ECN CAPITAL CORP(TSX:ECN-DB-A) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to ECN-DB-A. ECN-DB-A was compared to 32 industry peers in the Financial Services industry. ECN-DB-A scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECN-DB-A is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year ECN-DB-A has reported negative net income.

ECN-DB-A had a positive operating cash flow in the past year.

In multiple years ECN-DB-A reported negative net income over the last 5 years.

In multiple years ECN-DB-A reported negative operating cash flow during the last 5 years.

1.2 Ratios

ECN-DB-A has a Return On Assets of -0.01%. This is amonst the worse of the industry: ECN-DB-A underperforms 81.25% of its industry peers.

ECN-DB-A's Return On Equity of -0.04% is on the low side compared to the rest of the industry. ECN-DB-A is outperformed by 81.25% of its industry peers.

ECN-DB-A has a Return On Invested Capital (4.44%) which is comparable to the rest of the industry.

ECN-DB-A had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.84%.

The last Return On Invested Capital (4.44%) for ECN-DB-A is above the 3 year average (2.48%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-0.01%
ROE	-0.04%
ROIC	4.44%

ROA(3y)-2.68%

ROA(5y)14.79%

ROE(3y)-16.1%

ROE(5y)77.16%

ROIC(3y)2.48%

ROIC(5y)1.63%

1.3 Margins

The Operating Margin of ECN-DB-A (36.14%) is worse than 62.50% of its industry peers.

In the last couple of years the Operating Margin of ECN-DB-A has grown nicely.

The Profit Margin and Gross Margin are not available for ECN-DB-A so they could not be analyzed.

		Industry Rank	Sector Rank
OM	36.14%
PM (TTM)	N/A
GM	N/A

OM growth 3Y87.71%

OM growth 5Y15.55%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECN-DB-A is destroying value.

ECN-DB-A has more shares outstanding than it did 1 year ago.

Compared to 5 years ago, ECN-DB-A has more shares outstanding

ECN-DB-A has a better debt/assets ratio than last year.

2.2 Solvency

ECN-DB-A has an Altman-Z score of 15.12. This indicates that ECN-DB-A is financially healthy and has little risk of bankruptcy at the moment.

ECN-DB-A's Altman-Z score of 15.12 is amongst the best of the industry. ECN-DB-A outperforms 84.38% of its industry peers.

The Debt to FCF ratio of ECN-DB-A is 3.29, which is a good value as it means it would take ECN-DB-A, 3.29 years of fcf income to pay off all of its debts.

ECN-DB-A has a better Debt to FCF ratio (3.29) than 68.75% of its industry peers.

A Debt/Equity ratio of 2.85 is on the high side and indicates that ECN-DB-A has dependencies on debt financing.

The Debt to Equity ratio of ECN-DB-A (2.85) is worse than 71.88% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.85
Debt/FCF	3.29
Altman-Z	15.12

ROIC/WACC0.31

WACC14.46%

2.3 Liquidity

ECN-DB-A has a Current Ratio of 1.82. This is a normal value and indicates that ECN-DB-A is financially healthy and should not expect problems in meeting its short term obligations.

Looking at the Current ratio, with a value of 1.82, ECN-DB-A belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.

ECN-DB-A has a Quick Ratio of 1.82. This is a normal value and indicates that ECN-DB-A is financially healthy and should not expect problems in meeting its short term obligations.

With an excellent Quick ratio value of 1.82, ECN-DB-A belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.82
Quick Ratio	1.82

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ECN-DB-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 99.00%, which is quite impressive.

The Revenue has grown by 45.97% in the past year. This is a very strong growth!

Measured over the past years, ECN-DB-A shows a decrease in Revenue. The Revenue has been decreasing by -1.56% on average per year.

EPS 1Y (TTM)99%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%92.99%

Revenue 1Y (TTM)45.97%

Revenue growth 3Y21.98%

Revenue growth 5Y-1.56%

Sales Q2Q%115.65%

3.2 Future

Based on estimates for the next years, ECN-DB-A will show a very strong growth in Earnings Per Share. The EPS will grow by 47.20% on average per year.

Based on estimates for the next years, ECN-DB-A will show a quite strong growth in Revenue. The Revenue will grow by 16.20% on average per year.

EPS Next Y58.33%

EPS Next 2Y47.2%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year16.87%

Revenue Next 2Y16.2%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

ECN-DB-A reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Based on the Price/Forward Earnings ratio of 348.96, the valuation of ECN-DB-A can be described as expensive.

ECN-DB-A's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ECN-DB-A is more expensive than 75.00% of the companies in the same industry.

