Emerge Commerce Ltd AI Stock Analysis
Want to see TSE:ECOM full AI Analyst Report?
Emerge Commerce Ltd (ECOM) AI Stock Analysis
Emerge Commerce Ltd
(TSXV:ECOM)
The overall score is heavily constrained by a distressed balance sheet with negative equity, indicating high financial risk. While TTM operational trends show a significant turnaround with positive cash flow, this is offset by a lack of sustained profitability, a negative P/E ratio, and a weak technical position below the 200-day moving average.
Emerge Commerce Ltd (ECOM) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 12.55M
- Dividend Yield
- ―
- Average Volume (3M)
- 93.47K
- Price to Earnings (P/E)
- -38.9
- Beta (1Y)
- 0.64
- Revenue Growth
- 22.89%
- EPS Growth
- 25.00%
- Country
- Canada
- Employees
- 120
- Sector
- General
- Sector Strength
- 55
- Industry
- Specialty Retail
Emerge Commerce Ltd Business Overview & Revenue Model
Company Description
Emerge Commerce Ltd. manages and operates a collection of digital retail platforms, catering to markets across Canada and the United States. The company's prominent online ventures include truLOCAL.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com, BeRi...
How the Company Makes Money
Emerge Commerce primarily makes money by selling products directly to consumers through its owned e-commerce storefronts, generating revenue when customers place orders on its websites (net of returns, discounts, and any applicable promotional activi...
Emerge Commerce Ltd Earnings Call Summary
The earnings call highlighted significant positive trends in GMS growth, revenue increase, and improved profitability metrics, complemented by a strong debt reduction strategy. However, the continued negative adjusted EBITDA and net loss from operations indicate areas needing further improvement. Overall, the positive aspects and strategic shifts outweigh the negatives.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
During the Q3 2024 earnings call for EMERGE Commerce, CEO Ghassan Halazon and CFO Kyle Burt-Gerrans provided a comprehensive overview of the company's financial performance and strategic direction. Key highlights included a 10% increase in gross merchandise sales (GMS) year-over-year, reaching $7.4 million, and a 5% rise in revenue to $4.6 million. Excluding the Carnivore Club, revenue grew by 8%. The company reported a gross profit increase of over 6% to $1.8 million, with gross margins improving to 39.3%. Adjusted EBITDA losses were reduced by approximately half compared to the previous year, coming in at negative $280,000. Additionally, EMERGE achieved significant debt reduction, bringing net debt down to $5.5 million after a $10 million debt paydown. The company also implemented cost reductions expected to yield $500,000 in annual savings, which will be fully realized in 2025. These efforts underscore EMERGE's focus on organic growth, operational efficiency, and enhanced profitability as they transition into the new year.
Emerge Commerce Ltd Financial Statement Overview
Summary
Financial performance is mixed. TTM profitability and cash flow have improved dramatically, but the balance sheet is severely distressed with negative equity of -$5.2M, posing a solvency risk. The income statement score of 55 and cash flow score of 65 are dragged down significantly by the balance sheet score of 15.
Income Statement
55NeutralBalance Sheet
15Very NegativeCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.16M | 27.66M | 20.42M | 23.83M | 58.17M | 34.83M |
| Gross Profit | 10.07M | 9.57M | 8.25M | 11.88M | 23.79M | 15.11M |
| EBITDA | 1.94M | 1.80M | 908.43K | -15.66M | -4.50M | -1.16M |
| Net Income | -245.43K | -151.52K | -1.03M | -21.26M | -17.38M | -6.56M |
Balance Sheet | ||||||
| Total Assets | 13.71M | 10.82M | 7.80M | 22.99M | 59.75M | 80.28M |
| Cash, Cash Equivalents and Short-Term Investments | 4.80M | 4.32M | 3.16M | 2.54M | 5.88M | 7.77M |
| Total Debt | 7.16M | 7.36M | 6.96M | 18.25M | 25.98M | 24.50M |
| Total Liabilities | 18.92M | 18.71M | 16.63M | 32.86M | 49.63M | 53.27M |
| Stockholders Equity | -5.21M | -7.89M | -8.83M | -9.87M | 10.11M | 27.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.35M | 1.65M | 127.02K | 2.02M | 1.02M | -3.47M |
| Operating Cash Flow | 1.38M | 1.65M | 129.33K | 2.03M | 1.06M | -3.43M |
| Investing Cash Flow | -2.01M | -396.50K | 11.73M | 7.10M | -44.60K | -27.34M |
| Financing Cash Flow | 1.97M | -179.94K | -11.42M | -9.55M | -3.09M | 26.18M |
Emerge Commerce Ltd Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECOM, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ECOM.
