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Exco Technologies Limited (TSE:XTC)
TSX:XTC
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Exco Technologies
(TSX:XTC)
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Rating:64Neutral
Price Target:
C$7.50
▲(14.68% Upside)
Exco Technologies' overall stock score reflects a stable financial performance with some concerns, a bearish technical outlook, and a potentially undervalued stock with a high dividend yield. The earnings call provided a mixed view with challenges in revenue and profitability but highlighted strategic initiatives and positive trade developments.
Exco Technologies (XTC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$258.68M
Dividend Yield6.42%
Average Volume (3M)19.84K
Price to Earnings (P/E)11.0
Beta (1Y)0.95
Revenue Growth-3.50%
EPS Growth-22.76%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.14
Shares Outstanding38,153,614
10 Day Avg. Volume16,406
30 Day Avg. Volume19,841
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda4.80
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Exco Technologies Business Overview & Revenue Model
Company DescriptionExco Technologies Limited (XTC) is a leading global provider of innovative technology solutions, primarily operating in the automotive and industrial sectors. The company specializes in the design and manufacturing of die-cast molds, extrusion tooling, and plastic injection molds, along with offering advanced engineering services. Exco serves a diverse clientele by providing high-quality components and systems, contributing significantly to the production processes of various industries, particularly in the automotive sector.
How the Company Makes MoneyExco Technologies generates revenue through multiple streams, primarily by manufacturing and selling specialized tooling and components for the automotive and industrial markets. Key revenue sources include the sale of die-cast molds, plastic injection molds, and extrusion tooling, which are essential for producing parts used in vehicle manufacturing and other applications. The company also earns revenue from engineering services that support the design and development of these tools. Significant partnerships with major automotive manufacturers and supplier networks further enhance Exco's market position, allowing it to secure long-term contracts and maintain a steady flow of income. Additionally, Exco's commitment to innovation and technological advancement positions it well to adapt to industry trends, thereby driving revenue growth.
Exco Technologies Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflected both challenges and opportunities for Exco Technologies. While there were declines in revenue and profitability due to external market conditions and internal restructuring costs, there were also positive developments such as stable performance in extrusion tooling, improved dealer inventories, and favorable trade agreements. The company's strategic initiatives in automation and cost management show potential for future improvements.Q3-2025 Updates
Positive Updates
Stable Performance in Extrusion Tooling
Despite challenges, the extrusion tooling operations delivered relatively stable results with sales remaining roughly flat year-over-year, demonstrating resilience across diverse end markets such as automotive, construction, and green energy.
Improved Dealer Inventories and OEM Incentives
U.S. consumer demand has remained resilient with improved dealer inventories and increased OEM incentives supporting sales despite high interest rates.
Operational Improvements in European Market
Halex operations in Europe outperformed local market conditions with improved profitability due to higher volumes, efficiency gains, and better integration with Exco's global operations.
Positive Trade Developments
Recent trade agreements with the EU, Japan, and South Korea have established a more predictable tariff framework, which is expected to bring stability to global automotive trade.
Negative Updates
Decline in Consolidated Revenue and Net Income
Consolidated sales for the third quarter decreased by $6.9 million or 4%, and consolidated net income fell by $2.8 million or 34% compared to last year.
Challenges in Automotive Solutions Segment
Sales in the Automotive Solutions segment dropped due to customer-driven delays, unfavorable vehicle mix, and slightly lower production volumes in North America and Europe.
Softened Demand for Die-Cast Tooling
Demand for new high-pressure die-cast molds was relatively weak due to a slowdown in EV adoption, regulatory changes, and OEMs extending the life of existing platforms.
Pressure on Profitability Due to Increased Costs
Profitability was pressured by increased restructuring costs, foreign exchange losses, and rising labor costs, particularly in Mexico.
