ECN Capital Corp. originates, manages, and advises on prime consumer credit portfolios primarily in the United States. More Details
High growth potential and slightly overvalued.
Share Price & News
How has ECN Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ECN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ECN's weekly volatility (4%) has been stable over the past year.
7 Day Return
CA Diversified Financial
1 Year Return
CA Diversified Financial
Return vs Industry: ECN exceeded the Canadian Diversified Financial industry which returned 56.3% over the past year.
Return vs Market: ECN exceeded the Canadian Market which returned 27.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is ECN Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall StWhat You Need To Know About ECN Capital Corp.'s (TSE:ECN) Investor Composition
1 month ago | Simply Wall StECN Capital (TSE:ECN) Has Re-Affirmed Its Dividend Of CA$0.03
2 months ago | Simply Wall StI Ran A Stock Scan For Earnings Growth And ECN Capital (TSE:ECN) Passed With Ease
Is ECN Capital undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ECN (CA$10.32) is trading below our estimate of fair value (CA$15.11)
Significantly Below Fair Value: ECN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ECN is poor value based on its PE Ratio (286.1x) compared to the Canadian Diversified Financial industry average (18.4x).
PE vs Market: ECN is poor value based on its PE Ratio (286.1x) compared to the Canadian market (13.9x).
Price to Earnings Growth Ratio
PEG Ratio: ECN is poor value based on its PEG Ratio (5.3x)
Price to Book Ratio
PB vs Industry: ECN is overvalued based on its PB Ratio (2.9x) compared to the CA Diversified Financial industry average (1.7x).
How is ECN Capital forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ECN's forecast earnings growth (53.6% per year) is above the savings rate (1.5%).
Earnings vs Market: ECN's earnings (53.6% per year) are forecast to grow faster than the Canadian market (14.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ECN's revenue (21.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: ECN's revenue (21.8% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ECN's Return on Equity is forecast to be high in 3 years time
How has ECN Capital performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ECN has a large one-off loss of $23.6M impacting its March 31 2021 financial results.
Growing Profit Margin: ECN's current net profit margins (2.7%) are lower than last year (12.8%).
Past Earnings Growth Analysis
Earnings Trend: ECN's earnings have declined by 23.7% per year over the past 5 years.
Accelerating Growth: ECN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ECN had negative earnings growth (-76.2%) over the past year, making it difficult to compare to the Diversified Financial industry average (64.1%).
Return on Equity
High ROE: ECN's Return on Equity (2%) is considered low.
How is ECN Capital's financial position?
Financial Position Analysis
Short Term Liabilities: ECN's short term assets ($780.1M) exceed its short term liabilities ($174.4M).
Long Term Liabilities: ECN's short term assets ($780.1M) do not cover its long term liabilities ($786.6M).
Debt to Equity History and Analysis
Debt Level: ECN's debt to equity ratio (69.2%) is considered high.
Reducing Debt: ECN's debt to equity ratio has reduced from 282.1% to 69.2% over the past 5 years.
Debt Coverage: ECN's debt is not well covered by operating cash flow (0.1%).
Interest Coverage: Insufficient data to determine if ECN's interest payments on its debt are well covered by EBIT.
What is ECN Capital current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ECN's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).
High Dividend: ECN's dividend (1.14%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ECN has been paying a dividend for less than 10 years.
Growing Dividend: ECN's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (295.2%), ECN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Hudson (62 yo)
Mr. Steven K. Hudson, also known as Steve, FCA, B.B.A., FCPA, is the Founder and Principal of Cameron Capital Corporation. Mr. Hudson has been the Chief Executive Officer and Executive Director of ECN Capi...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD5.40M) is above average for companies of similar size in the Canadian market ($USD2.13M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Experienced Management: ECN's management team is considered experienced (3.5 years average tenure).
Experienced Board: ECN's board of directors are considered experienced (4.8 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ECN Capital Corp.'s company bio, employee growth, exchange listings and data sources
- Name: ECN Capital Corp.
- Ticker: ECN
- Exchange: TSX
- Founded: 2016
- Industry: Specialized Finance
- Sector: Diversified Financials
- Market Cap: CA$2.454b
- Shares outstanding: 243.74m
- Website: https://www.ecncapitalcorp.com
Number of Employees
- ECN Capital Corp.
- 777 South Flagler Drive
- Suite 800 East
- West Palm Beach
- United States
ECN Capital Corp. originates, manages, and advises on prime consumer credit portfolios primarily in the United States. The company operates through Service Finance-Home Improvement Loans; KG – Co-Branded C...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/28 23:54|
|End of Day Share Price||2021/07/28 00:00|
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.