Echo Global Logistics, Inc. (ECHO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Echo Global Logistics, Inc. (ECHO) Industrial Operations Profile

Echo Global Logistics provides technology-driven transportation and supply chain solutions in the U.S., utilizing a proprietary platform to connect shippers with a multi-modal network of carriers. Serving industries like manufacturing and retail, Echo offers services from truckload to international shipping, focusing on efficiency and data-driven optimization.

What Is the Investment Thesis for ECHO?

The company's proprietary platform offers efficiency and transparency in a fragmented market. While the company's P/E ratio is high at 80.44, reflecting investor expectations of future growth, its relatively low profit margin of 0.6% suggests room for operational improvement. Growth catalysts include further penetration of its technology platform among shippers and expansion into new geographic markets. The company's beta of 0.81 indicates lower volatility compared to the broader market. Success hinges on Echo's ability to maintain its technological edge and capitalize on the increasing demand for efficient supply chain solutions.

Based on FMP financials and quantitative analysis

ECHO Key Highlights

Proprietary technology platform optimizes transportation and supply chain management.

• Offers a wide range of transportation modes, including truckload, LTL, and international shipping.
• Serves diverse industries, including manufacturing, construction, and retail.
• Relatively low beta of 0.81 suggests lower volatility compared to the broader market.
• Gross margin of 14.1% indicates potential for improvement in operational efficiency.

Who Are ECHO's Competitors?

ECHO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ECHO's Key Strengths?

Proprietary technology platform

• Diverse service offerings
• Strong customer relationships
• Experienced management team

What Are ECHO's Weaknesses?

Relatively low profit margin

• Dependence on economic conditions
• Intense competition
• Potential for disruptions in the transportation industry

What Could Drive ECHO Stock Higher?

Continued adoption of Echo's technology platform by shippers.

• Expansion into new geographic markets.
• Potential strategic partnerships or acquisitions.
• Increasing demand for efficient supply chain solutions.

What Are the Key Risks for ECHO?

Financial-distress signal — its Altman Z-Score of 0.85 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Rich valuation — a P/E of 169.25 runs well above the Industrials sector’s ~28.00x, leaving little room for a miss.
• Economic downturn impacting freight volumes.
• Intense competition in the logistics industry.
• Rising fuel costs increasing transportation expenses.
• Changes in regulations affecting the transportation industry.
• Dependence on maintaining technological advantage.

What Are the Growth Opportunities for ECHO?

• Expansion of Technology Platform Adoption: Echo has the opportunity to increase adoption of its technology platform among shippers, particularly small and medium-sized businesses (SMBs) that may lack the resources to develop their own in-house solutions. By offering a user-friendly and cost-effective platform, Echo can capture a larger share of the SMB market, driving revenue growth and increasing its market presence. The addressable market for SMB logistics solutions is estimated to be substantial, with significant potential for expansion.
• Geographic Expansion: Echo can pursue geographic expansion by targeting new regions within the United States and internationally. By establishing a presence in new markets, Echo can diversify its revenue streams and reduce its reliance on existing regions. This expansion could involve opening new offices, forming strategic partnerships, or acquiring local logistics providers. The global logistics market is vast and growing, offering ample opportunities for Echo to expand its geographic footprint.
• Enhancement of Service Offerings: Echo can enhance its service offerings by adding new capabilities and features to its technology platform. This could include incorporating advanced analytics, artificial intelligence (AI), and machine learning (ML) to further optimize transportation routes, predict demand, and improve supply chain visibility. By offering a more comprehensive and sophisticated suite of services, Echo can attract new customers and retain existing ones.
• Strategic Partnerships and Acquisitions: Echo can pursue strategic partnerships and acquisitions to expand its capabilities and market reach. This could involve partnering with complementary technology providers, acquiring smaller logistics companies, or forming alliances with industry associations. These partnerships and acquisitions can provide Echo with access to new technologies, markets, and customers, accelerating its growth and strengthening its competitive position.
• Focus on Sustainability: With increasing emphasis on environmental responsibility, Echo can capitalize on the growing demand for sustainable logistics solutions. This could involve offering carbon-neutral shipping options, optimizing transportation routes to reduce fuel consumption, and investing in alternative fuels and technologies. By positioning itself as a leader in sustainable logistics, Echo can attract environmentally conscious customers and enhance its brand reputation.

What Are ECHO's Competitive Advantages?

