EMPIRE CO LTD 'A' (EMP-A.CA) Stock Fundamental Analysis
Canada - TSX:EMP-A - CA2918434077 - Common Stock
48.15 CAD
+0.39 (+0.82%)
We assign a fundamental rating of 4 out of 10 to EMP-A. EMP-A was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. EMP-A has only an average score on both its financial health and profitability. EMP-A is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EMP-A was profitable.
EMP-A had a positive operating cash flow in the past year.
EMP-A had positive earnings in each of the past 5 years.
EMP-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.11%, EMP-A is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Return On Equity of EMP-A (12.89%) is comparable to the rest of the industry.
EMP-A has a Return On Invested Capital (6.70%) which is in line with its industry peers.
EMP-A had an Average Return On Invested Capital over the past 3 years of 6.72%. This is in line with the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 12.89% | ||
| ROIC | 6.7% |
ROA(3y)4.2%
ROA(5y)4.34%
ROE(3y)13.24%
ROE(5y)14.14%
ROIC(3y)6.72%
ROIC(5y)7.1%
1.3 Margins
The Profit Margin of EMP-A (2.24%) is better than 70.59% of its industry peers.
EMP-A's Profit Margin has been stable in the last couple of years.
EMP-A's Operating Margin of 3.77% is on the low side compared to the rest of the industry. EMP-A is outperformed by 64.71% of its industry peers.
In the last couple of years the Operating Margin of EMP-A has remained more or less at the same level.
EMP-A has a worse Gross Margin (27.04%) than 64.71% of its industry peers.
EMP-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 2.24% | ||
| GM | 27.04% |
OM growth 3Y-2.37%
OM growth 5Y-0.73%
PM growth 3Y-3.27%
PM growth 5Y0.38%
GM growth 3Y1.81%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMP-A is creating some value.
Compared to 1 year ago, EMP-A has less shares outstanding
The number of shares outstanding for EMP-A has been reduced compared to 5 years ago.
The debt/assets ratio for EMP-A has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.89 indicates that EMP-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMP-A has a better Altman-Z score (2.89) than 70.59% of its industry peers.
EMP-A has a debt to FCF ratio of 5.91. This is a neutral value as EMP-A would need 5.91 years to pay back of all of its debts.
EMP-A has a better Debt to FCF ratio (5.91) than 76.47% of its industry peers.
EMP-A has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
EMP-A has a Debt to Equity ratio (1.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.08
WACC6.18%
2.3 Liquidity
EMP-A has a Current Ratio of 0.84. 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.
EMP-A's Current ratio of 0.84 is on the low side compared to the rest of the industry. EMP-A is outperformed by 88.24% of its industry peers.
A Quick Ratio of 0.37 indicates that EMP-A may have some problems paying its short term obligations.
The Quick ratio of EMP-A (0.37) is worse than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
EMP-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
EMP-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
The Revenue has been growing slightly by 1.96% in the past year.
EMP-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.
EPS 1Y (TTM)4.9%
EPS 3Y2.09%
EPS 5Y6.33%
EPS Q2Q%1.11%
Revenue 1Y (TTM)1.96%
Revenue growth 3Y1.22%
Revenue growth 5Y3.3%
Sales Q2Q%1.49%
3.2 Future
EMP-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.87% yearly.
EMP-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y12.47%
EPS Next 2Y10.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.26%
Revenue Next 2Y2.66%
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.
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
EMP-A is valuated correctly with a Price/Earnings ratio of 16.05.
70.59% of the companies in the same industry are more expensive than EMP-A, based on the Price/Earnings ratio.
EMP-A is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.10, EMP-A is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as EMP-A.
The average S&P500 Price/Forward Earnings ratio is at 22.94. EMP-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
EMP-A's Enterprise Value to EBITDA is on the same level as the industry average.
