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: 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$0.11 ▲(10.00% Upside)

Emerge Commerce Ltd's overall stock score is driven by strong corporate event outcomes and positive technical indicators. However, financial performance concerns, particularly around profitability and balance sheet stability, weigh down the score. The valuation is moderate, reflecting a balanced risk-reward profile.

Positive Factors

Revenue Growth

The company's ability to achieve positive revenue growth indicates successful market penetration and product adoption, which can enhance long-term business sustainability.

Cash Generation Ability

Efficient cash generation relative to net income suggests strong operational efficiency, providing the company with the liquidity needed to invest in growth opportunities.

Diverse Product Portfolio

A diverse product portfolio across multiple verticals reduces dependency on a single market segment, enhancing resilience against market fluctuations.

Negative Factors

Balance Sheet Stability

Negative equity and high leverage suggest financial instability, which can limit the company's ability to secure financing and invest in growth.

Profitability Challenges

Low profitability margins indicate cost pressures and inefficiencies, which can hinder the company's ability to generate sustainable profits over time.

Free Cash Flow Growth

Negative free cash flow growth suggests potential challenges in maintaining liquidity, which could impact the company's ability to fund operations and growth initiatives.

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. 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: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	68 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%
ECOM	60 Neutral	C$11.96M	-33.33	―	―	24.43%	―
NTAR	49 Neutral	C$31.03M	―	―	―	-59.22%	83.08%

Emerge Commerce Ltd Corporate Events

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.

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.