Kits Eyecare Ltd.

TSX:KITS Stock Report

Market Cap: CA$373.9m

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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

Discounted Cash Flow
Simply Wall St
CA$25.07
Fair Value
54.8% undervalued intrinsic discount
7
Number of Analysts

Below Fair Value: KITS (CA$11.33) is trading below our estimate of fair value (CA$25.07)

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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KITS. This is calculated by dividing KITS's market cap by their current earnings.
What is KITS's PE Ratio?
PE Ratio116.3x
EarningsCA$3.12m
Market CapCA$373.87m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KITS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
PET Pet Valu Holdings
22.4x15.5%CA$2.0b
DIV Diversified Royalty
18.2x14.5%CA$480.4m
ACQ AutoCanada
10.5x-42.0%CA$369.1m
GBT BMTC Group
8.9xn/aCA$385.6m
KITS Kits Eyecare
116.3x49.5%CA$373.9m

Price-To-Earnings vs Peers: KITS is expensive based on its Price-To-Earnings Ratio (116.3x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does KITS's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KITS 116.3xIndustry Avg. 15.2xNo. of Companies18PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KITS is expensive based on its Price-To-Earnings Ratio (116.3x) compared to the North American Specialty Retail industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

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

KITS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio116.3x
Fair PE Ratio37.5x

Price-To-Earnings vs Fair Ratio: KITS is expensive based on its Price-To-Earnings Ratio (116.3x) compared to the estimated Fair Price-To-Earnings Ratio (37.5x).

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$11.33
CA$16.71
+47.5%
11.3%CA$20.00CA$14.50n/a7
Apr ’26CA$11.93
CA$16.71
+40.1%
11.3%CA$20.00CA$14.50n/a7
Mar ’26CA$8.84
CA$15.50
+75.3%
7.3%CA$17.50CA$14.50n/a7
Feb ’26CA$8.89
CA$15.50
+74.4%
7.3%CA$17.50CA$14.50n/a7
Jan ’26CA$8.43
CA$15.50
+83.9%
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$8.00CA$11.146
Apr ’25CA$6.26
CA$9.29
+48.4%
11.9%CA$11.00CA$8.00CA$11.936
Mar ’25CA$6.66
CA$8.50
+27.6%
9.0%CA$10.00CA$8.00CA$8.846
Feb ’25CA$6.02
CA$8.60
+42.9%
9.3%CA$10.00CA$8.00CA$8.895
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
AnalystConsensusTarget
Consensus Narrative from 7 Analysts
CA$16.71
Fair Value
32.2% undervalued intrinsic discount
7
Number of Analysts

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 Analysis2025/05/06 20:22
End of Day Share Price 2025/05/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Kits Eyecare Ltd. is covered by 9 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
Derek DleyCanaccord Genuity
Luke HannanCanaccord Genuity