ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - TSX:ECN - CA26829L1076 - Common Stock
3.06 CAD
+0.04 (+1.32%)
Taking everything into account, ECN scores 4 out of 10 in our fundamental rating. ECN was compared to 27 industry peers in the Financial Services industry. While ECN seems to be doing ok healthwise, there are quite some concerns on its profitability. ECN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
ECN had positive earnings in the past year.
In the past year ECN had a positive cash flow from operations.
In multiple years ECN reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ECN reported negative operating cash flow in multiple years.
1.2 Ratios
ECN has a Return On Assets of 0.01%. This is in the lower half of the industry: ECN underperforms 70.37% of its industry peers.
The Return On Equity of ECN (0.03%) is worse than 70.37% of its industry peers.
With a Return On Invested Capital value of 4.31%, ECN perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
ECN had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.61%.
The last Return On Invested Capital (4.31%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.03% | ||
| ROIC | 4.31% |
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 Profit Margin of ECN (0.03%) is worse than 70.37% of its industry peers.
ECN's Operating Margin of 33.30% is on the low side compared to the rest of the industry. ECN is outperformed by 62.96% of its industry peers.
In the last couple of years the Operating Margin of ECN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.3% | ||
| PM (TTM) | 0.03% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECN is destroying value.
Compared to 1 year ago, ECN has more shares outstanding
ECN has more shares outstanding than it did 5 years ago.
ECN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that ECN is in the distress zone and has some risk of bankruptcy.
ECN's Altman-Z score of 0.08 is on the low side compared to the rest of the industry. ECN is outperformed by 85.19% of its industry peers.
ECN has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as ECN would need 3.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.27, ECN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 2.85 is on the high side and indicates that ECN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.85, ECN is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.73
WACC5.9%
2.3 Liquidity
ECN has a Current Ratio of 1.05. This is a normal value and indicates that ECN is financially healthy and should not expect problems in meeting its short term obligations.
ECN has a Current ratio of 1.05. This is in the better half of the industry: ECN outperforms 70.37% of its industry peers.
ECN has a Quick Ratio of 1.05. This is a normal value and indicates that ECN is financially healthy and should not expect problems in meeting its short term obligations.
ECN has a better Quick ratio (1.05) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 750.00% over the past year.
ECN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.31% yearly.
The Revenue has grown by 33.31% 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)750%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%33.33%
Revenue 1Y (TTM)33.31%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%3.83%
3.2 Future
The Earnings Per Share is expected to grow by 42.90% on average over the next years. This is a very strong growth
Based on estimates for the next years, ECN will show a quite strong growth in Revenue. The Revenue will grow by 12.07% on average per year.
EPS Next Y102%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue Next Year11.58%
Revenue Next 2Y13.42%
Revenue Next 3Y12.07%
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 17.00, the valuation of ECN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 70.37% of the companies listed in the same industry.
ECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 9.01.
Based on the Price/Forward Earnings ratio, ECN is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.42. ECN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaper than 100.00% of the companies in the same industry.
ECN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ECN is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.53 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ECN's earnings are expected to grow with 42.90% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y64.11%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.79, ECN's dividend is way lower than its industry peers. On top of this 85.19% of the companies listed in the same industry pay a better dividend than ECN!
Compared to an average S&P500 Dividend Yield of 2.44, ECN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of ECN decreases each year by -5.51%.
ECN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ECN decreased in the last 3 years.
Dividend Growth(5Y)-5.51%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ECN pays out 22763.77% of its income as dividend. This is not a sustainable payout ratio.
DP22763.77%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
TSX:ECN (11/19/2025, 7:00:00 PM)
3.06
+0.04 (+1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.31%
Inst Owner ChangeN/A
Ins Owners6.76%
Ins Owner ChangeN/A
Market Cap861.33M
Revenue(TTM)238.49M
Net Income(TTM)69.00K
Analysts73.33
Price Target3.67 (19.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP22763.77%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.07%
Min EPS beat(2)-15.14%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-22.53%
Min EPS beat(4)-64%
Max EPS beat(4)-0.99%
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)1.47%
Min Revenue beat(2)-7.2%
Max Revenue beat(2)10.15%
Revenue beat(4)2
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)10.65%
Revenue beat(8)4
Avg Revenue beat(8)1.69%
Revenue beat(12)4
Avg Revenue beat(12)-4.29%
Revenue beat(16)4
Avg Revenue beat(16)-13.52%
PT rev (1m)-2.37%
PT rev (3m)-5.57%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)10.29%
EPS NY rev (1m)1.41%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 9.01 | ||
| P/S | 2.58 | ||
| P/FCF | 3.53 | ||
| P/OCF | 3.51 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)0.18
EY5.88%
EPS(NY)0.34
Fwd EY11.1%
FCF(TTM)0.87
FCFY28.36%
OCF(TTM)0.87
OCFY28.47%
SpS1.19
BVpS1
TBVpS-0.28
PEG (NY)0.17
PEG (5Y)N/A
Graham Number2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.03% | ||
| ROCE | 9.08% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 6.89% | ||
| OM | 33.3% | ||
| PM (TTM) | 0.03% | ||
| GM | N/A | ||
| FCFM | 73.1% |
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%
ROICexgc growth 3Y47.97%
ROICexgc 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-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 5.79 | ||
| Cap/Depr | 3.52% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 177.56% | ||
| Profit Quality | 252664% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.08 |
F-Score7
WACC5.9%
ROIC/WACC0.73
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)750%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%33.33%
EPS Next Y102%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue 1Y (TTM)33.31%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%3.83%
Revenue Next Year11.58%
Revenue Next 2Y13.42%
Revenue Next 3Y12.07%
Revenue Next 5YN/A
EBIT growth 1Y178.05%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year99.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.35%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y156.44%
OCF growth 3Y10.19%
OCF growth 5Y-7.11%
ECN CAPITAL CORP / ECN.CA FAQ
What is the ChartMill fundamental rating of ECN CAPITAL CORP (ECN.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ECN.CA.
What is the valuation status of ECN CAPITAL CORP (ECN.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ECN CAPITAL CORP (ECN.CA). This can be considered as Undervalued.
What is the profitability of ECN stock?
ECN CAPITAL CORP (ECN.CA) has a profitability rating of 2 / 10.
How financially healthy is ECN CAPITAL CORP?
The financial health rating of ECN CAPITAL CORP (ECN.CA) is 4 / 10.
What is the expected EPS growth for ECN CAPITAL CORP (ECN.CA) stock?
The Earnings per Share (EPS) of ECN CAPITAL CORP (ECN.CA) is expected to grow by 102% in the next year.