KITS EYECARE LTD (KITS.CA) Stock Fundamental Analysis
TSX:KITS - Toronto Stock Exchange - CA49804N1042 - Common Stock - Currency: CAD
KITS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Specialty Retail industry. The financial health of KITS is average, but there are quite some concerns on its profitability. KITS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year KITS has reported negative net income.
In the past year KITS had a positive cash flow from operations.
In the past 5 years KITS reported 4 times negative net income.
Of the past 5 years KITS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KITS (-0.11%) is worse than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of -0.20%, KITS is doing worse than 64.29% of the companies in the same industry.
KITS's Return On Invested Capital of 0.67% is on the low side compared to the rest of the industry. KITS is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -0.2% | ||
| ROIC | 0.67% |
ROA(3y)-7.82%
ROA(5y)-7.08%
ROE(3y)-13.15%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KITS has a Operating Margin of 0.40%. This is in the lower half of the industry: KITS underperforms 71.43% of its industry peers.
KITS has a worse Gross Margin (33.15%) than 71.43% of its industry peers.
KITS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.4% | ||
| PM (TTM) | N/A | ||
| GM | 33.15% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.98%
GM growth 5Y4.08%
2. Health
2.1 Basic Checks
KITS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KITS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KITS has more shares outstanding
KITS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.25 indicates that KITS is not in any danger for bankruptcy at the moment.
KITS's Altman-Z score of 5.25 is amongst the best of the industry. KITS outperforms 92.86% of its industry peers.
KITS has a debt to FCF ratio of 2.76. This is a good value and a sign of high solvency as KITS would need 2.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.76, KITS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
KITS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
KITS's Debt to Equity ratio of 0.17 is amongst the best of the industry. KITS outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 5.25 |
ROIC/WACC0.07
WACC8.98%
2.3 Liquidity
KITS has a Current Ratio of 1.20. This is a normal value and indicates that KITS is financially healthy and should not expect problems in meeting its short term obligations.
KITS has a Current ratio of 1.20. This is comparable to the rest of the industry: KITS outperforms 42.86% of its industry peers.
A Quick Ratio of 0.67 indicates that KITS may have some problems paying its short term obligations.
KITS has a Quick ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
KITS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.00%, which is quite impressive.
KITS shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.00%.
Measured over the past years, KITS shows a very strong growth in Revenue. The Revenue has been growing by 20.41% on average per year.
EPS 1Y (TTM)90%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)27%
Revenue growth 3Y17.01%
Revenue growth 5Y20.41%
Sales Q2Q%34.42%
3.2 Future
KITS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 85.45% yearly.
Based on estimates for the next years, KITS will show a very strong growth in Revenue. The Revenue will grow by 23.57% on average per year.
EPS Next Y148.45%
EPS Next 2Y81.67%
EPS Next 3Y85.45%
EPS Next 5YN/A
Revenue Next Year31.77%
Revenue Next 2Y26.4%
Revenue Next 3Y23.02%
Revenue Next 5Y23.57%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for KITS. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 84.20, KITS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KITS is on the same level as its industry peers.
KITS is valuated expensively 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 | N/A | ||
| Fwd PE | 84.2 |
4.2 Price Multiples
KITS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KITS is more expensive than 78.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KITS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.05 | ||
| EV/EBITDA | 81.64 |
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.
KITS's earnings are expected to grow with 85.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.67%
EPS Next 3Y85.45%
5. Dividend
5.1 Amount
No dividends for KITS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KITS (2/21/2025, 7:00:00 PM)
8.76
-0.04 (-0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners4.64%
Inst Owner ChangeN/A
Ins Owners30.79%
Ins Owner ChangeN/A
Market Cap276.64M
Analysts81.54
Price Target15.81 (80.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)0.4%
Revenue beat(8)5
Avg Revenue beat(8)2.38%
Revenue beat(12)6
Avg Revenue beat(12)-0.65%
Revenue beat(16)7
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)7.43%
EPS NQ rev (1m)99.94%
EPS NQ rev (3m)233.3%
EPS NY rev (1m)58.33%
EPS NY rev (3m)216.67%
Revenue NQ rev (1m)1.37%
Revenue NQ rev (3m)20.71%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.2 | ||
| P/S | 1.89 | ||
| P/FCF | 59.05 | ||
| P/OCF | 40.05 | ||
| P/B | 5.19 | ||
| P/tB | 20.41 | ||
| EV/EBITDA | 81.64 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.1
Fwd EY1.19%
FCF(TTM)0.15
FCFY1.69%
OCF(TTM)0.22
OCFY2.5%
SpS4.63
BVpS1.69
TBVpS0.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -0.2% | ||
| ROCE | 0.93% | ||
| ROIC | 0.67% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 11.76% | ||
| OM | 0.4% | ||
| PM (TTM) | N/A | ||
| GM | 33.15% | ||
| FCFM | 3.21% |
ROA(3y)-7.82%
ROA(5y)-7.08%
ROE(3y)-13.15%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.98%
GM growth 5Y4.08%
F-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 80.8% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 207.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 5.25 |
F-Score5
WACC8.98%
ROIC/WACC0.07
Cap/Depr(3y)53.67%
Cap/Depr(5y)49.37%
Cap/Sales(3y)1.72%
Cap/Sales(5y)1.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y148.45%
EPS Next 2Y81.67%
EPS Next 3Y85.45%
EPS Next 5YN/A
Revenue 1Y (TTM)27%
Revenue growth 3Y17.01%
Revenue growth 5Y20.41%
Sales Q2Q%34.42%
Revenue Next Year31.77%
Revenue Next 2Y26.4%
Revenue Next 3Y23.02%
Revenue Next 5Y23.57%
EBIT growth 1Y126.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year651.54%
EBIT Next 3Y163.35%
EBIT Next 5Y149.69%
FCF growth 1Y-22.82%
FCF growth 3Y-22.45%
FCF growth 5Y-12.83%
OCF growth 1Y7.92%
OCF growth 3Y-16.83%
OCF growth 5Y-8.06%