ARITZIA INC-SUBORDINATE VOTI (ATZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ATZ - CA04045U1021 - Common Stock
117.1 CAD
-2.48 (-2.07%)
ATZ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Specialty Retail industry. ATZ has an excellent profitability rating, but there are some minor concerns on its financial health. ATZ is not overvalued while it is showing excellent growth. This is an interesting 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.
- In the past 5 years ATZ has always been profitable.
- ATZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ATZ's Return On Assets of 14.38% is amongst the best of the industry. ATZ outperforms 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.
- ATZ has a Return On Invested Capital of 19.36%. This is amongst the best in the industry. ATZ outperforms 84.21% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- 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.
- ATZ's Profit Margin has declined in the last couple of years.
- The Operating Margin of ATZ (12.88%) is better than 68.42% of its industry peers.
- ATZ's Operating Margin has declined in the last couple of years.
- ATZ has a Gross Margin of 44.94%. This is in the better half of the industry: ATZ outperforms 63.16% of its industry peers.
- 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.
- ATZ has more shares outstanding than it did 5 years ago.
- ATZ has a better debt/assets ratio than last year.
2.2 Solvency
- ATZ has an Altman-Z score of 7.23. This indicates that ATZ is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.23, 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.
- Looking at the Debt to FCF ratio, with a value of 2.13, ATZ is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- ATZ has a Debt/Equity ratio of 0.69. This is a neutral value indicating ATZ is somewhat dependend on debt financing.
- The Debt to Equity ratio of ATZ (0.69) is comparable to the rest of the industry.
- 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 | 7.23 |
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.
- ATZ's Current ratio of 1.44 is fine compared to the rest of the industry. ATZ outperforms 63.16% of its industry peers.
- A Quick Ratio of 0.87 indicates that ATZ may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.87, ATZ is doing good in 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
- ATZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.65%, which is quite impressive.
- ATZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.49% yearly.
- ATZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 93.51%.
- 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.
- Based on estimates for the next years, ATZ will show a quite strong growth in Revenue. The Revenue will grow by 14.75% on average per year.
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
- Based on the Price/Earnings ratio of 39.83, the valuation of ATZ can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as ATZ.
- The average S&P500 Price/Earnings ratio is at 27.25. ATZ is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 29.45, ATZ can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as ATZ.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ATZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.83 | ||
| Fwd PE | 29.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ATZ is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ATZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.73 | ||
| 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.
- The decent profitability rating of ATZ 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)0.69
PEG (5Y)2.28
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.