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%)
We assign a fundamental rating of 6 out of 10 to ATZ. 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes ATZ very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- ATZ had positive earnings in the past year.
- ATZ had a positive operating cash flow in the past year.
- In the past 5 years ATZ has always been profitable.
- In the past 5 years ATZ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ATZ (14.38%) is better than 89.47% of its industry peers.
- Looking at the Return On Equity, with a value of 33.97%, ATZ is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 19.36%, ATZ belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- 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 last Return On Invested Capital (19.36%) for ATZ is above the 3 year average (10.70%), which is a sign of increasing profitability.
| 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
- ATZ has a Profit Margin of 9.33%. This is in the better half of the industry: ATZ outperforms 78.95% of its industry peers.
- In the last couple of years the Profit Margin of ATZ has declined.
- ATZ has a better Operating Margin (12.88%) than 68.42% of its industry peers.
- ATZ's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 44.94%, ATZ is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- ATZ's Gross Margin has been stable in the last couple of years.
| 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
- An Altman-Z score of 7.23 indicates that ATZ is not in any danger for bankruptcy at the moment.
- ATZ has a Altman-Z score of 7.23. This is amongst the best in the industry. ATZ outperforms 84.21% of its industry peers.
- ATZ has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as ATZ would need 2.13 years to pay back of all of its debts.
- ATZ has a Debt to FCF ratio of 2.13. This is in the better half of the industry: ATZ outperforms 73.68% of its industry peers.
- A Debt/Equity ratio of 0.69 indicates that 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.
- Although ATZ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 7.23 |
ROIC/WACC2.2
WACC8.81%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that ATZ should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.44, ATZ is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
- A Quick Ratio of 0.87 indicates that ATZ may have some problems paying 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.
- ATZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 93.51%.
- ATZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.80% yearly.
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
- ATZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.31% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 40.67 indicates a quite expensive valuation of ATZ.
- The rest of the industry has a similar Price/Earnings ratio as ATZ.
- ATZ is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 30.08, ATZ can be considered very expensive at the moment.
- ATZ's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ATZ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.67 | ||
| Fwd PE | 30.08 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATZ indicates a slightly more expensive valuation: ATZ is more expensive than 63.16% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.32 | ||
| EV/EBITDA | 17.08 |
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.
- ATZ's earnings are expected to grow with 35.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)2.33
EPS Next 2Y42.06%
EPS Next 3Y35.5%
5. Dividend
5.1 Amount
- No dividends for ATZ!.
| 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.