ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.05 CAD
+0.01 (+0.33%)
Overall ECN gets a fundamental rating of 5 out of 10. We evaluated ECN against 28 industry peers in the Financial Services industry. The financial health of ECN is average, but 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
- 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 worse Return On Assets (0.46%) than 60.71% of its industry peers.
- ECN's Return On Equity of 2.13% is on the low side compared to the rest of the industry. ECN is outperformed by 64.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, ECN is in line with its industry, outperforming 57.14% 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 7.35%.
- The 3 year average ROIC (2.48%) for ECN is below the current ROIC(4.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.13% | ||
| ROIC | 4.52% |
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
- The Profit Margin of ECN (1.81%) is worse than 67.86% of its industry peers.
- ECN's Operating Margin of 34.57% is in line compared to the rest of the industry. ECN outperforms 46.43% of its industry peers.
- In the last couple of years the Operating Margin of ECN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.57% | ||
| PM (TTM) | 1.81% | ||
| 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.
- 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 0.13, we must say that ECN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.13, ECN is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
- The Debt to FCF ratio of ECN is 8.94, which is on the high side as it means it would take ECN, 8.94 years of fcf income to pay off all of its debts.
- ECN has a better Debt to FCF ratio (8.94) than 82.14% of its industry peers.
- A Debt/Equity ratio of 2.80 is on the high side and indicates that ECN has dependencies on debt financing.
- ECN has a Debt to Equity ratio of 2.80. This is in the lower half of the industry: ECN underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.69
WACC6.51%
2.3 Liquidity
- ECN has a Current Ratio of 1.12. This is a normal value and indicates that ECN is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.12, ECN is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- ECN has a Quick Ratio of 1.12. This is a normal value and indicates that ECN is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.12, ECN is doing good in the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- ECN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 650.00%, which is quite impressive.
- 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 23.61%.
- 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)650%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%50%
Revenue 1Y (TTM)23.61%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%12.47%
3.2 Future
- The Earnings Per Share is expected to grow by 54.71% 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 14.01% on average per year.
EPS Next Y98.26%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
EPS Next 5YN/A
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
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.
- 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
- A Price/Earnings ratio of 14.52 indicates a correct valuation of ECN.
- Based on the Price/Earnings ratio, ECN is valued a bit cheaper than 67.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, ECN is valued a bit cheaper.
- The Price/Forward Earnings ratio is 8.35, which indicates a very decent valuation of ECN.
- Based on the Price/Forward Earnings ratio, ECN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ECN to the average of the S&P500 Index (24.31), we can say ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ECN is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ECN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 11.25 |
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 54.71% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y70.82%
EPS Next 3Y54.71%
5. Dividend
5.1 Amount
- ECN has a Yearly Dividend Yield of 1.31%.
- With a Dividend Yield of 1.31, ECN pays less dividend than the industry average, which is at 5.69. 82.14% of the companies listed in the same industry pay a better dividend than ECN!
- ECN's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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.
- 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 pays out 348.97% of its income as dividend. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
TSX:ECN (1/15/2026, 7:00:00 PM)
3.05
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-13 2025-11-13/bmo
Earnings (Next)02-25 2026-02-25
Inst Owners30.81%
Inst Owner ChangeN/A
Ins Owners6.76%
Ins Owner ChangeN/A
Market Cap858.54M
Revenue(TTM)246.78M
Net Income(TTM)4.47M
Analysts73.33
Price Target3.97 (30.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.08
Dividend Growth(5Y)-5.51%
DP348.97%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.05%
Min EPS beat(2)-15.14%
Max EPS beat(2)-4.95%
EPS beat(4)0
Avg EPS beat(4)-21.27%
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)2.91%
Min Revenue beat(2)-7.2%
Max Revenue beat(2)13.03%
Revenue beat(4)2
Avg Revenue beat(4)2.06%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)13.03%
Revenue beat(8)5
Avg Revenue beat(8)4.52%
Revenue beat(12)5
Avg Revenue beat(12)-2.14%
Revenue beat(16)5
Avg Revenue beat(16)-8.91%
PT rev (1m)11.48%
PT rev (3m)5.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.35 | ||
| P/S | 2.5 | ||
| P/FCF | 9.38 | ||
| P/OCF | 9.29 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.25 |
EPS(TTM)0.21
EY6.89%
EPS(NY)0.37
Fwd EY11.97%
FCF(TTM)0.33
FCFY10.66%
OCF(TTM)0.33
OCFY10.77%
SpS1.22
BVpS1.04
TBVpS-0.26
PEG (NY)0.15
PEG (5Y)N/A
Graham Number2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.13% | ||
| ROCE | 9.52% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 7.25% | ||
| OM | 34.57% | ||
| PM (TTM) | 1.81% | ||
| GM | N/A | ||
| FCFM | 26.66% |
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 | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 3.51% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 63.29% | ||
| Profit Quality | 1470.72% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 0.13 |
F-Score7
WACC6.51%
ROIC/WACC0.69
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)650%
EPS 3Y-34.48%
EPS 5Y-20.31%
EPS Q2Q%50%
EPS Next Y98.26%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
EPS Next 5YN/A
Revenue 1Y (TTM)23.61%
Revenue growth 3Y21.98%
Revenue growth 5Y-1.56%
Sales Q2Q%12.47%
Revenue Next Year14.38%
Revenue Next 2Y15.2%
Revenue Next 3Y14.01%
Revenue Next 5YN/A
EBIT growth 1Y63.62%
EBIT growth 3Y128.98%
EBIT growth 5Y13.75%
EBIT Next Year112.84%
EBIT Next 3Y44.38%
EBIT Next 5YN/A
FCF growth 1Y144.79%
FCF growth 3Y11.95%
FCF growth 5Y-6.78%
OCF growth 1Y151.11%
OCF growth 3Y10.19%
OCF growth 5Y-7.11%
ECN CAPITAL CORP / ECN.CA FAQ
What is the ChartMill fundamental rating of ECN CAPITAL CORP (ECN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ECN.CA.
What is the valuation status for ECN stock?
ChartMill assigns a valuation rating of 8 / 10 to ECN CAPITAL CORP (ECN.CA). This can be considered as Undervalued.
What is the profitability of ECN stock?
ECN CAPITAL CORP (ECN.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ECN CAPITAL CORP (ECN.CA) stock?
The Price/Earnings (PE) ratio for ECN CAPITAL CORP (ECN.CA) is 14.52 and the Price/Book (PB) ratio is 2.93.
Can you provide the dividend sustainability for ECN stock?
The dividend rating of ECN CAPITAL CORP (ECN.CA) is 2 / 10 and the dividend payout ratio is 348.97%.