SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ZZZ - CA83125J1049 - Common Stock
34.99 CAD
0 (0%)
Taking everything into account, ZZZ scores 5 out of 10 in our fundamental rating. ZZZ was compared to 16 industry peers in the Specialty Retail industry. While ZZZ belongs to the best of the industry regarding profitability, 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.
In the past year ZZZ had a positive cash flow from operations.
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
The Return On Assets of ZZZ (6.34%) is better than 88.24% of its industry peers.
With an excellent Return On Equity value of 15.47%, ZZZ belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.72%, ZZZ belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
ZZZ had an Average Return On Invested Capital over the past 3 years of 11.93%. This is above the industry average of 9.32%.
| 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.
With a decent Operating Margin value of 13.01%, ZZZ is doing good in the industry, outperforming 76.47% of the companies in the same industry.
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.
The number of shares outstanding for ZZZ has been reduced compared to 5 years ago.
The debt/assets ratio for ZZZ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that ZZZ is not a great score, but indicates 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.
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 Debt to FCF ratio of 4.70. This is in the better half of the industry: ZZZ outperforms 64.71% of its industry peers.
ZZZ has a Debt/Equity ratio of 1.00. This is a neutral value indicating ZZZ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, ZZZ is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| 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.
ZZZ has a Current ratio of 1.05. This is in the lower half of the industry: ZZZ underperforms 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's Quick ratio of 0.44 is on the low side compared to the rest of the industry. ZZZ is outperformed by 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for ZZZ have decreased by -8.94% in the last year.
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%.
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
ZZZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.00% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
ZZZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
ZZZ is valuated correctly with a Price/Forward Earnings ratio of 13.46.
70.59% of the companies in the same industry are more expensive than ZZZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, ZZZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
ZZZ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ZZZ is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
ZZZ has a very decent profitability rating, which 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 1.63.
Compared to an average S&P500 Dividend Yield of 1.87, ZZZ pays a bit more dividend than the S&P500 average.
| 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
45.12% of the earnings are spent on dividend by ZZZ. 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
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
Revenue(TTM)953.56M
Net Income(TTM)71.75M
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
Graham NumberN/A
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%
ROICexgc growth 3Y-1.09%
ROICexgc 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%
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 for ZZZ 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 financial health of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) stock?
The financial health rating of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) is 4 / 10.
What is the expected EPS growth for SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) stock?
The Earnings per Share (EPS) of SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) is expected to decline by -0.05% in the next year.