ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - TSX:ECN - CA26829L1076 - Common Stock
3.02 CAD
-0.05 (-1.63%)
We assign a fundamental rating of 4 out of 10 to ECN. ECN was compared to 27 industry peers in the Financial Services industry. The financial health of ECN is average, but there are quite some concerns on its profitability. ECN scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
The reported net income has been mixed in the past 5 years: ECN reported negative net income in multiple 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
The Return On Assets of ECN (0.01%) is worse than 70.37% of its industry peers.
ECN has a worse Return On Equity (0.03%) than 70.37% of its industry peers.
The Return On Invested Capital of ECN (4.31%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ECN is below the industry average of 5.61%.
The 3 year average ROIC (2.48%) for ECN is below the current ROIC(4.31%), indicating increased profibility in the last year.
| 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
ECN's Profit Margin of 0.03% is on the low side compared to the rest of the industry. ECN is outperformed by 70.37% of its industry peers.
With a Operating Margin value of 33.30%, ECN is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECN is destroying value.
The number of shares outstanding for ECN has been increased compared to 1 year ago.
ECN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ECN has an improved debt to assets ratio.
2.2 Solvency
ECN has an Altman-Z score of 0.07. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
ECN's Altman-Z score of 0.07 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.
ECN has a better Debt to FCF ratio (3.27) than 88.89% of its industry peers.
ECN has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
ECN has a worse Debt to Equity ratio (2.85) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.07 |
ROIC/WACC0.73
WACC5.89%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ECN should not have too much problems paying its short term obligations.
The Current ratio of ECN (1.05) is better than 66.67% of its industry peers.
A Quick Ratio of 1.05 indicates that ECN should not have too much problems paying its short term obligations.
The Quick ratio of ECN (1.05) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
ECN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 750.00%, which is quite impressive.
ECN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.31% yearly.
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 33.31%.
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
ECN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.90% yearly.
The Revenue is expected to grow by 12.07% on average over the next years. This is quite good.
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.
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
Based on the Price/Earnings ratio of 16.78, the valuation of ECN can be described as correct.
ECN's Price/Earnings ratio is a bit cheaper when compared to the industry. ECN is cheaper than 70.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ECN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.89, the valuation of ECN can be described as very reasonable.
ECN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECN is cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 8.89 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | 11.81 |
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.
ECN's earnings are expected to grow with 42.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y64.11%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, ECN has a reasonable but not impressive dividend return.
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 been paying a dividend for at least 10 years, so it has 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
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 (11/14/2025, 7:00:00 PM)
3.02
-0.05 (-1.63%)
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 Cap850.07M
Revenue(TTM)238.49M
Net Income(TTM)69.00K
Analysts73.33
Price Target3.67 (21.52%)
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 | 16.78 | ||
| Fwd PE | 8.89 | ||
| P/S | 2.54 | ||
| P/FCF | 3.48 | ||
| P/OCF | 3.46 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)0.18
EY5.96%
EPS(NY)0.34
Fwd EY11.25%
FCF(TTM)0.87
FCFY28.75%
OCF(TTM)0.87
OCFY28.87%
SpS1.19
BVpS1
TBVpS-0.29
PEG (NY)0.16
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 | 0.07 |
F-Score7
WACC5.89%
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 5 / 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 5 / 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.