TSXV:EIL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Empire Industries Ltd. designs, builds, supplies, and installs premium entertainment attractions and ride systems for the entertainment industry. More Details


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Empire Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EIL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

EIL

-7.6%

CA Construction

-8.4%

CA Market


1 Year Return

-39.5%

EIL

-7.6%

CA Construction

-60.8%

CA Market

Return vs Industry: EIL underperformed the Canadian Construction industry which returned -4.9% over the past year.

Return vs Market: EIL exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

EILIndustryMarket
7 Day-2.1%-7.6%-8.4%
30 Day-4.2%-4.7%-3.0%
90 Day-4.2%-1.1%-26.8%
1 Year-39.5%-39.5%-6.1%-7.6%-59.2%-60.8%
3 Year-58.2%-58.2%-19.7%-23.9%-60.5%-64.6%
5 Year-23.3%-23.3%12.1%0.5%-51.9%-59.6%

Price Volatility Vs. Market

How volatile is Empire Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Empire Industries undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: EIL (CA$0.23) is trading above our estimate of fair value (CA$0.22)

Significantly Below Fair Value: EIL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EIL is unprofitable, so we can't compare its PE Ratio to the CA Construction industry average.

PE vs Market: EIL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EIL has negative assets, so we can't compare its PB Ratio to the CA Construction industry average.


Next Steps

Future Growth

How is Empire Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

67.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Empire Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Empire Industries performed over the past 5 years?

-62.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIL is currently unprofitable.

Growing Profit Margin: EIL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EIL is unprofitable, and losses have increased over the past 5 years at a rate of 62.7% per year.

Accelerating Growth: Unable to compare EIL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EIL is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-27.7%).


Return on Equity

High ROE: EIL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Empire Industries's financial position?


Financial Position Analysis

Short Term Liabilities: EIL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: EIL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: EIL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: EIL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable EIL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EIL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 27.8% per year.


Next Steps

Dividend

What is Empire Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EIL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EIL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EIL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EIL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EIL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Kenneth Nelson (65 yo)

14.25yrs

Tenure

CA$373,556

Compensation

Mr. Kenneth Guy Nelson, MBA, B. Comm., has been the Chief Executive Officer of Empire Industries Ltd. since June 15, 2006 and serves as its President. He served as an Acting Chief Financial Officer of Tele ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD174.80K).

Compensation vs Earnings: Kenneth's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Nelson
Executive Chairman14.25yrsCA$373.56k4.89%
CA$ 1.9m
Michael Martin
Chief Financial Officer8.42yrsCA$227.98kno data
Ye Zhou
President of Dynamic Structures7.75yrsCA$271.84kno data
Hao Wang
President & COO of Dynamic Attractions2.75yrsCA$766.29kno data
Paul Poirier
Vice President of Strategic Accounts & Service - Dynamic Attractionsno dataCA$559.36kno data
Allan Francis
VP of Corporate Affairs & Administration and Corporate Secretary9.83yrsCA$248.52kno data
Brian Peebles
Senior Vice President of Co-Ventures3.25yrsno datano data
Brett Third
Co-President of George Third & Son Ltd and President of Empire Dynamic Structures Ltdno dataCA$278.32kno data
George Walker
VP Creativeno datano datano data

8.1yrs

Average Tenure

Experienced Management: EIL's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Nelson
Executive Chairman14.25yrsCA$373.56k4.89%
CA$ 1.9m
Robert Marshall
Independent Director12.83yrsCA$125.00k0.70%
CA$ 269.3k
Jie Chui
Independent Non-Executive Chairman0.83yrCA$34.00k0.81%
CA$ 313.1k
Terence Quinn
Independent Director10.25yrsCA$84.90k0.84%
CA$ 321.7k

8.5yrs

Average Tenure

Experienced Board: EIL's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 58.5%.


Top Shareholders

Company Information

Empire Industries Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empire Industries Ltd.
  • Ticker: EIL
  • Exchange: TSXV
  • Founded: 1926
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$38.426m
  • Shares outstanding: 163.52m
  • Website: https://www.empind.com

Location

  • Empire Industries Ltd.
  • 717 Jarvis Avenue
  • Winnipeg
  • Manitoba
  • R2W 3B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EILTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2006
ERIL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2006
73EDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2006

Biography

Empire Industries Ltd. designs, builds, supplies, and installs premium entertainment attractions and ride systems for the entertainment industry. The company operates through three segments: Ride-Systems M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 01:05
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.