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Exco Technologies Limited (TSE:XTC)
:XTC
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Exco Technologies
(OTC:XTC)
Rating:70Outperform
Price Target:
C$7.50
▲(13.64% Upside)
Exco Technologies (XTC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$252.32M
Dividend Yield6.32%
Average Volume (3M)12.93K
Price to Earnings (P/E)10.7
Beta (1Y)0.69
Revenue Growth-3.50%
EPS Growth-22.76%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength74
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.14
Shares Outstanding38,229,660
10 Day Avg. Volume15,559
30 Day Avg. Volume12,931
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)0.81
Price to Sales (P/S)0.49
P/FCF Ratio6.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.49Price Target Upside13.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Exco Technologies Business Overview & Revenue Model
Company DescriptionExco Technologies (XTC) is a global provider of innovative technologies and tools for the die-cast, extrusion, and automotive industries. The company operates through three main business segments: Extrusion Tooling Solutions, Automotive Solutions, and Die-Cast Solutions. Exco's core products and services include the design, development, and manufacturing of dies, molds, casting equipment, and related components that are essential for the production of automotive and industrial parts.
How the Company Makes MoneyExco Technologies generates revenue through the sale of its products and services across its three business segments. In the Extrusion Tooling Solutions segment, the company makes money by designing and manufacturing custom extrusion dies that cater to a variety of industries, including automotive and construction. The Automotive Solutions segment contributes to earnings by providing interior trim components and assemblies for automotive manufacturers, leveraging long-term relationships and contracts with major OEMs. Lastly, the Die-Cast Solutions segment earns revenue by supplying die-cast molds and ancillary equipment that are critical for the production of parts used in automotive powertrains and other industrial applications. Exco's financial performance is influenced by factors such as automotive production levels, new vehicle launches, technological advancements, and global economic conditions. The company also benefits from strategic partnerships and collaborations within the automotive industry, which help in securing consistent business and driving growth.
Exco Technologies Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q3-2025)
| % Change Since: -4.07%|
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Exco's resilience in extrusion tooling and effective cost management strategies amidst challenging automotive market conditions. While there were positive developments in trade agreements and a strong financial position, significant declines in automotive production, sales, and die-cast tooling demand, along with profitability pressures, indicate a balanced sentiment with challenges and opportunities.Q3-2025 Updates
Positive Updates
Resilience in Extrusion Tooling
Despite challenges, the extrusion tooling operations delivered relatively stable results with sales of extrusion dies and associated tooling remaining flat year-over-year, showcasing resilience across diverse end markets including building, construction, green energy, aerospace, and transportation.
Cost Management and Strategic Initiatives
Effective cost management within Automotive Solutions maintained relatively firm EBITDA margins despite volume headwinds. Headcount reductions and restructuring measures were implemented to offset rising labor costs, with a payback period expected within a year.
Positive Developments in Trade Agreements
New trade agreements between the United States, EU, Japan, and South Korea established a 15% baseline tariff, which is more stable than the previously threatened 25% plus scenarios, offering clearer rules and stability for future OEM decisions.
Strong Financial Position
Exco ended the quarter with $23.5 million in cash and $57 million available under the credit facility, supporting strategic initiatives and enabling pursuit of growth opportunities, dividends, and other investments.
Negative Updates
Decline in Automotive Production and Sales
Automotive production volumes declined in North America and Europe, with a 5% and 3% expected drop respectively for 2025. This led to a mid-single-digit percentage decline in Exco's revenue for the quarter.
Pressure on Profitability
Consolidated net income decreased by $2.8 million or 34% from the previous year, affected by restructuring costs and adverse product and vehicle mix, particularly in the Automotive Solutions segment.
Weakness in Die-Cast Tooling
Demand for die-cast tooling weakened as OEMs delayed EV launches and shifted production towards hybrids, leading to a decline in order flow and a 63% drop in pre-tax profit for the Casting Extrusion segment.
Impact of Tariff Uncertainty
Tariff-related uncertainties continued to weigh on the Automotive Solutions segment, affecting sales due to reduced vehicle import volumes from Asia and unfavorable vehicle mix.
