Announcement • Apr 25
Investor group led by Warburg Pincus LLC and Goodview Capital Corp completed the acquisition of ECN Capital Corp. (TSX:ECN). Investor group led by Warburg Pincus LLC and Goodview Capital Corp signed a definitive agreement to acquire ECN Capital Corp. (TSX:ECN) for approximately CAD 940 million on November 13, 2025. 281.479009 million common shares of the Company will be acquired at CAD 3.10 per share, paid in cash. 3.7124 million Series C cumulative 5-year minimum rate reset preferred shares will be purchased at CAD 26.00 per share, in cash. 27.45 million Series E mandatory convertible preferred shares will also be purchased at CAD 3.10 per share, in cash. The transaction will be financed from equity commitment and debt financing. A termination fee of CAD 35.4 million would be payable by ECN Capital in certain circumstances, including in the context of a superior proposal supported by the Company. A reverse termination fee of CAD 53.1 million would be payable to the Purchaser if the Transaction is not completed in certain circumstances.
The transaction is subject to approval by regulatory board, approval of offer by target shareholders and subject to court approval. The transaction has been unanimously approved by the Special Committee and ECN Capital’s Board of Directors. The Board of Directors of ECN Capital Corp. formed a special committee for the transaction. The Transaction is expected to close in the first half of 2026. As of January 20, 2026, ECN Capital shareholders approved the transaction. Completion of the Arrangement remains subject to other customary conditions including receipt of a final order from the Ontario Superior Court of Justice (Commercial List) (the "Final Order") and certain key regulatory approvals. The anticipated hearing date for the Final Order is January 22, 2026. As of January 22, 2026, ECN Capital has obtained a final order from the Ontario Superior Court of Justice. As of February 26, 2026, ECN Capital is actively engaged in obtaining the necessary approvals for the transaction and progress is tracking to closing early in the second quarter of 2026.
CIBC Capital Markets acted as financial advisor for ECN Capital Corp. CIBC World Markets, Inc. acted as fairness opinion provider for ECN Capital Corp. Blake, Cassels & Graydon LLP and Baker & Hostetler LLP acted as legal advisors to ECN Capital Corp. RBC Capital Markets, LLC also acted as financial advisor to ECN Capital Corp. Macquarie Capital, BMO Capital Markets and Truist Securities acted as financial advisors to the Purchaser Group led by Warburg Pincus LLC. Stikeman Elliott LLP; Mark F. Veblen, Michael J. Schobel, Joshua M. Holmes and Ian Boczko of Wachtell, Lipton, Rosen & Katz LLP; Eric Wedel, Ben Steadman, Charles Pesant, Timothy Cruickshank, Caroline Epstein and Christodoulos Kaoutzanis of Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Mayer Brown LLP acted as legal advisors to the Purchaser Group. Computershare Investor Services LLC acted as transfer agent to ECN Capital Corp. Carson Proxy Advisors Ltd acted as proxy solicitor to ECN Capital Corp and will receive a fee of CAD 0.05 million. Josh Zelig, Lisa Collier of Paul Hastings Advises Financing Sources for Warburg Pincus.