• Proprietary technology platform provides a competitive advantage in terms of efficiency and data analytics.
• Extensive network of transportation providers ensures capacity and competitive pricing.
• Strong relationships with shippers across diverse industries.
• Expertise in transportation management and logistics solutions.

What Does ECHO Do?

Founded in 2005 and headquartered in Chicago, Illinois, Echo Global Logistics, Inc. has established itself as a technology-enabled third-party logistics (3PL) provider. The company's core offering revolves around its proprietary technology platform, which aggregates and analyzes data from a vast network of transportation providers. This platform enables Echo to efficiently match shippers with appropriate carriers across various transportation modes, including truckload, less-than-truckload (LTL), small parcel, domestic air, expedited, and international. Echo's services extend beyond simple freight brokerage, encompassing comprehensive transportation management and logistics solutions. These include rate negotiation, shipment execution and tracking, carrier management, freight bill payment and audit, claims processing, and the design and management of inbound freight programs. Echo serves a diverse range of industries, including manufacturing, construction, food and beverage, consumer products, and retail, providing customized solutions tailored to their specific supply chain needs. The company's focus on technology and data analytics differentiates it in the competitive logistics landscape, enabling it to optimize transportation costs and improve supply chain efficiency for its clients.

What Products and Services Does ECHO Offer?

• Provides technology-enabled transportation and supply chain management solutions.
• Utilizes a proprietary technology platform to analyze transportation data.
• Offers services in truckload, less-than-truckload, small parcel, and international shipping.
• Provides rate negotiation and procurement of transportation services.
• Offers shipment execution, tracking, and carrier management.
• Provides freight bill payment and audit services.
• Designs and manages inbound client freight programs.

How Does ECHO Make Money?

• Generates revenue by providing transportation and logistics services to shippers.
• Charges fees for freight brokerage, transportation management, and other value-added services.
• Leverages its technology platform to optimize transportation costs and improve efficiency.
• Maintains a network of transportation providers to ensure capacity and competitive pricing.

What Industry Does ECHO Operate In?

The integrated freight and logistics industry is characterized by increasing demand for efficient and technology-driven solutions. Market trends include the rise of e-commerce, globalization of supply chains, and the need for real-time visibility and control over freight movements. The competitive landscape is fragmented, with a mix of large multinational players and smaller regional providers. Echo Global Logistics differentiates itself through its technology platform, which provides shippers with access to a broad network of carriers and data-driven insights to optimize their supply chains. The industry is expected to continue to grow, driven by increasing trade volumes and the ongoing need for efficient logistics solutions.

Who Are ECHO's Key Customers?

• Manufacturing companies
• Construction companies
• Food and beverage companies
• Consumer products companies
• Retail companies

Over the past six months, Echo Global Logistics, Inc. insiders filed 15 SEC Form 4 transactions — 9 sales and 6 purchases. On net that is roughly 13.3M shares acquired (about $1.2M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Echo Global Logistics, Inc.

Revenue for Echo Global Logistics, Inc. came in at $3.58B during Q2 FY2026, a 2.5% contraction versus the preceding quarter. The company recorded net income of $8.46B, with diluted EPS of $24.07. Revenue has contracted over three consecutive quarters, which investors in this large-cap Industrials stock should monitor closely. Across the four most recent quarters, ECHO averaged $-6.25 in diluted EPS.

ECHO Valuation & Market Position

With a $14.6B market cap, Echo Global Logistics, Inc. sits in the large-cap segment of the market. Analyst price targets span from $115.00 to $150.00, with a consensus of $134.00. At the current price of $91.85, that implies approximately 46% upside potential. Relative to its peer group, ECHO's quantitative score of 29/100 is below the peer average of 63/100.

Return on equity for Echo Global Logistics, Inc. stands at 4.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.6%, showing how much profit it generates from its asset base. ECHO trades at a trailing price-to-earnings ratio of 169.25, above the Industrials sector average of ~28.00x. Its free cash flow yield is 0.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.31 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.6%, the inverse of the P/E and a quick read on earnings relative to price.

Echo Global Logistics, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.85 places it in the distress zone, a signal of elevated financial risk.

Echo Global Logistics, Inc. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 2725.3% above estimates on average.

Company Profile

Echo Global Logistics, Inc. operates in the Telecommunications Services industry within the Communication Services sector. It is headquartered in Englewood, US. The company is led by CEO Charlie Ergen. ECHO has traded publicly since 2008.

ECHO Financials

ECHO Latest News

ECHO Analyst Consensus

ECHO MoonshotScore

What Investors Ask About Echo Global Logistics, Inc. (ECHO) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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