ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
+0.01 (+0.33%)
ECN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Financial Services industry. The financial health of ECN is average, but there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ECN.
1. Profitability
1.1 Basic Checks
- In the past year ECN was profitable.
- 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
- Looking at the Return On Assets, with a value of 0.46%, ECN is doing worse than 60.71% of the companies in the same industry.
- ECN has a Return On Equity of 2.13%. This is in the lower half of the industry: ECN underperforms 64.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, ECN is in line with its industry, outperforming 53.57% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ECN is significantly below the industry average of 7.80%.
- 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: 67.86% of the companies in the same industry are doing better.
- ECN has a Operating Margin of 34.57%. This is comparable to the rest of the industry: ECN outperforms 42.86% of its industry peers.
- 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
- 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.
- The debt/assets ratio for ECN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.14, we must say that ECN is in the distress zone and has some risk of bankruptcy.
- ECN has a Altman-Z score of 0.14. This is amonst the worse of the industry: ECN underperforms 82.14% of its industry peers.
- The Debt to FCF ratio of ECN is 8.94, which is on the high side as it means it would take ECN, 8.94 years of fcf income to pay off all of its debts.
- ECN's Debt to FCF ratio of 8.94 is amongst the best of the industry. ECN outperforms 82.14% of its industry peers.
- ECN has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.80, ECN is not doing good in the industry: 71.43% 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
- A Current Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
- The Current ratio of ECN (1.12) is better than 60.71% of its industry peers.
- ECN has a Quick 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.
- Looking at the Quick ratio, with a value of 1.12, ECN is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| 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
- Based on estimates for the next years, ECN will show a very strong growth in Earnings Per Share. The EPS will grow by 54.71% on average per year.
- 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.
- 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
- ECN is valuated correctly with a Price/Earnings ratio of 14.52.
- Based on the Price/Earnings ratio, ECN is valued a bit cheaper than 67.86% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. ECN is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 8.42 indicates a reasonable valuation of ECN.
- ECN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECN is cheaper than 85.71% of the companies in the same industry.
- ECN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 11.3 |
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 54.71% in the coming years.
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 7.68%, which is a nice return.
- ECN's Dividend Yield is slightly below the industry average, which is at 6.56.
- ECN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
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
- 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 (1/21/2026, 7:00:00 PM)
3.05
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-13 2025-11-13/bmo
Earnings (Next)02-25 2026-02-25
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 Target3.94 (29.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
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)10.62%
PT rev (3m)4.69%
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 | 8.42 | ||
| P/S | 2.52 | ||
| P/FCF | 9.46 | ||
| P/OCF | 9.36 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.21
EY6.89%
EPS(NY)0.36
Fwd EY11.88%
FCF(TTM)0.32
FCFY10.57%
OCF(TTM)0.33
OCFY10.68%
SpS1.21
BVpS1.03
TBVpS-0.26
PEG (NY)0.15
PEG (5Y)N/A
Graham Number2.21
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 2.96.
Can you provide the dividend sustainability for ECN stock?
The dividend rating of ECN CAPITAL CORP (ECN.CA) is 4 / 10 and the dividend payout ratio is 348.97%.