ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - CA26829L1076 - Common Stock
3.06 CAD
+0.11 (+3.73%)
Taking everything into account, ECN scores 5 out of 10 in our fundamental rating. ECN was compared to 28 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ECN.
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
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 worse Return On Equity (0.03%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.31%, ECN is in line with its industry, outperforming 53.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ECN is below the industry average of 5.12%.
The 3 year average ROIC (2.48%) for ECN is below the current ROIC(4.31%), indicating increased profibility in the last year.
| 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
ECN's Profit Margin of 0.03% is on the low side compared to the rest of the industry. ECN is outperformed by 75.00% of its industry peers.
ECN's Operating Margin of 33.30% is on the low side compared to the rest of the industry. ECN is outperformed by 60.71% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECN is destroying value.
The number of shares outstanding for ECN has been increased compared to 1 year ago.
The number of shares outstanding for ECN has been increased compared to 5 years ago.
Compared to 1 year ago, ECN has an improved debt to assets ratio.
2.2 Solvency
ECN has an Altman-Z score of 0.08. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.08, ECN is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
ECN has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as ECN would need 3.27 years to pay back of all of its debts.
ECN's Debt to FCF ratio of 3.27 is amongst the best of the industry. ECN outperforms 89.29% of its industry peers.
A Debt/Equity ratio of 2.85 is on the high side and indicates that ECN has dependencies on debt financing.
ECN has a worse Debt to Equity ratio (2.85) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.66
WACC6.54%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ECN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, ECN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.05, ECN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
ECN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 750.00%, which is quite impressive.
The earnings per share for ECN have been decreasing by -20.31% on average. This is quite bad
The Revenue has grown by 33.31% in the past year. This is a very strong growth!
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)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
The Earnings Per Share is expected to grow by 66.38% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.36% on average over the next years. This is quite good.
EPS Next Y102%
EPS Next 2Y66.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y14.36%
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.
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
ECN is valuated rather expensively with a Price/Earnings ratio of 17.00.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (27.44), we can say ECN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 8.86, the valuation of ECN can be described as very reasonable.
92.86% 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 22.87, ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaper than 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 11.86 |
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 66.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y66.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.37%.
With a Dividend Yield of 1.37, ECN pays less dividend than the industry average, which is at 6.13. 89.29% of the companies listed in the same industry pay a better dividend than ECN!
With a Dividend Yield of 1.37, ECN pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
22763.77% of the earnings are spent on dividend by ECN. This is not a sustainable payout ratio.
DP22763.77%
EPS Next 2Y66.38%
EPS Next 3YN/A
TSX:ECN (9/11/2025, 7:00:00 PM)
3.06
+0.11 (+3.73%)
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 Cap861.33M
Analysts75
Price Target3.76 (22.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)-3.28%
PT rev (3m)-1.67%
EPS NQ rev (1m)5.55%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)-7.22%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-9.34%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 8.86 | ||
| P/S | 2.61 | ||
| P/FCF | 3.57 | ||
| P/OCF | 3.55 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.86 |
EPS(TTM)0.18
EY5.88%
EPS(NY)0.35
Fwd EY11.28%
FCF(TTM)0.86
FCFY28.05%
OCF(TTM)0.86
OCFY28.16%
SpS1.17
BVpS0.99
TBVpS-0.28
PEG (NY)0.17
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 | 0.08 |
F-Score7
WACC6.54%
ROIC/WACC0.66
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 Y102%
EPS Next 2Y66.38%
EPS Next 3YN/A
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 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y178.05%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year110.87%
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%