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Emerge Commerce Ltd (TSE:ECOM)
:ECOM
Canadian Market
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Emerge Commerce Ltd (ECOM) AI Stock Analysis

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TSE:ECOM

Emerge Commerce Ltd

(ECOM)

Rating:64Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
The overall stock score reflects a balanced view of significant financial weaknesses countered by positive technical indicators and corporate events. The major risk remains the company's financial instability, while strategic acquisitions and market momentum provide potential upside.

Emerge Commerce Ltd (ECOM) vs. iShares MSCI Canada ETF (EWC)

Emerge Commerce Ltd Business Overview & Revenue Model

Company DescriptionEmerge 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 MoneyEmerge Commerce Ltd makes money through a diversified revenue model that includes direct sales from its e-commerce platforms, subscription services, and transaction fees. The company generates revenue by acquiring niche e-commerce brands and leveraging their existing customer base and market presence. Key revenue streams include the sale of goods and services through its various online platforms, membership and subscription fees for premium offerings, and commission fees from third-party vendors or partners that sell on its platforms. Significant partnerships with suppliers and vendors allow Emerge to offer exclusive products and deals, further enhancing its revenue potential. The company's focus on operational efficiencies and cross-platform synergies also contributes to its profitability.

Emerge Commerce Ltd Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q3-2024)
|
% Change Since: 80.00%|
Next Earnings Date:Sep 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant positive trends in GMS growth, revenue increase, and improved profitability metrics, complemented by a strong debt reduction strategy. However, the continued negative adjusted EBITDA and net loss from operations indicate areas needing further improvement. Overall, the positive aspects and strategic shifts outweigh the negatives.
Q3-2024 Updates
Positive Updates
Gross Merchandise Sales (GMS) Growth
GMS accelerated to 10% organic growth year-over-year, reaching $7.4 million in Q3 2024 compared to $6.8 million in Q3 2023.
Revenue Increase
Revenue increased to $4.6 million in Q3 2024 from $4.4 million in Q3 2023, marking a 5% increase. Excluding Carnivore Club, revenue grew approximately 8%.
Improvement in Gross Margin
Gross margin improved to 39.3% in Q3 2024 from 38.9% in Q3 2023, driven by initiatives like price increases and renegotiated vendor costs.
Reduction in Adjusted EBITDA Losses
Adjusted EBITDA losses reduced to $280,000 in Q3 2024 from $560,000 in Q3 2023, attributed to revenue growth, improved gross margin, and reduced expenses.
Debt Reduction and Improved Financial Standing
Senior debt facility reduced to $5.85 million from $15.85 million, with a net debt position approaching $5.5 million, down from $27.8 million.
Negative Updates
Adjusted EBITDA Still Negative
Despite improvements, adjusted EBITDA remains negative at $280,000 for Q3 2024.
Net Loss from Continuing Operations
Net loss from continuing operations was $0.7 million in Q3 2024, slightly decreased from $0.8 million in the prior year.
Company Guidance
During the Q3 2024 earnings call for EMERGE Commerce, CEO Ghassan Halazon and CFO Kyle Burt-Gerrans provided a comprehensive overview of the company's financial performance and strategic direction. Key highlights included a 10% increase in gross merchandise sales (GMS) year-over-year, reaching $7.4 million, and a 5% rise in revenue to $4.6 million. Excluding the Carnivore Club, revenue grew by 8%. The company reported a gross profit increase of over 6% to $1.8 million, with gross margins improving to 39.3%. Adjusted EBITDA losses were reduced by approximately half compared to the previous year, coming in at negative $280,000. Additionally, EMERGE achieved significant debt reduction, bringing net debt down to $5.5 million after a $10 million debt paydown. The company also implemented cost reductions expected to yield $500,000 in annual savings, which will be fully realized in 2025. These efforts underscore EMERGE's focus on organic growth, operational efficiency, and enhanced profitability as they transition into the new year.