Investor group led by Warburg Pincus LLC and Goodview Capital Corp completed the acquisition of ECN Capital Corp. (TSX:ECN) on April 24, 2026. As a result of the completion of the Arrangement, it is expected that the Common Shares and Series C Preferred Shares will be de-listed from the Toronto Stock Exchange. Lawrence Krimke has been appointed as Chief Executive Officer. Sean Milne has been appointed as Chief Executive Officer. Announcement • Feb 27
ECN Capital Corp. Declares A Quarterly Dividend, Payable on March 31, 2026 ECN Capital Corp.'s Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on March 31, 2026, to shareholders of record at the close of business on March 20, 2026. Announcement • Nov 07
ECN Capital Corp. to Report Q3, 2025 Results on Nov 12, 2025 ECN Capital Corp. announced that they will report Q3, 2025 results After-Market on Nov 12, 2025 Announcement • Aug 08
ECN Capital Corp. Declares Quarterly Dividend, Payable on October 1, 2025 ECN Capital Corp.'s Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on October 1, 2025, to shareholders of record at the close of business on September 12, 2025. Announcement • Jul 26
ECN Capital Corp. to Report Q2, 2025 Results on Aug 07, 2025 ECN Capital Corp. announced that they will report Q2, 2025 results After-Market on Aug 07, 2025 Announcement • May 09
ECN Capital Corp. Declares Quarterly Dividend, Payable on June 30, 2025 ECN Capital Corp. announced that its Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on June 30, 2025 to shareholders of record at the close of business on June 13, 2025. Announcement • Apr 23
ECN Capital Corp. to Report Q1, 2025 Results on May 08, 2025 ECN Capital Corp. announced that they will report Q1, 2025 results After-Market on May 08, 2025 Announcement • Apr 01
ECN Capital Corp., Annual General Meeting, May 22, 2025 ECN Capital Corp., Annual General Meeting, May 22, 2025. Announcement • Feb 28
ECN Capital Corp. Declares A Quarterly Dividend, Payable on March 31, 2025 ECN Capital Corp.’s Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on March 31, 2025 to shareholders of record at the close of business on March 20, 2025. Announcement • Feb 18
ECN Capital Corp. to Report Q4, 2024 Results on Feb 27, 2025 ECN Capital Corp. announced that they will report Q4, 2024 results After-Market on Feb 27, 2025 Recent Insider Transactions • Nov 17
CEO & Executive Director recently sold €197k worth of stock On the 15th of November, Steven Hudson sold around 100k shares on-market at roughly €1.97 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite the recent sale, Steven has been a net buyer over the last 12 months, purchasing a net total of €1.1m worth of shares. Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: US$0.02 (vs US$0.024 loss in 3Q 2023) Third quarter 2024 results: EPS: US$0.02 (up from US$0.024 loss in 3Q 2023). Revenue: US$52.2m (up 108% from 3Q 2023). Net income: US$8.14m (up US$14.1m from 3Q 2023). Profit margin: 16% (up from net loss in 3Q 2023). Revenue is forecast to grow 41% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 40% per year whereas the company’s share price has fallen by 41% per year. Announcement • Oct 19
ECN Capital Corp. to Report Q3, 2024 Results on Nov 07, 2024 ECN Capital Corp. announced that they will report Q3, 2024 results After-Market on Nov 07, 2024 Upcoming Dividend • Sep 06
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 13 September 2024. Payment date: 01 October 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (2.6%). New Risk • Aug 18
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: €92k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$63m free cash flow). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (8.3% average weekly change). Shareholders have been diluted in the past year (14% increase in shares outstanding). Significant insider selling over the past 3 months (€92k sold). Declared Dividend • Aug 12
Second quarter dividend of CA$0.01 announced Shareholders will receive a dividend of CA$0.01. Ex-date: 13th September 2024 Payment date: 1st October 2024 Dividend yield will be 2.2%, which is lower than the industry average of 6.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. Announcement • Aug 09
ECN Capital Corp. announces Quarterly dividend, payable on October 01, 2024 ECN Capital Corp. announced Quarterly dividend of CAD 0.0100 per share payable on October 01, 2024, ex-date on September 13, 2024 and record date on September 13, 2024. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: US$0.02 (vs US$0.12 loss in 2Q 2023) Second quarter 2024 results: EPS: US$0.02 (up from US$0.12 loss in 2Q 2023). Revenue: US$43.1m (up 127% from 2Q 2023). Net income: US$8.16m (up US$38.2m from 2Q 2023). Profit margin: 19% (up from net loss in 2Q 2023). Revenue is forecast to grow 44% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 43% per year, which means it has not declined as severely as earnings. Announcement • Aug 08