Company Guidance
In the third quarter of fiscal year 2025, Exco Technologies Limited faced significant challenges due to declining automotive production volumes in North America and Europe, which were exacerbated by tariff-related trade disruptions and macroeconomic uncertainties. The company's revenue declined by 4% to $154.9 million compared to the previous year, with foreign exchange rate changes contributing to a $3.1 million increase in sales. Net income decreased by 34% to $5.4 million, or $0.14 per share, influenced by $600,000 in after-tax restructuring charges. The Automotive Solutions segment experienced a sales decline of $2.1 million, impacted by tariffs and unfavorable product mixes, while the Casting and Extrusion segment saw a 6% reduction in sales, primarily due to weakened die-cast tooling demand. Despite these pressures, Exco managed to maintain relatively stable EBITDA margins through efficiency gains, pricing actions, and restructuring measures. The company remains cautiously optimistic about future prospects, buoyed by recent international trade agreements that bring more stability to the industry and a promising outlook for long-term automotive demand drivers.Exco Technologies Financial Statement Overview
Summary
Exco Technologies demonstrates a strong financial position with consistent revenue growth and efficient cash flow management. The company shows stable profitability ratios, but there is room for improvement in net income margins and return on equity. Prudent leverage management and a solid equity base provide a stable foundation for future growth.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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 620.01M | 637.79M | 619.30M | 489.94M | 461.17M | 412.31M |
| Gross Profit | 127.91M | 135.11M | 130.59M | 97.27M | 109.21M | 88.55M |
| EBITDA | 71.68M | 82.18M | 74.53M | 53.05M | 70.09M | 53.51M |
| Net Income | 23.80M | 29.62M | 26.28M | 18.97M | 38.42M | 27.42M |
Balance Sheet | ||||||
| Total Assets | 604.71M | 607.00M | 612.07M | 576.32M | 430.13M | 409.78M |
| Cash, Cash Equivalents and Short-Term Investments | 23.51M | 31.64M | 15.80M | 17.02M | 24.10M | 33.12M |
| Total Debt | 102.14M | 112.25M | 116.36M | 114.01M | 5.54M | 6.51M |
| Total Liabilities | 208.45M | 225.73M | 241.05M | 227.81M | 85.07M | 78.77M |
| Stockholders Equity | 396.27M | 381.27M | 371.02M | 348.51M | 345.06M | 331.01M |
Cash Flow | ||||||
| Free Cash Flow | 39.55M | 47.84M | 19.19M | -30.03M | 9.08M | 40.92M |
| Operating Cash Flow | 73.22M | 81.74M | 58.17M | 23.47M | 47.79M | 64.42M |
| Investing Cash Flow | -33.30M | -33.72M | -37.79M | -110.36M | -38.33M | -22.11M |
| Financing Cash Flow | -37.02M | -32.25M | -21.81M | 79.98M | -16.88M | -36.02M |
Exco Technologies Technical Analysis
Negative
6.60
Price Trends
6.77
Negative
6.32
Positive
6.80
Negative
Market Momentum
>-0.01
Positive
42.28
Neutral
27.21
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 6.6 is below the 20-day moving average (MA) of 6.75, below the 50-day MA of 6.77, and below the 200-day MA of 6.80, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.21 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$4.12B | 16.34 | 4.66% | 1.55% | 2.26% | -54.00% | |
76 Outperform | C$16.21B | 9.76 | 10.06% | 4.69% | -0.54% | 26.31% | |
70 Outperform | C$252.32M | 10.67 | 6.01% | 6.32% | -3.50% | -22.76% | |
68 Neutral | C$494.16M | 14.87 | 12.96% | ― | 3.76% | 992.15% | |
67 Neutral | C$605.59M | 5.65 | -3.98% | 2.41% | -9.36% | -145.18% | |
61 Neutral | $16.55B | 10.12 | -9.03% | 3.33% | 1.44% | -22.51% | |
56 Neutral | C$605.61M | ― | 9.31% | ― | -18.16% | -275.09% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:XTC
Exco Technologies
6.60
-0.50
-6.98%
TSE:LNR
Linamar
68.94
6.75
10.86%
TSE:MRE
Martinrea International
8.32
-1.98
-19.23%
TSE:MG
Magna International
57.52
6.28
12.25%
TSE:CKI
Clarke Inc.
36.20
12.30
51.46%
TSE:ACQ
AutoCanada
26.16
7.79
42.41%
Exco Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Exco Technologies Reports Q3 2025 Financial Results Amid Market Challenges
Negative
Jul 30, 2025
Exco Technologies reported a decrease in consolidated sales for the third quarter of fiscal 2025, with sales dropping to $154.9 million from $161.8 million the previous year. Despite the challenges of customer delays, softer demand, and trade uncertainties, the company maintained a net income of $5.4 million. The Automotive Solutions segment faced declines due to unfavorable vehicle mix and production volumes, while the Casting and Extrusion segment saw a decrease in sales due to weakened demand for die-cast tooling. However, Exco remains optimistic about future growth opportunities, particularly in additive tooling and the potential benefits from anticipated tariff increases affecting foreign suppliers.
The most recent analyst rating on (TSE:XTC) stock is a Buy with a C$7.50 price target. To see the full list of analyst forecasts on Exco Technologies stock, see the TSE:XTC Stock Forecast page.
Financial Disclosures
Exco Technologies to Announce Q3 2025 Financial Results
Neutral
Jul 8, 2025
Exco Technologies Limited has announced that it will release its financial results for the third quarter of 2025 on July 30, 2025. The company will hold a conference call on July 31, 2025, to discuss these results, providing stakeholders an opportunity to engage with management and gain insights into the company’s financial performance.
The most recent analyst rating on (TSE:XTC) stock is a Buy with a C$7.50 price target. To see the full list of analyst forecasts on Exco Technologies stock, see the TSE:XTC Stock Forecast page.
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.