When comparing the Price/Forward Earnings ratio of ECN-DB-A to the average of the S&P500 Index (22.10), we can say ECN-DB-A is valued expensively.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	348.96

4.2 Price Multiples

ECN-DB-A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECN-DB-A is cheaper than 65.63% of the companies in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN-DB-A is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	104.75
EV/EBITDA	194.06

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

A more expensive valuation may be justified as ECN-DB-A's earnings are expected to grow with 47.20% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y47.2%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.33%, ECN-DB-A has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 8.05, ECN-DB-A is paying slightly less dividend.

With a Dividend Yield of 1.33, ECN-DB-A pays less dividend than the S&P500 average, which is at 2.33.

		Industry Rank	Sector Rank
Dividend Yield	1.33%

5.2 History

The dividend of ECN-DB-A decreases each year by -5.51%.

ECN-DB-A does not have a reliable dividend history as it only pays dividend since a couple or years.

Dividend Growth(5Y)-5.51%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

The earnings of ECN-DB-A are negative and hence is the payout ratio. ECN-DB-A will probably not be able to sustain this dividend level.

DP-18019.32%

EPS Next 2Y47.2%

EPS Next 3YN/A

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ECN CAPITAL CORP

TSX:ECN-DB-A (3/6/2025, 7:00:00 PM)

96.01

-0.27 (-0.28%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryFinancial Services

Earnings (Last)02-27 2025-02-27/amc

Earnings (Next)05-07 2025-05-07

Inst Owners46.07%

Inst Owner ChangeN/A

Ins Owners6.36%

Ins Owner ChangeN/A

Market Cap26.99B

Analysts75.56

Price Target127.62 (32.92%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.33%

Yearly Dividend0.08

Dividend Growth(5Y)-5.51%

DP-18019.32%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)1.45%

Min Revenue beat(2)-7.75%

Max Revenue beat(2)10.65%

Revenue beat(4)3

Avg Revenue beat(4)7.16%

Min Revenue beat(4)-7.75%

Max Revenue beat(4)15.69%

Revenue beat(8)3

Avg Revenue beat(8)-11.67%

Revenue beat(12)3

Avg Revenue beat(12)-15.09%

Revenue beat(16)3

Avg Revenue beat(16)-22.36%

PT rev (1m)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	348.96
P/S	82.13
P/FCF	104.75
P/OCF	104.09
P/B	90.74
P/tB	N/A
EV/EBITDA	194.06

EPS(TTM)-0.01

EYN/A

EPS(NY)0.28

Fwd EY0.29%

FCF(TTM)0.92

FCFY0.95%

OCF(TTM)0.92

OCFY0.96%

SpS1.17

BVpS1.06

TBVpS-0.22

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-0.01%
ROE	-0.04%
ROCE	9.34%
ROIC	4.44%
ROICexc	4.51%
ROICexgc	6.94%
OM	36.14%
PM (TTM)	N/A
GM	N/A
FCFM	78.4%

ROA(3y)-2.68%

ROA(5y)14.79%

ROE(3y)-16.1%

ROE(5y)77.16%

ROIC(3y)2.48%

ROIC(5y)1.63%

ROICexc(3y)2.52%

ROICexc(5y)1.66%

ROICexgc(3y)3.6%

ROICexgc(5y)2.66%

ROCE(3y)5.23%

ROCE(5y)3.43%

ROICexcg growth 3Y47.97%

ROICexcg growth 5Y17.4%

ROICexc growth 3Y100.79%

ROICexc growth 5Y25.74%

OM growth 3Y87.71%

OM growth 5Y15.55%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.24

Health

		Industry Rank	Sector Rank
Debt/Equity	2.85
Debt/FCF	3.29
Debt/EBITDA	5.91
Cap/Depr	6.62%
Cap/Sales	0.5%
Interest Coverage	1.43
Cash Conversion	180.9%
Profit Quality	N/A
Current Ratio	1.82
Quick Ratio	1.82
Altman-Z	15.12

F-Score6

WACC14.46%

ROIC/WACC0.31

Cap/Depr(3y)114.58%

Cap/Depr(5y)86.26%

Cap/Sales(3y)8.73%

Cap/Sales(5y)6.74%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)99%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%92.99%

EPS Next Y58.33%

EPS Next 2Y47.2%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)45.97%

Revenue growth 3Y21.98%

Revenue growth 5Y-1.56%

Sales Q2Q%115.65%

Revenue Next Year16.87%

Revenue Next 2Y16.2%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y1305.68%

EBIT growth 3Y128.98%

EBIT growth 5Y13.75%

EBIT Next Year109.15%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y495.53%

FCF growth 3Y11.95%

FCF growth 5Y-6.78%

OCF growth 1Y794.74%

OCF growth 3Y10.19%

OCF growth 5Y-7.11%

ECN CAPITAL CORP (ECN-DB-A.CA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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