Emerge Commerce Ltd (ECOM) AI Stock Analysis

• Market Cap: C$11.96M
• Dividend Yield: N/A
• Average Volume (3M): 166.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 8.53%
• EPS Growth: 98.44%
• Country: CA
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): <0.01
• Shares Outstanding: 149,474,580
• 10 Day Avg. Volume: 115,498
• 30 Day Avg. Volume: 166,883
• PEG Ratio: 0.07
• Price to Book (P/B): -0.82
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 57.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Emerge Commerce Ltd's overall stock score is primarily impacted by its weak financial performance and negative valuation metrics. The technical analysis also indicates bearish momentum, further weighing down the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Emerge Commerce Ltd Business Overview & Revenue Model

Company Description

Emerge Commerce Ltd. owns and operates online e-commerce marketplaces in Canada and the United States. Its principal operating e-commerce brands include truLOCAL.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com, BeRightBack.ca, BattlBox.com, CarnivoreClub.co, and WholesalePet.com. The company was founded in 2016 and is headquartered in Toronto, Canada.

How the Company Makes Money

Emerge Commerce Ltd generates revenue primarily through the sale of products across its owned e-commerce brands. The company's revenue model includes direct sales from its online platforms, subscription services, and potentially affiliate marketing. Key revenue streams consist of product sales, where ECOM benefits from the markup on goods sold through its various brands. Additionally, ECOM may engage in partnerships with suppliers and service providers to enhance product offerings and gain access to new markets, contributing to its overall earnings. The company's focus on scaling its brands and improving operational efficiencies further supports its revenue growth.

Emerge Commerce Ltd Financial Statement Overview

Summary

Emerge Commerce Ltd faces significant financial challenges, particularly in terms of profitability and balance sheet stability. While there is some positive momentum in revenue growth and cash flow efficiency, the company must address its leverage and equity deficits to improve its financial health and investor confidence.

Income Statement

Emerge Commerce Ltd shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 16.08% in the TTM period, indicating a recovery from previous declines. However, profitability remains a concern with a low net profit margin of 0.68% and negative EBIT margin. The gross profit margin has decreased over time, reflecting potential cost pressures.

Balance Sheet

The balance sheet reveals significant challenges, with a negative stockholders' equity indicating potential solvency issues. The debt-to-equity ratio is negative, suggesting high leverage and financial instability. Return on equity is also negative, highlighting inefficiencies in generating returns on shareholders' investments.

Cash Flow

Cash flow analysis shows some positive aspects, with a high free cash flow to net income ratio of 99.88% in the TTM period, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is negative, suggesting potential issues in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.73M	20.42M	23.83M	58.17M	34.83M	9.20M
Gross Profit	8.96M	8.25M	11.88M	23.79M	15.11M	7.17M
EBITDA	1.72M	908.43K	-15.66M	-4.50M	-1.16M	-1.03M
Net Income	160.85K	-1.03M	-21.26M	-17.38M	-6.56M	-4.43M
Balance Sheet
Total Assets	10.63M	7.80M	22.99M	59.75M	80.28M	43.46M
Cash, Cash Equivalents and Short-Term Investments	3.48M	3.16M	2.54M	5.88M	7.77M	12.39M
Total Debt	7.41M	6.96M	18.25M	25.98M	24.50M	7.68M
Total Liabilities	18.53M	16.63M	32.86M	49.63M	53.27M	25.38M
Stockholders Equity	-7.90M	-8.83M	-9.87M	10.11M	27.00M	18.07M
Cash Flow
Free Cash Flow	1.95M	127.02K	2.02M	1.02M	-3.47M	-254.43K
Operating Cash Flow	1.95M	129.33K	2.03M	1.06M	-3.43M	-186.11K
Investing Cash Flow	241.14K	11.73M	7.10M	-44.60K	-27.34M	-5.61M
Financing Cash Flow	-1.22M	-11.42M	-9.55M	-3.09M	26.18M	9.54M

Emerge Commerce Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECOM, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECOM.

Emerge Commerce Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KITS	62 Neutral	C$423.56M	110.39	9.68%	―	32.31%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NTAR	41 Neutral	$31.34M	-5.27	―	―	-59.22%	83.08%
ECOM	40 Neutral	C$11.96M	-33.33	―	―	8.53%	98.44%

Emerge Commerce Ltd Corporate Events

EMERGE Commerce Ltd. Reports Strong Q3 2025 Financial Growth

EMERGE Commerce Ltd. reported strong preliminary financial results for Q3 2025, showcasing a 58% year-over-year increase in revenue to $7.0 million and a significant improvement in Adjusted EBITDA, expected to be between $200K and $250K. The company’s cash position also grew to $4.0 million, indicating robust financial health. These results highlight EMERGE’s positive organic growth and effective cash-flow management, particularly through T2G’s performance. The company is preparing for the Q4 holiday shopping season and will present further details in a webcast at the Planet MicroCap Showcase.

EMERGE Commerce Ltd. to Engage with Investors at Key Toronto Events

EMERGE Commerce Ltd. announced its participation in three upcoming investor and e-commerce events in Toronto, where Founder and CEO Ghassan Halazon will present and engage with investors. These events, including Cantech Letter Investment Conference, Planet MicroCap Showcase, and ECOM North, provide platforms for EMERGE to showcase its growth and connect with industry leaders, potentially enhancing its market presence and investor relations.

EMERGE Commerce Ltd. Reports Robust Q2 2025 Financial Results

EMERGE Commerce Ltd. reported a strong financial performance for Q2 2025, with a 70% increase in revenue year-over-year, reaching $8.5 million. The company’s adjusted EBITDA improved significantly, and its cash position grew despite the acquisition of Tee 2 Green (T2G). The acquisition has already shown positive results, contributing to organic revenue growth and profitability. EMERGE’s strategic focus on its grocery and golf verticals, along with effective digital advertising and cross-brand synergies, has bolstered its market position. The company anticipates continued growth and profitability in the upcoming quarter.

EMERGE Commerce Ltd. to Announce Q2 2025 Financial Results

EMERGE Commerce Ltd. announced the release of its second quarter 2025 financial results scheduled for August 27, 2025, before market open. The announcement includes a conference call hosted by the CEO and CFO to discuss the results, which could impact the company’s operations and industry positioning.