Exco Technologies (XTC) AI Stock Analysis

• Market Cap: C$259.76M
• Dividend Yield: 6.19%
• Average Volume (3M): 14.74K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.73
• Revenue Growth: -2.84%
• EPS Growth: -8.22%
• Country: CA
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 0.17
• Shares Outstanding: 38,312,862
• 10 Day Avg. Volume: 12,792
• 30 Day Avg. Volume: 14,737
• PEG Ratio: -1.77
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.83
• 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: C$7.49
• Price Target Upside: 10.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: C$8.00 ▲(17.99%Upside)

Exco Technologies holds a strong financial position with attractive valuation metrics. The technical indicators show positive momentum. While the earnings call noted some operational challenges, the overall sentiment remains optimistic due to strategic initiatives and strong cash flow.

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 segments, Casting and Extrusion, and Automotive Solutions. The Casting and Extrusion segment designs, develops, and manufactures tooling and consumable parts for aluminum die-casting and aluminum extrusion machines. It has operations in North America, South America, Morocco, and Thailand; and serves automotive and industrial markets worldwide. The Automotive Solutions segment produces automotive interior trim components and assemblies primarily for passenger and light truck vehicles. This segment offers synthetic net and other cargo restraint products, injection-molded components, shift/brake boots, instrument panel components, sun visors, seat covers, head rests, other cut and sew products, and related interior trim components and assemblies. This segment also supplies plastic trunk trays and organizer systems, floor mats, and bumper covers, as well as die cut leather sets for seating applications. It has operations in Canada, the United States, Europe, Mexico, South America, Asia, and internationally. Exco Technologies Limited was founded in 1952 and is based in Markham, Canada.

How the Company Makes Money

Exco Technologies generates revenue primarily through the sale of its customized tooling and equipment solutions across its two main business segments. In the Casting and Extrusion segment, the company provides die-cast and extrusion tooling solutions, which are essential for the production of metal components in various industries. The Automotive Solutions segment offers interior trim components and assemblies, contributing significantly to Exco's revenue. Exco's revenue model is based on contracts with major automotive and industrial manufacturers, who require their specialized products and services for production efficiency and innovation. Key revenue streams include the sale of die-cast molds, extrusion dies, and automotive components. The company's earnings are also influenced by its ability to form strategic partnerships and maintain strong relationships with industry leaders, which ensures a steady demand for its products and services.

Exco Technologies Financial Statement Overview

Summary

Exco Technologies exhibits consistent revenue growth and efficient cash flow management. The balance sheet shows effective leverage management, but there is room for improvement in net income margins and return on equity.

Income Statement

Exco Technologies shows consistent revenue growth over the years, with a slight dip in TTM. The gross profit margin and EBITDA margin have been stable, suggesting efficient cost management. However, the net profit margin is relatively low, indicating potential room for improvement in managing operational expenses.

Balance Sheet

The company's balance sheet reflects a stable equity position with a decreasing debt-to-equity ratio over time, demonstrating effective leverage management. The equity ratio is strong, indicating a solid base of assets funded by equity. However, the return on equity is modest, suggesting a need for improving overall profitability.

Cash Flow

Exco Technologies has shown strong free cash flow generation in recent periods, with significant growth from prior years. The operating cash flow to net income ratio is healthy, indicating good cash conversion efficiency. However, the cash flow from financing activities suggests ongoing debt repayment, which may constrain future cash availability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	626.94M	637.79M	619.30M	489.94M	461.17M	412.31M
Gross Profit	123.12M	135.11M	130.59M	97.27M	109.21M	88.55M
EBITDA	79.24M	82.18M	74.53M	53.05M	70.09M	53.51M
Net Income	26.58M	29.62M	26.28M	18.97M	38.42M	27.42M
Balance Sheet
Total Assets	412.97M	607.00M	612.07M	576.32M	430.13M	409.78M
Cash, Cash Equivalents and Short-Term Investments	22.57M	31.64M	15.80M	17.02M	24.10M	33.12M
Total Debt	17.11M	112.25M	116.36M	114.01M	5.54M	6.51M
Total Liabilities	85.31M	225.73M	241.05M	227.81M	85.07M	78.77M
Stockholders Equity	327.67M	381.27M	371.02M	348.51M	345.06M	331.01M
Cash Flow
Free Cash Flow	37.58M	47.84M	19.19M	-30.03M	9.08M	40.92M
Operating Cash Flow	70.72M	81.74M	58.17M	23.47M	47.79M	64.42M
Investing Cash Flow	-32.82M	-33.72M	-37.79M	-110.36M	-38.33M	-22.11M
Financing Cash Flow	-36.60M	-32.25M	-21.81M	79.98M	-16.88M	-36.02M

Exco Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTC, the sentiment is Neutral. The current price of 6.78 is below the 20-day moving average (MA) of 6.80, above the 50-day MA of 6.41, and below the 200-day MA of 6.92, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:XTC.

Exco Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XTC	79 Outperform	C$259.76M	9.84	6.86%	6.19%	-2.84%	-8.22%
MG	73 Outperform	$14.84B	9.53	9.85%	7.03%	0.36%	15.87%
LNR	71 Outperform	C$3.81B	15.11	4.66%	1.82%	2.26%	-54.00%
CKI	68 Neutral	C$318.91M	9.81	12.96%	―	3.76%	992.15%
MRE	67 Neutral	$612.15M	5.65	-3.98%	2.38%	-9.36%	-145.18%
ACQ	63 Neutral	C$505.83M	―	9.31%	―	-18.16%	-275.09%
Sector *	61 Neutral	C$5.16B	10.92	18.94%	4.26%	5.08%	6.52%

Exco Technologies Corporate Events

Exco Technologies Reports Record Sales Amid Global Uncertainties

Exco Technologies reported record consolidated sales of $166.1 million for the second quarter of fiscal 2025, with a net income of $6.4 million. Despite a slight decline in the Automotive Solutions segment, the Casting and Extrusion segment saw a 7% increase in sales. The company withdrew its fiscal 2026 financial targets due to tariff uncertainties but remains optimistic about long-term growth opportunities. The announcement of a quarterly dividend reflects Exco’s commitment to returning value to shareholders. The company is strategically positioned to leverage growth opportunities, although global trade uncertainties and economic conditions pose challenges.