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Weekly 52-Week Low (or 52-Week High): MDA-T, ENB-T, CNC-X and More 52-Week Highs and Lows (Jan 01-07)Most Anticipated Earnings: IAG-T, BDT-T and more Canadian Companies Reporting Earnings this Week (Nov 04-08)Most Anticipated Earnings: MRE-T, PSI-T and more Canadian Companies Reporting Earnings this Week (Aug 05-09).This summary was created by AI, based on 3 opinions in the last 12 months.
Based on the reviews from different experts, it seems that ECN Capital has shown promising growth potential, especially in 2025. The company's performance in the recent quarter has been positive, with EPS and revenue beating estimates. The focus on cost structure and potential benefits from lower interest rates have contributed to a good quarter. However, there are concerns about the company being a small company with higher risk, and experts recommend holding off for now to see how it performs in a different rate environment.
EPS of 5c beat estimates of 4.3c; revenue of $66M beat estimates of $61M. New originations were $625.7M vs $571M last year. Guidance was afffirmed for 2024 but boosted for 2025 (19c to 25c vs 18c estimated). The company has streamlined its cost structure and is benefitting somewhat from lower rates. It was a good quarter. Still, we would rate it a HOLD for now after the move.
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EPS $0.008; revenue $47.6M. We would like to hold at least until we rates decline, so we can see how the business/stock performs in a different rate environment.
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There is not really a lot to add. There has been no news in about a month. Some insiders were granted performance units but no significant buying (we would expect insiders are restricted while the review is ongoing). Typically, catalysts would be earnings and acquisitions. Earnings have been weak, and there may (or not) be acquisition discussions as part of the review. But likely not a lot of catalyst action before the review. Lower interest rates 'should' help sentiment a lot. Consumers (the end customer) remains in generally good shape, with high employment. We would be OK owning some at current levels. Expectations are very low here, but management has pulled rabbits out of hats before.
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We still think it is interesting as speculative buy but would not add. We have additional comments posted this morning.
Insiders own 9% directly and 14% via holding companies.
Through third parties, ECN originates prime and super-prime consumer loans for housing and RV purchases as well as for inventory financing and floorplan loans.
With concern on recession and higher interest rates, demand for such loans saw a significant drop in the quarter.
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a special dividend of $7.50. The stock should have moved more on this news. Shares can be bought for the dividend here. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock is still very cheap on all metrics. Considering growth perspectives, current book value and earnings power, it is attractively priced. It also has a strong record of dividend increases. Unlock Premium - Try 5i Free
The company is in transition to get away from taking on direct interest rate risk. He really likes the valuation and it trades below book value. They need to do another acquisition, report faster revenue growth or increase the dividend to really get things going – and he thinks one of those will happen this year.
He held it in the past. It trades at around 0.9 times book ($4.40). They are selling down divisions at or above book. They have a lot of acquisitions but deals are not as cheap as they were. He prefers EFN-T.
Steve Hudson is an entrepreneur who has grown and sold companies before. This is trading below its NAV, and is buying back stock. They had an investor presentation this week basically saying look for the 1st quarter to be pretty exciting in terms of acquisitions. They’ve made some acquisitions and dispositions. Has a great balance sheet. Thinks they will be very, very active. A leasing/finance company with low interest rates in a strong economy, trading below its asset value. A pretty safe bet for the next year. Dividend yield of 1%. (Analysts' price target is $5.00.)
It was a spinoff of Element Financial. He buys when it dips below $4. They are getting into lending for home renovations. They are quite undervalued. It remains to be seen how fast they can grow the company from here. There is some good long term value creation in the name.
(A Top Pick Sept 6/16.) Split into 2 companies. ECN Capital (ECN-T) was up 21%, while Element Fleet Management (EFN-T) was down 11%. He likes both.
ECN Capital is a Canadian stock, trading under the symbol ECN-T on the Toronto Stock Exchange (ECN-CT). It is usually referred to as TSX:ECN or ECN-T
In the last year, 3 stock analysts published opinions about ECN-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for ECN Capital.
ECN Capital was recommended as a Top Pick by on . Read the latest stock experts ratings for ECN Capital.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered ECN Capital In the last year. It is a trending stock that is worth watching.
On 2025-01-10, ECN Capital (ECN-T) stock closed at a price of $3.22.
National Bank has made ECN a Top 2025 pick. The company has a high degree of leverage to interest rates and the economy. If rates decline and the economy holds up, it certainly could do well. Consensus calls for 75% growth in 2025. We think it can be owned, but it is a small company and higher risk.
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