Emerge Commerce Ltd Financial Statement Overview

Summary
Emerge Commerce Ltd's financial statements reveal significant challenges, including declining revenues, persistent losses, a heavily leveraged balance sheet with negative equity, and inconsistent cash flow. These indicators highlight the need for strategic restructuring to improve financial health.
Income Statement
30
Negative
Emerge Commerce Ltd has experienced volatile revenue growth with a significant decline in recent years, and the company is operating at a net loss. The negative EBIT and EBITDA margins indicate operational inefficiencies and challenges in managing costs relative to revenue. Overall, the income statement reflects financial instability and operational challenges.
Balance Sheet
20
Very Negative
The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating that liabilities exceed assets. The high debt-to-equity ratio suggests significant leverage, which poses a risk in terms of financial sustainability. The negative equity ratio further highlights the company's financial distress.
Cash Flow
40
Negative
Cash flow analysis shows sporadic free cash flow generation with negative operating cash flows in the latest period. The company's ability to convert net income into cash flow is weak, which may hinder future growth and investment capabilities. The reliance on external financing is evident, affecting cash flow stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.44M20.42M23.83M58.17M34.83M9.20M
Gross Profit7.99M8.02M11.88M23.79M15.11M7.17M
EBITDA726.28K908.43K-15.66M-4.41M-1.16M-1.03M
Net Income-702.60K-1.03M-21.26M-17.38M-6.56M-4.43M
Balance Sheet
Total Assets6.59M7.80M22.99M59.75M80.28M43.46M
Cash, Cash Equivalents and Short-Term Investments2.68M3.16M2.54M5.88M7.77M12.39M
Total Debt6.98M6.96M18.25M25.98M24.50M7.68M
Total Liabilities14.96M16.63M32.86M49.63M53.27M25.38M
Stockholders Equity-8.38M-8.83M-9.87M10.11M27.00M18.07M
Cash Flow
Free Cash Flow-427.98K-1.00M2.02M1.02M-3.47M-254.43K
Operating Cash Flow-425.67K-997.97K2.03M1.06M-3.43M-186.11K
Investing Cash Flow1.44M11.73M7.10M-44.60K-27.34M-5.61M
Financing Cash Flow-1.17M-11.42M-9.55M-3.09M26.18M9.54M

Emerge Commerce Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.06
Positive
100DMA
0.05
Positive
200DMA
0.05
Positive
Market Momentum
MACD
0.01
Negative
RSI
62.65
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECOM, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ECOM.

Emerge Commerce Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥269.51B13.476.45%2.58%5.22%-11.97%
64
Neutral
C$13.20M204.61%-10.48%94.56%
C$3.73M
$11.50M
73
Outperform
C$520.11M110.548.21%34.10%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ECOM
Emerge Commerce Ltd
0.08
0.02
33.33%
TSE:FTI
FTI Foodtech International
0.16
0.12
300.00%
NEXCF
NexTech AR Solutions
0.06
-0.02
-25.00%
TSE:KITS
Kits Eyecare
16.40
6.37
63.51%

Emerge Commerce Ltd Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
EMERGE Commerce Ltd. Strengthens Financial Position with Warrant Expiry and CEO Option Exercise
Positive
Jul 22, 2025

EMERGE Commerce Ltd. announced the expiry of 12.3 million warrants, which were not exercised, thereby minimizing potential dilution. The company raised $270,000 from the exercise of 2.7 million warrants at $0.10, reflecting investor confidence and strengthening its cash position to $3.5 million as of June 30, 2025. CEO Ghassan Halazon also exercised 91,000 options at $0.11, aligning with shareholders and supporting the company’s strategic growth plans.

Business Operations and StrategyFinancial Disclosures
EMERGE Commerce Ltd Reports Strong Q2 Growth and Financial Health
Positive
Jul 16, 2025

EMERGE Commerce Ltd reported significant growth in its preliminary unaudited Q2 2025 results, with revenue increasing by 79% year-over-year to $8.3 million. The company also improved its adjusted EBITDA, expecting a positive range between $900,000 and $1 million, compared to a loss in the previous year. The cash position grew to $3.5 million, indicating strong financial health. These results reflect EMERGE’s successful operational progress and strategic acquisitions, enhancing its market positioning in the e-commerce sector. The company plans to release its full second-quarter results in late August 2025.

