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Emerge Commerce Ltd
(ECOM)
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Rating:49Neutral
Price Target:
C$0.08
▼(-6.25% Downside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving financial performance and strong TTM cash generation, which indicate a progressing turnaround. Offsetting this are high balance-sheet risk from negative equity and weak technical positioning with the stock below key moving averages; valuation is also constrained by a negative P/E and no dividend yield data.
Positive Factors
Revenue Growth
A near 40% reported revenue growth reflects durable demand and successful scaling of the company’s brands. Sustained top-line expansion supports operating leverage, reinvestment in marketing and product, and provides a multi-month runway for continued margin and cash-flow improvement if execution holds.
Negative Factors
Negative Shareholders' Equity
A negative equity position is a persistent structural weakness that constrains financial flexibility and heightens insolvency risk. It limits access to debt or equity markets, raises cost of capital, and can force defensive actions that impair long-term investment or M&A optionality if not repaired.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A near 40% reported revenue growth reflects durable demand and successful scaling of the company’s brands. Sustained top-line expansion supports operating leverage, reinvestment in marketing and product, and provides a multi-month runway for continued margin and cash-flow improvement if execution holds.
Read all positive factors
Emerge Commerce Ltd (ECOM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$13.24M
Dividend YieldN/A
Average Volume (3M)166.88K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth39.58%
EPS Growth83.15%
CountryCA
Employees120
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding176,474,580
10 Day Avg. Volume115,498
30 Day Avg. Volume166,883
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)-2.48
Price to Sales (P/S)0.71
P/FCF Ratio11.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Emerge Commerce Ltd Business Overview & Revenue Model
Company Description
Emerge Commerce Ltd. manages and operates a collection of digital retail platforms, catering to markets across Canada and the United States. The company's prominent online ventures include truLOCAL.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com, B...
How the Company Makes Money
Emerge Commerce makes money primarily by selling products online through its portfolio of e-commerce brands. Revenue is generated when customers purchase merchandise via the company’s direct-to-consumer websites (and, where used, third-party marke...
Emerge Commerce Ltd Earnings Call Summary
Earnings Call Date:Nov 28, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
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.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.
Negative Updates
Adjusted EBITDA Still Negative
Despite improvements, adjusted EBITDA remains negative at $280,000 for Q3 2024.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
52
Neutral
Balance Sheet
28
Negative
Cash Flow
73
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.66M | 20.42M | 23.83M | 58.17M | 34.83M |
| Gross Profit | 9.57M | 8.25M | 11.88M | 23.79M | 15.11M |
| EBITDA | 1.80M | 908.43K | -15.66M | -4.50M | -1.16M |
| Net Income | -151.52K | -1.03M | -21.26M | -17.38M | -6.56M |
Balance Sheet | |||||
| Total Assets | 10.82M | 7.80M | 22.99M | 59.75M | 80.28M |
| Cash, Cash Equivalents and Short-Term Investments | 4.32M | 3.16M | 2.54M | 5.88M | 7.77M |
| Total Debt | 7.36M | 6.96M | 18.25M | 25.98M | 24.50M |
| Total Liabilities | 18.71M | 16.63M | 32.86M | 49.63M | 53.27M |
| Stockholders Equity | -7.89M | -8.83M | -9.87M | 10.11M | 27.00M |
Cash Flow | |||||
| Free Cash Flow | 1.65M | 127.02K | 2.02M | 1.02M | -3.47M |
| Operating Cash Flow | 1.65M | 129.33K | 2.03M | 1.06M | -3.43M |
| Investing Cash Flow | -396.50K | 11.73M | 7.10M | -44.60K | -27.34M |
| Financing Cash Flow | -179.94K | -11.42M | -9.55M | -3.09M | 26.18M |
Emerge Commerce Ltd Technical Analysis
Negative
0.08
Price Trends
0.08
Negative
0.09
Negative
0.10
Negative
Market Momentum
>-0.01
Negative
47.95
Neutral
100.00
Negative
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 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.95 is Neutral, 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 Negative sentiment for TSE:ECOM.
Emerge Commerce Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$84.44B | 19.66 | 20.01% | 0.95% | 3.91% | 23.32% | |
70 Outperform | C$492.75M | 85.39 | 8.44% | ― | 21.49% | 42.38% | |
67 Neutral | C$1.71B | 10.80 | 12.76% | 6.12% | -0.15% | -2.29% | |
61 Neutral | C$1.33B | 13.66 | 117.77% | 2.67% | 5.62% | 7.18% | |
60 Neutral | C$10.45B | 17.80 | 10.24% | 3.26% | 1.05% | -6.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | C$13.24M | -50.00 | 3.40% | ― | 39.58% | 83.15% |
* General Sector Average
TSE:ECOM
Emerge Commerce Ltd
0.08
>-0.01
-6.25%
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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.