Company Guidance
During the Exco Technologies Limited Fiscal Year 2025 Third Quarter Conference Call, the company provided detailed guidance on various metrics and challenges faced. The quarter saw a 4% decline in consolidated sales to $154.9 million from the previous year, with foreign exchange rate changes contributing a $3.1 million increase. Net income decreased by 34% to $5.4 million or $0.14 per share, impacted by $600,000 in restructuring charges. The Automotive Solutions segment experienced a sales decline to $80.8 million, attributed to unfavorable vehicle mix and reduced production volumes, while foreign exchange added $1.5 million to sales. In the Casting and Extrusion segment, sales fell by 6% to $74 million, hampered by weakened die-cast tooling demand, although extrusion tooling sales remained stable due to diversified end markets. The company also highlighted the impact of tariffs and trade agreements, noting a 15% baseline tariff established in recent U.S. trade agreements with the EU, Japan, and South Korea, which could benefit Exco by increasing demand for locally produced tooling. Exco's financial position remains robust, with $23.5 million in cash and $95 million in debt, supporting strategic initiatives amid ongoing trade and market uncertainties.Exco Technologies Financial Statement Overview
Summary
Exco Technologies demonstrates stable financial performance with a strong balance sheet and positive cash flow generation. However, there are concerns regarding declining revenue growth and pressure on profit margins.Income Statement
Exco Technologies shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth rate, which is concerning. However, the company maintains a stable gross profit margin of around 20% and a net profit margin of approximately 3.8%. The EBIT and EBITDA margins have slightly decreased compared to previous years, reflecting some pressure on operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.26 in the TTM period. The return on equity has decreased slightly to 6.08%, indicating a moderate return on shareholders' investments. The equity ratio remains strong, suggesting a solid capital structure.70
Positive
Cash Flow
Cash flow analysis reveals a positive trend in free cash flow growth, with a 5.23% increase in the TTM period. However, the operating cash flow to net income ratio has decreased slightly, indicating potential challenges in converting income into cash. The free cash flow to net income ratio remains healthy at 0.54, showing efficient cash generation relative to net income.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 620.01M | 637.79M | 619.30M | 489.94M | 461.17M | 412.31M |
| Gross Profit | 127.91M | 135.11M | 130.59M | 97.27M | 109.21M | 88.55M |
| EBITDA | 71.68M | 82.18M | 74.53M | 53.05M | 70.09M | 53.51M |
| Net Income | 23.80M | 29.62M | 26.28M | 18.97M | 38.42M | 27.42M |
Balance Sheet | ||||||
| Total Assets | 604.71M | 607.00M | 612.07M | 576.32M | 430.13M | 409.78M |
| Cash, Cash Equivalents and Short-Term Investments | 23.51M | 31.64M | 15.80M | 17.02M | 24.10M | 33.12M |
| Total Debt | 102.14M | 112.25M | 116.36M | 114.01M | 5.54M | 6.51M |
| Total Liabilities | 208.45M | 225.73M | 241.05M | 227.81M | 85.07M | 78.77M |
| Stockholders Equity | 396.27M | 381.27M | 371.02M | 348.51M | 345.06M | 331.01M |
Cash Flow | ||||||
| Free Cash Flow | 39.55M | 47.84M | 19.19M | -30.03M | 9.08M | 40.92M |
| Operating Cash Flow | 73.22M | 81.74M | 58.17M | 23.47M | 47.79M | 64.42M |
| Investing Cash Flow | -33.30M | -33.72M | -37.79M | -110.36M | -38.33M | -22.11M |
| Financing Cash Flow | -37.02M | -32.25M | -21.81M | 79.98M | -16.88M | -36.02M |
Exco Technologies Technical Analysis
Negative
6.54
Price Trends
6.72
Negative
6.69
Negative
6.40
Positive
Market Momentum
-0.05
Positive
42.96
Neutral
22.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTC, the sentiment is Negative. The current price of 6.54 is below the 20-day moving average (MA) of 6.69, below the 50-day MA of 6.72, and above the 200-day MA of 6.40, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTC.
Exco Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $18.23B | 10.97 | 8.31% | 4.09% | 0.66% | -0.61% | |
| ― | $4.29B | 20.45 | 3.61% | 1.42% | -2.60% | -64.22% | |
| ― | $258.68M | 10.96 | 6.01% | 6.42% | -3.50% | -22.76% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | C$341.27M | 11.18 | 12.39% | ― | 10.86% | 217.36% | |
| ― | $736.61M | ― | -4.10% | 1.98% | -8.84% | -148.15% | |
| ― | C$640.10M | -35.51 | 20.23% | ― | -20.36% | 50.19% |
* Consumer Cyclical Sector Average
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Exco Technologies Corporate Events
Exco Technologies Limited: Resilience Amidst Market Challenges
Aug 2, 2025
Exco Technologies Limited’s recent earnings call presented a balanced sentiment amidst a challenging automotive market landscape. The company demonstrated resilience in its extrusion tooling operations and effective cost management strategies, despite facing significant declines in automotive production and sales, as well as profitability pressures. Positive developments in trade agreements and a strong financial position were also highlighted, indicating a mix of challenges and opportunities for the company.
Exco Technologies Reports Q3 2025 Earnings
Aug 1, 2025
Exco Technologies Limited is a global supplier of innovative technologies serving the die-cast, extrusion, and automotive industries, with a presence in 21 strategic locations across 9 countries. In its third-quarter earnings report for fiscal 2025, Exco Technologies reported consolidated sales of $154.9 million, a slight decrease from the previous year’s $161.8 million. The company also announced a quarterly dividend of $0.105 per common share, reflecting its commitment to returning value to shareholders.
Business Operations and StrategyFinancial Disclosures
Exco Technologies Reports Q3 2025 Financial Results Amid Market Challenges
Negative
Jul 30, 2025
Exco Technologies reported a decrease in consolidated sales for the third quarter of fiscal 2025, with sales dropping to $154.9 million from $161.8 million the previous year. Despite the challenges of customer delays, softer demand, and trade uncertainties, the company maintained a net income of $5.4 million. The Automotive Solutions segment faced declines due to unfavorable vehicle mix and production volumes, while the Casting and Extrusion segment saw a decrease in sales due to weakened demand for die-cast tooling. However, Exco remains optimistic about future growth opportunities, particularly in additive tooling and the potential benefits from anticipated tariff increases affecting foreign suppliers.
The most recent analyst rating on (TSE:XTC) stock is a Buy with a C$7.50 price target. To see the full list of analyst forecasts on Exco Technologies stock, see the TSE:XTC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.