Exco Technologies Limited (TSE:XTC)
TSX:XTC
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Exco Technologies
(TSX:XTC)
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Rating:71Outperform
Price Target:
C$8.50
▲(25.18% Upside)
Action:Upgraded
Date:05/29/26
The score is driven primarily by solid overall financial health (conservative leverage and improved free cash flow) tempered by flat revenue and margin compression. Valuation is a clear positive due to the moderate P/E and strong dividend yield, while technicals indicate a mildly positive trend without strong momentum.
Positive Factors
Balance sheet conservatism
A low debt-to-equity ratio (~0.24 TTM) and stable equity provide durable financial flexibility. This conservatism supports capital spending for tooling, cushions downturns in cyclical end markets, and preserves capacity for dividends or opportunistic investments over the next several quarters.
Negative Factors
Flat revenue and margin pressure
Stagnant top-line and compressed gross/EBITDA margins indicate weakening operating leverage and margin sustainability. Persistent margin pressure reduces retained earnings and reinvestment capacity, making earnings growth reliant on cost remediation or structural improvements over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet conservatism
A low debt-to-equity ratio (~0.24 TTM) and stable equity provide durable financial flexibility. This conservatism supports capital spending for tooling, cushions downturns in cyclical end markets, and preserves capacity for dividends or opportunistic investments over the next several quarters.
Read all positive factors
Exco Technologies (XTC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$296.99M
Dividend Yield6.21%
Average Volume (3M)19.84K
Price to Earnings (P/E)12.3
Beta (1Y)0.63
Revenue Growth-2.28%
EPS Growth-7.56%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.64
Shares Outstanding37,593,420
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)0.87
Revenue Forecast (FY)C$639.20M
Exco Technologies Business Overview & Revenue Model
Company Description
Exco Technologies Limited, together with its subsidiaries, designs, develops, and manufactures dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. It operates through two segment...
How the Company Makes Money
Exco makes money by selling manufactured products and related services to OEMs and Tier suppliers (primarily in automotive) and to industrial customers. Its key revenue streams are: (1) Automotive tooling and related manufacturing solutions: Exco ...
Exco Technologies Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call communicated a cautiously optimistic outlook: several meaningful operational and financial positives (consolidated sales growth, higher net income/EPS, strong Automotive Solutions performance, productivity gains offsetting wage inflation, improved free cash flow and strong liquidity) outweigh a set of near-term headwinds (weakness in die-cast tooling due to OEM and policy shifts, modest decline in Casting & Extrusion profit, FX-driven corporate expense increase, and scaling issues at new facilities). Management emphasized durable tailwinds (reshoring, diversification, additive tooling, AI/data center demand) and lower capital intensity, supporting confidence in sustained improvement.Positive Updates
Consolidated Revenue Growth
Consolidated sales of $149.5 million for Q1 FY2026, up $6.0 million or 4% versus $143.6 million a year ago (foreign exchange contributed ~ $1 million).
Negative Updates
Die-Cast Tooling Weakness and EV Demand Shift
Casting & Extrusion faced a sharp slowdown in die-cast molds as OEMs paused/cancelled programs amid regulatory and policy changes; EV tooling demand has softened with OEMs refocusing on hybrids and ICE platforms, depressing near-term die-cast revenues.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated sales of $149.5 million for Q1 FY2026, up $6.0 million or 4% versus $143.6 million a year ago (foreign exchange contributed ~ $1 million).
Read all positive updates
Company Guidance
Management's guidance emphasized harvesting recent growth investments with lower capital spending (Fiscal 2026 CapEx forecast $28.0M vs $36.0M in FY2025; Q1 growth CapEx $0.2M, maintenance CapEx $4.3M) and capital outlays expected to trend below historical averages; they expect die‑cast tooling revenues to begin rising late Q2 (≈6‑month lead times) as quoting activity improves, continued Automotive momentum after Q1 Automotive sales of $79.3M (+10%) and pretax profit $6.5M (+37%), and recovery in Casting & Extrusion (Q1 sales $70.2M, -2%; pretax $3.5M, -6%) as demand diversifies. Consolidated Q1 metrics supporting the outlook were $149.5M sales (+4%, +$6.0M), net income $4.8M ($0.13/share vs $0.11), EBITDA $17.4M (12% of sales), effective tax rate 31.8% (vs 35.8% prior), operating cash flow $10.2M, free cash flow $4.8M, net debt $67.1M, cash $24.6M and $59.8M available under a $151M credit facility (matures Mar 2027); management also noted AI/data‑center extrusion is currently a low single‑digit % of revenue but growing in the double digits and that near‑term M&A activity is limited.Exco Technologies Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 612.66M | 615.26M | 637.79M | 619.30M | 489.94M | 461.17M |
| Gross Profit | 106.74M | 123.07M | 135.11M | 130.59M | 97.27M | 109.21M |
| EBITDA | 67.95M | 69.06M | 82.18M | 74.53M | 53.05M | 70.09M |
| Net Income | 24.25M | 24.29M | 29.62M | 26.28M | 18.97M | 38.42M |
Balance Sheet | ||||||
| Total Assets | 617.23M | 614.24M | 607.00M | 612.07M | 576.32M | 430.13M |
| Cash, Cash Equivalents and Short-Term Investments | 22.48M | 22.87M | 31.64M | 15.80M | 17.02M | 24.10M |
| Total Debt | 98.60M | 97.13M | 112.25M | 116.36M | 114.01M | 5.54M |
| Total Liabilities | 211.15M | 206.99M | 225.73M | 241.05M | 227.81M | 85.07M |
| Stockholders Equity | 406.08M | 407.25M | 381.27M | 371.02M | 348.51M | 345.06M |
Cash Flow | ||||||
| Free Cash Flow | 36.02M | 29.73M | 47.84M | 19.19M | -30.03M | 9.08M |
| Operating Cash Flow | 65.98M | 65.84M | 81.74M | 58.17M | 23.47M | 47.79M |
| Investing Cash Flow | -29.83M | -35.76M | -33.72M | -37.79M | -110.36M | -38.33M |
| Financing Cash Flow | -32.38M | -39.63M | -32.25M | -21.81M | 79.98M | -16.88M |
Exco Technologies Technical Analysis
Positive
6.79
Price Trends
7.49
Positive
7.36
Positive
6.93
Positive
Market Momentum
0.04
Negative
57.90
Neutral
61.30
Neutral
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 6.79 is below the 20-day moving average (MA) of 7.58, below the 50-day MA of 7.49, and below the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 61.30 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | C$6.23B | 9.93 | 10.37% | 1.32% | 2.38% | 149.43% | |
71 Outperform | C$296.99M | 12.30 | 6.05% | 6.21% | -2.28% | -7.56% | |
71 Outperform | C$26.27B | 28.22 | 5.42% | 3.69% | 0.29% | -40.45% | |
65 Neutral | C$820.95M | 7.08 | 7.74% | 1.93% | -1.63% | ― | |
63 Neutral | C$414.69M | 12.55 | 5.49% | 2.80% | 2.80% | -21.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | C$497.73M | 20.00 | 5.29% | ― | -6.30% | ― |
* Consumer Cyclical Sector Average
TSE:XTC
Exco Technologies
7.67
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21.04%
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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.