ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - TSX:ECN - CA26829L1076 - Common Stock
2.83 CAD
-0.06 (-2.08%)
ECN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
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
ECN has a worse Return On Assets (0.01%) than 72.41% of its industry peers.
Looking at the Return On Equity, with a value of 0.03%, ECN is doing worse than 72.41% of the companies in the same industry.
ECN has a Return On Invested Capital (4.31%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECN is below the industry average of 5.38%.
The last Return On Invested Capital (4.31%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 0.03%, ECN is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
The Operating Margin of ECN (33.30%) is worse than 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
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.
ECN has a better debt/assets ratio than last year.
2.2 Solvency
ECN has an Altman-Z score of 0.05. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
ECN has a Altman-Z score of 0.05. This is amonst the worse of the industry: ECN underperforms 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.
ECN has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ECN (2.85) is worse than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.73
WACC5.92%
2.3 Liquidity
ECN has a Current 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.
The Current ratio of ECN (1.05) is better than 82.76% 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 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.
ECN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.31% yearly.
The Revenue has grown by 33.31% in the past year. This is a very strong growth!
The Revenue has been decreasing by -1.56% on average over the past years.
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
Based on estimates for the next years, ECN will show a very strong growth in Earnings Per Share. The EPS will grow by 42.84% on average per year.
ECN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.04% yearly.
EPS Next Y99.19%
EPS Next 2Y65.25%
EPS Next 3Y42.84%
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y14.36%
Revenue Next 3Y12.04%
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.
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
The Price/Earnings ratio is 15.72, 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 68.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (27.40), we can say ECN is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.19, which indicates a very decent valuation of ECN.
93.10% 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 22.94, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than ECN, based on the Enterprise Value to EBITDA ratio.
ECN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ECN is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | 11.53 |
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 42.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y65.25%
EPS Next 3Y42.84%
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.38%.
ECN's Dividend Yield is a higher than the industry average which is at 7.86.
Compared to an average S&P500 Dividend Yield of 2.38, ECN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 2Y65.25%
EPS Next 3Y42.84%
TSX:ECN (10/17/2025, 7:00:00 PM)
2.83
-0.06 (-2.08%)
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 Cap796.59M
Analysts75
Price Target3.76 (32.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)0%
PT rev (3m)-3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)-1.39%
EPS NY rev (3m)-8.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 8.19 | ||
| P/S | 2.38 | ||
| P/FCF | 3.25 | ||
| P/OCF | 3.24 | ||
| P/B | 2.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.53 |
EPS(TTM)0.18
EY6.36%
EPS(NY)0.35
Fwd EY12.2%
FCF(TTM)0.87
FCFY30.76%
OCF(TTM)0.87
OCFY30.87%
SpS1.19
BVpS1
TBVpS-0.29
PEG (NY)0.16
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 | 0.05 |
F-Score7
WACC5.92%
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)750%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%33.33%
EPS Next Y99.19%
EPS Next 2Y65.25%
EPS Next 3Y42.84%
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 3Y12.04%
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%