ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
TSX:ECN - Toronto Stock Exchange - CA26829L1076 - Common Stock - Currency: CAD
Taking everything into account, ECN scores 4 out of 10 in our fundamental rating. ECN was compared to 30 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
ECN had positive earnings in the past year.
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
With a Return On Assets value of -0.01%, ECN is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
The Return On Equity of ECN (-0.04%) is worse than 70.00% of its industry peers.
With a Return On Invested Capital value of 4.44%, ECN perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECN is below the industry average of 5.68%.
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 of 36.14%. This is in the lower half of the industry: ECN underperforms 60.00% of its industry peers.
ECN's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, ECN has more shares outstanding
ECN has more shares outstanding than it did 5 years ago.
ECN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that ECN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ECN (0.12) is worse than 83.33% 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.
ECN has a Debt to FCF ratio of 3.29. This is amongst the best in the industry. ECN outperforms 90.00% of its industry peers.
ECN has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
ECN has a worse Debt to Equity ratio (2.85) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.53
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.82 indicates that ECN should not have too much problems paying its short term obligations.
ECN's Current ratio of 1.82 is amongst the best of the industry. ECN outperforms 93.33% of its industry peers.
A Quick Ratio of 1.82 indicates that ECN should not have too much problems paying its short term obligations.
ECN's Quick ratio of 1.82 is amongst the best of the industry. ECN outperforms 93.33% of its industry peers.
| 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 336.84%, which is quite impressive.
ECN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.31% yearly.
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)336.84%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%140%
Revenue 1Y (TTM)45.97%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%37.27%
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
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
The Price/Earnings ratio is 23.75, which indicates a rather expensive current valuation of ECN.
Compared to the rest of the industry, the Price/Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (28.22), we can say ECN is valued inline with the index average.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN indicates a somewhat cheap valuation: ECN is cheaper than 73.33% of the companies listed in the same industry.
ECN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaper than 96.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ECN is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.23 | ||
| EV/EBITDA | 11.56 |
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.
A more expensive valuation may be justified as ECN's earnings are expected to grow with 69.99% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y69.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, ECN has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.41, ECN pays less dividend than the industry average, which is at 8.27. 83.33% of the companies listed in the same industry pay a better dividend than ECN!
With a Dividend Yield of 1.41, ECN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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
ECN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-18019.32%
EPS Next 2Y69.99%
EPS Next 3YN/A
TSX:ECN (5/2/2025, 7:00:00 PM)
2.85
+0.01 (+0.35%)
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 Cap802.05M
Analysts75.56
Price Target4.05 (42.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)0
Avg EPS beat(2)-36.99%
Min EPS beat(2)-64%
Max EPS beat(2)-9.99%
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)0%
PT rev (3m)10.42%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-13.72%
Revenue NQ rev (3m)-5.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 10.53 | ||
| P/S | 2.53 | ||
| P/FCF | 3.23 | ||
| P/OCF | 3.21 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.56 |
EPS(TTM)0.12
EY4.21%
EPS(NY)0.27
Fwd EY9.5%
FCF(TTM)0.88
FCFY30.97%
OCF(TTM)0.89
OCFY31.16%
SpS1.13
BVpS1.02
TBVpS-0.22
PEG (NY)0.2
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 | 0.12 |
F-Score6
WACC8.42%
ROIC/WACC0.53
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)336.84%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%140%
EPS Next Y117.71%
EPS Next 2Y69.99%
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 Year110.79%
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%