SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - 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 16 industry peers in the Specialty Retail industry. ZZZ scores excellent on profitability, but there are some minor 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.
In the past year ZZZ had a positive cash flow from operations.
ZZZ had positive earnings in each of the past 5 years.
In the past 5 years ZZZ always reported a positive cash flow from operatings.
1.2 Ratios
ZZZ's Return On Assets of 6.34% is amongst the best of the industry. ZZZ outperforms 88.24% of its industry peers.
ZZZ has a better Return On Equity (15.47%) than 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 above the industry average of 9.19%.
| 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 better Profit Margin (7.52%) than 82.35% of its industry peers.
ZZZ's Profit Margin has declined in the last couple of years.
ZZZ's Operating Margin of 13.01% is fine compared to the rest of the industry. ZZZ outperforms 76.47% of its industry peers.
ZZZ's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 37.67%, ZZZ is in line with its industry, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Gross Margin of ZZZ has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZZZ is creating some value.
Compared to 1 year ago, ZZZ has less shares outstanding
The number of shares outstanding for ZZZ has been reduced compared to 5 years ago.
ZZZ has a worse debt/assets ratio than last year.
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 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.
The Debt to FCF ratio of ZZZ (4.70) is better than 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.
ZZZ's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. ZZZ is outperformed by 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.
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.
ZZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.17% yearly.
The Revenue has been growing slightly by 3.90% in the past year.
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
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
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 the industry average as 64.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.11. ZZZ is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.46, the valuation of ZZZ can be described as correct.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, ZZZ is valued rather cheaply.
| 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.
64.71% of the companies in the same industry are more expensive than ZZZ, based on the Price/Free Cash Flow ratio.
| 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
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 4.59.
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.
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.