Business Operations and Strategy
EMERGE Commerce Ltd. to Host Investor Webcast on Strategic Developments
Neutral
Jul 10, 2025

EMERGE Commerce Ltd. announced a virtual corporate presentation scheduled for July 16, 2025, where the company’s Founder and CEO, Ghassan Halazon, along with EMERGE Golf COO, Maurice Finn, will discuss the performance of their latest acquisition, operational progress, and future plans. This webcast is an opportunity for investors to gain insights into the company’s strategic direction and engage with management, potentially impacting stakeholder confidence and market positioning.

M&A TransactionsFinancial Disclosures
EMERGE Commerce Reports Strong Post-Acquisition Growth for Tee 2 Green
Positive
Jul 9, 2025

EMERGE Commerce Ltd announced strong financial results for Tee 2 Green (T2G) in its first quarter post-acquisition, with a 34% increase in revenue and a 41% rise in net income year-over-year. This performance, driven by targeted digital advertising and cross-brand synergies, exceeded expectations and allowed EMERGE to recoup its upfront cash payment for the acquisition in less than 90 days, highlighting the potential for continued growth and optimization within its portfolio.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
EMERGE Commerce Reports Strong Q2 Growth for Tee 2 Green Post-Acquisition
Positive
Jul 9, 2025

EMERGE Commerce Ltd. announced a significant revenue growth of 34% for Tee 2 Green (T2G) in its first quarter post-acquisition, surpassing management’s expectations. The acquisition, completed just before T2G’s seasonal peak, allowed EMERGE to leverage digital advertising and cross-brand synergies, resulting in cash flow that exceeded the upfront purchase price. This strong performance underscores EMERGE’s strategic positioning in the golf apparel and equipment market and highlights potential for continued growth and optimization.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
EMERGE Commerce Ltd. Announces AGM Results and New Compensation Strategy
Positive
Jun 30, 2025

EMERGE Commerce Ltd. announced the results of its annual general meeting, where all proposed matters were approved, including the election of directors and the appointment of auditors. The company also issued restricted share units to directors, officers, and employees as part of its compensation strategy, aligning with long-term shareholder value creation. This move reflects the board’s confidence in the company’s future prospects.

Executive/Board Changes
EMERGE Commerce Ltd. Cancels Director’s RSUs
Neutral
Jun 9, 2025

EMERGE Commerce Ltd. announced the cancellation of 557,692 restricted share units (RSUs) previously granted to a director, leaving a balance of 557,693 RSUs maturing in 2025. This action does not affect other RSU holders or alter the company’s fixed equity incentive plan, indicating a targeted adjustment rather than a broader policy change.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
EMERGE Commerce Ltd. Achieves Positive EBITDA and Eyes Further Growth
Positive
May 28, 2025

EMERGE Commerce Ltd. reported strong financial results for Q1 2025, marking its fourth consecutive quarter of organic revenue growth and achieving positive Adjusted EBITDA for the first time under its EMERGE 2.0 strategy. The company anticipates continued growth in Q2 2025, driven by the recent acquisition of Tee 2 Green, a profitable discount golf business, which is expected to enhance revenue, profitability, and cash flow. The sale of non-core asset Carnivore Club and refinancing of debt are strategic moves to strengthen its financial position, with the company focusing on accelerating revenue growth and improving its cost of capital.

Financial Disclosures
EMERGE Commerce Ltd. to Announce Q1 2025 Financial Results
Neutral
May 20, 2025

EMERGE Commerce Ltd. has announced that it will release its first quarter 2025 financial results on May 28, 2025, before the market opens. The company will also host a conference call on the same day to discuss these results, led by CEO Ghassan Halazon and CFO Dasha Enenko. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction in the competitive e-commerce sector.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Emerge Commerce Ltd Achieves Strong Growth and Strategic Expansion in 2024
Positive
Apr 28, 2025

Emerge Commerce Ltd reported strong financial results for Q4 and the full year 2024, marking its third consecutive quarter of organic revenue growth and a return to growth for the fiscal year. The company achieved significant improvements in profitability, including a positive net income in Q4, and increased its cash balance without raising additional capital. The sale of Carnivore Club and the acquisition of Tee 2 Green are strategic moves to streamline operations and focus on more profitable segments. The acquisition of Tee 2 Green, a profitable golf apparel and equipment business, is expected to enhance Emerge’s existing golf-related ventures. Additionally, the company refinanced its debt, which, along with anticipated interest rate cuts, is expected to result in cash savings.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025