ECN Capital (ECN) AI Stock Analysis

• Market Cap: C$824.73M
• Dividend Yield: 1.37%
• Average Volume (3M): 130.59K
• Price to Earnings (P/E): 111.1
• Beta (1Y): 1.34
• Revenue Growth: 39.53%
• EPS Growth: 99.75%
• Country: CA
• Employees: 690
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 281,479,000
• 10 Day Avg. Volume: 73,048
• 30 Day Avg. Volume: 130,586
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$3.13
• Price Target Upside: 6.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: C$3.00 ▲(2.39% Upside)

ECN Capital's overall stock score reflects a mixed financial performance with strong cash flow but high leverage risks. Technical analysis shows no clear momentum, and valuation metrics are concerning with a negative P/E ratio. The earnings call provided positive sentiment with strategic growth initiatives, but challenges remain in certain segments.

Positive Factors

Future Guidance

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

Segment Growth

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

Negative Factors

Financial Performance

Q4/24 adjusted EPS missed the consensus and guidance expectations, indicating financial performance challenges.

Leadership and Strategy

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

Segment Performance

The Marine and RV segment had a significant increase in originations, but pre-tax operating income was well below expectations due to deferred sales and high costs.

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 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	214.89M	220.76M	159.32M	196.67M	215.37M	266.72M
Gross Profit	105.25M	88.15M	17.12M	90.81M	120.77M	167.44M
EBITDA	42.66M	32.19M	-40.84M	37.11M	-9.94M	22.68M
Net Income	7.57M	7.63M	-106.78M	15.89M	4.97M	15.82M
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	1.01B	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	131.76M	-80.27M
Operating Cash Flow	175.01M	180.86M	-26.03M	-869.27M	139.73M	-77.61M
Investing Cash Flow	-2.96M	147.75M	43.38M	116.25M	-79.83M	-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: 2.93
• 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 2.93 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.92, and above the 200-day MA of 2.91, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 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
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
ECN	58 Neutral	C$824.73M	111.07	3.80%	1.37%	39.53%	99.75%
CCORF	―	$753.06M	156.38	-5.32%	3.31%	―	―
MKP	73 Outperform	C$867.16M	11.86	11.84%	7.32%	12.10%	-18.24%
GCG	69 Neutral	C$1.64B	10.57	11.80%	2.91%	96.56%	158.06%
DLCG	52 Neutral	C$704.41M	37.65	-143.13%	1.56%	35.22%	-1246.65%
EHMEF	―	$2.49B	12.67	23.77%	2.43%	―	―

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.