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ECN Capital

OTCPK:ECNC.F
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ECNC.F
OTCPK
CA$1B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

ECN Capital Corp. originates, manages, and advises on prime consumer credit portfolios primarily in the United States. The last earnings update was 21 days ago. More info.


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ECNC.F Share Price and Events
7 Day Returns
2.9%
OTCPK:ECNC.F
1.3%
US Diversified Financial
1.2%
US Market
1 Year Returns
16.7%
OTCPK:ECNC.F
-0.4%
US Diversified Financial
3%
US Market
ECNC.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ECN Capital (ECNC.F) 2.9% 7.6% 28.7% 16.7% - -
US Diversified Financial 1.3% 0.1% 6% -0.4% 43.8% 60%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • ECNC.F outperformed the Diversified Financial industry which returned -0.4% over the past year.
  • ECNC.F outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
ECNC.F
Industry
5yr Volatility vs Market

Value

 Is ECN Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ECN Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ECN Capital.

OTCPK:ECNC.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= $3.51 * 8.3%
$0.29
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $3.51
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:ECNC.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Diversified Financial Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.679 (1 + (1- 26.5%) (44.46%))
0.933
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.933 * 5.96%)
8.29%

Discounted Cash Flow Calculation for OTCPK:ECNC.F using Excess Returns Model Model

The calculations below outline how an intrinsic value for ECN Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

OTCPK:ECNC.F Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.3% – 8.29%) * $3.51)
$0.00
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.00 / (8.29% - 2.73%)
$-0.02
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $3.51 + $-0.02
$3.49
OTCPK:ECNC.F Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:ECN)
1.333
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $3.49 x 1.333
CA$4.66
Non-primary Listing Adjustment Factor 1 share in OTCPK:ECNC.F represents 0.75058x of TSX:ECN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.75058x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 4.66 x 0.75058
$3.50
Value per share (USD) From above. $3.50
Current discount Discount to share price of $3.24
= -1 x ($3.24 - $3.50) / $3.50
7.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ECN Capital is available for.
Intrinsic value
7%
Share price is $3.24 vs Future cash flow value of $3.5
Current Discount Checks
For ECN Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ECN Capital's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • ECN Capital's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ECN Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ECN Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:ECNC.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.04
TSX:ECN Share Price ** TSX (2019-03-20) in CAD CA$4.32
TSX:ECN Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $3.24
United States of America Diversified Financial Industry PE Ratio Median Figure of 10 Publicly-Listed Diversified Financial Companies 17.87x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ECN Capital.

OTCPK:ECNC.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ECN Share Price ÷ EPS (both in USD)

= 3.24 ÷ -0.04

-87.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ECN Capital is loss making, we can't compare its value to the US Diversified Financial industry average.
  • ECN Capital is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does ECN Capital's expected growth come at a high price?
Raw Data
OTCPK:ECNC.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -87.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
68.3%per year
United States of America Diversified Financial Industry PEG Ratio Median Figure of 7 Publicly-Listed Diversified Financial Companies 1.03x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ECN Capital, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ECN Capital's assets?
Raw Data
OTCPK:ECNC.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.14
TSX:ECN Share Price * TSX (2019-03-20) in CAD CA$4.32
TSX:ECN Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $3.24
United States of America Diversified Financial Industry PB Ratio Median Figure of 21 Publicly-Listed Diversified Financial Companies 0.93x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
OTCPK:ECNC.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ECN Share Price ÷ Book Value per Share (both in USD)

