ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.03 CAD
-0.02 (-0.66%)
ECN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Financial Services industry. ECN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on ECN.
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.
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
With a Return On Assets value of 0.46%, ECN is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
The Return On Equity of ECN (2.13%) is worse than 64.29% of its industry peers.
ECN has a Return On Invested Capital (4.52%) which is in line with 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 5.80%.
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 67.86% of its industry peers.
ECN has a worse Operating Margin (34.57%) than 60.71% of its industry peers.
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
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
Compared to 5 years ago, ECN has more shares outstanding
Compared to 1 year ago, ECN has an improved debt to assets ratio.
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.
The Altman-Z score of ECN (0.13) is worse than 85.71% 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.
The Debt to FCF ratio of ECN (8.94) is better than 85.71% of its industry peers.
A Debt/Equity ratio of 2.80 is on the high side and indicates that ECN has dependencies on debt financing.
ECN has a Debt to Equity ratio of 2.80. This is in the lower half of the industry: ECN underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.77
WACC5.84%
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 67.86% 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.
With a decent Quick ratio value of 1.12, ECN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| 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!
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)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.
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
With a Price/Earnings ratio of 14.43, ECN is valued correctly.
75.00% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
ECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.56.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 8.39.
ECN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECN is cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ECN to the average of the S&P500 Index (23.79), we can say ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 8.39 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 11.27 |
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 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
With a Yearly Dividend Yield of 1.31%, ECN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.86, ECN's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than ECN!
Compared to the average S&P500 Dividend Yield of 1.87, 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.
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 (12/12/2025, 7:00:00 PM)
3.03
-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 Cap852.91M
Revenue(TTM)246.78M
Net Income(TTM)4.47M
Analysts73.33
Price Target3.56 (17.49%)
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)-3.06%
PT rev (3m)-5.36%
EPS NQ rev (1m)4%
EPS NQ rev (3m)8.33%
EPS NY rev (1m)-1.85%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)8.16%
Revenue NQ rev (3m)11.13%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 8.39 | ||
| P/S | 2.51 | ||
| P/FCF | 9.42 | ||
| P/OCF | 9.32 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)0.21
EY6.93%
EPS(NY)0.36
Fwd EY11.92%
FCF(TTM)0.32
FCFY10.61%
OCF(TTM)0.32
OCFY10.73%
SpS1.21
BVpS1.03
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 | 0.13 |
F-Score7
WACC5.84%
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.