EMPIRE CO LTD 'A' (EMP-A.CA) Stock Fundamental Analysis
TSX:EMP-A - Toronto Stock Exchange - CA2918434077 - Common Stock - Currency: CAD
Taking everything into account, EMP-A scores 4 out of 10 in our fundamental rating. EMP-A was compared to 18 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 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.
Each year in the past 5 years EMP-A has been profitable.
EMP-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMP-A has a Return On Assets of 4.04%. This is in the better half of the industry: EMP-A outperforms 72.22% of its industry peers.
EMP-A has a Return On Equity (12.58%) which is in line with its industry peers.
EMP-A has a Return On Invested Capital of 6.49%. This is comparable to the rest of the industry: EMP-A outperforms 44.44% of its industry peers.
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
EMP-A has a better Profit Margin (2.18%) than 72.22% of its industry peers.
In the last couple of years the Profit Margin of EMP-A has grown nicely.
EMP-A has a Operating Margin of 3.65%. This is comparable to the rest of the industry: EMP-A outperforms 44.44% of its industry peers.
In the last couple of years the Operating Margin of EMP-A has grown nicely.
EMP-A's Gross Margin of 26.66% is on the low side compared to the rest of the industry. EMP-A is outperformed by 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
EMP-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EMP-A has less shares outstanding
Compared to 5 years ago, EMP-A has less shares outstanding
The debt/assets ratio for EMP-A is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.96, EMP-A is doing good in the industry, outperforming 61.11% of the companies in the same industry.
EMP-A has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as EMP-A would need 6.74 years to pay back of all of its debts.
EMP-A has a Debt to FCF ratio of 6.74. This is in the lower half of the industry: EMP-A underperforms 61.11% of its industry peers.
EMP-A has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
EMP-A has a better Debt to Equity ratio (1.26) than 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
EMP-A has a Current Ratio of 0.79. 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 has a Current ratio of 0.79. This is amonst the worse of the industry: EMP-A underperforms 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.
With a Quick ratio value of 0.31, EMP-A is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| 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.
EMP-A shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
Measured over the past years, EMP-A shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
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
Based on estimates for the next years, EMP-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.82% on average per year.
EMP-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.35% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.01, which indicates a rather expensive current valuation of EMP-A.
Based on the Price/Earnings ratio, EMP-A is valued a bit cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. EMP-A is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.51, which indicates a correct valuation of EMP-A.
Based on the Price/Forward Earnings ratio, EMP-A is valued a bit cheaper than 61.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EMP-A to the average of the S&P500 Index (22.39), we can say EMP-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMP-A is on the same level as its industry peers.
EMP-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
The 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 1.54%, EMP-A has a reasonable but not impressive dividend return.
EMP-A's Dividend Yield is rather good when compared to the industry average which is at 1.45. EMP-A pays more dividend than 94.44% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, EMP-A is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of EMP-A is nicely growing with an annual growth rate of 10.80%!
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
27.95% 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.
DP27.95%
EPS Next 2Y10.5%
EPS Next 3Y9.82%
TSX:EMP-A (6/6/2025, 7:00:00 PM)
51.88
-0.07 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners38.8%
Inst Owner ChangeN/A
Ins Owners0.85%
Ins Owner ChangeN/A
Market Cap12.07B
Analysts75
Price Target50.49 (-2.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 | 18.01 | ||
| Fwd PE | 15.51 | ||
| P/S | 0.39 | ||
| P/FCF | 10.78 | ||
| P/OCF | 6.04 | ||
| P/B | 2.24 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)2.88
EY5.55%
EPS(NY)3.35
Fwd EY6.45%
FCF(TTM)4.81
FCFY9.28%
OCF(TTM)8.59
OCFY16.56%
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%