64.71% of the companies in the same industry are more expensive than EMP-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)2.54
EPS Next 2Y10.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, EMP-A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.59, EMP-A has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, EMP-A is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of EMP-A grows each year by 11.03%, which is quite nice.
EMP-A has been paying a dividend for at least 10 years, so it has a reliable track record.
EMP-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.03%
Div Incr Years30
Div Non Decr Years34
5.3 Sustainability
27.61% 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.
DP27.61%
EPS Next 2Y10.87%
EPS Next 3YN/A
TSX:EMP-A (10/17/2025, 7:00:00 PM)
48.15
+0.39 (+0.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners40.41%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner ChangeN/A
Market Cap11.08B
Analysts75.29
Price Target57.12 (18.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.81
Dividend Growth(5Y)11.03%
DP27.61%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.88%
Min EPS beat(2)0.56%
Max EPS beat(2)1.19%
EPS beat(4)3
Avg EPS beat(4)1.61%
Min EPS beat(4)-2.46%
Max EPS beat(4)7.15%
EPS beat(8)3
Avg EPS beat(8)-1.42%
EPS beat(12)6
Avg EPS beat(12)-0.96%
EPS beat(16)8
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-3.11%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-2.13%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-3.33%
Revenue beat(16)0
Avg Revenue beat(16)-3.38%
PT rev (1m)0%
PT rev (3m)10.07%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 13.1 | ||
| P/S | 0.35 | ||
| P/FCF | 8.6 | ||
| P/OCF | 5.44 | ||
| P/B | 2.03 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)3
EY6.23%
EPS(NY)3.68
Fwd EY7.63%
FCF(TTM)5.6
FCFY11.63%
OCF(TTM)8.85
OCFY18.38%
SpS136.42
BVpS23.74
TBVpS8.92
PEG (NY)1.29
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 12.89% | ||
| ROCE | 8.99% | ||
| ROIC | 6.7% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 9.4% | ||
| OM | 3.77% | ||
| PM (TTM) | 2.24% | ||
| GM | 27.04% | ||
| FCFM | 4.11% |
ROA(3y)4.2%
ROA(5y)4.34%
ROE(3y)13.24%
ROE(5y)14.14%
ROIC(3y)6.72%
ROIC(5y)7.1%
ROICexc(3y)6.85%
ROICexc(5y)7.41%
ROICexgc(3y)9.42%
ROICexgc(5y)10.15%
ROCE(3y)9.01%
ROCE(5y)9.52%
ROICexcg growth 3Y-5.2%
ROICexcg growth 5Y-2.9%
ROICexc growth 3Y-4.12%
ROICexc growth 5Y-3.01%
OM growth 3Y-2.37%
OM growth 5Y-0.73%
PM growth 3Y-3.27%
PM growth 5Y0.38%
GM growth 3Y1.81%
GM growth 5Y1.44%
F-Score8
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 5.91 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 65.94% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 3.7 | ||
| Cash Conversion | 87.91% | ||
| Profit Quality | 183.09% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.89 |
F-Score8
WACC6.18%
ROIC/WACC1.08
Cap/Depr(3y)72.5%
Cap/Depr(5y)75.25%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.5%
Profit Quality(3y)164.1%
Profit Quality(5y)168.25%
High Growth Momentum
Growth
EPS 1Y (TTM)4.9%
EPS 3Y2.09%
EPS 5Y6.33%
EPS Q2Q%1.11%
EPS Next Y12.47%
EPS Next 2Y10.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.96%
Revenue growth 3Y1.22%
Revenue growth 5Y3.3%
Sales Q2Q%1.49%
Revenue Next Year2.26%
Revenue Next 2Y2.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.27%
EBIT growth 3Y-1.18%
EBIT growth 5Y2.55%
EBIT Next Year97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.5%
FCF growth 3Y0.58%
FCF growth 5Y-1.71%
OCF growth 1Y12.71%
OCF growth 3Y0.31%
OCF growth 5Y0.36%