ECN Capital Corp. (TSX:ECN) agreed to acquire 54% stake in Paramount Capital Group, Inc. for $5.4 million. ECN Capital Corp. (TSX:ECN) agreed to acquire 54% stake in Paramount Capital Group, Inc. for $5.4 million on July 24, 2024. Consideration is comprised of cash consideration of $4.5 million and deferred contingent consideration of $0.9 million, subject to final working capital adjustments. The transaction is subject to receipt of required state regulatory approvals and is expected to close in the third quarter of 2024. Announcement • Jul 17
ECN Capital Corp. to Report Q2, 2024 Results on Aug 07, 2024 ECN Capital Corp. announced that they will report Q2, 2024 results After-Market on Aug 07, 2024 Recent Insider Transactions • Jun 13
Independent Director recently bought €97k worth of stock On the 6th of June, Paul Stoyan bought around 77k shares on-market at roughly €1.26 per share. This transaction amounted to 10% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth €367k. Insiders have collectively bought €3.9m more in shares than they have sold in the last 12 months. Upcoming Dividend • Jun 07
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 14 June 2024. Payment date: 02 July 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.1%. Lower than top quartile of German dividend payers (4.5%). Lower than average of industry peers (2.6%). Declared Dividend • May 15
First quarter dividend of CA$0.01 announced Shareholders will receive a dividend of CA$0.01. Ex-date: 14th June 2024 Payment date: 2nd July 2024 Dividend yield will be 2.4%, which is lower than the industry average of 6.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (10% cash payout ratio). The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. Reported Earnings • May 10
First quarter 2024 earnings released: US$0.03 loss per share (vs US$0.085 loss in 1Q 2023) First quarter 2024 results: US$0.03 loss per share (improved from US$0.085 loss in 1Q 2023). Revenue: US$31.4m (up 5.3% from 1Q 2023). Net loss: US$7.17m (loss narrowed 66% from 1Q 2023). Revenue is forecast to grow 49% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 45% per year whereas the company’s share price has fallen by 41% per year. Board Change • May 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. Director Tawn Kelley was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 28
ECN Capital Corp. to Report Q1, 2024 Results on May 09, 2024 ECN Capital Corp. announced that they will report Q1, 2024 results After-Market on May 09, 2024 Declared Dividend • Mar 31
Fourth quarter dividend of CA$0.01 announced Shareholders will receive a dividend of CA$0.01. Ex-date: 8th April 2024 Payment date: 19th April 2024 Dividend yield will be 2.3%, which is lower than the industry average of 6.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 7 years, but has still been somewhat stable with no excessively large reductions to payments. Announcement • Mar 29
ECN Capital Corp., Annual General Meeting, May 23, 2024 ECN Capital Corp., Annual General Meeting, May 23, 2024. Recent Insider Transactions • Mar 27
CEO & Executive Director recently bought €365k worth of stock On the 25th of March, Steven Hudson bought around 300k shares on-market at roughly €1.22 per share. This transaction amounted to 2.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Steven has been a buyer over the last 12 months, purchasing a net total of €2.6m worth in shares. Reported Earnings • Mar 22
Full year 2023 earnings released: US$0.44 loss per share (vs US$0.007 profit in FY 2022) Full year 2023 results: US$0.44 loss per share (down from US$0.007 profit in FY 2022). Revenue: US$80.9m (down 47% from FY 2022). Net loss: US$106.8m (down US$108.5m from profit in FY 2022). Revenue is forecast to grow 45% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 32% per year whereas the company’s share price has fallen by 33% per year. Announcement • Mar 22
BharCap Partners, LLC acquired Red OAK Inventory Finance, LLC from ECN Capital Corp. (TSX:ECN). BharCap Partners, LLC acquired Red OAK Inventory Finance, LLC from ECN Capital Corp. (TSX:ECN) on February 21, 2024. The net proceeds from the transaction were initially used to pay down debt under the Company’s credit facility and are expected to be available to be redeployed into ECN’s manufactured housing and RV & Marine origination platforms. As part of the transaction, RBC Capital Markets acted as financial advisor and Cravath, Swaine & Moore LLP acted as legal advisor to the ECN Capital Corp.BharCap Partners, LLC completed the acquisition of Red OAK Inventory Finance, LLC from ECN Capital Corp. (TSX:ECN) on February 21, 2024. New Risk • Mar 19
