Morningstar Rating

Stock Research and Analysis

by Matthew Young, CFA

Bulls Say

Echo's network of shippers and carriers crafts a compelling value proposition--the firm aggregates buying power to reduce shippers' transportation costs while providing carriers with an attractive source of cargo opportunities.
Echo's non-asset-based model supports returns on capital above those generated by most asset-intensive carriers.
Echo is taking market share from asset-based truckers, partly because it can aggregate supply in the fragmented truckload market. By outsourcing to Echo, shippers avoid the administrative burden of managing carrier relationships on their own. Read more 

Bears Say

As a relatively new company, Echo has a limited operating history. While it has posted solid top-line expansion and decent profitability improvement since inception, its ability to create shareholder wealth over the long run is unproved.
High returns on invested capital are attracting competition to the 3PL industry, including startups and truck brokerage operations of traditional asset-based truckers.
Rising capacity rates, coupled with soft brokerage industry pricing, will probably temper gross profit margins in the near term. Read more 

Management

Chief executive Douglas Waggoner has been at the helm since late 2006. Before that, founders Eric Lefkofsky and Bradley Keywell shared responsibility for overseeing Echo's day-to-day operations during the company's startup phase. We think members of   Read more 

Profile

Founded in 2005, Echo Global Logistics is a non-asset-based third-party logistics provider specializing in domestic truck brokerage (more than 85% of gross revenue). It   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

This Week's Learnings From Earnings 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.