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Exco Technologies Limited (TSE:XTC)
:XTC
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Exco Technologies
(OTC:XTC)
73Outperform
Exco Technologies (XTC) vs. S&P 500 (SPY)
Market Cap
C$214.24M
Dividend Yield8.11%
Average Volume (3M)30.84K
Price to Earnings (P/E)7.6
Beta (1Y)0.65
Revenue Growth-1.93%
EPS Growth3.61%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength55
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.73
Shares Outstanding38,395,554
10 Day Avg. Volume34,179
30 Day Avg. Volume30,837
Financial Highlights & Ratios
PEG Ratio2.12
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)5.40
P/FCF Ratio16.00
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
Exco Technologies Business Overview & Revenue Model
Company DescriptionExco Technologies (XTC) is a publicly traded company that specializes in the design, development, and manufacturing of automotive components and tooling solutions. The company operates in two main sectors: the Automotive Solutions segment, which provides interior trim components and assemblies for various automotive manufacturers, and the Casting and Extrusion segment, which supplies tooling solutions for the die-cast and extrusion industries. Exco Technologies is known for its commitment to innovation, quality, and customer satisfaction across its diverse range of products and services.
How the Company Makes MoneyExco Technologies generates revenue primarily through the sale of its automotive components and tooling solutions. In the Automotive Solutions segment, the company earns income by supplying interior trim components and assemblies directly to automotive manufacturers, leveraging long-term contracts and relationships with key industry players. The Casting and Extrusion segment contributes to the company's earnings by producing and selling specialized tooling for the die-casting and extrusion industries, serving a variety of sectors beyond automotive, including industrial and consumer markets. Significant partnerships with major automotive OEMs and industrial clients, along with a focus on technological advancements and operational efficiency, play a crucial role in driving Exco Technologies' financial performance.
Exco Technologies Financial Statement Overview
Summary
Exco Technologies demonstrates solid revenue growth and operational efficiency. The balance sheet is robust with low leverage and effective equity utilization. Cash flow is positive, though there is potential volatility in investing and financing activities.Income Statement
Exco Technologies demonstrates solid revenue growth with a notable increase from the previous year. The gross profit margin is strong, reflecting efficient production processes. However, the net profit margin shows room for improvement, indicating potential cost management issues. The EBIT and EBITDA margins are healthy, supporting operational profitability.78
Positive
Balance Sheet
The balance sheet is robust with a favorable debt-to-equity ratio, suggesting low leverage and financial stability. Return on equity is strong, indicating effective use of shareholders' capital. The equity ratio reflects a healthy proportion of equity funding, reducing risks associated with liabilities.82
Very Positive
Cash Flow
Cash flow analysis shows positive operating cash flows consistently exceeding net income, which is a positive indicator of cash generation ability. Free cash flow growth is strong, though fluctuations in investing and financing activities suggest potential volatility. Overall, cash flow management appears sound.75
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 624.65M | 637.79M | 619.30M | 489.94M | 461.17M | 412.31M |
| Gross Profit | |||||
| 112.23M | 135.11M | 130.59M | 97.27M | 109.21M | 88.55M |
| EBIT | |||||
| 38.36M | 47.86M | 42.41M | 27.50M | 48.91M | 31.86M |
| EBITDA | |||||
| 80.78M | 82.18M | 74.53M | 53.05M | 70.09M | 53.51M |
| Net Income Common Stockholders | |||||
| 28.22M | 29.62M | 26.28M | 18.97M | 38.42M | 27.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.29M | 31.64M | 15.80M | 17.02M | 24.10M | 33.12M |
| Total Assets | |||||
| 139.45M | 607.00M | 612.07M | 576.32M | 430.13M | 409.78M |
| Total Debt | |||||
| 219.00K | 112.25M | 116.36M | 114.01M | 5.54M | 6.51M |
| Net Debt | |||||
| -16.07M | 80.61M | 100.56M | 96.99M | -18.56M | -26.61M |
| Total Liabilities | |||||
| 25.21M | 225.73M | 241.05M | 227.81M | 85.07M | 78.77M |
| Stockholders Equity | |||||
| 114.23M | 381.27M | 371.02M | 348.51M | 345.06M | 331.01M |
| Cash Flow | Free Cash Flow | ||||
| 47.31M | 47.84M | 19.19M | -30.03M | 9.08M | 40.92M |
| Operating Cash Flow | |||||
| 77.03M | 81.74M | 58.17M | 23.47M | 47.79M | 64.42M |
| Investing Cash Flow | |||||
| -29.47M | -33.72M | -37.79M | -110.36M | -38.33M | -22.11M |
| Financing Cash Flow | |||||
| -44.13M | -32.25M | -21.81M | 79.98M | -16.88M | -36.02M |
Exco Technologies Technical Analysis
Negative
5.28
Price Trends
6.21
Negative
6.93
Negative
7.33
Negative
Market Momentum
-0.16
Negative
33.72
Neutral
28.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTC, the sentiment is Negative. The current price of 5.28 is below the 20-day moving average (MA) of 5.81, below the 50-day MA of 6.21, and below the 200-day MA of 7.33, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 33.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTC.
