Kits Eyecare Ltd.

TSX:KITS Stock Report

Market Cap: CA$262.1m

Kits Eyecare Valuation

Is KITS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KITS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KITS (CA$8.31) is trading below our estimate of fair value (CA$25.47)

Significantly Below Fair Value: KITS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KITS?

Key metric: As KITS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for KITS. This is calculated by dividing KITS's market cap by their current revenue.
What is KITS's PS Ratio?
PS Ratio1.8x
SalesCA$146.17m
Market CapCA$262.09m

Price to Sales Ratio vs Peers

How does KITS's PS Ratio compare to its peers?

The above table shows the PS ratio for KITS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
IDG Indigo Books & Music
0.07x-1.6%CA$68.9m
PET Pet Valu Holdings
1.7x6.6%CA$1.8b
XAU Goldmoney
1.3xn/aCA$101.1m
PESO PesoRama
0.4xn/aCA$9.1m
KITS Kits Eyecare
1.8x18.5%CA$262.1m

Price-To-Sales vs Peers: KITS is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does KITS's PS Ratio compare vs other companies in the CA Specialty Retail Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
ACQ AutoCanada
0.07x2.3%US$285.12m
IDG Indigo Books & Music
0.07x-1.6%US$50.59m
FAF Fire & Flower Holdings
0.08xn/aUS$9.91m
NIC Delota
0.07xn/aUS$1.81m
KITS 1.8xIndustry Avg. 0.5xNo. of Companies6PS00.81.62.43.24+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: KITS is expensive based on its Price-To-Sales Ratio (1.8x) compared to the North American Specialty Retail industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is KITS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KITS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: KITS is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KITS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$8.31
CA$15.50
+86.5%
7.3%CA$17.50CA$14.50n/a7
Dec ’25CA$9.19
CA$15.50
+68.7%
7.3%CA$17.50CA$14.50n/a7
Nov ’25CA$9.96
CA$14.86
+49.2%
7.6%CA$17.00CA$13.50n/a7
Oct ’25CA$10.18
CA$14.79
+45.2%
7.8%CA$17.00CA$13.50n/a7
Sep ’25CA$10.97
CA$13.75
+25.3%
6.6%CA$15.00CA$12.00n/a6
Aug ’25CA$10.00
CA$10.75
+7.5%
10.2%CA$12.00CA$9.00n/a6
Jul ’25CA$8.57
CA$9.90
+15.5%
9.8%CA$11.50CA$9.00n/a5
Jun ’25CA$6.68
CA$9.54
+42.8%
9.9%CA$11.00CA$8.25n/a6
May ’25CA$5.96
CA$9.29
+55.9%
11.9%CA$11.00CA$8.00n/a6
Apr ’25CA$6.26
CA$9.29
+48.4%
11.9%CA$11.00CA$8.00n/a6
Mar ’25CA$6.66
CA$8.50
+27.6%
9.0%CA$10.00CA$8.00n/a6
Feb ’25CA$6.02
CA$8.60
+42.9%
9.3%CA$10.00CA$8.00n/a5
Jan ’25CA$6.24
CA$8.25
+32.2%
5.2%CA$9.00CA$8.00CA$8.434
Dec ’24CA$5.47
CA$8.33
+52.3%
5.7%CA$9.00CA$8.00CA$9.193
Nov ’24CA$5.10
CA$8.33
+63.4%
5.7%CA$9.00CA$8.00CA$9.963
Oct ’24CA$4.96
CA$8.33
+68.0%
5.7%CA$9.00CA$8.00CA$10.183
Sep ’24CA$5.12
CA$8.33
+62.8%
5.7%CA$9.00CA$8.00CA$10.973
Aug ’24CA$5.11
CA$7.33
+43.5%
6.4%CA$8.00CA$7.00CA$10.003
Jul ’24CA$4.70
CA$7.17
+52.5%
8.7%CA$8.00CA$6.50CA$8.573
Jun ’24CA$4.78
CA$7.17
+49.9%
8.7%CA$8.00CA$6.50CA$6.683
May ’24CA$5.14
CA$6.58
+28.1%
15.3%CA$8.00CA$5.75CA$5.963
Apr ’24CA$4.49
CA$6.58
+46.6%
15.3%CA$8.00CA$5.75CA$6.263
Mar ’24CA$4.06
CA$5.13
+26.2%
17.1%CA$6.00CA$4.25CA$6.662
Feb ’24CA$3.45
CA$5.13
+48.6%
17.1%CA$6.00CA$4.25CA$6.022
Jan ’24CA$2.68
CA$5.00
+86.6%
20.0%CA$6.00CA$4.00CA$6.242

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/03 04:44
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Kits Eyecare Ltd. is covered by 10 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Doug CooperBeacon Securities Limited
Luke HannanCanaccord Genuity
Derek DleyCanaccord Genuity