ECNCF (ECN Capital) Gross Margin % : 50.37% (As of Sep. 2024)

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What is ECN Capital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ECN Capital's Gross Profit for the three months ended in Sep. 2024 was $33.4 Mil. ECN Capital's Revenue for the three months ended in Sep. 2024 was $66.4 Mil. Therefore, ECN Capital's Gross Margin % for the quarter that ended in Sep. 2024 was 50.37%.

Warning Sign:

ECN Capital Corp gross margin has been in long-term decline. The average rate of decline per year is -21.6%.

The historical rank and industry rank for ECN Capital's Gross Margin % or its related term are showing as below:

ECNCF' s Gross Margin % Range Over the Past 10 Years
Min: -92.3 Med: 46.17 Max: 59.15
Current: 30.7

During the past 11 years, the highest Gross Margin % of ECN Capital was 59.15%. The lowest was -92.30%. And the median was 46.17%.

ECNCF's Gross Margin % is ranked worse than
69.77% of 43 companies
in the Banks industry
Industry Median: 42.11 vs ECNCF: 30.70

ECN Capital had a gross margin of 50.37% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ECN Capital was -21.60% per year.

ECN Capital Gross Margin % Historical Data

The historical data trend for ECN Capital's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ECN Capital Gross Margin % Chart

ECN Capital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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59.15

49.91

43.36

46.17

11.04

ECN Capital Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															18.76	-32.58	23.56	43.78	50.37

Competitive Comparison of ECN Capital's Gross Margin %

For the Mortgage Finance subindustry, ECN Capital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ECN Capital's Gross Margin % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, ECN Capital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ECN Capital's Gross Margin % falls into.

ECN Capital Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

ECN Capital's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	17.7	/	159.85
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(159.85 - 142.199)	/	159.85
	=	11.04 %

ECN Capital's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	33.4	/	66.386
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(66.386 - 32.947)	/	66.386
	=	50.37 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

ECN Capital (OTCPK:ECNCF) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

ECN Capital had a gross margin of 50.37% for the quarter that ended in Sep. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

ECN Capital Gross Margin % Related Terms

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ECN Capital Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » ECN Capital Corp (OTCPK:ECNCF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

2EZ:Germany ECN.PR.C.PFD:Canada ECN:Canada

Address

199 Bay Street, Suite 4000, Commerce Court West, Toronto, ON, CAN, M5L1A9

Website

https://www.ecncapitalcorp.com

ECN Capital Corp is a financial business service provider. The group originates, manages, and advises on credit assets on behalf of its partners, specifically consumer loans and commercial loans. The company's operating segment includes Manufactured Housing Finance, and Recreational Vehicle and Marine (RV and Marine) Finance. It generates the majority Manufactured Housing Finance segment.