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

Fundamentals

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


Market Performance


7 Day Return

-3.7%

EIL

3.1%

CA Construction

0.3%

CA Market


1 Year Return

-7.1%

EIL

-21.1%

CA Construction

0.1%

CA Market

Return vs Industry: EIL exceeded the Canadian Construction industry which returned -21.1% over the past year.

Return vs Market: EIL underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

EILIndustryMarket
7 Day-3.7%3.1%0.3%
30 Day-15.1%-2.9%-2.5%
90 Day-16.8%-8.7%-1.4%
1 Year-7.1%-7.1%-19.6%-21.1%3.6%0.1%
3 Year3.9%3.9%-7.5%-13.4%14.3%4.1%
5 Year-10.2%-10.2%9.6%-3.1%25.0%6.9%

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?

41.5%

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?

-81.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EIL is unprofitable, and losses have increased over the past 5 years at a rate of -81.1% 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 (5.4%).


Return on Equity

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


Return on Assets

ROA vs Industry: EIL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EIL is currently unprofitable, so its Return on Capital Employed is negative.


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 high level of physical 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 -32.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Empire Industries's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Kenneth Nelson (64yo)

13.3yrs

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 ($USD282.92K) is about average for companies of similar size in the Canadian market ($USD121.56K).

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


Management Age and Tenure

7.1yrs

Average Tenure

Experienced Management: EIL's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

Experienced Board: EIL's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: EIL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$5,80001 Oct 19
Terence Quinn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,500
Max PriceCA$0.40
SellCA$4,70024 Sep 19
Terence Quinn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$0.47
SellCA$1,560,00108 May 19
Canada Zhoufa Agricultural Holding Company Limited
EntityCompany
Shares4,000,000
Max PriceCA$0.39
SellCA$850,50112 Feb 19
Canada Zhoufa Agricultural Holding Company Limited
EntityCompany
Shares2,700,000
Max PriceCA$0.32
SellCA$414,93017 Dec 18
Canada Zhoufa Agricultural Holding Company Limited
EntityCompany
Shares1,150,000
Max PriceCA$0.38

Ownership Breakdown


Management Team

  • Kenneth Nelson (64yo)

    Executive Chairman

    • Tenure: 13.3yrs
    • Compensation: CA$373.56k
  • Brett Third (67yo)

    Co-President of George Third & Son Ltd and President of Empire Dynamic Structures Ltd

    • Tenure: 0yrs
    • Compensation: CA$278.32k
  • Allan Francis

    VP of Corporate Affairs & Administration and Corporate Secretary

    • Tenure: 8.8yrs
    • Compensation: CA$248.52k
  • Mike Martin

    Chief Financial Officer

    • Tenure: 7.4yrs
    • Compensation: CA$227.98k
  • Ye Zhou

    President of Dynamic Structures

    • Tenure: 6.8yrs
    • Compensation: CA$271.84k
  • Brian Peebles

    Senior Vice President of Co-Ventures

    • Tenure: 2.3yrs
  • Hao Wang

    President & COO of Dynamic Attractions

    • Tenure: 1.8yrs
    • Compensation: CA$766.29k
  • Paul Poirier

    Vice President of Strategic Accounts & Service - Dynamic Attractions

    • Tenure: 0yrs
    • Compensation: CA$559.36k

Board Members

  • Bob Marshall

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: CA$125.00k
  • Kenneth Nelson (64yo)

    Executive Chairman

    • Tenure: 13.3yrs
    • Compensation: CA$373.56k
  • Jie Chui (56yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$34.00k
  • Terry Quinn

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$84.90k
  • Jack Chang

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$32.00k

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$40.741m
  • Shares outstanding: 103.14m
  • 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 St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.