TSX:ECI

Stock Analysis Report

Executive Summary

Enercare Inc., through its subsidiaries, provides home and commercial services, and energy solutions in Canada and the United States.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has EnerCare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ECI

0.1%

CA Consumer Services

0.3%

CA Market


1 Year Return

0%

ECI

3.8%

CA Consumer Services

5.5%

CA Market

Return vs Industry: ECI underperformed the Canadian Consumer Services industry which returned 3.4% over the past year.

Return vs Market: ECI underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

ECIIndustryMarket
7 Day0%0.1%0.3%
30 Day0%0.6%0.5%
90 Day0%1.0%3.5%
1 Year0%0%4.1%3.8%8.8%5.5%
3 Year63.9%48.9%66.2%52.7%14.8%4.5%
5 Year139.0%95.6%142.4%101.2%34.1%14.5%

Price Volatility Vs. Market

How volatile is EnerCare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is EnerCare undervalued compared to its fair value and its price relative to the market?

44.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECI (CA$28.99) is trading above our estimate of fair value (CA$8.55)

Significantly Below Fair Value: ECI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ECI is poor value based on its PE Ratio (44.7x) compared to the Consumer Services industry average (28.6x).

PE vs Market: ECI is poor value based on its PE Ratio (44.7x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ECI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ECI is overvalued based on its PB Ratio (5.2x) compared to the CA Consumer Services industry average (1.3x).


Next Steps

Future Growth

How is EnerCare forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

45.5%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as EnerCare has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has EnerCare performed over the past 5 years?

25.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ECI has high quality earnings.

Growing Profit Margin: ECI's current net profit margins (5.3%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: ECI has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: Insufficient data to compare ECI's past year earnings growth to its 5-year average.

Earnings vs Industry: ECI earnings growth over the past year (25.7%) exceeded the Consumer Services industry 16.4%.


Return on Equity

High ROE: ECI's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EnerCare's financial position?


Financial Position Analysis

Short Term Liabilities: ECI's short term assets (CA$257.8M) exceed its short term liabilities (CA$256.5M).

Long Term Liabilities: ECI's short term assets (CA$257.8M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: ECI's debt to equity ratio (179.5%) is considered high.

Reducing Debt: ECI's debt to equity ratio has reduced from 693.6% to 179.5% over the past 5 years.

Debt Coverage: ECI's debt is well covered by operating cash flow (20.5%).

Interest Coverage: ECI's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: ECI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is EnerCare's current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.9%markettop25%5.3%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ECI's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: ECI's dividend (3.44%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: ECI's dividends per share have been stable in the past 10 years.

Growing Dividend: ECI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (149.5%), ECI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Jenine Krause 0

1.2yrs

Tenure

CA$1,794,940

Compensation

Ms. Jenine Krause has been the President and Chief Executive Officer of EnerCare Inc. and EnerCare Solutions Inc. since August 15, 2018. Ms. Krause was the Chief Operating Officer of Home Services Business ...


CEO Compensation Analysis

Compensation vs Market: Jenine's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD2.17M).

Compensation vs Earnings: Insufficient data to compare Jenine's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jenine Krause
President & CEO1.2yrsCA$1.79mno data
John Toffoletto
Senior VP4.6yrsCA$937.20kno data
Scott Boose
President & CEO of Service Experts2.6yrsCA$82.34kno data
Geoff Lowe
Chief Financial Officer1.3yrsno datano data
Irit Zaguskin
Chief Information Officer3.8yrsno datano data
Sophia Bisoukis
Vice President of Investor Relations0yrsno datano data
Colleen Nancy Moffitt
Chief Human Resources Officer4.5yrsno datano data
John Piercy
Senior VP & GM of Sub-metering3.3yrsno datano data
Larry Ryan
Executive Advisor3.7yrsCA$480.00kno data

3.5yrs

Average Tenure

Experienced Management: ECI's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Rousseau
Independent Director16.8yrsCA$133.16kno data
M. Patava
Independent Director16.8yrsCA$125.16kno data
Lisa de Wilde
Independent Director13.3yrsCA$126.16kno data
John Chandler
Director1.8yrsno datano data
Grace Palombo
Independent Director7.6yrsCA$115.16kno data
James Pantelidis
Chairman0yrsCA$220.81kno data
John MacDonald
Director12.5yrsCA$2.28mno data

12.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ECI's board of directors are seasoned and experienced ( 12.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

EnerCare Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EnerCare Inc.
  • Ticker: ECI
  • Exchange: TSX
  • Founded: 2002
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: CA$3.118b
  • Shares outstanding: 107.54m
  • Website: https://www.enercareinc.com

Number of Employees


Location

  • EnerCare Inc.
  • 7400 Birchmount Road
  • Markham
  • Ontario
  • L3R 5V4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECITSX (The Toronto Stock Exchange)Common UnitsCACADDec 2002
ECITSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2002
61EDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2002

Biography

Enercare Inc., through its subsidiaries, provides home and commercial services, and energy solutions in Canada and the United States. It operates through Enercare Home Services, Sub-metering, and Service Experts segments. The Enercare Home Services offers water heaters, furnaces, air conditioners, and other HVAC rental products, protection plans, and related services. This segment also provides duct cleaning, plumbing and electrical work, and other non-contracted chargeable services. The Service Experts segment is also involved in the sale, installation, maintenance, repair, and rental of HVAC systems and water heater products. The Sub-metering segment provides equipment and services to allow sub-metering and remote measurement of electricity and water consumption in individual units in condominiums, apartment buildings, and commercial properties. Enercare Inc. was founded in 2002 and is headquartered in Markham, Canada. As of October 16, 2018, EnerCare Inc. operates as a subsidiary of Brookfield Infrastructure Partners L.P. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 05:25
End of Day Share Price2018/10/17 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.