ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - TSX:ECN - CA26829L1076 - Common Stock
2.96 CAD
+0.03 (+1.02%)
ECN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Financial Services industry. While ECN seems to be doing ok healthwise, there are quite some concerns on its profitability. ECN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
ECN had positive earnings in the past year.
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.
In multiple years ECN reported negative operating cash flow during the last 5 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 Return On Equity of 0.03%. This is in the lower half of the industry: ECN underperforms 75.00% of its industry peers.
ECN has a Return On Invested Capital (4.31%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECN is below the industry average of 4.85%.
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
With a Profit Margin value of 0.03%, ECN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Operating Margin of ECN (33.30%) is worse than 60.71% of its industry peers.
In the last couple of years the Operating Margin of ECN has grown nicely.
| 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
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
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 0.06, we must say that ECN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.06, ECN is doing worse than 82.14% of the companies in the same industry.
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.
With a Debt to Equity ratio value of 2.85, 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 | 2.85 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 0.06 |
ROIC/WACC0.74
WACC5.86%
2.3 Liquidity
ECN has a Current 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.
ECN has a better Current ratio (1.05) than 85.71% of its industry peers.
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 42.84% on average over the next years. This is a very strong growth
Based on estimates for the next years, ECN will show a quite strong growth in Revenue. The Revenue will grow by 12.04% on average per year.
EPS Next Y99.19%
EPS Next 2Y65.25%
EPS Next 3Y42.84%
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y14.36%
Revenue Next 3Y12.04%
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
Based on the Price/Earnings ratio of 16.44, the valuation of ECN can be described as correct.
67.86% of the companies in the same industry are more expensive than ECN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (27.67), we can say ECN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 8.59, 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.
When comparing the Price/Forward Earnings ratio of ECN to the average of the S&P500 Index (23.33), we can say ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than ECN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 11.63 |
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 42.84% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y65.25%
EPS Next 3Y42.84%
5. Dividend
5.1 Amount
ECN has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.69, ECN's dividend is way lower than its industry peers. On top of this 89.29% of the companies listed in the same industry pay a better dividend than ECN!
With a Dividend Yield of 1.38, ECN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 22763.77% of its income as dividend. This is not a sustainable payout ratio.
DP22763.77%
EPS Next 2Y65.25%
EPS Next 3Y42.84%
TSX:ECN (10/23/2025, 7:00:00 PM)
2.96
+0.03 (+1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.31%
Inst Owner ChangeN/A
Ins Owners6.76%
Ins Owner ChangeN/A
Market Cap833.18M
Revenue(TTM)238.49M
Net Income(TTM)69.00K
Analysts75
Price Target3.76 (27.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)0%
PT rev (3m)-3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)-1.39%
EPS NY rev (3m)-8.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 8.59 | ||
| P/S | 2.49 | ||
| P/FCF | 3.41 | ||
| P/OCF | 3.39 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.63 |
EPS(TTM)0.18
EY6.08%
EPS(NY)0.34
Fwd EY11.65%
FCF(TTM)0.87
FCFY29.35%
OCF(TTM)0.87
OCFY29.47%
SpS1.19
BVpS1
TBVpS-0.29
PEG (NY)0.17
PEG (5Y)N/A
Graham Number2.01
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%
ROICexgc growth 3Y47.97%
ROICexgc 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 | 0.06 |
F-Score7
WACC5.86%
ROIC/WACC0.74
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 Y99.19%
EPS Next 2Y65.25%
EPS Next 3Y42.84%
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 3Y12.04%
Revenue Next 5YN/A
EBIT growth 1Y178.05%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year99.8%
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%