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Exco Technologies
(TSX:XTC)
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Rating:67Neutral
Price Target:
C$9.00
▲(11.25% Upside)
Action:Downgraded
Date:07/31/26
Overall score reflects solid but not exceptional fundamentals: conservative leverage and steady profitability are tempered by margin compression and weaker/less consistent free-cash-flow generation. Technicals are supportive with the stock trading above key moving averages, while valuation helps via a modest P/E and ~5% dividend yield. Earnings-call commentary is constructive on margin improvement and disciplined capex, but near-term cash-flow weakness and segment margin pressures cap the upside.
Positive Factors
Revenue growth / record sales
Sustained top‑line growth and a record quarterly sale indicate stronger program wins and market penetration. Persistent revenue expansion improves fixed‑cost absorption, supports capacity utilization and reinvestment, and underpins durable earnings potential beyond a single quarter.
Negative Factors
Weakened free cash flow
A meaningful drop in operating cash and FCF reduces financial flexibility to fund capex, pay dividends or execute M&A without increasing leverage. Historical volatility in cash conversion suggests earnings are more sensitive to working‑capital timing and could constrain durable capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth / record sales
Sustained top‑line growth and a record quarterly sale indicate stronger program wins and market penetration. Persistent revenue expansion improves fixed‑cost absorption, supports capacity utilization and reinvestment, and underpins durable earnings potential beyond a single quarter.
Read all positive factors
Exco Technologies (XTC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$313.39M
Dividend Yield5.02%
Average Volume (3M)19.84K
Price to Earnings (P/E)12.9
Beta (1Y)0.61
Revenue Growth0.52%
EPS Growth5.03%
CountryCA
Employees4,500
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.65
Shares Outstanding37,487,087
10 Day Avg. Volume16,406
30 Day Avg. Volume19,841
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)0.63
Price to Sales (P/S)0.42
P/FCF Ratio8.65
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)0.68
Revenue Forecast (FY)C$633.50M
Exco Technologies Business Overview & Revenue Model
Company Description
Established in 1952 and headquartered in Markham, Canada, Exco Technologies Limited and its subsidiaries are engaged in the design, development, and production of dies, molds, components, assemblies, and consumable equipment. These products serve ...
How the Company Makes Money
Exco Technologies makes money by manufacturing and selling specialized industrial products and tooling, primarily to automotive OEMs and Tier suppliers as well as aluminum extrusion and die-casting producers. Revenue is generated mainly through: (...
Exco Technologies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and strategic momentum: record quarterly sales, meaningful EBITDA growth and margin expansion, a strong performance in Casting & Extrusion, advances in additive manufacturing, and the strategic launch of Exco Energy. However, the quarter also exposed near‑term weaknesses — notably weaker cash generation, timing delays and margin pressure in die cast tooling, incremental closure costs in Mexico, and margin headwinds in the automotive segment. Management emphasized that many adverse items are temporary (deferred shipments remain in backlog, Mexico wind‑down complete) and highlighted moderated capital spending and available liquidity.Positive Updates
Record Quarterly Sales
Consolidated sales of $165.4M in Q3 FY26, reported as a 7% year‑over‑year increase and described as a third‑quarter company record.
Negative Updates
Reduced Cash Generation and Free Cash Flow Decline
Cash provided by operating activities fell to $13.4M from $25.2M year‑over‑year (≈-47%); free cash flow declined to $9.7M from $20.1M (≈-52%), driven by greater use of non‑cash working capital.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Sales
Consolidated sales of $165.4M in Q3 FY26, reported as a 7% year‑over‑year increase and described as a third‑quarter company record.
Read all positive updates
Company Guidance
Management's guidance emphasized translating the expanded asset base into higher utilization, improved margins, stronger cash generation and better returns on capital while keeping fiscal 26 capital spending disciplined (capex now expected at ~ $20 million, focused on maintenance and productivity); they noted Q4 will reflect normal OEM seasonality but expect die‑cast tooling to be "materially better" next quarter as backlog ships. Key reported metrics referenced in the guidance: consolidated Q3 sales $165.4M, EBITDA $18.5M (11.2% margin, +26% year‑over‑year and ~170 bps expansion), net income $5.8M ($0.15/share) including $0.6M after‑tax ($0.02/share) restructuring charges; segment figures included Casting & Extrusion sales $77.1M (≈+4%) with EBITDA margin 16.2% (from 12.7%) and pretax profit $5.1M (+97% y/y, incl. $0.9M restructuring), Automotive Solutions sales $88.3M (+9%) with pretax profit $6.5M (down $0.8M); operational and balance‑sheet metrics cited were cash from operations $13.4M, free cash flow $9.7M, cash $26.1M, net debt $63.9M, and ~$61.6M available on the credit facility; management also flagged increased quoting activity, an expanded additive‑manufacturing footprint (7th industrial 3D printer), roughly 4,500 employees, and that M&A is not on the front burner while they prioritize harvesting existing investments.Exco Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 623.22M | 615.26M | 637.79M | 619.30M | 489.94M | 461.17M |
| Gross Profit | 98.47M | 123.07M | 135.11M | 130.59M | 97.27M | 109.21M |
| EBITDA | 71.93M | 69.06M | 82.18M | 74.53M | 53.05M | 70.09M |
| Net Income | 24.62M | 24.29M | 29.62M | 26.28M | 18.97M | 38.42M |
Balance Sheet | ||||||
| Total Assets | 624.49M | 614.24M | 607.00M | 612.07M | 576.32M | 430.13M |
| Cash, Cash Equivalents and Short-Term Investments | 26.10M | 22.87M | 31.64M | 15.80M | 17.02M | 24.10M |
| Total Debt | 96.70M | 97.13M | 112.25M | 116.36M | 114.01M | 5.54M |
| Total Liabilities | 210.46M | 206.99M | 225.73M | 241.05M | 227.81M | 85.07M |
| Stockholders Equity | 414.02M | 407.25M | 381.27M | 371.02M | 348.51M | 345.06M |
Cash Flow | ||||||
| Free Cash Flow | 29.12M | 29.73M | 47.84M | 19.19M | -30.03M | 9.08M |
| Operating Cash Flow | 53.15M | 65.84M | 81.74M | 58.17M | 23.47M | 47.79M |
| Investing Cash Flow | -24.05M | -35.76M | -33.72M | -37.79M | -110.36M | -38.33M |
| Financing Cash Flow | -27.51M | -39.63M | -32.25M | -21.81M | 79.98M | -16.88M |
Exco Technologies Technical Analysis
Positive
8.09
Price Trends
7.80
Positive
7.59
Positive
7.17
Positive
Market Momentum
0.22
Negative
73.50
Negative
86.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTC, the sentiment is Positive. The current price of 8.09 is above the 20-day moving average (MA) of 7.96, above the 50-day MA of 7.80, and above the 200-day MA of 7.17, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 73.50 is Negative, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:XTC.
Exco Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$26.17B | 25.19 | 5.42% | 2.92% | 1.59% | -35.21% | |
72 Outperform | C$6.12B | 9.83 | 10.37% | 1.14% | 2.38% | 149.43% | |
67 Neutral | C$313.39M | 12.86 | 6.02% | 5.19% | 0.52% | 5.03% | |
66 Neutral | C$722.41M | 6.29 | 7.74% | 1.98% | -1.63% | ― | |
66 Neutral | C$401.17M | 9.15 | 7.97% | 2.85% | -0.75% | 52.17% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | C$539.40M | 21.78 | 5.29% | ― | -6.30% | ― |
* Consumer Cyclical Sector Average
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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.