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 16 industry peers in the Consumer Staples Distribution & Retail industry. EMP-A has an average financial health and profitability rating. EMP-A has a correct valuation and a medium 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.
In the past 5 years EMP-A always reported a positive cash flow from operatings.
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 68.75% of the companies in the same industry.
EMP-A's Return On Equity of 12.94% is on the low side compared to the rest of the industry. EMP-A is outperformed by 62.50% of its industry peers.
EMP-A's Return On Invested Capital of 6.61% is on the low side compared to the rest of the industry. EMP-A is outperformed by 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMP-A is in line with the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 12.94% | ||
| ROIC | 6.61% |
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
EMP-A has a Profit Margin of 2.24%. This is in the better half of the industry: EMP-A outperforms 68.75% of its industry peers.
EMP-A's Profit Margin has been stable in the last couple of years.
EMP-A's Operating Margin of 3.66% is on the low side compared to the rest of the industry. EMP-A is outperformed by 62.50% of its industry peers.
EMP-A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 26.80%, EMP-A is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of EMP-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.66% | ||
| PM (TTM) | 2.24% | ||
| GM | 26.8% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMP-A is still creating some value.
Compared to 1 year ago, EMP-A has less shares outstanding
Compared to 5 years ago, EMP-A has less shares outstanding
EMP-A has about the same debt/assets ratio as last year.
2.2 Solvency
EMP-A has an Altman-Z score of 2.96. This is not the best score and indicates that EMP-A is in the grey zone with still only limited risk for bankruptcy at the moment.
EMP-A's Altman-Z score of 2.96 is fine compared to the rest of the industry. EMP-A outperforms 68.75% of its industry peers.
The Debt to FCF ratio of EMP-A is 5.53, which is a neutral value as it means it would take EMP-A, 5.53 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.53, EMP-A is doing good in the industry, outperforming 68.75% of the companies in the same industry.
EMP-A has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
EMP-A's Debt to Equity ratio of 1.23 is fine compared to the rest of the industry. EMP-A outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.06
WACC6.22%
2.3 Liquidity
A Current Ratio of 0.77 indicates that EMP-A may have some problems paying its short term obligations.
EMP-A has a Current ratio of 0.77. This is amonst the worse of the industry: EMP-A underperforms 93.75% of its industry peers.
EMP-A has a Quick Ratio of 0.77. 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.
With a Quick ratio value of 0.32, EMP-A is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.12% over the past year.
Measured over the past 5 years, EMP-A shows a small growth in Earnings Per Share. The EPS has been growing by 6.33% on average per year.
The Revenue has been growing slightly by 1.77% 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)9.12%
EPS 3Y2.09%
EPS 5Y6.33%
EPS Q2Q%17.46%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y1.22%
Revenue growth 5Y3.3%
Sales Q2Q%3.04%
3.2 Future
The Earnings Per Share is expected to grow by 10.17% on average over the next years. This is quite good.
EMP-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.21% yearly.
EPS Next Y11.89%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.34%
Revenue Next 2Y3.21%
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
With a Price/Earnings ratio of 18.58, EMP-A is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EMP-A indicates a somewhat cheap valuation: EMP-A is cheaper than 62.50% of the companies listed in the same industry.
EMP-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.99.
A Price/Forward Earnings ratio of 16.61 indicates a correct valuation of EMP-A.
EMP-A's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.36. EMP-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
EMP-A's Enterprise Value to EBITDA is on the same level as the industry average.
EMP-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 8.85 |
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.
PEG (NY)1.56
PEG (5Y)2.94
EPS Next 2Y10.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EMP-A has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
EMP-A's Dividend Yield is rather good when compared to the industry average which is at 1.52. EMP-A pays more dividend than 93.75% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, EMP-A is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
EMP-A pays out 27.43% of its income as dividend. This is a sustainable payout ratio.
The dividend of EMP-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.43%
EPS Next 2Y10.17%
EPS Next 3YN/A
TSX:EMP-A (8/5/2025, 7:00:00 PM)
55.56
+1.06 (+1.94%)
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 Cap12.88B
Analysts75.29
Price Target57.63 (3.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.81
Dividend Growth(5Y)11.03%
DP27.43%
Div Incr Years30
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.64%
Min EPS beat(2)-2.46%
Max EPS beat(2)1.19%
EPS beat(4)2
Avg EPS beat(4)1.25%
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)5
Avg EPS beat(12)-1.58%
EPS beat(16)7
Avg EPS beat(16)-0.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)-2.13%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-2%
Revenue beat(8)0
Avg Revenue beat(8)-2.92%
Revenue beat(12)0
Avg Revenue beat(12)-3.24%
Revenue beat(16)0
Avg Revenue beat(16)-3.3%
PT rev (1m)11.06%
PT rev (3m)16.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 16.61 | ||
| P/S | 0.41 | ||
| P/FCF | 9.54 | ||
| P/OCF | 6.05 | ||
| P/B | 2.38 | ||
| P/tB | 6.45 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)2.99
EY5.38%
EPS(NY)3.35
Fwd EY6.02%
FCF(TTM)5.82
FCFY10.48%
OCF(TTM)9.18
OCFY16.52%
SpS134.95
BVpS23.34
TBVpS8.61
PEG (NY)1.56
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 12.94% | ||
| ROCE | 8.87% | ||
| ROIC | 6.61% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 9.26% | ||
| OM | 3.66% | ||
| PM (TTM) | 2.24% | ||
| GM | 26.8% | ||
| FCFM | 4.32% |
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-Score7
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 69.38% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | 93.87% | ||
| Profit Quality | 192.86% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.96 |
F-Score7
WACC6.22%
ROIC/WACC1.06
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)9.12%
EPS 3Y2.09%
EPS 5Y6.33%
EPS Q2Q%17.46%
EPS Next Y11.89%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.77%
Revenue growth 3Y1.22%
Revenue growth 5Y3.3%
Sales Q2Q%3.04%
Revenue Next Year3.34%
Revenue Next 2Y3.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.05%
EBIT growth 3Y-1.18%
EBIT growth 5Y2.55%
EBIT Next Year94.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.83%
FCF growth 3Y0.58%
FCF growth 5Y-1.71%
OCF growth 1Y2.54%
OCF growth 3Y0.31%
OCF growth 5Y0.36%