TSXV:EIL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Weak fundamentals or lack of information.

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

-5.7%

EIL

-1.7%

CA Construction

0.6%

CA Market


1 Year Return

18.8%

EIL

11.0%

CA Construction

5.3%

CA Market

Return vs Industry: EIL exceeded the Canadian Construction industry which returned 11% over the past year.

Return vs Market: EIL exceeded the Canadian Market which returned 5.3% over the past year.


Shareholder returns

EILIndustryMarket
7 Day-5.7%-1.7%0.6%
30 Day-12.8%1.2%1.0%
90 Day-4.7%16.0%4.5%
1 Year18.8%18.8%12.9%11.0%8.6%5.3%
3 Year7.9%7.9%12.9%6.2%18.0%7.4%
5 Year7.9%7.9%56.6%38.8%34.4%14.9%

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?


In this section, we usually try to help investors determine whether Empire Industries is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Empire Industries has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of EIL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Empire Industries regulatory filings.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

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

18.8%

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?

-79.7%

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 -79.7% 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 (4.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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

Inventory Level: EIL has a low level of unsold assets or inventory.

Debt Coverage by Assets: EIL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: EIL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EIL has less than a year of cash runway if free cash flow continues to reduce at historical rates of -26% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

7.4yrs

Average management tenure


CEO

Kenneth Nelson (64yo)

13.7yrs

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 ($USD281.68K) is above average for companies of similar size in the Canadian market ($USD154.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Nelson
CEO, President & Director13.7yrsCA$373.56k4.89% CA$3.3m
Michael Martin
Chief Financial Officer7.8yrsCA$227.98kno data
Ye Zhou
President of Dynamic Structures7.1yrsCA$271.84k0.15% CA$102.5k
Hao Wang
President & COO of Dynamic Attractions2.1yrsCA$766.29kno data
Paul Poirier
Vice President of Strategic Accounts & Service - Dynamic Attractions0yrsCA$559.36kno data
Allan Francis
VP of Corporate Affairs & Administration and Corporate Secretary9.2yrsCA$248.52k0.0038% CA$2.6k
Brian Peebles
Senior Vice President of Co-Ventures2.6yrsno datano data
Brett Third
Co-President of George Third & Son Ltd and President of Empire Dynamic Structures Ltd0yrsCA$278.32kno data

7.4yrs

Average Tenure

Experienced Management: EIL's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Nelson
CEO, President & Director13.7yrsCA$373.56k4.89% CA$3.3m
Robert Marshall
Independent Director12.3yrsCA$125.00k0.70% CA$469.8k
Jie Chui
Non-Executive Chairman0.3yrsCA$34.00k0.81% CA$546.3k
Terence Quinn
Independent Director9.7yrsCA$84.90k0.84% CA$561.3k

11.0yrs

Average Tenure

Experienced Board: EIL's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EIL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.1%.


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$67.042m
  • 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 Media-Based Attractions and Steel Fabrications Services segments. The Media-Based Attractions segment designs and manufactures complex ride systems, telescopes, and custom machinery and equipment; and provides parts and service of amusement park attractions. The Steel Fabrication Services segment offers structural steel fabrication and installation services. This segment fabricates tanks, pressure vessels, and other specialty carbon and stainless-steel products. The company is also involved in the media-based attraction integration business; and retail selling activities. It serves theme parks, stand-alone tourist venues, and the government sector in Canada, the United States, Asia, the Middle East, and Europe. Empire Industries Ltd. was founded in 1926 and is headquartered in Winnipeg, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:07
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.