ECN Capital (ECN) AI Stock Analysis

• Market Cap: C$779.72M
• Dividend Yield: 1.31%
• Average Volume (3M): 120.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 27.37%
• EPS Growth: N/A
• Country: CA
• Employees: 690
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.08
• Shares Outstanding: 281,488,340
• 10 Day Avg. Volume: 128,499
• 30 Day Avg. Volume: 120,297
• PEG Ratio: -0.76
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 3.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.25
• Price Target Upside: 6.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$3.00 ▼(-1.64% Downside)

ECN Capital's overall stock score reflects a mixed financial performance with strong cash flow but high leverage risks. The earnings call provided positive strategic insights, though valuation concerns persist due to a negative P/E ratio. Technical indicators suggest short-term bullish momentum, but caution is advised due to overbought signals.

Positive Factors

Cash Flow Strength

Robust cash generation and efficient cash conversion indicate strong financial health, supporting long-term operational stability and growth.

Revenue Growth

Consistent revenue growth suggests effective market strategies and product demand, enhancing the company's competitive position.

Strategic Initiatives

Record originations and strategic focus on high-growth areas demonstrate effective execution and potential for sustained business expansion.

Negative Factors

High Leverage

Elevated leverage can strain financial flexibility, increasing risk and potentially impacting the company's ability to invest in growth.

RV & Marine Segment Challenges

Persistent industry challenges in RV & Marine could hinder segment profitability and overall earnings potential if not addressed.

Flat Commercial Growth

Stagnant commercial growth suggests potential market saturation or competitive pressures, requiring strategic adjustments to drive future growth.

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 Loans - KG segments. The company provides secured consumer loan portfolios, including manufactured home, marine, and recreational vehicle loans; and consumer credit card portfolios that are focused on co-branded credit cards and related financial products. It serves banks, credit unions, life insurance companies, and pension and investment funds. The company was incorporated in 2016 and is headquartered in Toronto, Canada.

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 may receive fees from clients for processing and managing these loans. The company's revenue model is bolstered by partnerships with various financial institutions and equipment manufacturers, which enhance its lending capabilities and expand its market reach. By focusing on a diversified portfolio of financing products and maintaining strong relationships with clients and partners, ECN Capital is able to create stable and recurring revenue streams.

ECN Capital Financial Statement Overview

Summary

ECN Capital shows a mixed financial performance. The income statement reflects growth and improving margins, while the balance sheet indicates high leverage, posing potential risks. The cash flow statement is a standout, showcasing strong cash generation and management. Overall, ECN Capital is on a positive trajectory but must manage its leverage to ensure long-term stability.

Income Statement

ECN Capital's income statement shows a positive trajectory with a TTM revenue growth rate of 8.85%, indicating a recovery from previous declines. The gross profit margin has improved to 47.47% in TTM, reflecting better cost management. However, the net profit margin remains modest at 6.37%, suggesting room for profitability improvements. The EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.87 in TTM, which poses a risk due to significant leverage. Return on equity is relatively low at 6.63%, indicating limited returns for shareholders. The equity ratio stands at 21.01%, reflecting a moderate level of equity financing. Overall, the balance sheet shows stability but highlights potential risks associated with high leverage.

Cash Flow

The cash flow statement is strong, with a significant free cash flow growth rate of 126.55% in TTM, indicating robust cash generation. The operating cash flow to net income ratio of 1.42 suggests efficient cash conversion. The free cash flow to net income ratio is nearly 1, demonstrating effective cash management. Overall, the cash flow position is a key strength for ECN Capital.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.52M	220.76M	159.32M	196.67M	119.74M	146.62M
Gross Profit	105.23M	88.15M	17.12M	90.81M	51.92M	73.18M
EBITDA	40.33M	32.19M	-41.38M	37.11M	-9.94M	22.68M
Net Income	7.57M	7.63M	-106.78M	15.89M	969.80M	-13.54M
Balance Sheet
Total Assets	953.15M	937.15M	1.28B	1.41B	1.15B	1.71B
Cash, Cash Equivalents and Short-Term Investments	12.73M	15.46M	23.24M	12.71M	45.04M	37.98M
Total Debt	570.73M	590.94M	917.70M	1.03B	274.60M	531.79M
Total Liabilities	749.59M	726.25M	1.08B	1.22B	927.49M	883.64M
Stockholders Equity	200.27M	207.48M	209.49M	193.68M	218.63M	822.56M
Cash Flow
Free Cash Flow	174.34M	179.73M	-45.44M	-912.20M	130.21M	-80.27M
Operating Cash Flow	175.01M	180.86M	-26.03M	-869.27M	137.30M	-77.61M
Investing Cash Flow	-2.96M	147.75M	43.38M	116.25M	1.70B	-3.19M
Financing Cash Flow	-181.29M	-334.89M	-6.79M	721.07M	-1.83B	35.14M

ECN Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.05 is above the 20-day moving average (MA) of 2.97, above the 50-day MA of 2.90, and above the 200-day MA of 2.85, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKP	73 Outperform	C$850.65M	11.48	10.50%	7.30%	7.74%	-31.96%
GCG	69 Neutral	C$1.65B	10.61	13.82%	2.29%	58.88%	82.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSY	61 Neutral	$2.07B	9.19	18.88%	4.30%	13.69%	-16.06%
ECN	59 Neutral	C$779.72M	-3,462.50	5.73%	1.31%	27.37%	―
CF	58 Neutral	$1.19B	-18.10	-29.66%	3.02%	14.59%	-4520.50%
DLCG	55 Neutral	C$822.72M	-4.48	-137.87%	1.56%	36.52%	-1243.96%

ECN Capital Corporate Events

ECN Capital to Be Acquired by Warburg Pincus-Led Group in C$1.9 Billion Deal

ECN Capital Corp. has entered into a definitive agreement to be acquired by an investor group led by Warburg Pincus in an all-cash transaction valued at approximately C$1.9 billion. This deal offers a premium of 13% over the company’s unaffected closing share price, providing near-term liquidity and a significant return on investment for shareholders. The transaction, unanimously approved by ECN Capital’s Board of Directors and supported by major shareholders, marks a strategic move to continue the company’s growth as a private entity. This acquisition reflects ECN Capital’s ongoing efforts to maximize shareholder value and provides a liquidity event that further enhances shareholder returns.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.

ECN Capital Reports Strong Q3 2025 Results and Declares Dividends

ECN Capital Corp. reported strong financial results for Q3 2025, with an adjusted net income of $0.06 per share, reflecting a significant increase from previous periods. The company saw growth in originations, particularly in its Manufactured Housing and RV and Marine Finance segments, contributing to a rise in managed assets to $8.2 billion. The board declared dividends for common and preferred shareholders, and the company paid tribute to the late David Morris, a valued board member.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.

ECN Capital Reschedules Q3 2025 Earnings Call

ECN Capital Corp. announced a rescheduling of its earnings results announcement and conference call for the third quarter of 2025. The financial statements and management discussion for the periods ending September 30, 2025, will now be filed before markets open on November 13, 2025, with an analyst briefing scheduled for the same day. This adjustment may impact stakeholders’ expectations and the company’s communication with its partners and investors.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.

ECN Capital to Release Q3 2025 Financial Results and Host Analyst Briefing

ECN Capital Corp. has announced its intention to release its financial statements and management discussion for the third quarter of 2025 on November 12, 2025. The company will hold an analyst briefing on the same day to discuss these results, which could provide insights into its financial health and strategic direction. This announcement is significant for stakeholders as it may impact ECN Capital’s market positioning and offer a clearer picture of its operational performance.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.