Emerge Commerce Ltd Peers Comparison
Overall Rating
TSE:KITS74Outperform
TSE:ATD73Outperform
TSE:CTC69Neutral
TSE:LNF69Neutral
TSE:PET68Neutral- TSE:ECOM44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:KITS | 74Outperform | CAD 650.20M | 147.42 | 6.25% | ― | 20.72% | -26.21% |
| TSE:ATD | 73Outperform | CAD 76.05B | 16.93 | 19.91% | 1.04% | 11.59% | 26.58% |
| TSE:CTC | 69Neutral | CAD 11.38B | 16.39 | 12.33% | 3.20% | 2.93% | 5.16% |
| TSE:LNF | 69Neutral | CAD 1.89B | 11.98 | 12.66% | 5.30% | -1.41% | -9.56% |
| TSE:PET | 68Neutral | CAD 1.53B | 15.43 | 107.77% | 2.23% | 5.26% | 6.20% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:ECOM | 44Neutral | CAD 12.20M | -38.89 | 3.76% | ― | 22.89% | 25.00% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:ECOM | Emerge Commerce Ltd | 0.07 | -0.01 | -15.00% | |
| TSE:ATD | Alimentation Couche-Tard (Cl. A) | 82.85 | 13.54 | 19.54% | |
| TSE:LNF | Leon's Furniture | 27.56 | 1.04 | 3.93% | |
| TSE:CTC | Canadian Tire Corp | 225.00 | -6.99 | -3.01% | |
| TSE:KITS | Kits Eyecare Ltd. | 19.12 | 5.57 | 41.11% | |
| TSE:PET | Pet Valu Holdings Ltd. | 22.83 | -5.36 | -19.00% |
Emerge Commerce Ltd Corporate Events
EMERGE Commerce to Boost Investor Profile with Planet MicroCap Toronto Presentation
PositiveEMERGE Commerce Ltd., a TSXV-listed consolidator of profitable e-commerce brands, operates a portfolio spanning Direct-to-Consumer grocery and golf verticals, alongside a Business-to-Business referral marketing platform. Its flagship D2C brand truLOC...
Emerge Commerce Posts Higher Q3 Revenue, Margins and Cash After Refinancing
PositiveEmerge Commerce reported preliminary third-quarter 2026 results indicating revenue of approximately $7.4 million, up 5% year over year, with gross margin improving to 38% from 34%. Adjusted EBITDA is expected to reach about $313,000, a 20% increase,...
Emerge Commerce Moves to Cut Debt by Amending and Redeeming Convertible Debentures
PositiveEmerge Commerce plans to amend the terms of its 10% senior unsecured convertible debentures issued in 2022, notably lowering the conversion price from $0.135 to $0.10 per share and expanding its right to redeem up to all outstanding principal in cash...
EMERGE Commerce to Detail Debt Refinancing and Growth Plans in Investor Webcast
PositiveEMERGE Commerce Ltd. will host a virtual corporate presentation for investors today at 11:00 a.m. ET, led by founder and CEO Ghassan Halazon and CFO Mike Murphy. The webcast will focus on the company’s recently completed senior debt refinancing with...
Emerge Commerce Cuts Debt Costs with 7-Year Desjardins Refinancing
PositiveEmerge Commerce has refinanced its existing $5.85 million senior credit facility with Desjardins Ontario Credit Union, securing a seven-year term to September 2033 and cutting the interest rate from 11.0% to 7.3%. The package also includes a $1 milli...
EMERGE Commerce Delivers Record Q2 2026 and Eyes Further Growth
PositiveEMERGE Commerce reported its strongest quarter in years, with Q2 2026 revenue rising 7.4% year over year to $9.1 million and gross profit climbing 14.8% as gross margins improved to 39%. Adjusted EBITDA increased 7.3% to $1 million, net income remain...
Emerge Commerce Sets August 27 Date for Q2 2026 Results and Investor Call
NeutralEmerge Commerce Ltd., a Toronto-based acquirer and operator of profitable e-commerce brands, focuses on direct-to-consumer grocery and golf offerings and business-to-business referral marketing technology. Its portfolio includes the truLOCAL meat and...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 28, 2026