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$128m free cash flow). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Shareholders have been diluted in the past year (14% increase in shares outstanding). Announcement • Mar 08
ECN Capital Corp. to Report Q4, 2023 Results on Mar 21, 2024 ECN Capital Corp. announced that they will report Q4, 2023 results After-Market on Mar 21, 2024 Upcoming Dividend • Dec 07
Upcoming dividend of CA$0.01 per share at 1.5% yield Eligible shareholders must have bought the stock before 14 December 2023. Payment date: 02 January 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of German dividend payers (5.2%). Lower than average of industry peers (6.4%). New Risk • Nov 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$128m free cash flow). Share price has been highly volatile over the past 3 months (9.8% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Shareholders have been diluted in the past year (14% increase in shares outstanding). Recent Insider Transactions • Nov 17
CEO & Executive Director recently bought €352k worth of stock On the 15th of November, Steven Hudson bought around 250k shares on-market at roughly €1.41 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth €425k. Steven has been a buyer over the last 12 months, purchasing a net total of €1.5m worth in shares. Buying Opportunity • Nov 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be €1.76, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.7% over the last 3 years. Earnings per share has declined by 18%. Announcement • Nov 15
ECN Capital Corp. Declares Quarterly Dividend, Payable on January 2, 2024 ECN Capital Corp. Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on January 2, 2024 to shareholders of record at the close of business on December 15, 2023. New Risk • Nov 14
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$128m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$128m free cash flow). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 29% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Shareholders have been diluted in the past year (14% increase in shares outstanding). Reported Earnings • Nov 14
Third quarter 2023 earnings released: US$0.02 loss per share (vs US$0.026 profit in 3Q 2022) Third quarter 2023 results: US$0.02 loss per share (down from US$0.026 profit in 3Q 2022). Revenue: US$26.0m (down 37% from 3Q 2022). Net loss: US$4.57m (down 173% from profit in 3Q 2022). Revenue is forecast to grow 32% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Announcement • Nov 09
ECN Capital Corp. to Report Q3, 2023 Results on Nov 13, 2023 ECN Capital Corp. announced that they will report Q3, 2023 results After-Market on Nov 13, 2023 Announcement • Sep 27
ECN Capital Corp. Appoints Tawn Kelley to the Board of Directors and Credit and Risk Committee ECN Capital Corp. announced upon closing of the Private Placement, Tawn Kelley, a member of the Board of Directors of Skyline Champion, was appointed to the Board of Directors and Credit and Risk Committee of ECN Capital. New Risk • Sep 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.2% average weekly change). Shareholders have been diluted in the past year (13% increase in shares outstanding). Announcement • Sep 27
ECN Capital Corp. announced that it has received CAD 185.44 million in funding from Skyline Champion Corporation On September 26, 2023, ECN Capital Corp. closed the transaction. Recent Insider Transactions • Sep 24
CEO & Executive Director recently bought €410k worth of stock On the 21st of September, Steven Hudson bought around 250k shares on-market at roughly €1.64 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Steven has been a buyer over the last 12 months, purchasing a net total of €760k worth in shares. Upcoming Dividend • Sep 07
Upcoming dividend of CA$0.01 per share at 1.7% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 02 October 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (6.1%). Recent Insider Transactions • Aug 18
CEO & Executive Director recently bought €350k worth of stock On the 15th of August, Steven Hudson bought around 200k shares on-market at roughly €1.75 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Steven has been a buyer over the last 12 months, purchasing a net total of €1.5m worth in shares. Announcement • Aug 09
