REITMANS (CANADA) LTD-A (RET-A.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:RET-A - CA7594042052 - Common Stock
2.15 CAD
-0.01 (-0.46%)
We assign a fundamental rating of 3 out of 10 to RET-A. RET-A was compared to 19 industry peers in the Specialty Retail industry. The financial health of RET-A is average, but there are quite some concerns on its profitability. RET-A has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- RET-A had negative earnings in the past year.
- In the past year RET-A had a positive cash flow from operations.
- Of the past 5 years RET-A 4 years were profitable.
- RET-A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.03%, RET-A is doing worse than 68.42% of the companies in the same industry.
- RET-A's Return On Equity of -0.06% is on the low side compared to the rest of the industry. RET-A is outperformed by 68.42% of its industry peers.
- RET-A has a Return On Invested Capital of 1.01%. This is in the lower half of the industry: RET-A underperforms 68.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RET-A is below the industry average of 11.04%.
- The last Return On Invested Capital (1.01%) for RET-A is well below the 3 year average (6.41%), which needs to be investigated, but indicates that RET-A had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -0.06% | ||
| ROIC | 1.01% |
ROA(3y)7.54%
ROA(5y)5.92%
ROE(3y)13.06%
ROE(5y)-133.65%
ROIC(3y)6.41%
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Profit Margin of RET-A has declined.
- With a Operating Margin value of 0.73%, RET-A is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of RET-A has declined.
- The Gross Margin of RET-A (55.13%) is better than 84.21% of its industry peers.
- RET-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.73% | ||
| PM (TTM) | N/A | ||
| GM | 55.13% |
OM growth 3Y-10.23%
OM growth 5YN/A
PM growth 3Y-59.67%
PM growth 5YN/A
GM growth 3Y1.76%
GM growth 5Y1.74%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RET-A is destroying value.
- Compared to 1 year ago, RET-A has more shares outstanding
- The number of shares outstanding for RET-A has been increased compared to 5 years ago.
- The debt/assets ratio for RET-A has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.68 indicates that RET-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 2.68, RET-A is in line with its industry, outperforming 57.89% of the companies in the same industry.
- The Debt to FCF ratio of RET-A is 5.54, which is a neutral value as it means it would take RET-A, 5.54 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RET-A (5.54) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.44 indicates that RET-A is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.44, RET-A is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.12
WACC8.27%
2.3 Liquidity
- A Current Ratio of 2.21 indicates that RET-A has no problem at all paying its short term obligations.
- RET-A has a Current ratio of 2.21. This is amongst the best in the industry. RET-A outperforms 94.74% of its industry peers.
- RET-A has a Quick Ratio of 1.16. This is a normal value and indicates that RET-A is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RET-A (1.16) is better than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- RET-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.63%.
- The earnings per share for RET-A have been decreasing by -57.76% on average. This is quite bad
- The Revenue has decreased by -1.95% in the past year.
- RET-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.87% yearly.
EPS 1Y (TTM)-102.63%
EPS 3Y-57.76%
EPS 5YN/A
EPS Q2Q%-58.45%
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y5.34%
Revenue growth 5Y1.87%
Sales Q2Q%3.87%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for RET-A. In the last year negative earnings were reported.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- RET-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RET-A is cheaper than 94.74% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RET-A indicates a rather cheap valuation: RET-A is cheaper than 89.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.55 | ||
| EV/EBITDA | 2.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RET-A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
REITMANS (CANADA) LTD-A / RET-A.CA FAQ
What is the ChartMill fundamental rating of REITMANS (CANADA) LTD-A (RET-A.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to RET-A.CA.
Can you provide the valuation status for REITMANS (CANADA) LTD-A?
ChartMill assigns a valuation rating of 2 / 10 to REITMANS (CANADA) LTD-A (RET-A.CA). This can be considered as Overvalued.
What is the profitability of RET-A stock?
REITMANS (CANADA) LTD-A (RET-A.CA) has a profitability rating of 3 / 10.
How financially healthy is REITMANS (CANADA) LTD-A?
The financial health rating of REITMANS (CANADA) LTD-A (RET-A.CA) is 5 / 10.