ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATZ - CA04045U1021 - Common Stock
119.58 CAD
-1.95 (-1.6%)
Taking everything into account, ATZ scores 6 out of 10 in our fundamental rating. ATZ was compared to 19 industry peers in the Specialty Retail industry. While ATZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ATZ is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ATZ could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- ATZ had positive earnings in the past year.
- In the past year ATZ had a positive cash flow from operations.
- Each year in the past 5 years ATZ has been profitable.
- ATZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 14.38%, ATZ belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- The Return On Equity of ATZ (33.97%) is better than 78.95% of its industry peers.
- ATZ's Return On Invested Capital of 19.36% is amongst the best of the industry. ATZ outperforms 84.21% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ATZ is in line with the industry average of 11.04%.
- The 3 year average ROIC (10.70%) for ATZ is below the current ROIC(19.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.38% | ||
| ROE | 33.97% | ||
| ROIC | 19.36% |
ROA(3y)7.57%
ROA(5y)7.08%
ROE(3y)18.7%
ROE(5y)18.2%
ROIC(3y)10.7%
ROIC(5y)10.34%
1.3 Margins
- With a decent Profit Margin value of 9.33%, ATZ is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- In the last couple of years the Profit Margin of ATZ has declined.
- ATZ's Operating Margin of 12.88% is fine compared to the rest of the industry. ATZ outperforms 68.42% of its industry peers.
- In the last couple of years the Operating Margin of ATZ has declined.
- Looking at the Gross Margin, with a value of 44.94%, ATZ is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
- In the last couple of years the Gross Margin of ATZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 9.33% | ||
| GM | 44.94% |
OM growth 3Y-11.28%
OM growth 5Y-7.07%
PM growth 3Y-10.25%
PM growth 5Y-3.86%
GM growth 3Y-0.54%
GM growth 5Y0.94%
2. Health
2.1 Basic Checks
- ATZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- ATZ has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ATZ has more shares outstanding
- ATZ has a better debt/assets ratio than last year.
2.2 Solvency
- ATZ has an Altman-Z score of 7.30. This indicates that ATZ is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.30, ATZ belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- The Debt to FCF ratio of ATZ is 2.13, which is a good value as it means it would take ATZ, 2.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ATZ (2.13) is better than 73.68% of its industry peers.
- ATZ has a Debt/Equity ratio of 0.69. This is a neutral value indicating ATZ is somewhat dependend on debt financing.
- ATZ's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. ATZ outperforms 47.37% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ATZ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 7.3 |
ROIC/WACC2.18
WACC8.86%
2.3 Liquidity
- ATZ has a Current Ratio of 1.44. This is a normal value and indicates that ATZ is financially healthy and should not expect problems in meeting its short term obligations.
- ATZ has a Current ratio of 1.44. This is in the better half of the industry: ATZ outperforms 63.16% of its industry peers.
- ATZ has a Quick Ratio of 1.44. This is a bad value and indicates that ATZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.87, ATZ is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 98.65% over the past year.
- Measured over the past years, ATZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.49% on average per year.
- The Revenue has grown by 93.51% in the past year. This is a very strong growth!
- The Revenue has been growing by 22.80% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)98.65%
EPS 3Y8.79%
EPS 5Y17.49%
EPS Q2Q%54.93%
Revenue 1Y (TTM)93.51%
Revenue growth 3Y22.36%
Revenue growth 5Y22.8%
Sales Q2Q%42.76%
3.2 Future
- Based on estimates for the next years, ATZ will show a very strong growth in Earnings Per Share. The EPS will grow by 25.31% on average per year.
- ATZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.75% yearly.
EPS Next Y57.8%
EPS Next 2Y42.06%
EPS Next 3Y35.5%
EPS Next 5Y25.31%
Revenue Next Year25.37%
Revenue Next 2Y19.66%
Revenue Next 3Y17.05%
Revenue Next 5Y14.75%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 40.67, ATZ can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ATZ is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. ATZ is valued slightly more expensive when compared to this.
- ATZ is valuated quite expensively with a Price/Forward Earnings ratio of 30.08.
- ATZ's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ATZ is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.67 | ||
| Fwd PE | 30.08 |
4.2 Price Multiples
- ATZ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ATZ is more expensive than 63.16% of the companies in the same industry.
- ATZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.32 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ATZ has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ATZ's earnings are expected to grow with 35.50% in the coming years.
PEG (NY)0.7
PEG (5Y)2.33
EPS Next 2Y42.06%
EPS Next 3Y35.5%
5. Dividend
5.1 Amount
- ATZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARITZIA INC-SUBORDINATE VOTI / ATZ.CA FAQ
What is the ChartMill fundamental rating of ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ATZ.CA.
Can you provide the valuation status for ARITZIA INC-SUBORDINATE VOTI?
ChartMill assigns a valuation rating of 4 / 10 to ARITZIA INC-SUBORDINATE VOTI (ATZ.CA). This can be considered as Fairly Valued.
How profitable is ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) stock?
ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) has a profitability rating of 7 / 10.
Can you provide the financial health for ATZ stock?
The financial health rating of ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) is 6 / 10.
What is the expected EPS growth for ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) stock?
The Earnings per Share (EPS) of ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) is expected to grow by 57.8% in the next year.