= 3.24 ÷ 3.14

1.03x

* Primary Listing of ECN Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ECN Capital is overvalued based on assets compared to the US Diversified Financial industry average.
X
Value checks
We assess ECN Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Diversified Financial industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Diversified Financial industry average (and greater than 0)? (1 check)
  5. ECN Capital has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ECN Capital expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
68.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ECN Capital expected to grow at an attractive rate?
  • ECN Capital's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ECN Capital's earnings growth is expected to exceed the United States of America market average.
  • ECN Capital's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:ECNC.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:ECNC.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 68.3%
OTCPK:ECNC.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 21.5%
United States of America Diversified Financial Industry Earnings Growth Rate Market Cap Weighted Average 59.1%
United States of America Diversified Financial Industry Revenue Growth Rate Market Cap Weighted Average 6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:ECNC.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:ECNC.F Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 330 72 1
2020-12-31 285 60 3
2019-12-31 243 36 3
OTCPK:ECNC.F Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 164 7 -12
2018-09-30 146 -277 -62
2018-06-30 105 10 -48
2018-03-31 84 5 -41
2017-12-31 4 93 -15
2017-09-30 107 424 -55
2017-06-30 110 37 -8
2017-03-31 130 -65 6
2016-12-31 106 -81 12
2016-09-30 100 -429 59
2016-06-30 163 -582 78
2016-03-31 161 -694 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ECN Capital's earnings are expected to grow significantly at over 20% yearly.
  • ECN Capital's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:ECNC.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from ECN Capital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ECNC.F Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.30 0.30 0.30 1.00
2020-12-31 0.27 0.32 0.25 4.00
2019-12-31 0.16 0.20 0.09 4.00
OTCPK:ECNC.F Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.04
2018-09-30 -0.18
2018-06-30 -0.13
2018-03-31 -0.11
2017-12-31 -0.04
2017-09-30 -0.14
2017-06-30 -0.02
2017-03-31 0.02
2016-12-31 0.03
2016-09-30 0.15
2016-06-30 0.20
2016-03-31 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ECN Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ECN Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ECN Capital has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ECN Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ECN Capital's growth in the last year to its industry (Diversified Financial).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ECN Capital does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare ECN Capital's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ECN Capital's 1-year growth to the US Diversified Financial industry average as it is not currently profitable.
Earnings and Revenue History
ECN Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ECN Capital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ECNC.F Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 163.90 -12.46 120.76
2018-09-30 146.06 -62.45 110.35
2018-06-30 104.77 -47.59 80.08
2018-03-31 83.51 -40.66 64.49
2017-12-31 3.84 -14.89 31.07
2017-09-30 106.94 -55.07 32.78
2017-06-30 109.86 -7.69 32.78
2017-03-31 130.31 6.36 30.70
2016-12-31 106.19 12.37 29.63
2016-09-30 100.40 58.97 44.37
2016-06-30 162.51 77.95 50.95
2016-03-31 160.96 75.88 56.42
2015-12-31 172.69 79.12 54.41
2014-12-31 122.52 56.49 44.02
2013-12-31 60.30 13.61 25.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ECN Capital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if ECN Capital has efficiently used its assets last year compared to the US Diversified Financial industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if ECN Capital improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ECN Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Diversified Financial industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ECN Capital has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ECN Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ECN Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ECN Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ECN Capital's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ECN Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ECN Capital Company Filings, last reported 2 months ago.

OTCPK:ECNC.F Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,106.98 341.55 52.43
2018-09-30 1,252.68 656.24 68.17
2018-06-30 1,343.75 914.18 52.86
2018-03-31 1,441.61 544.85 16.85
2017-12-31 1,498.39 1,144.14 19.98
2017-09-30 1,533.92 1,019.54 24.75
2017-06-30 1,553.69 1,828.14 11.97
2017-03-31 1,455.30 3,159.08 17.66
2016-12-31 1,360.29 3,355.80 42.61
2016-09-30 1,303.19 3,269.45 36.49
2016-06-30 1,203.98 3,402.02 0.60
2016-03-31 1,227.17 3,461.68 3.10
2015-12-31 1,146.98 3,235.46 2.89
2014-12-31 850.98 2,639.98 1.47
2013-12-31
  • ECN Capital's level of debt (30.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if ECN Capital's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (2%, less than 20% of total debt).
  • Unable to confirm if the interest payments on ECN Capital's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess ECN Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ECN Capital has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.84%
Current annual income from ECN Capital dividends. Estimated to be 2.6% next year.
If you bought $2,000 of ECN Capital shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ECN Capital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • ECN Capital's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Upcoming dividend payment

