Emerge Commerce Ltd (ECOM) AI Stock Analysis

• Market Cap: C$20.93M
• Dividend Yield: N/A
• Average Volume (3M): 166.88K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.48
• Revenue Growth: 24.43%
• EPS Growth: N/A
• Country: CA
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$0.15 ▲(11.54% Upside)

The overall stock score for Emerge Commerce Ltd is driven primarily by its technical analysis, which indicates positive momentum. However, financial performance is a concern due to low profitability and financial instability. The valuation is also relatively high, which could deter value investors.

Positive Factors

DTC portfolio & data-driven model

Emerge's strategy of acquiring and scaling direct-to-consumer brands across health, lifestyle and household verticals, combined with explicit use of technology and data analytics, creates durable competitive advantages in customer acquisition, margin optimization and repeat revenue generation over the medium term.

Consistent revenue growth

The reported TTM revenue growth shows the business recovering and expanding sales, which underpins operating leverage potential. Sustained top-line growth supports continued investment in brand marketing and fulfillment efficiencies that can improve margins and cash generation over several quarters.

Strong free cash flow generation

A large FCF growth rate and near-1 free cash flow to net income conversion indicate efficient cash conversion from operations. This durable cash generation can fund organic growth, tuck-in acquisitions, or debt reduction, reducing refinancing risk and supporting strategic flexibility over months.

Negative Factors

Negative shareholder equity

Material negative equity signals accumulated losses or liabilities exceeding assets, constraining access to capital and limiting the balance sheet's shock-absorbing capacity. Over the medium term this raises refinancing and solvency risk and may force recapitalization or restrictive financing terms.

Very low net profitability

Despite healthy gross margins, the near-breakeven net profit margin indicates limited ability to retain earnings and generate shareholder returns. Persistently thin net margins slow equity rebuilding, reduce reinvestment capacity, and leave the business vulnerable to cost or demand shocks over the medium term.

Negative return on equity

A negative return on equity reflects the firm's inability to generate profits from shareholder capital. Over time this undermines investor confidence, increases the effective cost of raising new equity, and may limit strategic options like M&A or marketing-led growth without structural profitability improvements.

Emerge Commerce Ltd Business Overview & Revenue Model

Company Description

Emerge Commerce Ltd (ECOM) is a Canadian online commerce company that specializes in the acquisition and growth of direct-to-consumer brands in the e-commerce sector. ECOM operates across various verticals, including health and wellness, lifestyle, and household goods, offering a diverse portfolio of products designed to enhance customer experiences. The company's strategy focuses on leveraging technology and data analytics to optimize operations and drive sales growth across its brands.

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. Despite positive revenue growth and cash flow efficiency, the company struggles with leverage and equity deficits.

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	26.15M	20.42M	23.83M	58.17M	34.83M	9.20M
Gross Profit	9.46M	8.25M	11.88M	23.79M	15.11M	7.17M
EBITDA	2.89M	908.43K	-15.66M	-4.50M	-1.16M	-1.03M
Net Income	917.36K	-1.03M	-21.26M	-17.38M	-6.56M	-4.43M
Balance Sheet
Total Assets	11.13M	7.80M	22.99M	59.75M	80.28M	43.46M
Cash, Cash Equivalents and Short-Term Investments	4.30M	3.16M	2.54M	5.88M	7.77M	12.39M
Total Debt	7.72M	6.96M	18.25M	25.98M	24.50M	7.68M
Total Liabilities	18.71M	16.63M	32.86M	49.63M	53.27M	25.38M
Stockholders Equity	-7.58M	-8.83M	-9.87M	10.11M	27.00M	18.07M
Cash Flow
Free Cash Flow	2.97M	127.02K	2.02M	1.02M	-3.47M	-254.43K
Operating Cash Flow	2.97M	129.33K	2.03M	1.06M	-3.43M	-186.11K
Investing Cash Flow	230.63K	11.73M	7.10M	-44.60K	-27.34M	-5.61M
Financing Cash Flow	-905.33K	-11.42M	-9.55M	-3.09M	26.18M	9.54M

Emerge Commerce Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KITS	72 Outperform	C$562.78M	109.52	9.68%	―	32.31%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ECOM	57 Neutral	C$20.93M	39.71	―	―	24.43%	―
FTI	44 Neutral	C$4.19M	-1.74	―	―	―	―
NTAR	41 Neutral	C$36.57M	-6.73	―	―	-59.22%	83.08%

Emerge Commerce Ltd Corporate Events

Emerge CEO Outlines New Strategic Phase in Shareholder Letter

Emerge Commerce Ltd. announced that founder and CEO Ghassan Halazon has issued a shareholder letter titled “Re-EMERGE: Reflections and the Road Ahead,” offering a frank assessment of the company’s evolution as a public entity and outlining lessons learned across its e-commerce operations. The letter reviews the firm’s early growth phase, the subsequent multi-year turnaround effort, and a new strategy centered on disciplined, strategic growth, signaling to investors and stakeholders a shift toward more measured expansion and operational focus as the company enters its next stage.

The most recent analyst rating on (TSE:ECOM) stock is a Hold with a C$0.13 price target. To see the full list of analyst forecasts on Emerge Commerce Ltd stock, see the TSE:ECOM Stock Forecast page.

EMERGE Commerce Ltd. Achieves Record B2B Sales in Q4 2025

EMERGE Commerce Ltd. announced a record $1 million in B2B sales for Q4 2025, nearly doubling the $500,000 achieved in Q4 2024. This milestone, primarily driven by corporate holiday gifting and wholesale orders, marks the first time the company’s quarterly B2B sales have exceeded $1 million. The company aims to expand its B2B segment further, leveraging the high-profit margins and low additional costs associated with these sales, and plans to deepen client relationships and explore strategic acquisitions to enhance its platform.

The most recent analyst rating on (TSE:ECOM) stock is a Hold with a C$0.11 price target. To see the full list of analyst forecasts on Emerge Commerce Ltd stock, see the TSE:ECOM Stock Forecast page.

Emerge Commerce Ltd Reports Robust Q3 2025 Financial Results

Emerge Commerce Ltd reported a strong financial performance for Q3 2025, with a 58% increase in revenue and a significant improvement in adjusted EBITDA. The company also saw a substantial rise in its cash position, reflecting its disciplined approach to operations and growth. Emerge is on track to meet its full-year objectives of revenue growth, positive adjusted EBITDA, and cash flow, while also focusing on strategic acquisitions in its core and adjacent markets. The expiration of warrants and a streamlined capital structure further position the company for future growth.

EMERGE Commerce Ltd. Reports Strong Q3 2025 Financial Results with 58% Revenue Growth

EMERGE Commerce Ltd. reported a robust financial performance for Q3 2025, with a 58% year-over-year revenue increase to $7.0 million and a significant improvement in adjusted EBITDA to $261,000. The company also saw a substantial rise in its cash position to $4.1 million. EMERGE’s grocery and golf sectors showed positive organic growth, contributing to the company’s third consecutive quarter of positive adjusted EBITDA. The company is on track to meet its full-year objectives of strong revenue growth and positive cash flow, while also streamlining its capital structure by reducing outstanding warrants. EMERGE is exploring strategic acquisitions in its core verticals and adjacent technologies to enhance its portfolio.

EMERGE Commerce Ltd. to Announce Q3 2025 Financial Results

EMERGE Commerce Ltd. announced it will release its third quarter 2025 financial results on November 26, 2025, before the market opens. The company will also host a conference call on the same day to discuss these results, potentially impacting stakeholders by providing insights into the company’s financial health and operational performance.

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.