ECN CAPITAL CORP (ECN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ECN - CA26829L1076 - Common Stock
3.04 CAD
-0.01 (-0.33%)
ECN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Financial Services industry. The financial health of ECN is average, but there are quite some concerns on its profitability. 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.
In multiple years ECN reported negative operating cash flow during the last 5 years.
1.2 Ratios
ECN's Return On Assets of 0.46% is in line compared to the rest of the industry. ECN outperforms 42.31% of its industry peers.
With a Return On Equity value of 2.13%, ECN is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
ECN has a better Return On Invested Capital (4.52%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECN is below the industry average of 5.21%.
The last Return On Invested Capital (4.52%) for ECN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| 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
ECN's Profit Margin of 1.81% is on the low side compared to the rest of the industry. ECN is outperformed by 65.38% of its industry peers.
ECN has a Operating Margin of 34.57%. This is comparable to the rest of the industry: ECN outperforms 46.15% of its industry peers.
ECN's Operating Margin has improved in the last couple of years.
| 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
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.
ECN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ECN has been reduced compared to a year ago.
2.2 Solvency
ECN has an Altman-Z score of 0.13. This is a bad value and indicates that ECN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.13, ECN is doing worse than 80.77% of the companies in the same industry.
ECN has a debt to FCF ratio of 8.94. This is a slightly negative value and a sign of low solvency as ECN would need 8.94 years to pay back of all of its debts.
ECN has a better Debt to FCF ratio (8.94) than 88.46% of its industry peers.
ECN has a Debt/Equity ratio of 2.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ECN (2.80) is worse than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.8 | ||
| Debt/FCF | 8.94 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.69
WACC6.56%
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.
Looking at the Current ratio, with a value of 1.12, ECN is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that ECN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.12, ECN is doing good in the industry, outperforming 73.08% 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.
Measured over the past years, ECN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.31% on average per year.
Looking at the last year, ECN shows a very strong growth in Revenue. The Revenue has grown by 23.61%.
The Revenue has been decreasing by -1.56% on average over the past years.
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
Based on estimates for the next years, ECN will show a very strong growth in Earnings Per Share. The EPS will grow by 54.71% on average per year.
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 14.48 indicates a correct valuation of ECN.
ECN's Price/Earnings ratio is a bit cheaper when compared to the industry. ECN is cheaper than 73.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of ECN to the average of the S&P500 Index (26.92), we can say ECN is valued slightly cheaper.
ECN is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECN indicates a rather cheap valuation: ECN is cheaper than 92.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ECN to the average of the S&P500 Index (23.57), we can say ECN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 8.38 |
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.
ECN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ECN is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 11.27 |
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 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 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.13, ECN's dividend is way lower than its industry peers. On top of this 88.46% of the companies listed in the same industry pay a better dividend than ECN!
Compared to the average S&P500 Dividend Yield of 1.94, ECN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
348.97% of the earnings are spent on dividend by ECN. This is not a sustainable payout ratio.
DP348.97%
EPS Next 2Y70.82%
EPS Next 3Y54.71%
TSX:ECN (1/7/2026, 7:00:00 PM)
3.04
-0.01 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners30.81%
Inst Owner ChangeN/A
Ins Owners6.76%
Ins Owner ChangeN/A
Market Cap855.73M
Revenue(TTM)246.78M
Net Income(TTM)4.47M
Analysts73.33
Price Target3.97 (30.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 | 14.48 | ||
| Fwd PE | 8.38 | ||
| P/S | 2.51 | ||
| P/FCF | 9.42 | ||
| P/OCF | 9.32 | ||
| P/B | 2.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)0.21
EY6.91%
EPS(NY)0.36
Fwd EY11.93%
FCF(TTM)0.32
FCFY10.62%
OCF(TTM)0.33
OCFY10.73%
SpS1.21
BVpS1.03
TBVpS-0.26
PEG (NY)0.15
PEG (5Y)N/A
Graham Number2.21
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
WACC6.56%
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 14.48 and the Price/Book (PB) ratio is 2.94.
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%.