SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis
TSX:ZZZ - CA83125J1049 - Common Stock
34.99 CAD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ZZZ. ZZZ was compared to 17 industry peers in the Specialty Retail industry. While ZZZ has a great profitability rating, there are some minor concerns on its financial health. ZZZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZZZ was profitable.
ZZZ had a positive operating cash flow in the past year.
In the past 5 years ZZZ has always been profitable.
Each year in the past 5 years ZZZ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.34%, ZZZ belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.47%, ZZZ belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
ZZZ's Return On Invested Capital of 9.72% is amongst the best of the industry. ZZZ outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZZZ is above the industry average of 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 15.47% | ||
| ROIC | 9.72% |
ROA(3y)8.73%
ROA(5y)7.85%
ROE(3y)21.83%
ROE(5y)20.26%
ROIC(3y)11.93%
ROIC(5y)10.96%
1.3 Margins
Looking at the Profit Margin, with a value of 7.52%, ZZZ belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Profit Margin of ZZZ has declined.
ZZZ's Operating Margin of 13.01% is fine compared to the rest of the industry. ZZZ outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of ZZZ has declined.
The Gross Margin of ZZZ (37.67%) is comparable to the rest of the industry.
ZZZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 7.52% | ||
| GM | 37.67% |
OM growth 3Y0.81%
OM growth 5Y-1.65%
PM growth 3Y-3.05%
PM growth 5Y-4.46%
GM growth 3Y6.81%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
ZZZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ZZZ has less shares outstanding than it did 1 year ago.
ZZZ has less shares outstanding than it did 5 years ago.
ZZZ has a worse debt/assets ratio than last year.
2.2 Solvency
ZZZ has an Altman-Z score of 2.43. This is not the best score and indicates that ZZZ is in the grey zone with still only limited risk for bankruptcy at the moment.
ZZZ has a Altman-Z score (2.43) which is comparable to the rest of the industry.
ZZZ has a debt to FCF ratio of 4.70. This is a neutral value as ZZZ would need 4.70 years to pay back of all of its debts.
The Debt to FCF ratio of ZZZ (4.70) is better than 64.71% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that ZZZ is somewhat dependend on debt financing.
ZZZ has a worse Debt to Equity ratio (1.00) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.23
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ZZZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, ZZZ is doing worse than 76.47% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that ZZZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.44, ZZZ is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
ZZZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.94%.
Measured over the past 5 years, ZZZ shows a small growth in Earnings Per Share. The EPS has been growing by 4.17% on average per year.
ZZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
ZZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.46% yearly.
EPS 1Y (TTM)-8.94%
EPS 3Y2.66%
EPS 5Y4.17%
EPS Q2Q%28.57%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y7.26%
Revenue growth 5Y8.46%
Sales Q2Q%7.04%
3.2 Future
The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
ZZZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y-0.05%
EPS Next 2Y11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.44%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 16.35, the valuation of ZZZ can be described as correct.
Based on the Price/Earnings ratio, ZZZ is valued a bit cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, ZZZ is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.46, which indicates a correct valuation of ZZZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZZZ indicates a somewhat cheap valuation: ZZZ is cheaper than 70.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ZZZ to the average of the S&P500 Index (22.63), we can say ZZZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZZZ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZZZ indicates a somewhat cheap valuation: ZZZ is cheaper than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
The decent profitability rating of ZZZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, ZZZ has a reasonable but not impressive dividend return.
ZZZ's Dividend Yield is a higher than the industry average which is at 7.16.
Compared to an average S&P500 Dividend Yield of 2.32, ZZZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of ZZZ has a limited annual growth rate of 5.35%.
ZZZ has paid a dividend for at least 10 years, which is a reliable track record.
ZZZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ZZZ pays out 45.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ZZZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.12%
EPS Next 2Y11%
EPS Next 3YN/A
TSX:ZZZ (10/2/2024, 7:00:00 PM)
34.99
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners44.56%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.19B
Analysts48.89
Price Target35.7 (2.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.94
Dividend Growth(5Y)5.35%
DP45.12%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.99%
Min EPS beat(2)-22.63%
Max EPS beat(2)50.61%
EPS beat(4)2
Avg EPS beat(4)7.83%
Min EPS beat(4)-22.63%
Max EPS beat(4)50.61%
EPS beat(8)3
Avg EPS beat(8)1.45%
EPS beat(12)7
Avg EPS beat(12)13.69%
EPS beat(16)11
Avg EPS beat(16)20.9%
Revenue beat(2)1
Avg Revenue beat(2)0.65%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)3.04%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)8
Avg Revenue beat(12)1.76%
Revenue beat(16)12
Avg Revenue beat(16)5.26%
PT rev (1m)0%
PT rev (3m)12.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.46 | ||
| P/S | 1.24 | ||
| P/FCF | 11.08 | ||
| P/OCF | 8.05 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)2.14
EY6.12%
EPS(NY)2.6
Fwd EY7.43%
FCF(TTM)3.16
FCFY9.02%
OCF(TTM)4.34
OCFY12.42%
SpS28.13
BVpS13.68
TBVpS-3.11
PEG (NY)N/A
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 15.47% | ||
| ROCE | 12.98% | ||
| ROIC | 9.72% | ||
| ROICexc | 10.08% | ||
| ROICexgc | 26.37% | ||
| OM | 13.01% | ||
| PM (TTM) | 7.52% | ||
| GM | 37.67% | ||
| FCFM | 11.22% |
ROA(3y)8.73%
ROA(5y)7.85%
ROE(3y)21.83%
ROE(5y)20.26%
ROIC(3y)11.93%
ROIC(5y)10.96%
ROICexc(3y)12.73%
ROICexc(5y)11.66%
ROICexgc(3y)35.45%
ROICexgc(5y)32.04%
ROCE(3y)15.93%
ROCE(5y)14.63%
ROICexcg growth 3Y-1.09%
ROICexcg growth 5Y-21.13%
ROICexc growth 3Y-0.23%
ROICexc growth 5Y-4.67%
OM growth 3Y0.81%
OM growth 5Y-1.65%
PM growth 3Y-3.05%
PM growth 5Y-4.46%
GM growth 3Y6.81%
GM growth 5Y4.09%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 57.02% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 4.38 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 149.15% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.43 |
F-Score8
WACC7.88%
ROIC/WACC1.23
Cap/Depr(3y)40.46%
Cap/Depr(5y)43.49%
Cap/Sales(3y)2.89%
Cap/Sales(5y)3.19%
Profit Quality(3y)147.02%
Profit Quality(5y)172.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.94%
EPS 3Y2.66%
EPS 5Y4.17%
EPS Q2Q%28.57%
EPS Next Y-0.05%
EPS Next 2Y11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.9%
Revenue growth 3Y7.26%
Revenue growth 5Y8.46%
Sales Q2Q%7.04%
Revenue Next Year4.44%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.53%
EBIT growth 3Y8.13%
EBIT growth 5Y6.67%
EBIT Next Year59.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-38.69%
FCF growth 3Y-10.86%
FCF growth 5Y21.99%
OCF growth 1Y-21.16%
OCF growth 3Y-3.94%
OCF growth 5Y17.72%