ECN Capital (ECN) AI Stock Analysis

• Market Cap: C$833.18M
• Dividend Yield: 1.35%
• Average Volume (3M): 91.57K
• Price to Earnings (P/E): 111.1
• Beta (1Y): 1.50
• 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: 81,957
• 30 Day Avg. Volume: 91,573
• 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: 5.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: C$3.00 ▲(1.35% 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

Strategic Initiatives

Strategic initiatives and leadership changes have driven significant achievements, positioning the company for enhanced profitability and operational efficiency.

Cash Flow Strength

Robust cash generation and management highlight ECN Capital's ability to efficiently convert operations into cash, supporting future investments and debt management.

Revenue Growth

The company's revenue growth indicates a positive trajectory, showcasing its ability to recover and expand its market presence, which is crucial for long-term sustainability.

Negative Factors

Flat Commercial Growth

Stagnant commercial growth indicates potential market saturation or competitive pressures, necessitating innovation or market expansion to drive future growth.

RV & Marine Segment Challenges

Challenges in the RV & Marine segment could hinder overall profitability and growth, requiring strategic adjustments to mitigate industry-specific risks.

High Leverage

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

ECN Capital Business Overview & Revenue Model

Company Description

ECN Capital Corp. is a leading provider of business services to North American banks, credit unions, life insurance companies, and institutional investors. The company operates in the financial services sector, specializing in the origination, management, and advisory services for credit portfolios. ECN Capital focuses on delivering superior returns and growth by leveraging its expertise in credit risk analysis and portfolio management.

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: 2.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.96 is below the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.96, and above the 200-day MA of 2.91, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.31 is Positive, 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$860.08M	11.72	11.50%	7.49%	12.10%	-18.24%
GCG	69 Neutral	C$1.64B	10.58	11.37%	2.91%	96.56%	158.06%
GSY	63 Neutral	C$2.80B	10.24	23.48%	3.19%	14.61%	8.17%
ECN	58 Neutral	C$833.18M	111.07	3.80%	1.35%	39.53%	99.75%
DLCG	52 Neutral	C$853.28M	-4.64	-86.11%	1.29%	35.22%	-1246.65%
CF	51 Neutral	C$1.10B	-16.65	-1.82%	3.17%	14.43%	-584.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.