ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - Toronto Stock Exchange - CA26829L1076 - Common Stock - Currency: CAD
Overall ECN gets a fundamental rating of 5 out of 10. We evaluated ECN against 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. 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.
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
ECN has a Return On Assets of 0.64%. This is in the lower half of the industry: ECN underperforms 62.07% of its industry peers.
ECN has a worse Return On Equity (3.00%) than 68.97% of its industry peers.
ECN's Return On Invested Capital of 4.69% is in line compared to the rest of the industry. ECN outperforms 48.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECN is below the industry average of 5.87%.
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
With a Profit Margin value of 2.53%, ECN is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 36.72%, ECN is in line with its industry, outperforming 44.83% 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 | 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
ECN has a better debt/assets ratio than last year.
2.2 Solvency
ECN has an Altman-Z score of 0.09. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ECN (0.09) is worse than 82.76% of its industry peers.
The Debt to FCF ratio of ECN is 7.45, which is on the high side as it means it would take ECN, 7.45 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.45, ECN is doing good in the industry, outperforming 72.41% of the companies in the same industry.
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: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 0.09 |
ROIC/WACC0.83
WACC5.68%
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 has a Current ratio of 1.59. This is amongst the best in the industry. ECN outperforms 93.10% 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 Quick ratio of 1.59. This is amongst the best in the industry. ECN outperforms 93.10% 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.
The earnings per share for ECN have been decreasing by -20.31% on average. This is quite bad
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 48.77%.
ECN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.56% yearly.
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
ECN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 69.99% yearly.
The Revenue is expected to grow by 16.20% on average over the next years. This is quite good.
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.
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
With a Price/Earnings ratio of 16.38, ECN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 65.52% of the companies listed in the same industry.
ECN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 7.39, the valuation of ECN can be described as very cheap.
ECN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ECN is cheaper than 93.10% 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 7.39 |
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.
96.55% of the companies in the same industry are more expensive than ECN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 10.46 |
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 69.99% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y69.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 8.56%, which is a nice return.
ECN's Dividend Yield is a higher than the industry average which is at 7.72.
ECN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.56% |
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 (6/13/2025, 7:00:00 PM)
2.62
+0.07 (+2.75%)
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 Cap737.32M
Analysts75.56
Price Target3.83 (46.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.56% |
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)-2.09%
PT rev (3m)-2.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-9.49%
Revenue NQ rev (3m)-9.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 7.39 | ||
| P/S | 2.29 | ||
| P/FCF | 7.03 | ||
| P/OCF | 6.95 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)0.16
EY6.11%
EPS(NY)0.35
Fwd EY13.53%
FCF(TTM)0.37
FCFY14.22%
OCF(TTM)0.38
OCFY14.38%
SpS1.14
BVpS0.97
TBVpS-0.26
PEG (NY)0.14
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 | 0.09 |
F-Score7
WACC5.68%
ROIC/WACC0.83
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%