Purchase ECN Capital on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:ECNC.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Diversified Financial Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:ECNC.F Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.09 4.00
2019-12-31 0.07 3.00
OTCPK:ECNC.F Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.060 1.893
2018-11-12 0.029 1.116
2018-02-28 0.030 1.114
2017-05-11 0.029 1.037
2016-10-03 0.029 1.232

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, ECN Capital has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but ECN Capital only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of ECN Capital's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).
X
Income/ dividend checks
We assess ECN Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ECN Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ECN Capital has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ECN Capital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Hudson
COMPENSATION $4,247,126
AGE 59
TENURE AS CEO 2.4 years
CEO Bio

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 Capital Corp. since October 2016. He served as Vice-Chairman and had been an Executive Director of Element Fleet Management Corp. from April 12, 2010 until June 26, 2018. He served as the Executive Chairman of Element Fleet Management Corp. (formerly, Element Financial Corporation) from April 12, 2010 to April 1, 2015 and served as its Chief Executive Officer since March 31, 2011 to October 2016. He served as Chief Executive Officer of Cameron Capital Corporation from 2005 to 2010. He served as Chairman and Chief Executive Officer of Mira II Acquisition Corp. He served as Managing Director and Chief Executive Officer of Borealis Capital Corporation. In 1984, Mr. Hudson founded Newcourt Credit Group, Inc. and served as its Chief Executive Officer since 1984. Mr. Hudson served as the Chief Executive Officer of Hair Club for Men Ltd., Inc. He served as an Operating Partner of TorQuest Partners, Inc. Mr. Hudson's association with the TorQuest Partners, Inc.'s commenced after the Herbal Magic Inc. investment, however his operating experience has led to the review of several new opportunities for the firm. Mr. Hudson has been involved across various industries and invests significant capital in companies which that he leads. Mr. Hudson was also involved in the personal care market. He serves as the Chairman of 4393074 Canada Inc. He served as Vice Chairman of Element Fleet Management, Inc. since February 17, 2016 until May 2018. He has been an Independent Director of INFOR Acquisition Corp. since April 17, 2015. He has been an Executive Director of Element Fleet Management Corp., since May 2018. He served as a Director of Newcourt Credit Group, Inc. since June 1988 and CHC Group Ltd. since 1999. He served as a Director of Altamira e-business Funds, Altamira Investment Services, The Altamira Funds, The Altamira RSP Funds, CGC Helicopter Corporation, Amec, Inc., AGRA and Newcourt. He has deep expertise in financial and capital markets. Mr. Hudson has been an active director on numerous boards of both public and private corporations and an active community leader and philanthropist. In 1996, Mr. Hudson was named one of Canada's Top 40 Under 40. Mr. Hudson graduated from York University in 1981 with an Honors Bachelor of Business Administration degree and received his Fellowship with the Institute of Chartered Accountants of Ontario in 2000.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ECN Capital management team in years:

1.9
Average Tenure
58
Average Age
  • The average tenure for the ECN Capital management team is less than 2 years, this suggests a new team.
Management Team

Steve Hudson

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
2.4 yrs

Jim Nikopoulos

TITLE
President
COMPENSATION
$4M
TENURE
1.8 yrs

Grier Colter

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
44
TENURE
2 yrs

Michael Lepore

TITLE
Senior VP & Controller
COMPENSATION
$3M
TENURE
1.7 yrs

John Wimsatt

TITLE
Senior Vice President
TENURE
2.2 yrs

Loreto Grimaldi

TITLE
Senior VP
TENURE
1.9 yrs

Steve Grosso

TITLE
Chief Operating Officer of US

Ian Berch

TITLE
Chief Operating Officer of Service Finance
TENURE
1.2 yrs

Algis Vaitonis

TITLE
Chief Credit Officer

Don Glisson

TITLE
Chief Executive Officer of Triad Financial Services
AGE
58
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the ECN Capital board of directors in years:

