SLEEP COUNTRY CANADA HOLDING (ZZZ.CA) Stock Fundamental Analysis

TSX:ZZZ • CA83125J1049

34.99 CAD
0 (0%)
Last: Oct 2, 2024, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

ZZZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Specialty Retail industry. ZZZ scores excellent on profitability, but there are concerns on its financial health. ZZZ has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years ZZZ has always been profitable.
  • ZZZ had a positive operating cash flow in each of the past 5 years.
ZZZ.CA Yearly Net Income VS EBIT VS OCF VS FCFZZZ.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

1.2 Ratios

  • ZZZ has a Return On Assets of 6.34%. This is amongst the best in the industry. ZZZ outperforms 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.
  • The Return On Invested Capital of ZZZ (9.72%) is better than 94.12% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ZZZ is in line with the industry average of 11.30%.
Industry RankSector 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%
ZZZ.CA Yearly ROA, ROE, ROICZZZ.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

  • With an excellent Profit Margin value of 7.52%, ZZZ belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
  • ZZZ's Profit Margin has declined in the last couple of years.
  • 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.
  • In the last couple of years the Operating Margin of ZZZ has declined.
  • 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.
  • In the last couple of years the Gross Margin of ZZZ has grown nicely.
Industry RankSector 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%
ZZZ.CA Yearly Profit, Operating, Gross MarginsZZZ.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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
  • ZZZ has a worse debt/assets ratio than last year.
ZZZ.CA Yearly Shares OutstandingZZZ.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
ZZZ.CA Yearly Total Debt VS Total AssetsZZZ.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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.
  • 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.
  • 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 RankSector Rank
Debt/Equity 1
Debt/FCF 4.7
Altman-Z 2.43
ROIC/WACC1.23
WACC7.88%
ZZZ.CA Yearly LT Debt VS Equity VS FCFZZZ.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

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.
  • The Quick ratio of ZZZ (0.44) is worse than 70.59% of its industry peers.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.44
ZZZ.CA Yearly Current Assets VS Current LiabilitesZZZ.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • ZZZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.17% yearly.
  • ZZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
  • Measured over the past years, ZZZ shows a quite strong growth in Revenue. The Revenue has been growing by 8.46% on average per year.
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.
  • 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.
ZZZ.CA Yearly Revenue VS EstimatesZZZ.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
ZZZ.CA Yearly EPS VS EstimatesZZZ.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • ZZZ is valuated correctly with a Price/Earnings ratio of 16.35.
  • ZZZ's Price/Earnings ratio is a bit cheaper when compared to the industry. ZZZ is cheaper than 64.71% of the companies in the same industry.
  • ZZZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 13.46, which indicates a correct valuation of ZZZ.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 27.98. ZZZ is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.35
Fwd PE 13.46
ZZZ.CA Price Earnings VS Forward Price EarningsZZZ.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • ZZZ's Enterprise Value to EBITDA is on the same level as the industry average.
  • 64.71% of the companies in the same industry are more expensive than ZZZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.08
EV/EBITDA 8.5
ZZZ.CA Per share dataZZZ.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • ZZZ has a Yearly Dividend Yield of 2.71%.
  • Compared to an average industry Dividend Yield of 1.59, ZZZ pays a bit more dividend than its industry peers.
  • ZZZ's Dividend Yield is a higher than the S&P500 average which is at 1.85.
Industry RankSector 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
ZZZ.CA Yearly Dividends per shareZZZ.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

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
ZZZ.CA Yearly Income VS Free CF VS DividendZZZ.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
ZZZ.CA Dividend Payout.ZZZ.CA Dividend Payout, showing the Payout Ratio.ZZZ.CA Dividend Payout.PayoutRetained Earnings

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SLEEP COUNTRY CANADA HOLDING

TSX:ZZZ (10/2/2024, 7:00:00 PM)

34.99

0 (0%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-08
Earnings (Next)11-01
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 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%.