EMPIRE CO LTD 'A' (EMP-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:EMP-A • CA2918434077
45.1 CAD
+1.26 (+2.87%)
Last: Jan 29, 2026, 07:00 PM
Taking everything into account, EMP-A scores 4 out of 10 in our fundamental rating. EMP-A was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. While EMP-A is still in line with the averages on profitability rating, there are concerns on its financial health. EMP-A has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years EMP-A has been profitable.
- Each year in the past 5 years EMP-A had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.01%, EMP-A is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.55%, EMP-A is in line with its industry, outperforming 47.06% of the companies in the same industry.
- With a Return On Invested Capital value of 6.71%, EMP-A perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for EMP-A is in line with the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 12.55% | ||
| ROIC | 6.71% |
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
- Looking at the Profit Margin, with a value of 2.18%, EMP-A is doing worse than 64.71% of the companies in the same industry.
- EMP-A's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 3.77%, EMP-A is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of EMP-A has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 27.12%, EMP-A is doing worse than 70.59% of the companies in the same industry.
- EMP-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 2.18% | ||
| GM | 27.12% |
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.
- EMP-A has less shares outstanding than it did 1 year ago.
- EMP-A has less shares outstanding than it did 5 years ago.
- EMP-A has about the same debt/assets ratio as last year.
2.2 Solvency
- An Altman-Z score of 2.87 indicates that EMP-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.87, EMP-A is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- The Debt to FCF ratio of EMP-A is 6.10, which is on the high side as it means it would take EMP-A, 6.10 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.10, EMP-A is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- A Debt/Equity ratio of 1.24 is on the high side and indicates that EMP-A has dependencies on debt financing.
- EMP-A's Debt to Equity ratio of 1.24 is in line compared to the rest of the industry. EMP-A outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.06
WACC6.3%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that EMP-A may have some problems paying its short term obligations.
- With a Current ratio value of 0.85, EMP-A is not doing good in the industry: 94.12% of the companies in the same industry are doing better.
- EMP-A has a Quick Ratio of 0.85. 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.
- The Quick ratio of EMP-A (0.35) is worse than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.78% over the past year.
- The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
- The Revenue has been growing slightly by 2.58% 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)2.78%
EPS 3Y2.09%
EPS 5Y6.33%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y1.22%
Revenue growth 5Y3.3%
Sales Q2Q%2.79%
3.2 Future
- Based on estimates for the next years, EMP-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.20% on average per year.
- Based on estimates for the next years, EMP-A will show a small growth in Revenue. The Revenue will grow by 2.90% on average per year.
EPS Next Y9.55%
EPS Next 2Y8.9%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year2.23%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.24, the valuation of EMP-A can be described as correct.
- Based on the Price/Earnings ratio, EMP-A is valued a bit cheaper than 70.59% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, EMP-A is valued a bit cheaper.
- A Price/Forward Earnings ratio of 12.72 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 64.71% of the companies in the same industry.
- EMP-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMP-A is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
- 70.59% 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 | 8.33 | ||
| EV/EBITDA | 7.61 |
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)1.6
PEG (5Y)2.41
EPS Next 2Y8.9%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.93%, EMP-A has a reasonable but not impressive dividend return.
- EMP-A's Dividend Yield is comparable with the industry average which is at 2.25.
- EMP-A's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
- The dividend of EMP-A is nicely growing with an annual growth rate of 11.03%!
- 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
- 28.62% of the earnings are spent on dividend by EMP-A. This is a low number and sustainable payout ratio.
- The dividend of EMP-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.62%
EPS Next 2Y8.9%
EPS Next 3Y9.2%
EMPIRE CO LTD 'A' / EMP-A.CA FAQ
What is the fundamental rating for EMP-A stock?
ChartMill assigns a fundamental rating of 4 / 10 to EMP-A.CA.
What is the valuation status of EMPIRE CO LTD 'A' (EMP-A.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to EMPIRE CO LTD 'A' (EMP-A.CA). This can be considered as Fairly Valued.
How profitable is EMPIRE CO LTD 'A' (EMP-A.CA) stock?
EMPIRE CO LTD 'A' (EMP-A.CA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for EMP-A stock?
The Price/Earnings (PE) ratio for EMPIRE CO LTD 'A' (EMP-A.CA) is 15.24 and the Price/Book (PB) ratio is 1.89.
How financially healthy is EMPIRE CO LTD 'A'?
The financial health rating of EMPIRE CO LTD 'A' (EMP-A.CA) is 3 / 10.