ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN-PR-C - CA26829L6026
26.09 CAD
+0.01 (+0.04%)
Taking everything into account, ECN-PR-C scores 4 out of 10 in our fundamental rating. ECN-PR-C was compared to 28 industry peers in the Financial Services industry. ECN-PR-C scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECN-PR-C is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ECN-PR-C was profitable.
- In the past year ECN-PR-C had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ECN-PR-C reported negative net income in multiple years.
- The reported operating cash flow has been mixed in the past 5 years: ECN-PR-C reported negative operating cash flow in multiple years.
1.2 Ratios
- The Return On Assets of ECN-PR-C (0.46%) is worse than 64.29% of its industry peers.
- With a Return On Equity value of 2.13%, ECN-PR-C is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
- ECN-PR-C has a Return On Invested Capital of 4.52%. This is comparable to the rest of the industry: ECN-PR-C outperforms 50.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ECN-PR-C is significantly below the industry average of 7.80%.
- The 3 year average ROIC (2.48%) for ECN-PR-C is below the current ROIC(4.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.13% | ||
| ROIC | 4.52% |
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
- ECN-PR-C's Profit Margin of 1.81% is on the low side compared to the rest of the industry. ECN-PR-C is outperformed by 71.43% of its industry peers.
- ECN-PR-C's Operating Margin of 34.57% is on the low side compared to the rest of the industry. ECN-PR-C is outperformed by 60.71% of its industry peers.
- ECN-PR-C's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.57% | ||
| PM (TTM) | 1.81% | ||
| 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
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECN-PR-C is destroying value.
- ECN-PR-C has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ECN-PR-C has more shares outstanding
- Compared to 1 year ago, ECN-PR-C has an improved debt to assets ratio.
2.2 Solvency
- ECN-PR-C has an Altman-Z score of 3.85. This indicates that ECN-PR-C is financially healthy and has little risk of bankruptcy at the moment.
- ECN-PR-C has a Altman-Z score (3.85) which is in line with its industry peers.
- The Debt to FCF ratio of ECN-PR-C is 8.94, which is on the high side as it means it would take ECN-PR-C, 8.94 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.94, ECN-PR-C is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- ECN-PR-C has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ECN-PR-C (2.80) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.59
WACC7.62%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that ECN-PR-C should not have too much problems paying its short term obligations.
- The Current ratio of ECN-PR-C (1.12) is comparable to the rest of the industry.
- A Quick Ratio of 1.12 indicates that ECN-PR-C should not have too much problems paying its short term obligations.
- ECN-PR-C has a Quick ratio of 1.12. This is in the better half of the industry: ECN-PR-C outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 650.00% over the past year.
- Measured over the past years, ECN-PR-C shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.31% on average per year.
- The Revenue has grown by 23.61% in the past year. This is a very strong growth!
- The Revenue has been decreasing by -1.56% on average over the past years.
EPS 1Y (TTM)650%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%50%
Revenue 1Y (TTM)23.61%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%12.47%
3.2 Future
- Based on estimates for the next years, ECN-PR-C will show a very strong growth in Earnings Per Share. The EPS will grow by 48.19% on average per year.
- ECN-PR-C is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.01% yearly.
EPS Next Y102%
EPS Next 2Y65.25%
EPS Next 3Y48.19%
EPS Next 5YN/A
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 124.24, the valuation of ECN-PR-C can be described as expensive.
- ECN-PR-C's Price/Earnings ratio is a bit more expensive when compared to the industry. ECN-PR-C is more expensive than 60.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ECN-PR-C is valued quite expensively.
- With a Price/Forward Earnings ratio of 77.62, ECN-PR-C can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ECN-PR-C is valued a bit cheaper than 60.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ECN-PR-C to the average of the S&P500 Index (25.83), we can say ECN-PR-C is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.24 | ||
| Fwd PE | 77.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECN-PR-C indicates a somewhat cheap valuation: ECN-PR-C is cheaper than 71.43% of the companies listed in the same industry.
- ECN-PR-C's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.6 | ||
| EV/EBITDA | 56.42 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ECN-PR-C's earnings are expected to grow with 48.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y65.25%
EPS Next 3Y48.19%
5. Dividend
5.1 Amount
- ECN-PR-C has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
- ECN-PR-C's Dividend Yield is slightly below the industry average, which is at 5.64.
- Compared to the average S&P500 Dividend Yield of 1.82, ECN-PR-C is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- The dividend of ECN-PR-C decreases each year by -5.51%.
- ECN-PR-C has been paying a dividend for over 5 years, so it has already some track record.
- ECN-PR-C has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.51%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- ECN-PR-C pays out 348.97% of its income as dividend. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y65.25%
EPS Next 3Y48.19%
ECN CAPITAL CORP - ECNCN 7.937 PERP / ECN-PR-C.CA FAQ
What is the fundamental rating for ECN-PR-C stock?
ChartMill assigns a fundamental rating of 4 / 10 to ECN-PR-C.CA.
What is the valuation status of ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA). This can be considered as Overvalued.
Can you provide the profitability details for ECN CAPITAL CORP - ECNCN 7.937 PERP?
ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) has a profitability rating of 2 / 10.
Can you provide the financial health for ECN-PR-C stock?
The financial health rating of ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) is 4 / 10.
How sustainable is the dividend of ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) stock?
The dividend rating of ECN CAPITAL CORP - ECNCN 7.937 PERP (ECN-PR-C.CA) is 2 / 10 and the dividend payout ratio is 348.97%.