ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.07 CAD
+0.01 (+0.33%)
ECN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
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
The Return On Assets of ECN (0.01%) is worse than 70.37% of its industry peers.
ECN's Return On Equity 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 Return On Invested Capital value of 4.31%, ECN perfoms like the industry average, outperforming 55.56% 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 5.61%.
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.
The Operating Margin of ECN (33.30%) is worse than 62.96% of its industry peers.
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
ECN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 0.08, we must say that ECN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.08, ECN is doing worse than 85.19% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.27, ECN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
ECN has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
ECN has a Debt to Equity ratio of 2.85. This is in the lower half of the industry: ECN underperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.73
WACC5.9%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ECN should not have too much problems paying its short term obligations.
ECN has a better Current ratio (1.05) than 70.37% of its industry peers.
ECN has a Quick Ratio of 1.05. 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 (1.05) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
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
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 45.96%.
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)45.96%
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 42.90% on average per year.
ECN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.07% yearly.
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
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
Based on the Price/Earnings ratio of 14.62, the valuation of ECN can be described as correct.
Based on the Price/Earnings ratio, ECN is valued a bit cheaper than 70.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, ECN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 8.99, the valuation of ECN can be described as reasonable.
92.59% of the companies in the same industry are more expensive than ECN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.52 | ||
| EV/EBITDA | 11.89 |
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 42.90% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y64.11%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, ECN has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.31, ECN pays less dividend than the industry average, which is at 6.83. 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 2.42, ECN's dividend is way lower than the S&P500 average.
| 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.
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 (11/21/2025, 7:00:00 PM)
3.07
+0.01 (+0.33%)
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 Cap864.14M
Revenue(TTM)229.24M
Net Income(TTM)69.00K
Analysts73.33
Price Target3.56 (15.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-5.36%
PT rev (3m)-5.36%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)4.17%
EPS NY rev (1m)1.41%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 8.99 | ||
| P/S | 2.57 | ||
| P/FCF | 3.52 | ||
| P/OCF | 3.51 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.89 |
EPS(TTM)0.21
EY6.84%
EPS(NY)0.34
Fwd EY11.12%
FCF(TTM)0.87
FCFY28.42%
OCF(TTM)0.88
OCFY28.53%
SpS1.19
BVpS1
TBVpS-0.29
PEG (NY)0.14
PEG (5Y)N/A
Graham Number2.18
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 | 0.08 |
F-Score7
WACC5.9%
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)650%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%50%
EPS Next Y102%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue 1Y (TTM)45.96%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%12.47%
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 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 102% in the next year.