ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
+0.02 (+0.66%)
Taking everything into account, ECN scores 5 out of 10 in our fundamental rating. ECN was compared to 26 industry peers in the Financial Services industry. ECN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECN may be a bit undervalued, certainly considering the very reasonable score on growth
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.
The reported net income has been mixed in the past 5 years: ECN reported negative net income in multiple years.
In multiple years ECN reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.46%, ECN perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
ECN has a worse Return On Equity (2.13%) than 61.54% of its industry peers.
ECN's Return On Invested Capital of 4.52% is fine compared to the rest of the industry. ECN outperforms 61.54% of its industry peers.
ECN had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.21%.
The last Return On Invested Capital (4.52%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 1.81%, ECN is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 34.57%, ECN is in line with its industry, outperforming 46.15% of the companies in the same industry.
ECN'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
ECN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ECN has more shares outstanding
Compared to 5 years ago, ECN has more shares outstanding
The debt/assets ratio for ECN has been reduced compared to a year ago.
2.2 Solvency
ECN has an Altman-Z score of 0.14. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
ECN has a Altman-Z score of 0.14. This is amonst the worse of the industry: ECN underperforms 80.77% of its industry peers.
ECN has a debt to FCF ratio of 8.94. This is a slightly negative value and a sign of low solvency as ECN would need 8.94 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.94, ECN belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
A Debt/Equity ratio of 2.80 is on the high side and indicates that ECN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.80, ECN is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.69
WACC6.56%
2.3 Liquidity
ECN has a Current Ratio of 1.12. 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 1.12. This is in the better half of the industry: ECN outperforms 69.23% of its industry peers.
A Quick Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
The Quick ratio of ECN (1.12) is better than 73.08% 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.
The earnings per share for ECN have been decreasing by -20.31% on average. This is quite bad
ECN shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.61%.
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
ECN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.71% yearly.
Based on estimates for the next years, ECN will show a quite strong growth in Revenue. The Revenue will grow by 14.01% on average per year.
EPS Next Y98.26%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
EPS Next 5YN/A
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ECN is valuated correctly with a Price/Earnings ratio of 14.52.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 73.08% 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 27.17.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 8.48.
Based on the Price/Forward Earnings ratio, ECN is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ECN to the average of the S&P500 Index (23.79), we can say ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
ECN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ECN's earnings are expected to grow with 54.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y70.82%
EPS Next 3Y54.71%
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.32%.
With a Dividend Yield of 1.32, ECN pays less dividend than the industry average, which is at 6.13. 88.46% of the companies listed in the same industry pay a better dividend than ECN!
ECN's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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.
ECN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.51%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
348.97% of the earnings are spent on dividend by ECN. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
TSX:ECN (1/6/2026, 7:00:00 PM)
3.05
+0.02 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners30.81%
Inst Owner ChangeN/A
Ins Owners6.76%
Ins Owner ChangeN/A
Market Cap858.54M
Revenue(TTM)246.78M
Net Income(TTM)4.47M
Analysts73.33
Price Target3.97 (30.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP348.97%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.05%
Min EPS beat(2)-15.14%
Max EPS beat(2)-4.95%
EPS beat(4)0
Avg EPS beat(4)-21.27%
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)2.91%
Min Revenue beat(2)-7.2%
Max Revenue beat(2)13.03%
Revenue beat(4)2
Avg Revenue beat(4)2.06%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)13.03%
Revenue beat(8)5
Avg Revenue beat(8)4.52%
Revenue beat(12)5
Avg Revenue beat(12)-2.14%
Revenue beat(16)5
Avg Revenue beat(16)-8.91%
PT rev (1m)11.48%
PT rev (3m)5.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.48 | ||
| P/S | 2.54 | ||
| P/FCF | 9.53 | ||
| P/OCF | 9.43 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)0.21
EY6.89%
EPS(NY)0.36
Fwd EY11.79%
FCF(TTM)0.32
FCFY10.49%
OCF(TTM)0.32
OCFY10.6%
SpS1.2
BVpS1.02
TBVpS-0.26
PEG (NY)0.15
PEG (5Y)N/A
Graham Number2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.13% | ||
| ROCE | 9.52% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 7.25% | ||
| OM | 34.57% | ||
| PM (TTM) | 1.81% | ||
| GM | N/A | ||
| FCFM | 26.66% |
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 | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 3.51% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 63.29% | ||
| Profit Quality | 1470.72% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 0.14 |
F-Score7
WACC6.56%
ROIC/WACC0.69
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)650%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%50%
EPS Next Y98.26%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
EPS Next 5YN/A
Revenue 1Y (TTM)23.61%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%12.47%
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
Revenue Next 5YN/A
EBIT growth 1Y63.62%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year112.84%
EBIT Next 3Y44.38%
EBIT Next 5YN/A
FCF growth 1Y144.79%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y151.11%
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 5 / 10 to ECN.CA.
What is the valuation status for ECN 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 3 / 10.
What are the PE and PB ratios of ECN CAPITAL CORP (ECN.CA) stock?
The Price/Earnings (PE) ratio for ECN CAPITAL CORP (ECN.CA) is 14.52 and the Price/Book (PB) ratio is 2.98.
Can you provide the dividend sustainability for ECN stock?
The dividend rating of ECN CAPITAL CORP (ECN.CA) is 2 / 10 and the dividend payout ratio is 348.97%.