ECN Capital Corp. (TSE:ECN)
TSX:ECN
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ECN Capital
(TSX:ECN)
Select Model
Select Model
Rating:53Neutral
Price Target:
C$3.00
▼(-1.32% Downside)
Action:ReiteratedDate:03/03/26
The score is primarily constrained by weak and volatile cash generation and elevated leverage despite improving profitability. Technicals are mildly supportive (price above key averages with neutral momentum), but the high P/E and modest dividend yield weigh on valuation.
Positive Factors
Improved operating profitability
2025 shows materially improved operating margins (EBIT ~32%, EBITDA ~40%) and positive net income versus prior loss years. Sustained high margins provide a durable earnings buffer to absorb funding costs and credit noise, supporting longer-term franchise profitability.
Negative Factors
Elevated leverage
A debt-to-equity ratio near 2.9x leaves the company relatively capital-structure sensitive. High leverage amplifies exposure to credit losses and funding-cost swings, limits strategic flexibility, and raises refinancing and covenant risks that could pressure long-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved operating profitability
2025 shows materially improved operating margins (EBIT ~32%, EBITDA ~40%) and positive net income versus prior loss years. Sustained high margins provide a durable earnings buffer to absorb funding costs and credit noise, supporting longer-term franchise profitability.
Read all positive factors
ECN Capital (ECN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$864.92M
Dividend Yield1.32%
Average Volume (3M)120.30K
Price to Earnings (P/E)21.8
Beta (1Y)0.64
Revenue Growth27.37%
EPS GrowthN/A
CountryCA
Employees690
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding281,733,460
10 Day Avg. Volume128,499
30 Day Avg. Volume120,297
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)2.92
Price to Sales (P/S)2.24
P/FCF Ratio53.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.10Price Target Upside1.97% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.24
Revenue Forecast (FY)C$284.71M
ECN Capital Business Overview & Revenue Model
Company Description
ECN Capital Corp. originates, manages, and advises on prime consumer credit portfolios in North America. It operates through Secured Consumer Loans - Triad Financial Services and Source One; and Consumer Credit Card and Related Unsecured Consumer ...
How the Company Makes Money
ECN Capital generates revenue primarily through interest income on loans and leases provided to its clients. The company earns money by financing equipment and commercial loans, charging interest on the amounts financed. Additionally, ECN Capital ...
ECN Capital Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in terms of record originations and growth in managed assets, alongside successful leadership transitions and strategic implementations. However, these positive aspects were tempered by challenges in revenue margins, industry headwinds affecting the RV & Marine segment, and flat commercial growth.Positive Updates
Record Originations in Triad
Triad reported its best quarter ever with $436 million in originations, representing a 40% year-over-year increase.
Negative Updates
Below Target Origination Revenue Margin
Origination revenue margin was slightly below target for the quarter due to lower mix of sales to higher-margin partners.
Read all updates
Q2-2025 Updates
Positive
Negative
Record Originations in Triad
Triad reported its best quarter ever with $436 million in originations, representing a 40% year-over-year increase.
Read all positive updates
Company Guidance
During the second quarter of 2025, ECN Capital reported several key metrics and strategic initiatives. The company achieved adjusted per-share income of $0.04, aligning with consensus expectations. Triad Financial, a subsidiary, recorded its best-ever quarter with originations reaching $436 million, marking a 40% year-over-year increase. Managed assets grew to over $6 billion, a 15% increase in Q2, with servicing revenue now constituting 28% of total revenue. The application to funding ratio improved by 18%, and chattel loan originations showed a 71.5% increase in Q2. ECN Capital reaffirmed its guidance for Manufactured Housing Finance with an adjusted operating income target between $78 million and $90 million, while narrowing RV & Marine guidance to $14 million to $18 million. The company continues to focus on its upgrade strategy, expecting increased profitability in the latter half of the year.ECN Capital Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
54
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 278.58M | 220.76M | 159.32M | 196.67M | 119.74M |
| Gross Profit | 221.71M | 88.15M | 17.12M | 90.81M | 51.92M |
| EBITDA | 110.91M | 32.19M | -41.38M | 37.11M | -9.94M |
| Net Income | 21.01M | 7.63M | -106.78M | 15.89M | 969.80M |
Balance Sheet | |||||
| Total Assets | 991.84M | 937.15M | 1.28B | 1.41B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 22.38M | 15.46M | 23.24M | 12.71M | 45.04M |
| Total Debt | 606.83M | 590.94M | 917.70M | 1.03B | 274.60M |
| Total Liabilities | 757.90M | 726.25M | 1.08B | 1.22B | 927.49M |
| Stockholders Equity | 213.52M | 207.48M | 209.49M | 193.68M | 218.63M |
Cash Flow | |||||
| Free Cash Flow | 11.60M | 179.73M | -45.44M | -912.20M | 130.21M |
| Operating Cash Flow | 12.10M | 180.86M | -26.03M | -869.27M | 137.30M |
| Investing Cash Flow | -3.32M | 147.75M | 43.38M | 116.25M | 1.70B |
| Financing Cash Flow | -3.26M | -334.89M | -6.79M | 721.07M | -1.83B |
ECN Capital Technical Analysis
Positive
3.04
Price Trends
3.05
Positive
3.03
Positive
2.95
Positive
Market Momentum
<0.01
Positive
56.92
Neutral
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECN, the sentiment is Positive. The current price of 3.04 is below the 20-day moving average (MA) of 3.06, below the 50-day MA of 3.05, and above the 200-day MA of 2.95, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ECN.
