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ECN Capital has recently garnered attention following positive assessments from analysts. The company showcased significant growth in its earnings per share (EPS) and revenue, with EPS coming in at 5 cents, surpassing estimates of 4.3 cents, and revenue hitting $66 million, above the anticipated $61 million. Notably, new originations experienced a substantial increase to $625.7 million compared to $571 million from the previous year. As the company has streamlined its cost structure, it is expected to benefit from lower interest rates, providing a positive outlook for 2025, with consensus predicting 75% growth. However, given its small size and inherent risks, analysts recommend maintaining a cautious approach, rating the stock as a HOLD for now.
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.
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.)
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, 2 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.
2 stock analysts on Stockchase covered ECN Capital In the last year. It is a trending stock that is worth watching.
On 2025-04-14, ECN Capital (ECN-T) stock closed at a price of $2.6.
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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