2.4
Average Tenure
60
Average Age
  • The average tenure for the ECN Capital board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Lovatt

TITLE
Chairman of the Board
COMPENSATION
$535K
AGE
65
TENURE
2.4 yrs

Steve Hudson

TITLE
CEO & Director
COMPENSATION
$4M
AGE
59
TENURE
2.4 yrs

Pierre Lortie

TITLE
Independent Director
COMPENSATION
$234K
AGE
71
TENURE
2.4 yrs

David Morris

TITLE
Independent Director
COMPENSATION
$180K
AGE
63
TENURE
2.4 yrs

Paul Stoyan

TITLE
Independent Director
COMPENSATION
$64K
AGE
59
TENURE
2.4 yrs

Donna Toth

TITLE
Independent Director
COMPENSATION
$142K
AGE
58
TENURE
1.9 yrs

Carol Goldman

TITLE
Independent Director
COMPENSATION
$185K
AGE
60
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ECN Capital insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Buy Carol Goldman Individual 06. Mar 19 06. Mar 19 30,000 $3.15 $94,419
23. Nov 18 Buy Paul Stoyan Individual 22. Nov 18 22. Nov 18 24,000 $2.46 $59,131
21. Nov 18 Buy Paul Stoyan Individual 16. Nov 18 16. Nov 18 30,000 $2.48 $74,091
15. Nov 18 Buy William Lovatt Individual 15. Nov 18 15. Nov 18 100,000 $2.48 $247,784
17. Sep 18 Buy Steven Hudson Individual 14. Sep 18 14. Sep 18 210,777 $2.91 $614,054
31. Aug 18 Buy Steven Hudson Individual 29. Aug 18 30. Aug 18 210,000 $2.96 $618,265
29. Aug 18 Buy Steven Hudson Individual 28. Aug 18 28. Aug 18 90,000 $2.97 $266,328
17. Aug 18 Buy Donna Toth Individual 14. Aug 18 14. Aug 18 20,000 $2.75 $54,672
17. Aug 18 Buy Steven Hudson Individual 16. Aug 18 16. Aug 18 200,000 $2.82 $563,698
16. Aug 18 Buy Steven Hudson Individual 15. Aug 18 15. Aug 18 359,534 $2.75 $987,132
16. Aug 18 Buy Paul Stoyan Individual 15. Aug 18 15. Aug 18 25,000 $2.74 $68,606
15. Aug 18 Buy Scott Shaw Individual 14. Aug 18 14. Aug 18 216,200 $2.71 $585,970
X
Management checks
We assess ECN Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ECN Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ECN Capital Corp. originates, manages, and advises on prime consumer credit portfolios primarily in the United States. The company operates through Service Finance - Unsecured Consumer Loans; Triad - Secured Consumer Loans; and Kessler – Consumer Credit Cards segments. It provides prime credit portfolio solutions that include unsecured consumer loan portfolios, including home improvement loans; secured consumer loan portfolios, such as manufactured home loans; and consumer credit card portfolios. The company serves banks and credit unions. ECN Capital Corp. was founded in 2016 and is headquartered in Toronto, Canada.

Details
Name: ECN Capital Corp.
ECNC.F
Exchange: OTCPK
Founded: 2016
CA$768,241,585
237,064,771
Website: http://www.ecncapitalcorp.com
Address: ECN Capital Corp.
181 Bay Street,
Suite 2830,
Toronto,
Ontario, M5J 2T3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ECN Common Shares The Toronto Stock Exchange CA CAD 28. Sep 2016
OTCPK ECNC.F Common Shares Pink Sheets LLC US USD 28. Sep 2016
DB 2EZ Common Shares Deutsche Boerse AG DE EUR 28. Sep 2016
TSX ECN.PRC PFD CUM SER C The Toronto Stock Exchange CA CAD 25. May 2017
Number of employees
Current staff
Staff numbers
570
ECN Capital employees.
Industry
Specialized Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 01:02
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/08
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.