Exco Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.92B | 35.59 | 7.09% | ― | 33.74% | 61.09% | |
73 Outperform | C$214.24M | 7.63 | 7.46% | 8.11% | -1.93% | 3.61% | |
72 Outperform | $9.60B | ― | -5.31% | ― | 1.44% | -183.14% | |
69 Neutral | $2.89B | 11.49 | 4.98% | 2.35% | 8.72% | -48.78% | |
66 Neutral | C$3.10B | 33.11 | 5.30% | ― | -7.46% | -49.87% | |
60 Neutral | $478.22M | 5.65 | -2.13% | 3.25% | -6.10% | -127.62% | |
59 Neutral | $11.74B | 10.16 | -1.06% | 4.15% | 1.27% | -16.61% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:XTC
Exco Technologies
5.66
-1.21
-17.61%
TSE:CAE
CAE
32.73
5.81
21.58%
TSE:LNR
Linamar
48.23
-19.78
-29.09%
TSE:MRE
Martinrea International
6.31
-4.83
-43.36%
TSE:ATS
ATS Corporation
34.71
-8.30
-19.30%
TSE:MDA
MDA Ltd
26.31
11.68
79.84%
Exco Technologies Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -24.41% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
While Exco Technologies faced significant challenges in the first quarter of fiscal 2025, including a decline in sales and income, increased labor costs, and production delays, there are positive signs such as a strong financial position, encouraging quoting activity, and improved margins in the casting and extrusion segment. The company remains confident in its long-term strategy and ability to meet future targets.Highlights
Strong Financial Position
Exco ended the quarter with $119 million in cash, $96 million in bank and long-term debt, and $56 million in availability on its credit facility, indicating a solid financial position to support strategic initiatives.
Encouraging Quoting Activity
Despite challenges, quoting activity remains strong, reflecting ongoing demand for Exco's products and providing optimism for future growth.
Successful Labor Negotiations
Exco successfully completed annual negotiations with Mexican labor unions at levels consistent with budgeted expectations.
Improved Margins in Casting and Extrusion Segment
Margins in the casting and extrusion segment improved slightly year-over-year due to program pricing improvements, favorable product mix, and efficiency initiatives.
Lowlights
Decline in Consolidated Sales and Income
Consolidated sales decreased by $13 million or 8% compared to the previous year, and net income fell from $5.6 million to $4.2 million.
Automotive Solutions Segment Challenges
Sales in the automotive solutions segment decreased by $10.9 million or 13%, driven by lower production volumes, customer-driven delays, and unfavorable vehicle mix.
Higher Labor Costs
Margins were compressed due to higher labor costs, particularly in Mexico, alongside severance expenses related to workforce reductions.
Production Delays and Lower Volumes
Production volumes decreased in North America by 3% and in Europe by 13%, affecting sales negatively due to rising dealer inventory levels and OEM customer plant shutdowns.
Company Guidance
During the Exco Technologies Limited First Quarter Results 2025 Conference Call, CEO Darren Kirk highlighted several key metrics and guidance for the upcoming periods. The company faced challenges in Q1 due to a 3% decline in U.S. automotive production and a more significant 10% drop in Europe, compounded by customer-driven delays in new program launches. Despite these headwinds, Exco remains committed to its long-term strategy, driven by strong quoting activity and secular trends like increased aluminum use. The U.S. saw robust vehicle sales with an annualized rate of around 16 million units. Exco's automotive solutions segment experienced a 13% sales decrease, while the casting and extrusion segment saw a 3% decline. Consolidated sales dropped by 8% to $143.6 million, with net income at $4.2 million, down from $5.6 million the previous year. The company emphasized operational efficiency and cost mitigation strategies, including automation and price increases. Exco's financial position remains strong, with $119 million in cash and $56 million in available credit, supporting growth initiatives and strategic goals toward its 2026 targets.Exco Technologies Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Exco Technologies Reports First Quarter 2024 Results Amidst Industry Headwinds
Neutral
Jan 29, 2025
Exco Technologies reported its financial results for the first quarter ending December 31, 2024, with consolidated sales of $143.6 million, representing an 8% decrease from the previous year. The company faced headwinds in the automotive sector due to production adjustments but remains optimistic about future growth driven by secular trends such as the increasing use of aluminum and the growth of OEM vehicle accessories. Despite challenges, Exco is focusing on operational efficiency and strategic investments to capitalize on market trends. The company announced a quarterly dividend of $0.105 per share, to be paid on March 31, 2025.
Shareholder MeetingsBusiness Operations and Strategy
Exco Technologies Reports Strong Shareholder Support at 2024 Annual Meeting
Positive
Jan 23, 2025
Exco Technologies announced the results of its 2024 annual meeting, during which a substantial majority of shareholders voted in favor of electing each director nominee. The meeting saw 66.5% of common shares voted, and Ernst & Young, LLP was reappointed as auditors. This outcome solidifies leadership stability and supports the company’s ongoing strategic objectives.
Exco Technologies to Announce Q1 Results and Host Virtual AGM
Jan 13, 2025
Exco Technologies announced it will release its first-quarter financial results on January 29, 2025, with a follow-up conference call scheduled for January 30, 2025, to discuss these results. The company also reminded stakeholders of its virtual Annual General Meeting occurring on January 22, 2025, highlighting its commitment to engaging with shareholders and maintaining transparency in its operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.