EMPIRE CO LTD 'A' (EMP-A.CA) Stock Fundamental Analysis
TSX:EMP-A - Toronto Stock Exchange - CA2918434077 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to EMP-A. EMP-A was compared to 19 industry peers in the Consumer Staples Distribution & Retail industry. EMP-A has a medium profitability rating, but doesn't score so well on its financial health evaluation. EMP-A has a correct valuation and a medium growth rate. EMP-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMP-A had positive earnings in the past year.
EMP-A had a positive operating cash flow in the past year.
Each year in the past 5 years EMP-A has been profitable.
EMP-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.94%, EMP-A is doing good in the industry, outperforming 68.42% of the companies in the same industry.
EMP-A has a Return On Equity of 12.29%. This is in the better half of the industry: EMP-A outperforms 68.42% of its industry peers.
The Return On Invested Capital of EMP-A (6.24%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EMP-A is in line with the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 12.29% | ||
| ROIC | 6.24% |
ROA(3y)4.33%
ROA(5y)4.32%
ROE(3y)13.9%
ROE(5y)14.53%
ROIC(3y)6.92%
ROIC(5y)7.22%
1.3 Margins
With a decent Profit Margin value of 2.16%, EMP-A is doing good in the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of EMP-A has grown nicely.
The Operating Margin of EMP-A (3.53%) is comparable to the rest of the industry.
EMP-A's Operating Margin has improved in the last couple of years.
EMP-A has a Gross Margin (26.55%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EMP-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 2.16% | ||
| GM | 26.55% |
OM growth 3Y-4.88%
OM growth 5Y11.47%
PM growth 3Y-1.69%
PM growth 5Y8.92%
GM growth 3Y1.03%
GM growth 5Y1.65%
2. Health
2.1 Basic Checks
EMP-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EMP-A has been reduced compared to 1 year ago.
Compared to 5 years ago, EMP-A has less shares outstanding
Compared to 1 year ago, EMP-A has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that EMP-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMP-A has a Altman-Z score of 2.82. This is comparable to the rest of the industry: EMP-A outperforms 57.89% of its industry peers.
The Debt to FCF ratio of EMP-A is 5.82, which is a neutral value as it means it would take EMP-A, 5.82 years of fcf income to pay off all of its debts.
EMP-A has a better Debt to FCF ratio (5.82) than 63.16% of its industry peers.
EMP-A has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
EMP-A has a Debt to Equity ratio (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.08
WACC5.79%
2.3 Liquidity
EMP-A has a Current Ratio of 0.81. This is a bad value and indicates that EMP-A is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.81, EMP-A is doing worse than 94.74% of the companies in the same industry.
A Quick Ratio of 0.33 indicates that EMP-A may have some problems paying its short term obligations.
EMP-A has a Quick ratio of 0.33. This is amonst the worse of the industry: EMP-A underperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
EMP-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.05%.
EMP-A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.81% yearly.
The Revenue has been growing slightly by 0.31% in the past year.
EMP-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
EPS 1Y (TTM)1.05%
EPS 3Y1.63%
EPS 5Y12.81%
EPS Q2Q%2.82%
Revenue 1Y (TTM)0.31%
Revenue growth 3Y2.83%
Revenue growth 5Y4.1%
Sales Q2Q%0.34%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y11.81%
EPS Next 2Y10.34%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue Next Year1.42%
Revenue Next 2Y2.01%
Revenue Next 3Y2.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EMP-A is valuated correctly with a Price/Earnings ratio of 14.93.
Based on the Price/Earnings ratio, EMP-A is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, EMP-A is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.89, EMP-A is valued correctly.
Based on the Price/Forward Earnings ratio, EMP-A is valued a bit cheaper than 63.16% of the companies in the same industry.
EMP-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EMP-A.
EMP-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.8 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EMP-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.17
EPS Next 2Y10.34%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
EMP-A has a Yearly Dividend Yield of 1.87%.
Compared to an average industry Dividend Yield of 1.55, EMP-A pays a better dividend. On top of this EMP-A pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, EMP-A has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of EMP-A is nicely growing with an annual growth rate of 10.80%!
