ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
-0.01 (-0.33%)
Overall ECN gets a fundamental rating of 5 out of 10. We evaluated ECN against 29 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
ECN had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 0.01%, ECN is doing worse than 72.41% of the companies in the same industry.
ECN has a Return On Equity of 0.03%. This is in the lower half of the industry: ECN underperforms 72.41% of its industry peers.
With a Return On Invested Capital value of 4.31%, ECN perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECN is below the industry average of 5.62%.
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
Looking at the Profit Margin, with a value of 0.03%, ECN is doing worse than 72.41% of the companies in the same industry.
ECN has a Operating Margin of 33.30%. This is in the lower half of the industry: ECN underperforms 62.07% of its industry peers.
ECN's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECN is destroying value.
Compared to 1 year ago, ECN has more shares outstanding
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.
ECN's Altman-Z score of 0.08 is on the low side compared to the rest of the industry. ECN is outperformed by 82.76% of its industry peers.
The Debt to FCF ratio of ECN is 3.27, which is a good value as it means it would take ECN, 3.27 years of fcf income to pay off all of its debts.
ECN has a better Debt to FCF ratio (3.27) than 89.66% of its industry peers.
A Debt/Equity ratio of 2.85 is on the high side and indicates that ECN has dependencies on debt financing.
ECN has a worse Debt to Equity ratio (2.85) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.66
WACC6.54%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ECN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, ECN belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
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 Quick ratio of 1.05. This is amongst the best in the industry. ECN outperforms 82.76% 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 750.00% 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 33.31% in the past year. This is a very strong growth!
Measured over the past years, ECN shows a decrease in Revenue. The Revenue has been decreasing by -1.56% on average per year.
EPS 1Y (TTM)750%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%33.33%
Revenue 1Y (TTM)33.31%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%3.83%
3.2 Future
ECN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 66.38% yearly.
ECN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.36% yearly.
EPS Next Y102%
EPS Next 2Y66.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y14.36%
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.
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
The Price/Earnings ratio is 16.94, which indicates a correct valuation of ECN.
ECN's Price/Earnings ratio is a bit cheaper when compared to the industry. ECN is cheaper than 65.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. ECN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.86 indicates a reasonable valuation of ECN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 93.10% of the companies listed in the same industry.
ECN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued 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 96.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.56 | ||
| EV/EBITDA | 11.96 |
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.
A more expensive valuation may be justified as ECN's earnings are expected to grow with 66.38% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y66.38%
EPS Next 3YN/A
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 6.71. 86.21% of the companies listed in the same industry pay a better dividend than ECN!
With a Dividend Yield of 1.31, ECN pays less dividend than the S&P500 average, which is at 2.38.
| 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
22763.77% of the earnings are spent on dividend by ECN. This is not a sustainable payout ratio.
DP22763.77%
EPS Next 2Y66.38%
EPS Next 3YN/A
TSX:ECN (9/15/2025, 7:00:00 PM)
3.05
-0.01 (-0.33%)
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 Cap858.51M
Analysts75
Price Target3.76 (23.28%)
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)-3.28%
PT rev (3m)-1.67%
EPS NQ rev (1m)11.75%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)-7.22%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.34%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 8.86 | ||
| P/S | 2.6 | ||
| P/FCF | 3.56 | ||
| P/OCF | 3.55 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.96 |
EPS(TTM)0.18
EY5.9%
EPS(NY)0.34
Fwd EY11.29%
FCF(TTM)0.86
FCFY28.07%
OCF(TTM)0.86
OCFY28.18%
SpS1.17
BVpS0.98
TBVpS-0.28
PEG (NY)0.17
PEG (5Y)N/A
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%
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 | 2.85 | ||
| 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
WACC6.54%
ROIC/WACC0.66
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)750%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%33.33%
EPS Next Y102%
EPS Next 2Y66.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)33.31%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%3.83%
Revenue Next Year11.92%
Revenue Next 2Y14.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y178.05%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year110.87%
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%