ECN Capital (ECN) AI Stock Analysis

• Market Cap: C$790.96M
• Dividend Yield: 1.42%
• Average Volume (3M): 164.14K
• Price to Earnings (P/E): 111.1
• Beta (1Y): 1.18
• Revenue Growth: 39.53%
• EPS Growth: 99.75%
• Country: CA
• Employees: 690
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 281,479,000
• 10 Day Avg. Volume: 260,129
• 30 Day Avg. Volume: 164,138
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$3.08
• Price Target Upside: 9.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: C$3.00 ▲(6.76% Upside)

ECN Capital's overall stock score is driven by solid cash flow performance and positive earnings call highlights, including record originations and asset growth. However, the stock faces challenges with high leverage, declining revenue, and unattractive valuation metrics. Technical indicators provide mixed signals, contributing to a moderate overall score.

Positive Factors

Business Expansion

ECN's Marine and RV segment showed significant year-over-year growth in originations, aided by sales network expansion.

Future Growth Outlook

ECN maintains its 2025 guidance for significant growth in originations and operating income.

Negative Factors

Earnings Performance

Q4/24 adjusted EPS missed consensus and guidance expectations, largely due to deferred originations.

Leadership and Strategy

There are uncertainties in guidance and execution due to leadership and strategy changes at Triad, which may impact future performance.

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 makes money primarily through the provision of specialized financial services, including the origination and management of credit portfolios for its institutional clients. The company earns revenue by charging fees for advisory services, portfolio management, and origination services. Additionally, ECN Capital generates income from interest and service fees associated with the credit portfolios it manages. Significant partnerships with financial institutions and life insurance companies enhance its revenue streams, allowing ECN Capital to expand its reach and capabilities in the financial services market.

ECN Capital Financial Statement Overview

Summary

ECN Capital's financial performance is a mix of strong cash flow and operational improvements, but faces challenges with declining revenue and high leverage. The robust cash flow and improved EBIT margin are positives, while the high debt-to-equity ratio and negative revenue growth weigh down the score.

Income Statement

ECN Capital's income statement shows mixed performance. The gross profit margin for TTM is 47.48%, reflecting a strong ability to manage costs relative to revenues. However, the net profit margin is only 6.37%, indicating that profitability is low after accounting for all expenses. Revenue growth from 2024 to TTM was negative at -3.47%, signaling a decline in top-line performance. The EBIT margin improved to 14.18% from the previous year, showing operational improvements, while the EBITDA margin is at 20.26%, highlighting decent earnings before non-cash expenses.

Balance Sheet

The balance sheet exhibits high leverage, with a debt-to-equity ratio of 2.87 in TTM, indicating significant reliance on debt financing. The equity ratio stands at 21.40%, suggesting a moderate level of assets funded by shareholders. Return on equity (ROE) improved to 6.80% in TTM, showing better returns to shareholders but remains low in absolute terms.

Cash Flow

ECN Capital's cash flow performance is robust. Free cash flow grew significantly in TTM compared to the previous year, reaching $76.95 million. The operating cash flow to net income ratio is 5.73, indicating strong cash generation relative to net earnings. Additionally, the free cash flow to net income ratio of 5.67 suggests efficient conversion of profits into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.76M	159.32M	196.67M	215.37M	266.72M
Gross Profit	88.15M	17.12M	90.81M	120.77M	167.44M
EBITDA	32.19M	-40.84M	37.11M	-9.94M	22.68M
Net Income	7.63M	-106.78M	15.89M	4.97M	15.82M
Balance Sheet
Total Assets	937.15M	1.28B	1.41B	1.15B	1.71B
Cash, Cash Equivalents and Short-Term Investments	15.46M	23.24M	12.71M	45.04M	37.98M
Total Debt	590.94M	917.70M	1.01B	274.60M	531.79M
Total Liabilities	726.25M	1.08B	1.22B	927.49M	883.64M
Stockholders Equity	207.48M	209.49M	193.68M	218.63M	822.56M
Cash Flow
Free Cash Flow	179.73M	-45.44M	-912.20M	131.76M	-80.27M
Operating Cash Flow	180.86M	-26.03M	-869.27M	139.73M	-77.61M
Investing Cash Flow	147.75M	43.38M	116.25M	-79.83M	-3.19M
Financing Cash Flow	-334.89M	-6.79M	721.07M	-1.83B	35.14M

ECN Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.81
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECN, the sentiment is Negative. The current price of 2.81 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 2.85, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECN.

ECN Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%
ECN	60 Neutral	C$790.96M	111.07	3.80%	1.42%	39.53%	99.75%
CCORF	―	$757.50M	156.38	-5.32%	3.31%	―	―
GCG	75 Outperform	C$1.02B	6.89	11.80%	4.46%	96.56%	158.06%
MKP	72 Outperform	C$839.01M	11.47	11.84%	7.59%	12.10%	-18.24%
DLCG	60 Neutral	C$669.15M	37.65	-143.13%	1.49%	35.22%	-1246.65%
EHMEF	―	$2.41B	12.27	23.77%	2.55%	―	―

ECN Capital Corporate Events

ECN Capital Reports Strong Q2 2025 Results Amid Strategic Upgrades

ECN Capital reported a solid financial performance for Q2 2025, with an adjusted net income of $0.04 per share, driven by growth in its Manufactured Housing Financing segment. Despite facing challenges in the RV and Marine Financing segment, the company is implementing strategic upgrades to improve sales and profitability. The company’s originations and managed assets have shown significant growth, reflecting its strong market positioning. ECN Capital has adjusted its financial guidance for the year and declared dividends for its shareholders.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$2.35 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.

ECN Capital Reports Solid Q2 2025 Results with Strategic Upgrades

ECN Capital Corp. reported a solid financial performance for Q2 2025, with an adjusted net income of $0.04 per share, showing growth compared to previous periods. The company is enhancing its business operations, particularly in the Manufactured Housing Financing segment, while addressing challenges in the RV and Marine Financing segment. The company has adjusted its financial guidance for 2025, reflecting strategic upgrades and market conditions.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$2.35 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 Q2-2025 Financial Results and Host Analyst Briefing

ECN Capital Corp. has announced its intention to release its financial statements for the second quarter of 2025 on August 7, 2025, after market close. The company will hold an analyst briefing on the same day to discuss these results, which may provide insights into its financial health and operational strategies. This announcement is significant for stakeholders as it could impact the company’s market positioning and investor relations.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$2.35 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.

ECN Capital Announces Board Election Results and Strategic Appointment

ECN Capital Corp. recently held its annual meeting where eight directors were elected, and several resolutions were passed with overwhelming support. Notably, Tarun Mehta was elected to the board, bringing extensive experience from his previous role at Truist Financial Corporation. His appointment as Chair of the Credit & Risk Committee is expected to strengthen ECN Capital’s strategic direction. The meeting results, including the re-appointment of auditors and approval of various plans, reflect strong shareholder confidence in the company’s governance and future plans.

The most recent analyst rating on (TSE:ECN) stock is a Hold with a C$2.35 price target. To see the full list of analyst forecasts on ECN Capital stock, see the TSE:ECN Stock Forecast page.