ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:ECN • CA26829L1076
3.03 CAD
-0.01 (-0.33%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to ECN. 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. ECN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
- 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.
- ECN has a worse Return On Equity (2.13%) than 64.29% of its industry peers.
- The Return On Invested Capital of ECN (4.52%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ECN is significantly below the industry average of 7.95%.
- The last Return On Invested Capital (4.52%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| 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 Profit Margin of 1.81%. This is in the lower half of the industry: ECN underperforms 67.86% of its industry peers.
- Looking at the Operating Margin, with a value of 34.57%, ECN is in line with its industry, outperforming 42.86% 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
- 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.
- 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
- ECN has an Altman-Z score of 0.14. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
- ECN has a worse Altman-Z score (0.14) than 82.14% of its industry peers.
- The Debt to FCF ratio of ECN is 8.94, which is on the high side as it means it would take ECN, 8.94 years of fcf income to pay off all of its debts.
- ECN has a Debt to FCF ratio of 8.94. This is amongst the best in the industry. ECN outperforms 82.14% 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 | 0.14 |
ROIC/WACC0.69
WACC6.54%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
- ECN has a Current ratio of 1.12. This is in the better half of the industry: ECN outperforms 64.29% of its industry peers.
- A Quick Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
- ECN has a Quick ratio of 1.12. This is in the better half of the industry: ECN outperforms 67.86% 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
- ECN shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.61%.
- ECN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.56% yearly.
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 48.19% yearly.
- Based on estimates for the next years, ECN will show a quite strong growth in Revenue. The Revenue will grow by 14.01% on average per year.
EPS Next Y102%
EPS Next 2Y65.25%
EPS Next 3Y48.19%
EPS Next 5YN/A
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
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
- Based on the Price/Earnings ratio of 15.15, the valuation of ECN can be described as correct.
- 67.86% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (28.32), we can say ECN is valued slightly cheaper.
- ECN is valuated reasonably with a Price/Forward Earnings ratio of 9.12.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 82.14% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaper than 92.86% 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 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | 11.38 |
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 48.19% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y65.25%
EPS Next 3Y48.19%
5. Dividend
5.1 Amount
- ECN has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 1.32, ECN pays less dividend than the industry average, which is at 5.61. 82.14% of the companies listed in the same industry pay a better dividend than ECN!
- ECN's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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.
- 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 2Y65.25%
EPS Next 3Y48.19%
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 5 / 10 to ECN.CA.
What is the valuation status for ECN 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 3 / 10.
What are the PE and PB ratios of ECN CAPITAL CORP (ECN.CA) stock?
The Price/Earnings (PE) ratio for ECN CAPITAL CORP (ECN.CA) is 15.15 and the Price/Book (PB) ratio is 3.
Can you provide the dividend sustainability for ECN stock?
The dividend rating of ECN CAPITAL CORP (ECN.CA) is 2 / 10 and the dividend payout ratio is 348.97%.