ECN Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$724.52M | 31.59 | -85.46% | 1.51% | 36.52% | -1243.96% | |
69 Neutral | C$937.89M | 11.86 | 11.93% | 7.33% | 7.74% | -31.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | C$962.09M | 10.30 | 8.17% | 6.43% | 11.16% | -14.26% | |
56 Neutral | C$553.62M | 16.44 | 5.09% | 10.00% | -9.00% | -35.22% | |
53 Neutral | C$864.92M | 21.77 | 10.01% | 1.32% | 27.37% | ― | |
43 Neutral | C$559.06M | -12.17 | 18.88% | 4.48% | 13.69% | -16.06% |
* Financial Sector Average
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ECN Capital Corporate Events
Delistings and Listing ChangesDividendsFinancial DisclosuresM&A Transactions
ECN Capital posts higher Q4 profit year-on-year as Warburg Pincus-led takeover advances
Positive
Feb 27, 2026
ECN Capital reported adjusted net income of US$13.6 million, or US$0.05 per share, for the fourth quarter of 2025, with originations of US$662.4 million led by its manufactured housing and RV and marine finance segments. Managed assets stood at US...
Delistings and Listing ChangesDividendsFinancial DisclosuresM&A Transactions
ECN Capital Posts Q4 Profit as Warburg Pincus-Led Takeover Advances Toward Closing
Positive
Feb 27, 2026
ECN Capital reported adjusted net income of US$13.6 million, or US$0.05 per common share, for the fourth quarter of 2025, with originations of US$662.4 million led by its manufactured housing finance segment and managed assets of US$7.3 billion. W...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
ECN Capital Wins Final Court Nod for Warburg Pincus–Led Takeover
Positive
Jan 22, 2026
ECN Capital Corp. has secured final court approval from the Ontario Superior Court of Justice for its planned acquisition by a Warburg Pincus–led investor group, clearing a key step in a transaction that will see all common shares and certai...
Business Operations and StrategyM&A TransactionsShareholder Meetings
ECN Capital Shareholders Back Warburg Pincus-Led Takeover
Positive
Jan 21, 2026
Shareholders of ECN Capital Corp. have approved a plan of arrangement under which a newly formed acquisition vehicle controlled by an investor group led by Warburg Pincus will acquire all of the company’s common and preferred shares for cash...
M&A TransactionsShareholder Meetings
Glass Lewis Backs ECN Capital’s Warburg Pincus-Led Takeover Plan
Positive
Jan 15, 2026
ECN Capital announced that leading proxy advisory firm Glass Lewis has joined Institutional Shareholder Services in recommending that shareholders vote in favour of the company’s proposed plan of arrangement under which an acquisition vehicl...
Delistings and Listing ChangesM&A TransactionsShareholder Meetings
ISS Backs Warburg Pincus–Led Takeover Bid for ECN Capital
Positive
Jan 12, 2026
ECN Capital announced that Institutional Shareholder Services, a leading independent proxy advisory firm, has recommended that shareholders vote in favour of the company’s proposed plan of arrangement under which a Warburg Pincus–led i...
M&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
ECN Capital Sets January Vote on Warburg Pincus-Led Takeover at 13% Premium
Positive
Dec 30, 2025
ECN Capital has filed and begun mailing its management information circular to holders of its common and preferred shares ahead of a special virtual shareholders’ meeting on January 20, 2026, where investors will vote on a proposed plan of a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.