ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - Toronto Stock Exchange - CA26829L1076 - Common Stock - Currency: CAD
Taking everything into account, ECN scores 5 out of 10 in our fundamental rating. ECN was compared to 28 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
In the past year ECN was profitable.
ECN had a positive operating cash flow in the past year.
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
ECN has a Return On Assets of 0.64%. This is in the lower half of the industry: ECN underperforms 60.71% of its industry peers.
ECN's Return On Equity of 3.00% is on the low side compared to the rest of the industry. ECN is outperformed by 67.86% of its industry peers.
ECN's Return On Invested Capital of 4.69% is in line compared to the rest of the industry. ECN outperforms 53.57% 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 5.72%.
The 3 year average ROIC (2.48%) for ECN is below the current ROIC(4.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 3% | ||
| ROIC | 4.69% |
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 has a Profit Margin of 2.53%. This is in the lower half of the industry: ECN underperforms 67.86% of its industry peers.
ECN has a Operating Margin (36.72%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ECN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.72% | ||
| PM (TTM) | 2.53% | ||
| 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.
The number of shares outstanding for ECN has been increased compared to 1 year ago.
Compared to 5 years ago, ECN has more shares outstanding
ECN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that ECN is in the distress zone and has some risk of bankruptcy.
ECN's Altman-Z score of 0.13 is on the low side compared to the rest of the industry. ECN is outperformed by 82.14% of its industry peers.
The Debt to FCF ratio of ECN is 7.45, which is on the high side as it means it would take ECN, 7.45 years of fcf income to pay off all of its debts.
ECN has a better Debt to FCF ratio (7.45) than 71.43% of its industry peers.
ECN has a Debt/Equity ratio of 2.87. This is a high value indicating a heavy dependency on external financing.
ECN's Debt to Equity ratio of 2.87 is on the low side compared to the rest of the industry. ECN is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.73
WACC6.4%
2.3 Liquidity
A Current Ratio of 1.59 indicates that ECN should not have too much problems paying its short term obligations.
The Current ratio of ECN (1.59) is better than 92.86% of its industry peers.
ECN has a Quick Ratio of 1.59. This is a normal value and indicates that ECN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ECN (1.59) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 350.00% 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.
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 48.77%.
ECN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.56% yearly.
EPS 1Y (TTM)350%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%71.15%
Revenue 1Y (TTM)48.77%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%14.16%
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 69.99% on average per year.
The Revenue is expected to grow by 16.20% on average over the next years. This is quite good.
EPS Next Y117.71%
EPS Next 2Y69.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.87%
Revenue Next 2Y16.2%
Revenue Next 3YN/A
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
ECN is valuated rather expensively with a Price/Earnings ratio of 18.00.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 64.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ECN is valued slightly cheaper when compared to this.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
92.86% of the companies in the same industry are more expensive than ECN, based on the Price/Forward Earnings ratio.
ECN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
ECN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ECN is 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 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 10.96 |
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 69.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y69.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 8.67%, which is a nice return.
Compared to an average industry Dividend Yield of 7.27, ECN pays a bit more dividend than its industry peers.
ECN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.67% |
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 296.14% of its income as dividend. This is not a sustainable payout ratio.
DP296.14%
EPS Next 2Y69.99%
EPS Next 3YN/A
TSX:ECN (7/8/2025, 7:00:00 PM)
2.88
+0.02 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners50.97%
Inst Owner ChangeN/A
Ins Owners6.68%
Ins Owner ChangeN/A
Market Cap810.49M
Analysts77.5
Price Target3.89 (35.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.67% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP296.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.49%
Min EPS beat(2)-64%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-18.99%
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)1.2%
Min Revenue beat(2)-7.75%
Max Revenue beat(2)10.15%
Revenue beat(4)3
Avg Revenue beat(4)5.77%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)10.65%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-8.79%
Revenue beat(16)4
Avg Revenue beat(16)-15.4%
PT rev (1m)-0.46%
PT rev (3m)-4.09%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 8.11 | ||
| P/S | 2.51 | ||
| P/FCF | 7.71 | ||
| P/OCF | 7.63 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.96 |
EPS(TTM)0.16
EY5.56%
EPS(NY)0.36
Fwd EY12.33%
FCF(TTM)0.37
FCFY12.97%
OCF(TTM)0.38
OCFY13.11%
SpS1.15
BVpS0.97
TBVpS-0.26
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 3% | ||
| ROCE | 9.87% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 7.43% | ||
| OM | 36.72% | ||
| PM (TTM) | 2.53% | ||
| GM | N/A | ||
| FCFM | 32.57% |
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%
ROICexcg growth 3Y47.97%
ROICexcg 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 | 2.87 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 4.64% | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | 1284.89% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 0.13 |
F-Score7
WACC6.4%
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)350%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%71.15%
EPS Next Y117.71%
EPS Next 2Y69.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)48.77%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%14.16%
Revenue Next Year16.87%
Revenue Next 2Y16.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y972.27%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year110.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y109.6%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y109.86%
OCF growth 3Y10.19%
OCF growth 5Y-7.11%