ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
+0.02 (+0.66%)
Overall ECN gets a fundamental rating of 4 out of 10. We evaluated ECN 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.
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 is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
ECN has a worse Return On Equity (2.13%) than 65.52% 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 51.72% 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 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: 68.97% of the companies in the same industry are doing better.
ECN has a Operating Margin of 34.57%. This is in the lower half of the industry: ECN underperforms 62.07% of its industry peers.
In the last couple of years the Operating Margin of ECN has grown nicely.
| 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.
ECN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ECN has been increased compared to 5 years ago.
Compared to 1 year ago, ECN has an improved debt to assets ratio.
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.
With a Altman-Z score value of 0.14, ECN is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
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 has a better Debt to FCF ratio (8.94) than 82.76% 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.
ECN's Debt to Equity ratio of 2.80 is on the low side compared to the rest of the industry. ECN is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.77
WACC5.87%
2.3 Liquidity
A Current Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
ECN has a Current ratio of 1.12. This is in the better half of the industry: ECN outperforms 68.97% of its industry peers.
A Quick Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
ECN has a better Quick ratio (1.12) than 72.41% 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.
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.
The Revenue has grown by 23.61% in the past year. This is a very strong growth!
ECN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.56% yearly.
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.
ECN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.01% yearly.
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
A Price/Earnings ratio of 14.52 indicates a correct valuation of ECN.
72.41% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (26.92), we can say ECN is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.49, which indicates a very decent valuation of ECN.
Based on the Price/Forward Earnings ratio, ECN is valued cheaper than 89.66% 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 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
96.55% of the companies in the same industry are more expensive than ECN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 11.35 |
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 1.31%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.31, ECN pays less dividend than the industry average, which is at 5.82. 82.76% of the companies listed in the same industry pay a better dividend than ECN!
Compared to the average S&P500 Dividend Yield of 2.00, ECN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
ECN pays out 348.97% of its income as dividend. 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.