SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis
TSX:ZZZ - Toronto Stock Exchange - CA83125J1049 - Common Stock - Currency: CAD
Taking everything into account, ZZZ scores 5 out of 10 in our fundamental rating. ZZZ was compared to 15 industry peers in the Specialty Retail industry. ZZZ has an excellent profitability rating, but there are some minor concerns on its financial health. ZZZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ZZZ had positive earnings in the past year.
In the past year ZZZ had a positive cash flow from operations.
ZZZ had positive earnings in each of the past 5 years.
ZZZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.34%, ZZZ belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
With an excellent Return On Equity value of 15.47%, ZZZ belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
ZZZ's Return On Invested Capital of 9.72% is amongst the best of the industry. ZZZ outperforms 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZZZ is significantly above the industry average of 6.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 15.47% | ||
| ROIC | 9.72% |
ROA(3y)8.73%
ROA(5y)7.85%
ROE(3y)21.83%
ROE(5y)20.26%
ROIC(3y)11.93%
ROIC(5y)10.96%
1.3 Margins
Looking at the Profit Margin, with a value of 7.52%, ZZZ belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
ZZZ's Profit Margin has declined in the last couple of years.
ZZZ's Operating Margin of 13.01% is fine compared to the rest of the industry. ZZZ outperforms 76.47% of its industry peers.
ZZZ's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 37.67%, ZZZ perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
ZZZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 7.52% | ||
| GM | 37.67% |
OM growth 3Y0.81%
OM growth 5Y-1.65%
PM growth 3Y-3.05%
PM growth 5Y-4.46%
GM growth 3Y6.81%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ZZZ is still creating some value.
Compared to 1 year ago, ZZZ has less shares outstanding
Compared to 5 years ago, ZZZ has less shares outstanding
ZZZ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that ZZZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZZZ's Altman-Z score of 2.43 is in line compared to the rest of the industry. ZZZ outperforms 41.18% of its industry peers.
ZZZ has a debt to FCF ratio of 4.70. This is a neutral value as ZZZ would need 4.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.70, ZZZ is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that ZZZ is somewhat dependend on debt financing.
ZZZ has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: ZZZ underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.23
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ZZZ should not have too much problems paying its short term obligations.
ZZZ has a worse Current ratio (1.05) than 76.47% of its industry peers.
A Quick Ratio of 0.44 indicates that ZZZ may have some problems paying its short term obligations.
ZZZ's Quick ratio of 0.44 is on the low side compared to the rest of the industry. ZZZ is outperformed by 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for ZZZ have decreased by -8.94% in the last year.
ZZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.17% yearly.
ZZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
The Revenue has been growing by 8.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.94%
EPS 3Y2.66%
EPS 5Y4.17%
EPS Q2Q%28.57%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y7.26%
Revenue growth 5Y8.46%
Sales Q2Q%7.04%
3.2 Future
The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.44%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.35 indicates a correct valuation of ZZZ.
ZZZ's Price/Earnings ratio is a bit cheaper when compared to the industry. ZZZ is cheaper than 64.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. ZZZ is valued slightly cheaper when compared to this.
ZZZ is valuated correctly with a Price/Forward Earnings ratio of 13.46.
70.59% of the companies in the same industry are more expensive than ZZZ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZZZ to the average of the S&P500 Index (22.10), we can say ZZZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
ZZZ's Enterprise Value to EBITDA ratio is in line with the industry average.
ZZZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZZZ is cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
ZZZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, ZZZ has a reasonable but not impressive dividend return.
ZZZ's Dividend Yield is a higher than the industry average which is at 5.23.
Compared to an average S&P500 Dividend Yield of 2.33, ZZZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of ZZZ has a limited annual growth rate of 5.35%.
ZZZ has been paying a dividend for at least 10 years, so it has a reliable track record.
ZZZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ZZZ pays out 45.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ZZZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.12%
EPS Next 2Y11%
EPS Next 3YN/A
TSX:ZZZ (10/2/2024, 7:00:00 PM)
34.99
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners44.56%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.19B
Analysts48.89
Price Target35.7 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.94
Dividend Growth(5Y)5.35%
DP45.12%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.99%
Min EPS beat(2)-22.63%
Max EPS beat(2)50.61%
EPS beat(4)2
Avg EPS beat(4)7.83%
Min EPS beat(4)-22.63%
Max EPS beat(4)50.61%
EPS beat(8)3
Avg EPS beat(8)1.45%
EPS beat(12)7
Avg EPS beat(12)13.69%
EPS beat(16)11
Avg EPS beat(16)20.9%
Revenue beat(2)1
Avg Revenue beat(2)0.65%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)3.04%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)8
Avg Revenue beat(12)1.76%
Revenue beat(16)12
Avg Revenue beat(16)5.26%
PT rev (1m)0%
PT rev (3m)12.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.46 | ||
| P/S | 1.24 | ||
| P/FCF | 11.08 | ||
| P/OCF | 8.05 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)2.14
EY6.12%
EPS(NY)2.6
Fwd EY7.43%
FCF(TTM)3.16
FCFY9.02%
OCF(TTM)4.34
OCFY12.42%
SpS28.13
BVpS13.68
TBVpS-3.11
PEG (NY)N/A
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 15.47% | ||
| ROCE | 12.98% | ||
| ROIC | 9.72% | ||
| ROICexc | 10.08% | ||
| ROICexgc | 26.37% | ||
| OM | 13.01% | ||
| PM (TTM) | 7.52% | ||
| GM | 37.67% | ||
| FCFM | 11.22% |
ROA(3y)8.73%
ROA(5y)7.85%
ROE(3y)21.83%
ROE(5y)20.26%
ROIC(3y)11.93%
ROIC(5y)10.96%
ROICexc(3y)12.73%
ROICexc(5y)11.66%
ROICexgc(3y)35.45%
ROICexgc(5y)32.04%
ROCE(3y)15.93%
ROCE(5y)14.63%
ROICexcg growth 3Y-1.09%
ROICexcg growth 5Y-21.13%
ROICexc growth 3Y-0.23%
ROICexc growth 5Y-4.67%
OM growth 3Y0.81%
OM growth 5Y-1.65%
PM growth 3Y-3.05%
PM growth 5Y-4.46%
GM growth 3Y6.81%
GM growth 5Y4.09%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 57.02% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 4.38 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 149.15% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.43 |
F-Score8
WACC7.88%
ROIC/WACC1.23
Cap/Depr(3y)40.46%
Cap/Depr(5y)43.49%
Cap/Sales(3y)2.89%
Cap/Sales(5y)3.19%
Profit Quality(3y)147.02%
Profit Quality(5y)172.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.94%
EPS 3Y2.66%
EPS 5Y4.17%
EPS Q2Q%28.57%
EPS Next Y-0.05%
EPS Next 2Y11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.9%
Revenue growth 3Y7.26%
Revenue growth 5Y8.46%
Sales Q2Q%7.04%
Revenue Next Year4.44%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.53%
EBIT growth 3Y8.13%
EBIT growth 5Y6.67%
EBIT Next Year59.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-38.69%
FCF growth 3Y-10.86%
FCF growth 5Y21.99%
OCF growth 1Y-21.16%
OCF growth 3Y-3.94%
OCF growth 5Y17.72%