ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - Toronto Stock Exchange - CA26829L1076 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to ECN. ECN was compared to 32 industry peers in the Financial Services industry. The financial health of ECN is average, but there are quite some concerns on its profitability. ECN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ECN has reported negative net income.
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 -0.01%, ECN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
ECN has a Return On Equity of -0.04%. This is in the lower half of the industry: ECN underperforms 75.00% of its industry peers.
The Return On Invested Capital of ECN (4.44%) is comparable to the rest of the industry.
ECN had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.84%.
The last Return On Invested Capital (4.44%) 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 | -0.04% | ||
| ROIC | 4.44% |
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 Operating Margin (36.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ECN has grown nicely.
ECN does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.14% | ||
| PM (TTM) | N/A | ||
| 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.
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
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's Altman-Z score of 0.14 is on the low side compared to the rest of the industry. ECN is outperformed by 84.38% of its industry peers.
ECN has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as ECN would need 3.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.29, ECN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ECN has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.85, ECN is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.51
WACC8.63%
2.3 Liquidity
ECN has a Current Ratio of 1.82. 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 Current ratio of 1.82. This is amongst the best in the industry. ECN outperforms 93.75% of its industry peers.
A Quick Ratio of 1.82 indicates that ECN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.82, ECN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
ECN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 99.00%, which is quite impressive.
ECN shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.97%.
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)99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%92.99%
Revenue 1Y (TTM)45.97%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%37.27%
3.2 Future
The Earnings Per Share is expected to grow by 47.20% on average over the next years. This is a very strong growth
ECN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.20% yearly.
EPS Next Y58.33%
EPS Next 2Y47.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.87%
Revenue Next 2Y16.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 negative for ECN. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 11.09, which indicates a very decent valuation of ECN.
ECN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ECN is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ECN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaper than 93.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.33 | ||
| EV/EBITDA | 11.74 |
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 47.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, ECN has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.33, ECN pays less dividend than the industry average, which is at 8.05. 84.38% of the companies listed in the same industry pay a better dividend than ECN!
With a Dividend Yield of 1.33, ECN pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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.
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
The earnings of ECN are negative and hence is the payout ratio. ECN will probably not be able to sustain this dividend level.
DP-18019.32%
EPS Next 2Y47.2%
EPS Next 3YN/A
TSX:ECN (3/7/2025, 7:00:00 PM)
3.05
+0.05 (+1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners46.07%
Inst Owner ChangeN/A
Ins Owners6.36%
Ins Owner ChangeN/A
Market Cap857.48M
Analysts75.56
Price Target3.91 (28.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP-18019.32%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1.45%
Min Revenue beat(2)-7.75%
Max Revenue beat(2)10.65%
Revenue beat(4)3
Avg Revenue beat(4)7.16%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)15.69%
Revenue beat(8)3
Avg Revenue beat(8)-4.06%
Revenue beat(12)3
Avg Revenue beat(12)-10.02%
Revenue beat(16)3
Avg Revenue beat(16)-18.56%
PT rev (1m)6.39%
PT rev (3m)17.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)3.41%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.09 | ||
| P/S | 2.61 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.31 | ||
| P/B | 2.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.74 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.28
Fwd EY9.02%
FCF(TTM)0.92
FCFY30.05%
OCF(TTM)0.92
OCFY30.24%
SpS1.17
BVpS1.06
TBVpS-0.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.04% | ||
| ROCE | 9.34% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 6.94% | ||
| OM | 36.14% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 78.4% |
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-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 5.91 | ||
| Cap/Depr | 6.62% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 180.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 0.14 |
F-Score6
WACC8.63%
ROIC/WACC0.51
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)99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%92.99%
EPS Next Y58.33%
EPS Next 2Y47.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)45.97%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%37.27%
Revenue Next Year16.87%
Revenue Next 2Y16.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1305.68%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year109.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y495.53%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y794.74%
OCF growth 3Y10.19%
OCF growth 5Y-7.11%