American Ecology Corp (ECOL)

StockSpreadsheet (< 20) Submitted: 6/07/07 9:37 PM : Start Price: $20.04 ECOL Score: 61.69

"Provides radioactive, hazardous and industrial waste management services to commercial and government entities, such as nuclear power plants, medical and academic institutions, steel mills and petro-chemical facilities." Sounds like a steady market to me. Everyone will always need their trash taken out.

Over the last two years, revenues have grown move than 49% each year on average. During that time, EPS has grown at a 36% yearly rate on average. Pretax profit on sales steady at around 20%. EPS/book value rising each of the last 3 years. They have no debt!!!! Current P/E of 24.7 inline with 3 year average P/E of 23.9. PEG ratio is a good 0.77. Payout ratio of 55% should be sustainable with their current growth rate, (and no debt!!!!), so the dividend yield of 2.8% should be sustainable. Morningstar gives them an A rating. I think this company could hit $64 in 5 years, giving me a triple from its current price of $21.70. I would rate this stock a buy.

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