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 4 out of 10 to EMP-A. EMP-A was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of EMP-A while its profitability can be described as average. EMP-A has a correct valuation and a medium growth rate.
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.
In the past 5 years EMP-A has always been profitable.
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 4.04%, EMP-A is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
EMP-A has a Return On Equity of 12.58%. This is comparable to the rest of the industry: EMP-A outperforms 44.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, EMP-A is in line with its industry, outperforming 44.44% of the companies in the same industry.
EMP-A had an Average Return On Invested Capital over the past 3 years of 6.92%. This is in line with the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.58% | ||
| ROIC | 6.49% |
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
Looking at the Profit Margin, with a value of 2.18%, EMP-A is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Profit Margin of EMP-A has grown nicely.
EMP-A has a Operating Margin (3.65%) which is in line with its industry peers.
EMP-A's Operating Margin has improved in the last couple of years.
The Gross Margin of EMP-A (26.66%) is worse than 61.11% of its industry peers.
EMP-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 2.18% | ||
| GM | 26.66% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMP-A is destroying value.
The number of shares outstanding for EMP-A has been reduced compared to 1 year ago.
The number of shares outstanding for EMP-A has been reduced compared to 5 years ago.
EMP-A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.96 indicates that EMP-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EMP-A (2.96) is better than 61.11% of its industry peers.
The Debt to FCF ratio of EMP-A is 6.74, which is on the high side as it means it would take EMP-A, 6.74 years of fcf income to pay off all of its debts.
EMP-A has a worse Debt to FCF ratio (6.74) than 61.11% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that EMP-A has dependencies on debt financing.
EMP-A's Debt to Equity ratio of 1.26 is fine compared to the rest of the industry. EMP-A outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.63
WACC10.3%
2.3 Liquidity
A Current Ratio of 0.79 indicates that EMP-A may have some problems paying its short term obligations.
EMP-A's Current ratio of 0.79 is on the low side compared to the rest of the industry. EMP-A is outperformed by 94.44% of its industry peers.
A Quick Ratio of 0.31 indicates that EMP-A may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.31, EMP-A is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.77% over the past year.
The Earnings Per Share has been growing by 12.81% on average over the past years. This is quite good.
Looking at the last year, EMP-A shows a small growth in Revenue. The Revenue has grown by 1.05% in the last year.
The Revenue has been growing slightly by 4.10% on average over the past years.
EPS 1Y (TTM)1.77%
EPS 3Y1.63%
EPS 5Y12.81%
EPS Q2Q%0%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y2.83%
Revenue growth 5Y4.1%
Sales Q2Q%3.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y11.27%
EPS Next 2Y10.5%
EPS Next 3Y9.82%
EPS Next 5YN/A
Revenue Next Year1.7%
Revenue Next 2Y2.23%
Revenue Next 3Y2.35%
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.
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
EMP-A is valuated rather expensively with a Price/Earnings ratio of 18.00.
EMP-A's Price/Earnings ratio is a bit cheaper when compared to the industry. EMP-A is cheaper than 66.67% of the companies in the same industry.
EMP-A is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.50 indicates a correct valuation of EMP-A.
EMP-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EMP-A is cheaper than 61.11% of the companies in the same industry.
EMP-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
EMP-A's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EMP-A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.77 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
EMP-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EMP-A may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)1.41
EPS Next 2Y10.5%
EPS Next 3Y9.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, EMP-A has a reasonable but not impressive dividend return.
EMP-A's Dividend Yield is a higher than the industry average which is at 3.57.
Compared to the average S&P500 Dividend Yield of 2.40, EMP-A is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
On average, the dividend of EMP-A grows each year by 10.80%, which is quite nice.
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
EMP-A pays out 27.95% of its income as dividend. This is a sustainable payout ratio.
EMP-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.95%
EPS Next 2Y10.5%
EPS Next 3Y9.82%
TSX:EMP-A (6/13/2025, 7:00:00 PM)
51.84
-0.36 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners42.16%
Inst Owner ChangeN/A
Ins Owners0.88%
Ins Owner ChangeN/A
Market Cap12.06B
Analysts75
Price Target50.49 (-2.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.73
Dividend Growth(5Y)10.8%
DP27.95%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.34%
Min EPS beat(2)-2.46%
Max EPS beat(2)7.15%
EPS beat(4)1
Avg EPS beat(4)0.48%
Min EPS beat(4)-2.46%
Max EPS beat(4)7.15%
EPS beat(8)3
Avg EPS beat(8)-1.13%
EPS beat(12)4
Avg EPS beat(12)-2.01%
EPS beat(16)7
Avg EPS beat(16)-0.55%
Revenue beat(2)0
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-2.13%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-2%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)0
Avg Revenue beat(12)-3.38%
Revenue beat(16)0
Avg Revenue beat(16)-3.19%
PT rev (1m)2.33%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.5 | ||
| P/S | 0.39 | ||
| P/FCF | 10.77 | ||
| P/OCF | 6.03 | ||
| P/B | 2.24 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)2.88
EY5.56%
EPS(NY)3.35
Fwd EY6.45%
FCF(TTM)4.81
FCFY9.29%
OCF(TTM)8.59
OCFY16.57%
SpS133.49
BVpS23.12
TBVpS8.48
PEG (NY)1.6
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 12.58% | ||
| ROCE | 8.69% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 8.96% | ||
| OM | 3.65% | ||
| PM (TTM) | 2.18% | ||
| GM | 26.66% | ||
| FCFM | 3.61% |
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 Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 79.89% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 3.67 | ||
| Cash Conversion | 89.43% | ||
| Profit Quality | 165.59% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 2.96 |
F-Score5
WACC10.3%
ROIC/WACC0.63
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)1.77%
EPS 3Y1.63%
EPS 5Y12.81%
EPS Q2Q%0%
EPS Next Y11.27%
EPS Next 2Y10.5%
EPS Next 3Y9.82%
EPS Next 5YN/A
Revenue 1Y (TTM)1.05%
Revenue growth 3Y2.83%
Revenue growth 5Y4.1%
Sales Q2Q%3.08%
Revenue Next Year1.7%
Revenue Next 2Y2.23%
Revenue Next 3Y2.35%
Revenue Next 5YN/A
EBIT growth 1Y1.98%
EBIT growth 3Y-2.19%
EBIT growth 5Y16.04%
EBIT Next Year91.9%
EBIT Next 3Y27.61%
EBIT Next 5YN/A
FCF growth 1Y46.4%
FCF growth 3Y2.04%
FCF growth 5Y23.11%
OCF growth 1Y27.28%
OCF growth 3Y3.71%
OCF growth 5Y18.56%