ECN Capital Corp. to Report Q2, 2023 Results on Aug 14, 2023 ECN Capital Corp. announced that they will report Q2, 2023 results at 4:00 PM, US Eastern Standard Time on Aug 14, 2023 Upcoming Dividend • Jun 07
Upcoming dividend of CA$0.01 per share at 1.3% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 30 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (6.1%). Announcement • May 18
ECN Capital Corp. Declares Quarterly Dividend, Payable on June 30, 2023 ECN Capital Corp.'s Board of Directors has authorized and declared a quarterly dividend of CAD 0.01 per outstanding common share to be paid on June 30, 2023 to shareholders of record at the close of business on June 15, 2023. These dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada). Reported Earnings • May 17
First quarter 2023 earnings released: US$0.09 loss per share (vs US$0.018 profit in 1Q 2022) First quarter 2023 results: US$0.09 loss per share (down from US$0.018 profit in 1Q 2022). Revenue: US$29.6m (down 45% from 1Q 2022). Net loss: US$19.5m (down US$23.8m from profit in 1Q 2022). Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 8% per year. Announcement • May 05
ECN Capital Corp. to Report Q1, 2023 Results on May 15, 2023 ECN Capital Corp. announced that they will report Q1, 2023 results After-Market on May 15, 2023 Reported Earnings • Mar 24
Full year 2022 earnings released: EPS: US$0.017 (vs US$0.04 loss in FY 2021) Full year 2022 results: EPS: US$0.017 (up from US$0.04 loss in FY 2021). Revenue: US$155.4m (down 20% from FY 2021). Net income: US$6.72m (up US$16.6m from FY 2021). Profit margin: 4.3% (up from net loss in FY 2021). The move to profitability was driven by lower expenses. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 7% per year. Upcoming Dividend • Dec 07
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 14 December 2022. Payment date: 30 December 2022. Payout ratio is a comfortable 68% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (2.5%). Recent Insider Transactions • Nov 17
Independent Director recently bought €59k worth of stock On the 11th of November, Paul Stoyan bought around 25k shares on-market at roughly €2.36 per share. This transaction amounted to 3.3% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth €612k. Insiders have collectively bought €8.5m more in shares than they have sold in the last 12 months. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. Independent Director Karen Martin was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: US$0.026 (vs US$0.009 in 3Q 2021) Third quarter 2022 results: EPS: US$0.026 (up from US$0.009 in 3Q 2021). Revenue: US$41.4m (up 49% from 3Q 2021). Net income: US$6.31m (up 184% from 3Q 2021). Profit margin: 15% (up from 8.0% in 3Q 2021). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Buying Opportunity • Nov 04
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 43%. The fair value is estimated to be €3.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 33% in 2 years. Earnings is forecast to grow by 1,292% in the next 2 years. Recent Insider Transactions • Oct 02
CEO & Executive Director recently bought €362k worth of stock On the 23rd of September, Steven Hudson bought around 100k shares on-market at roughly €3.62 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth €612k. Steven has been a buyer over the last 12 months, purchasing a net total of €5.3m worth in shares. Upcoming Dividend • Sep 07
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 03 October 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 0.8%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (2.8%). Recent Insider Transactions • Sep 04
CEO & Executive Director recently bought €612k worth of stock On the 26th of August, Steven Hudson bought around 135k shares on-market at roughly €4.53 per share. This transaction amounted to 1.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Steven has been a buyer over the last 12 months, purchasing a net total of €5.0m worth in shares. Buying Opportunity • Aug 20
Now 22% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be €6.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 73% in 2 years. Earnings is forecast to grow by 1,623% in the next 2 years. Reported Earnings • Aug 13
Second quarter 2022 earnings released: EPS: US$0.033 (vs US$0.009 in 2Q 2021) Second quarter 2022 results: EPS: US$0.033 (up from US$0.009 in 2Q 2021). Revenue: US$70.5m (up 49% from 2Q 2021). Net income: US$8.12m (up 282% from 2Q 2021). Profit margin: 12% (up from 4.5% in 2Q 2021). Over the next year, revenue is forecast to grow 43%, compared to a 6.9% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • May 26
