ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - Toronto Stock Exchange - CA26829L1076 - Common Stock - Currency: CAD
Taking everything into account, ECN scores 5 out of 10 in our fundamental rating. ECN was compared to 29 industry peers in the Financial Services industry. ECN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ECN may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 (0.64%) than 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 3.00%, ECN is doing worse than 67.86% of the companies in the same industry.
ECN has a Return On Invested Capital (4.69%) which is in line with its industry peers.
ECN had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.71%.
The last Return On Invested Capital (4.69%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 3% | ||
| ROIC | 4.69% |
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 worse Profit Margin (2.53%) than 67.86% of its industry peers.
ECN has a Operating Margin (36.72%) which is in line with its industry peers.
ECN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.72% | ||
| PM (TTM) | 2.53% | ||
| 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
Based on the Altman-Z score of 0.14, we must say that ECN is in the distress zone and has some risk of bankruptcy.
ECN has a worse Altman-Z score (0.14) than 82.14% of its industry peers.
ECN has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as ECN would need 7.45 years to pay back of all of its debts.
ECN's Debt to FCF ratio of 7.45 is fine compared to the rest of the industry. ECN outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 2.87 is on the high side and indicates that ECN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.87, ECN is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.73
WACC6.41%
2.3 Liquidity
ECN has a Current Ratio of 1.59. 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 1.59 is amongst the best of the industry. ECN outperforms 92.86% of its industry peers.
A Quick Ratio of 1.59 indicates that ECN should not have too much problems paying its short term obligations.
ECN has a better Quick ratio (1.59) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 350.00% 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.
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 48.77%.
The Revenue has been decreasing by -1.56% on average over the past years.
EPS 1Y (TTM)350%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%71.15%
Revenue 1Y (TTM)48.77%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%14.16%
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 69.99% on average per year.
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 Y117.71%
EPS Next 2Y69.99%
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 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 18.50, which indicates a rather expensive current valuation of ECN.
64.29% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
ECN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.31, the valuation of ECN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ECN is valued cheaper than 92.86% of the companies in the same industry.
ECN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 8.31 |
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.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 11.1 |
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.
ECN's earnings are expected to grow with 69.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y69.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 8.77%, which is a nice return.
ECN's Dividend Yield is a higher than the industry average which is at 7.27.
Compared to an average S&P500 Dividend Yield of 2.35, ECN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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
ECN pays out 296.14% of its income as dividend. This is not a sustainable payout ratio.
DP296.14%
EPS Next 2Y69.99%
EPS Next 3YN/A
TSX:ECN (7/11/2025, 7:00:00 PM)
2.96
-0.09 (-2.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners50.97%
Inst Owner ChangeN/A
Ins Owners6.68%
Ins Owner ChangeN/A
Market Cap833.18M
Analysts77.5
Price Target3.89 (31.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP296.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.49%
Min EPS beat(2)-64%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-18.99%
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)1.2%
Min Revenue beat(2)-7.75%
Max Revenue beat(2)10.15%
Revenue beat(4)3
Avg Revenue beat(4)5.77%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)10.65%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-8.79%
Revenue beat(16)4
Avg Revenue beat(16)-15.4%
PT rev (1m)1.67%
PT rev (3m)-4.09%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 8.31 | ||
| P/S | 2.57 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.82 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)0.16
EY5.41%
EPS(NY)0.36
Fwd EY12.04%
FCF(TTM)0.37
FCFY12.65%
OCF(TTM)0.38
OCFY12.79%
SpS1.15
BVpS0.97
TBVpS-0.26
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 3% | ||
| ROCE | 9.87% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 7.43% | ||
| OM | 36.72% | ||
| PM (TTM) | 2.53% | ||
| GM | N/A | ||
| FCFM | 32.57% |
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 | 2.87 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 4.64% | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | 1284.89% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 0.14 |
F-Score7
WACC6.41%
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)350%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%71.15%
EPS Next Y117.71%
EPS Next 2Y69.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)48.77%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%14.16%
Revenue Next Year16.87%
Revenue Next 2Y16.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y972.27%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year110.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y109.6%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y109.86%
OCF growth 3Y10.19%
OCF growth 5Y-7.11%