ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
+0.02 (+0.66%)
ECN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Financial Services industry. While ECN seems to be doing ok healthwise, there are quite some concerns on its profitability. ECN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ECN was profitable.
ECN had a positive operating cash flow in the past year.
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 0.46%. This is comparable to the rest of the industry: ECN outperforms 42.31% of its industry peers.
ECN has a Return On Equity of 2.13%. This is in the lower half of the industry: ECN underperforms 61.54% of its industry peers.
With a Return On Invested Capital value of 4.52%, ECN perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ECN is below the industry average of 5.80%.
The 3 year average ROIC (2.48%) for ECN is below the current ROIC(4.52%), indicating increased profibility in the last year.
| 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
ECN has a worse Profit Margin (1.81%) than 65.38% of its industry peers.
ECN has a Operating Margin (34.57%) which is comparable to the rest of the 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
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
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 84.62% 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: 69.23% 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/WACC0.77
WACC5.87%
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's Current ratio of 1.12 is fine compared to the rest of the industry. ECN outperforms 65.38% 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.
ECN has a better Quick ratio (1.12) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
ECN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 650.00%, which is quite impressive.
Measured over the past years, ECN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.31% on average per year.
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
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 14.52, the valuation of ECN can be described as correct.
Based on the Price/Earnings ratio, ECN is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
ECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 8.49, the valuation of ECN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 92.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. ECN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.49 |
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.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 11.35 |
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 1.31%.
With a Dividend Yield of 1.31, ECN pays less dividend than the industry average, which is at 5.82. 84.62% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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.
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
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 (12/24/2025, 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 Owners35.99%
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 | 1.31% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP348.97%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)-1.85%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.13%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.49 | ||
| P/S | 2.54 | ||
| P/FCF | 9.54 | ||
| P/OCF | 9.44 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.35 |
EPS(TTM)0.21
EY6.89%
EPS(NY)0.36
Fwd EY11.78%
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
WACC5.87%
ROIC/WACC0.77
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 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 98.26% in the next year.