EMP-A has paid a dividend for at least 10 years, which is a reliable track record.
EMP-A has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.8%
Div Incr Years30
Div Non Decr Years34
5.3 Sustainability
28.10% of the earnings are spent on dividend by EMP-A. This is a low number and sustainable payout ratio.
EMP-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.1%
EPS Next 2Y10.34%
EPS Next 3Y9.39%
TSX:EMP-A (2/21/2025, 7:00:00 PM)
42.99
+0.19 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners38.8%
Inst Owner ChangeN/A
Ins Owners0.85%
Ins Owner ChangeN/A
Market Cap10.09B
Analysts73.75
Price Target49.09 (14.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.73
Dividend Growth(5Y)10.8%
DP28.1%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.13%
Min EPS beat(2)-0.89%
Max EPS beat(2)7.15%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-5.74%
Max EPS beat(4)7.15%
EPS beat(8)3
Avg EPS beat(8)-2.07%
EPS beat(12)5
Avg EPS beat(12)-0.8%
EPS beat(16)8
Avg EPS beat(16)0.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.08%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-3.22%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-2%
Revenue beat(8)0
Avg Revenue beat(8)-3.53%
Revenue beat(12)0
Avg Revenue beat(12)-3.47%
Revenue beat(16)0
Avg Revenue beat(16)-3.24%
PT rev (1m)0%
PT rev (3m)10.81%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-8.31%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 12.89 | ||
| P/S | 0.33 | ||
| P/FCF | 7.8 | ||
| P/OCF | 4.74 | ||
| P/B | 1.87 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)2.88
EY6.7%
EPS(NY)3.34
Fwd EY7.76%
FCF(TTM)5.51
FCFY12.82%
OCF(TTM)9.07
OCFY21.11%
SpS131.36
BVpS23.03
TBVpS8.55
PEG (NY)1.26
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 12.29% | ||
| ROCE | 8.35% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 8.71% | ||
| OM | 3.53% | ||
| PM (TTM) | 2.16% | ||
| GM | 26.55% | ||
| FCFM | 4.19% |
ROA(3y)4.33%
ROA(5y)4.32%
ROE(3y)13.9%
ROE(5y)14.53%
ROIC(3y)6.92%
ROIC(5y)7.22%
ROICexc(3y)7.18%
ROICexc(5y)7.66%
ROICexgc(3y)9.99%
ROICexgc(5y)10.47%
ROCE(3y)9.26%
ROCE(5y)9.66%
ROICexcg growth 3Y-5.81%
ROICexcg growth 5Y-3.16%
ROICexc growth 3Y-7.2%
ROICexc growth 5Y1.17%
OM growth 3Y-4.88%
OM growth 5Y11.47%
PM growth 3Y-1.69%
PM growth 5Y8.92%
GM growth 3Y1.03%
GM growth 5Y1.65%
F-Score5
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 5.82 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 76.46% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 97.58% | ||
| Profit Quality | 194.6% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 2.82 |
F-Score5
WACC5.79%
ROIC/WACC1.08
Cap/Depr(3y)76.27%
Cap/Depr(5y)77.2%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.47%
Profit Quality(3y)159.12%
Profit Quality(5y)180.07%
High Growth Momentum
Growth
EPS 1Y (TTM)1.05%
EPS 3Y1.63%
EPS 5Y12.81%
EPS Q2Q%2.82%
EPS Next Y11.81%
EPS Next 2Y10.34%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.31%
Revenue growth 3Y2.83%
Revenue growth 5Y4.1%
Sales Q2Q%0.34%
Revenue Next Year1.42%
Revenue Next 2Y2.01%
Revenue Next 3Y2.18%
Revenue Next 5YN/A
EBIT growth 1Y-0.32%
EBIT growth 3Y-2.19%
EBIT growth 5Y16.04%
EBIT Next Year89.44%
EBIT Next 3Y26.3%
EBIT Next 5YN/A
FCF growth 1Y18.88%
FCF growth 3Y2.04%
FCF growth 5Y23.11%
OCF growth 1Y12.88%
OCF growth 3Y3.71%
OCF growth 5Y18.56%