CEO & Executive Director recently bought €412k worth of stock On the 24th of May, Steven Hudson bought around 100k shares on-market at roughly €4.12 per share. In the last 3 months, there was an even bigger purchase from another insider worth €463k. Steven has been a buyer over the last 12 months, purchasing a net total of €4.5m worth in shares. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: US$0.02 (vs US$0.024 in 1Q 2021) First quarter 2022 results: EPS: US$0.02 (down from US$0.024 in 1Q 2021). Revenue: US$53.6m (down 20% from 1Q 2021). Net income: US$5.47m (down 7.5% from 1Q 2021). Profit margin: 10% (up from 8.8% in 1Q 2021). Over the next year, revenue is forecast to grow 42%, compared to a 8.5% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. Independent Director Karen Martin was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Mar 06
Chief Credit Officer recently bought €188k worth of stock On the 4th of March, Algis Vaitonis bought around 56k shares on-market at roughly €3.35 per share. In the last 3 months, there was an even bigger purchase from another insider worth €3.5m. Insiders have collectively bought €1.0m more in shares than they have sold in the last 12 months. Reported Earnings • Mar 03
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: US$0.02 (down from US$0.027 in FY 2020). Revenue: US$199.5m (down 18% from FY 2020). Net income: US$4.97m (down 23% from FY 2020). Profit margin: 2.5% (in line with FY 2020). Revenue missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 42%, compared to a 13% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Jan 06
Independent Director recently bought €97k worth of stock On the 4th of January, Paul Stoyan bought around 26k shares on-market at roughly €3.74 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €4.5m more in shares than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment deteriorated over the past week After last week's 54% share price decline to €3.72, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 13x in the Diversified Financial industry in Europe. Total returns to shareholders of 524% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €6.05 per share. Upcoming Dividend • Dec 16
Upcoming dividend of US$3.36 per share Eligible shareholders must have bought the stock before 23 December 2021. Payment date: 22 December 2021. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 35%. Within top quartile of German dividend payers (3.4%). Higher than average of industry peers (2.0%). Reported Earnings • Nov 11
Third quarter 2021 earnings released: EPS US$0.037 (vs US$0.032 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: US$50.6m (down 19% from 3Q 2020). Net income: US$9.61m (up 23% from 3Q 2020). Profit margin: 19% (up from 13% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 52% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Oct 06
CEO & Executive Director recently bought €1.1m worth of stock On the 29th of September, Steven Hudson bought around 161k shares on-market at roughly €7.07 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Steven has been a net seller over the last 12 months, reducing personal holdings by €3.5m. Upcoming Dividend • Sep 07
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 14 September 2021. Payment date: 30 September 2021. Trailing yield: 1.1%. Lower than top quartile of German dividend payers (3.2%). Lower than average of industry peers (2.1%). Recent Insider Transactions • Aug 25
CEO & Executive Director recently bought €333k worth of stock On the 20th of August, Steven Hudson bought around 49k shares on-market at roughly €6.75 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Steven has been a net seller over the last 12 months, reducing personal holdings by €4.6m. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS US$0.06 (vs US$0.007 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$85.7m (up 53% from 2Q 2020). Net income: US$17.4m (up US$15.8m from 2Q 2020). Profit margin: 20% (up from 2.8% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 07
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 14 June 2021. Payment date: 30 June 2021. Trailing yield: 1.4%. Lower than top quartile of German dividend payers (3.2%). Lower than average of industry peers (2.1%). Reported Earnings • May 14
First quarter 2021 earnings released: EPS US$0.02 (vs US$0.022 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$67.9m (up 24% from 1Q 2020). Net income: US$8.31m (up 55% from 1Q 2020). Profit margin: 12% (up from 9.8% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth.