ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.06 CAD
-0.01 (-0.33%)
Taking everything into account, ECN scores 4 out of 10 in our fundamental rating. ECN was compared to 28 industry peers in the Financial Services industry. While ECN seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ECN.
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
ECN has a worse Return On Assets (0.46%) than 60.71% of its industry peers.
The Return On Equity of ECN (2.13%) is worse than 64.29% of its industry peers.
ECN has a Return On Invested Capital of 4.52%. This is comparable to the rest of the industry: ECN outperforms 53.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECN is below the industry average of 5.58%.
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
Looking at the Profit Margin, with a value of 1.81%, ECN is doing worse than 67.86% of the companies in the same industry.
Looking at the Operating Margin, with a value of 34.57%, ECN is doing worse than 60.71% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
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.
ECN has a worse Altman-Z score (0.13) 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.
Looking at the Debt to FCF ratio, with a value of 8.94, ECN belongs to the top of the industry, outperforming 85.71% 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.
Looking at the Debt to Equity ratio, with a value of 2.80, ECN is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.77
WACC5.85%
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.
A Quick Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
The Quick ratio of ECN (1.12) is better than 71.43% 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.
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 23.61%.
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 42.90% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.57, the valuation of ECN can be described as correct.
75.00% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. ECN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.01 indicates a reasonable valuation of ECN.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
92.86% of the companies in the same industry are more expensive than ECN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.34 | ||
| EV/EBITDA | 11.22 |
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 42.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y64.11%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.76, 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 an average S&P500 Dividend Yield of 2.34, ECN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
348.97% of the earnings are spent on dividend by ECN. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
TSX:ECN (11/28/2025, 7:00:00 PM)
3.06
-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 Cap861.36M
Revenue(TTM)246.78M
Net Income(TTM)4.47M
Analysts73.33
Price Target3.56 (16.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)-5.36%
PT rev (3m)-5.36%
EPS NQ rev (1m)4%
EPS NQ rev (3m)21.88%
EPS NY rev (1m)1.41%
EPS NY rev (3m)0%
Revenue NQ rev (1m)8.16%
Revenue NQ rev (3m)13.73%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 9.01 | ||
| P/S | 2.49 | ||
| P/FCF | 9.34 | ||
| P/OCF | 9.24 | ||
| P/B | 2.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)0.21
EY6.86%
EPS(NY)0.34
Fwd EY11.1%
FCF(TTM)0.33
FCFY10.71%
OCF(TTM)0.33
OCFY10.82%
SpS1.23
BVpS1.05
TBVpS-0.26
PEG (NY)0.14
PEG (5Y)N/A
Graham Number2.23
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
WACC5.85%
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 Y102%
EPS Next 2Y64.11%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue 1Y (TTM)23.61%
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 1Y63.62%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year99.8%
EBIT Next 3YN/A
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 102% in the next year.