SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ZZZ - CA83125J1049 - Common Stock
34.99 CAD
0 (0%)
ZZZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Specialty Retail industry. While ZZZ belongs to the best of the industry regarding profitability, there are concerns on its financial health. ZZZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ZZZ had positive earnings in the past year.
- ZZZ had a positive operating cash flow in the past year.
- ZZZ had positive earnings in each of the past 5 years.
- ZZZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ZZZ has a better Return On Assets (6.34%) than 88.24% of its industry peers.
- ZZZ's Return On Equity of 15.47% is amongst the best of the industry. ZZZ outperforms 94.12% of its industry peers.
- ZZZ has a Return On Invested Capital of 9.72%. This is amongst the best in the industry. ZZZ outperforms 94.12% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZZZ is in line with the industry average of 11.04%.
| 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
- ZZZ has a Profit Margin of 7.52%. This is amongst the best in the industry. ZZZ outperforms 82.35% of its industry peers.
- In the last couple of years the Profit Margin of ZZZ has declined.
- ZZZ has a Operating Margin of 13.01%. This is in the better half of the industry: ZZZ outperforms 76.47% of its industry peers.
- ZZZ's Operating Margin has declined in the last couple of years.
- ZZZ's Gross Margin of 37.67% is in line compared to the rest of the industry. ZZZ outperforms 47.06% of its industry peers.
- 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 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 in line with its industry peers.
- The Debt to FCF ratio of ZZZ is 4.70, which is a neutral value as it means it would take ZZZ, 4.70 years of fcf income to pay off all of its debts.
- ZZZ has a better Debt to FCF ratio (4.70) 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 Debt to Equity ratio of 1.00. This is in the lower half of the industry: ZZZ underperforms 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
- ZZZ has a Current Ratio of 1.05. This is a normal value and indicates that ZZZ is financially healthy and should not expect problems in meeting its short term obligations.
- ZZZ has a worse Current ratio (1.05) than 76.47% of its industry peers.
- A Quick Ratio of 0.44 indicates that ZZZ may have some problems paying its short term obligations.
- ZZZ has a Quick ratio of 0.44. This is in the lower half of the industry: ZZZ underperforms 70.59% of its industry peers.
| 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%.
- The Earnings Per Share has been growing slightly by 4.17% on average over the past years.
- ZZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
- The Revenue has been growing by 8.46% on average over the past years. This is quite good.
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
- The Price/Earnings ratio is 16.35, which indicates a correct valuation of ZZZ.
- Compared to the rest of the industry, the Price/Earnings ratio of ZZZ indicates a somewhat cheap valuation: ZZZ is cheaper than 64.71% of the companies listed in the same industry.
- ZZZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 13.46, ZZZ is valued correctly.
- Based on the Price/Forward Earnings ratio, ZZZ is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- ZZZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| 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
- ZZZ has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
- ZZZ's Dividend Yield is a higher than the industry average which is at 2.62.
- ZZZ's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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 been paying a dividend for at least 10 years, so it has 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.
- ZZZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.12%
EPS Next 2Y11%
EPS Next 3YN/A
SLEEP COUNTRY CANADA HOLDING / ZZZ.CA FAQ
What is the fundamental rating for ZZZ stock?
ChartMill assigns a fundamental rating of 5 / 10 to ZZZ.CA.
What is the valuation status of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to SLEEP COUNTRY CANADA HOLDING (ZZZ.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for SLEEP COUNTRY CANADA HOLDING?
SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for SLEEP COUNTRY CANADA HOLDING?
The Earnings per Share (EPS) of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) is expected to decline by -0.05% in the next year.
Can you provide the dividend sustainability for ZZZ stock?
The dividend rating of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) is 6 / 10 and the dividend payout ratio is 45.12%.