ECN CAPITAL CORP (ECN-DB-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN-DB-B - CA26829LAC15
100.07 CAD
-0.18 (-0.18%)
We assign a fundamental rating of 4 out of 10 to ECN-DB-B. ECN-DB-B was compared to 28 industry peers in the Financial Services industry. While ECN-DB-B seems to be doing ok healthwise, there are quite some concerns on its profitability. ECN-DB-B is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ECN-DB-B was profitable.
- In the past year ECN-DB-B had a positive cash flow from operations.
- In multiple years ECN-DB-B reported negative net income over the last 5 years.
- The reported operating cash flow has been mixed in the past 5 years: ECN-DB-B reported negative operating cash flow in multiple years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.46%, ECN-DB-B is doing worse than 71.43% of the companies in the same industry.
- With a Return On Equity value of 2.13%, ECN-DB-B is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- ECN-DB-B has a Return On Invested Capital (4.52%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ECN-DB-B is significantly below the industry average of 7.80%.
- The last Return On Invested Capital (4.52%) for ECN-DB-B 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
- With a Profit Margin value of 1.81%, ECN-DB-B is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
- ECN-DB-B has a worse Operating Margin (34.57%) than 67.86% of its industry peers.
- ECN-DB-B'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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECN-DB-B is destroying value.
- The number of shares outstanding for ECN-DB-B has been increased compared to 1 year ago.
- Compared to 5 years ago, ECN-DB-B has more shares outstanding
- The debt/assets ratio for ECN-DB-B has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 15.63 indicates that ECN-DB-B is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 15.63, ECN-DB-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- ECN-DB-B has a debt to FCF ratio of 8.94. This is a slightly negative value and a sign of low solvency as ECN-DB-B would need 8.94 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 8.94, ECN-DB-B is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- ECN-DB-B has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ECN-DB-B (2.80) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 15.63 |
ROIC/WACC0.57
WACC7.91%
2.3 Liquidity
- ECN-DB-B has a Current Ratio of 1.12. This is a normal value and indicates that ECN-DB-B is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.12, ECN-DB-B is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that ECN-DB-B should not have too much problems paying its short term obligations.
- The Quick ratio of ECN-DB-B (1.12) is comparable to the rest of the 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-DB-B shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.31% on average per year.
- Looking at the last year, ECN-DB-B shows a very strong growth in Revenue. The Revenue has grown by 23.61%.
- The Revenue has been decreasing by -1.56% on average over the past years.
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
- Based on estimates for the next years, ECN-DB-B will show a very strong growth in Earnings Per Share. The EPS will grow by 54.71% on average per year.
- The Revenue is expected to grow by 14.01% on average over the next years. This is quite good.
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
- 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
- With a Price/Earnings ratio of 476.52, ECN-DB-B can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ECN-DB-B indicates a slightly more expensive valuation: ECN-DB-B is more expensive than 78.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, ECN-DB-B is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 275.85, the valuation of ECN-DB-B can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN-DB-B indicates a slightly more expensive valuation: ECN-DB-B is more expensive than 75.00% of the companies listed in the same industry.
- ECN-DB-B is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 476.52 | ||
| Fwd PE | 275.85 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ECN-DB-B.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN-DB-B is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 309.89 | ||
| EV/EBITDA | 199.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ECN-DB-B does not grow enough to justify the current Price/Earnings ratio.
- ECN-DB-B's earnings are expected to grow with 54.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.85
PEG (5Y)N/A
EPS Next 2Y70.82%
EPS Next 3Y54.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.68%, ECN-DB-B is a good candidate for dividend investing.
- ECN-DB-B's Dividend Yield is comparable with the industry average which is at 6.56.
- ECN-DB-B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
5.2 History
- The dividend of ECN-DB-B decreases each year by -5.51%.
- ECN-DB-B is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-5.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 348.97% of the earnings are spent on dividend by ECN-DB-B. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
ECN CAPITAL CORP / ECN-DB-B.CA FAQ
What is the ChartMill fundamental rating of ECN CAPITAL CORP (ECN-DB-B.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ECN-DB-B.CA.
Can you provide the valuation status for ECN CAPITAL CORP?
ChartMill assigns a valuation rating of 2 / 10 to ECN CAPITAL CORP (ECN-DB-B.CA). This can be considered as Overvalued.
How profitable is ECN CAPITAL CORP (ECN-DB-B.CA) stock?
ECN CAPITAL CORP (ECN-DB-B.CA) has a profitability rating of 2 / 10.
What is the valuation of ECN CAPITAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ECN CAPITAL CORP (ECN-DB-B.CA) is 476.52 and the Price/Book (PB) ratio is 96.89.
Can you provide the expected EPS growth for ECN-DB-B stock?
The Earnings per Share (EPS) of ECN CAPITAL CORP (ECN-DB-B.CA) is expected to grow by 98.26% in the next year.