Emerge Commerce Ltd (ECOM) AI Stock Analysis

• Market Cap: C$14.20M
• Dividend Yield: N/A
• Average Volume (3M): 166.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• 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

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Emerge Commerce Ltd's overall stock score is primarily impacted by its financial instability, with significant challenges in profitability and balance sheet health. While technical indicators show bullish momentum, overbought conditions suggest caution. The negative P/E ratio further highlights valuation concerns.

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 makes money through its portfolio of owned and operated niche e-commerce brands. The company's primary revenue streams include direct-to-consumer sales from its various online platforms, subscription services, and membership fees. Additionally, ECOM generates income via strategic partnerships and collaborations with other businesses, enhancing product offerings and expanding market reach. By focusing on niche markets, the company capitalizes on specialized consumer interests, allowing for higher margins and customer loyalty. The company's growth is further supported by acquiring and integrating complementary e-commerce brands, boosting its product range and customer base.

Emerge Commerce Ltd Financial Statement Overview

Summary

Emerge Commerce Ltd is facing significant financial challenges. The company has a declining revenue trend, negative profitability, and high leverage. The balance sheet is weak with negative equity, raising solvency concerns. Negative cash flows highlight operational cash strains and a heavy reliance on external financing.

Income Statement

Emerge Commerce Ltd has shown a declining revenue trend over recent years, with a notable drop from $58.2M in 2022 to $20.4M in TTM (Trailing-Twelve-Months). Gross profit margin for TTM is approximately 39.1%, but net profit margin remains negative at -3.4%, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company exhibits a weak balance sheet with a negative stockholders' equity of -$8.4M as of TTM, indicating liabilities are exceeding assets. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of $7M suggests significant leverage. The equity ratio is negative, reflecting insolvency concerns.

Cash Flow

Operating cash flow is negative at -$425K in TTM, showing cash outflows from operations. Free cash flow is also negative. The free cash flow to net income ratio is positive due to negative net income, but this is not a positive indicator of cash flow health. Cash flows are unstable, with significant reliance on financing activities historically.

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	-4.41M	-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: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.1 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.07 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITS	55 Neutral	C$480.44M	125.21	6.70%	―	35.02%	1471.05%
NTAR	51 Neutral	$38.90M	―	―	―	-57.13%	85.06%
ECOM	48 Neutral	C$14.20M	―	―	―	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.