KITS EYECARE LTD (KITS.CA) Stock Fundamental Analysis
TSX:KITS - Toronto Stock Exchange - CA49804N1042 - Common Stock - Currency: CAD
Overall KITS gets a fundamental rating of 5 out of 10. We evaluated KITS against 16 industry peers in the Specialty Retail industry. Both the profitability and the financial health of KITS get a neutral evaluation. Nothing too spectacular is happening here. KITS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year KITS was profitable.
In the past year KITS had a positive cash flow from operations.
KITS had negative earnings in 4 of the past 5 years.
KITS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KITS (3.02%) is better than 62.50% of its industry peers.
KITS has a Return On Equity of 5.38%. This is in the better half of the industry: KITS outperforms 62.50% of its industry peers.
KITS has a worse Return On Invested Capital (2.89%) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.38% | ||
| ROIC | 2.89% |
ROA(3y)-1.45%
ROA(5y)-6.49%
ROE(3y)-2.46%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 1.96%, KITS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
KITS's Profit Margin has improved in the last couple of years.
KITS's Operating Margin of 1.73% is on the low side compared to the rest of the industry. KITS is outperformed by 62.50% of its industry peers.
In the last couple of years the Operating Margin of KITS has declined.
KITS has a Gross Margin (33.67%) which is comparable to the rest of the industry.
KITS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.73% | ||
| PM (TTM) | 1.96% | ||
| GM | 33.67% |
OM growth 3YN/A
OM growth 5Y-22.57%
PM growth 3YN/A
PM growth 5Y70.56%
GM growth 3Y9.92%
GM growth 5Y2.82%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KITS is destroying value.
KITS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KITS has more shares outstanding
The debt/assets ratio for KITS has been reduced compared to a year ago.
2.2 Solvency
KITS has an Altman-Z score of 6.39. This indicates that KITS is financially healthy and has little risk of bankruptcy at the moment.
KITS has a better Altman-Z score (6.39) than 93.75% of its industry peers.
The Debt to FCF ratio of KITS is 1.27, which is an excellent value as it means it would take KITS, only 1.27 years of fcf income to pay off all of its debts.
KITS has a Debt to FCF ratio of 1.27. This is amongst the best in the industry. KITS outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that KITS is not too dependend on debt financing.
KITS's Debt to Equity ratio of 0.15 is amongst the best of the industry. KITS outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.39 |
ROIC/WACC0.35
WACC8.17%
2.3 Liquidity
KITS has a Current Ratio of 1.16. This is a normal value and indicates that KITS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, KITS is doing worse than 62.50% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that KITS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, KITS is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
KITS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 212.50%, which is quite impressive.
KITS shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.22%.
KITS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.99% yearly.
EPS 1Y (TTM)212.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)32.22%
Revenue growth 3Y24.58%
Revenue growth 5Y33.99%
Sales Q2Q%41.59%
3.2 Future
KITS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 98.49% yearly.
Based on estimates for the next years, KITS will show a very strong growth in Revenue. The Revenue will grow by 22.24% on average per year.
EPS Next Y94.93%
EPS Next 2Y94.56%
EPS Next 3Y98.49%
EPS Next 5YN/A
Revenue Next Year26.18%
Revenue Next 2Y22.03%
Revenue Next 3Y22.24%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 131.11, which means the current valuation is very expensive for KITS.
KITS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.95. KITS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 67.26, KITS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KITS is on the same level as its industry peers.
KITS is valuated expensively when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.11 | ||
| Fwd PE | 67.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KITS indicates a slightly more expensive valuation: KITS is more expensive than 68.75% of the companies listed in the same industry.
KITS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.18 | ||
| EV/EBITDA | 68.01 |
4.3 Compensation for Growth
KITS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KITS's earnings are expected to grow with 98.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y94.56%
EPS Next 3Y98.49%
5. Dividend
5.1 Amount
KITS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KITS (5/13/2025, 7:00:00 PM)
11.8
-0.24 (-1.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners4.64%
Inst Owner ChangeN/A
Ins Owners30.79%
Ins Owner ChangeN/A
Market Cap377.36M
Analysts81.54
Price Target17.05 (44.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.66%
Min EPS beat(2)-100%
Max EPS beat(2)135.32%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.14%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)0.4%
Revenue beat(8)4
Avg Revenue beat(8)1.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.46%
Revenue beat(16)6
Avg Revenue beat(16)-1.59%
PT rev (1m)1.74%
PT rev (3m)7.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)166.67%
EPS NY rev (1m)2.38%
EPS NY rev (3m)68.63%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)9.02%
Revenue NY rev (1m)3.79%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.11 | ||
| Fwd PE | 67.26 | ||
| P/S | 2.37 | ||
| P/FCF | 38.18 | ||
| P/OCF | 28.95 | ||
| P/B | 6.52 | ||
| P/tB | 24.26 | ||
| EV/EBITDA | 68.01 |
EPS(TTM)0.09
EY0.76%
EPS(NY)0.18
Fwd EY1.49%
FCF(TTM)0.31
FCFY2.62%
OCF(TTM)0.41
OCFY3.45%
SpS4.98
BVpS1.81
TBVpS0.49
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.38% | ||
| ROCE | 4.28% | ||
| ROIC | 2.89% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 38.07% | ||
| OM | 1.73% | ||
| PM (TTM) | 1.96% | ||
| GM | 33.67% | ||
| FCFM | 6.2% |
ROA(3y)-1.45%
ROA(5y)-6.49%
ROE(3y)-2.46%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y-13.22%
OM growth 3YN/A
OM growth 5Y-22.57%
PM growth 3YN/A
PM growth 5Y70.56%
GM growth 3Y9.92%
GM growth 5Y2.82%
F-Score7
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 118.48% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 240.76% | ||
| Profit Quality | 317.17% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 6.39 |
F-Score7
WACC8.17%
ROIC/WACC0.35
Cap/Depr(3y)47.84%
Cap/Depr(5y)58.18%
Cap/Sales(3y)0.91%
Cap/Sales(5y)1.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)212.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y94.93%
EPS Next 2Y94.56%
EPS Next 3Y98.49%
EPS Next 5YN/A
Revenue 1Y (TTM)32.22%
Revenue growth 3Y24.58%
Revenue growth 5Y33.99%
Sales Q2Q%41.59%
Revenue Next Year26.18%
Revenue Next 2Y22.03%
Revenue Next 3Y22.24%
Revenue Next 5YN/A
EBIT growth 1Y293.33%
EBIT growth 3YN/A
EBIT growth 5Y3.75%
EBIT Next Year266.33%
EBIT Next 3Y127.52%
EBIT Next 5YN/A
FCF growth 1Y436.54%
FCF growth 3YN/A
FCF growth 5Y25.61%
OCF growth 1Y442.08%
OCF growth 3YN/A
OCF growth 5Y25.73%