary
A high-growth, low-risk profile with one caveat. The income statement (89) is exceptional: revenue more than doubled over five years to ~$535 million, including ~25% growth in the latest year, with gross margin widening to 31.4%, operating margin to 12.1% and net income reaching $48.2 million. The balance sheet (91) is near debt-free, with total debt of just $13.9 million against $203.9 million of equity (D/E 0.07), equity funding ~72% of assets, and a strong 23.6% return on equity. Cash flow (57) is the weak link: operating cash flow fell to $14.8 million even as profits surged, converting only ~$0.31 of cash per $1.00 of earnings as inventory and receivables absorb cash to fund growth. Free cash flow remains positive at $11.5 million and the minimal debt load leaves ample cushion, but cash conversion and the sustainability of today's elevated margins are the items to monitor.
Income Statement
89Very PositiveBalance Sheet
91Very PositiveCash Flow
57Neutral| Breakdown | TTM | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.03M | 535.03M | 427.93M | 356.23M | 319.40M | 292.56M |
| Gross Profit | 168.04M | 168.04M | 128.71M | 106.21M | 92.42M | 83.50M |
| EBITDA | 65.91M | 66.37M | 44.79M | 23.15M | 28.88M | 30.81M |
| Net Income | 48.14M | 48.19M | 32.22M | 14.95M | 21.18M | 21.31M |
Balance Sheet | ||||||
| Total Assets | 283.98M | 283.98M | 236.79M | 188.54M | 162.24M | 139.68M |
| Cash, Cash Equivalents and Short-Term Investments | 45.60M | 45.60M | 37.74M | 15.59M | 35.79M | 21.31M |
| Total Debt | 13.94M | 13.94M | 11.36M | 11.94M | 14.64M | 15.15M |
| Total Liabilities | 80.06M | 80.06M | 80.94M | 64.91M | 53.52M | 51.93M |
| Stockholders Equity | 203.92M | 203.92M | 155.85M | 123.63M | 108.72M | 87.75M |
Cash Flow | ||||||
| Free Cash Flow | 11.45M | 11.45M | 15.88M | -18.53M | 12.46M | 15.30M |
| Operating Cash Flow | 14.78M | 14.78M | 17.17M | 14.08M | 13.42M | 17.00M |
| Investing Cash Flow | -17.66M | -17.66M | -16.44M | -20.45M | -23.82M | -2.24M |
| Financing Cash Flow | 2.85M | 2.85M | 5.80M | -1.37M | 1.70M | -1.23M |
EACO Technical Analysis
Price Trends
Market Momentum
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 137.53 is above the 20-day moving average (MA) of 127.38, above the 50-day MA of 126.86, and above the 200-day MA of 102.44, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EACO.
EACO Risk Analysis
EACO disclosed 21 risk factors in its most recent earnings report. EACO reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksEACO Peers Comparison
Overall Rating
- EACO80Outperform
CLMB78Outperform
SCSC71Outperform
CNXN69Neutral
IZM63Neutral
TAIT56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| EACO | 80Outperform | $668.59M | 15.15 | 26.28% | ― | 25.03% | 49.35% |
| CLMB | 78Outperform | $758.26M | 31.26 | 19.25% | 0.42% | 24.23% | 10.53% |
| SCSC | 71Outperform | $1.18B | 15.64 | 8.66% | ― | 6.09% | 21.23% |
| CNXN | 69Neutral | $2.19B | 21.39 | 10.89% | 0.86% | 9.53% | 24.84% |
| IZM | 63Neutral | $1.64M | 1.36 | 7.76% | ― | ― | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| TAIT | 56Neutral | $11.56M | -29.86 | -2.53% | 7.55% | -27.27% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EACO | EACO Corporation | 137.53 | 62.37 | 82.98% | |
| CNXN | Pc Connection | 86.83 | 27.81 | 47.13% | |
| SCSC | ScanSource Inc | 57.71 | 15.43 | 36.49% | |
| TAIT | Taitron Components | 1.92 | -0.19 | -9.09% | |
| CLMB | Climb Global Solutions, Inc. | 40.64 | 11.44 | 39.19% | |
| IZM | ICZOOM Group, Inc. Class A | 0.68 | -7.47 | -91.63% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026