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EMP.

EmpireTSX:EMP.A Stock Report

Market Cap

CA$9.9b

7D

-2.6%

1Y

-1.2%

Updated

21 Oct, 2021

Data

Company Financials +
EMP.A fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends4/6

EMP.A Overview

Empire Company Limited, together with its subsidiaries, engages in the food retail and related real estate businesses in Canada.

Price History & Performance

Summary of all time highs, changes and price drops for Empire
Historical stock prices
Current Share PriceCA$37.21
52 Week HighCA$34.13
52 Week LowCA$42.93
Beta0.30
1 Month Change-3.28%
3 Month Change-7.74%
1 Year Change-1.25%
3 Year Change57.27%
5 Year Change95.95%
Change since IPO1,328.86%

Recent News & Updates

Sep 29
Do Empire's (TSE:EMP.A) Earnings Warrant Your Attention?

Do Empire's (TSE:EMP.A) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 15
Is Empire Company Limited (TSE:EMP.A) Trading At A 24% Discount?

Is Empire Company Limited (TSE:EMP.A) Trading At A 24% Discount?

In this article we are going to estimate the intrinsic value of Empire Company Limited ( TSE:EMP.A ) by estimating the...

Sep 03
The Compensation For Empire Company Limited's (TSE:EMP.A) CEO Looks Deserved And Here's Why

The Compensation For Empire Company Limited's (TSE:EMP.A) CEO Looks Deserved And Here's Why

We have been pretty impressed with the performance at Empire Company Limited ( TSE:EMP.A ) recently and CEO Mike...

Shareholder Returns

EMP.ACA Consumer RetailingCA Market
7D-2.6%-0.2%2.4%
1Y-1.2%15.9%33.5%

Return vs Industry: EMP.A underperformed the Canadian Consumer Retailing industry which returned 15.9% over the past year.

Return vs Market: EMP.A underperformed the Canadian Market which returned 33.5% over the past year.

Price Volatility

Is EMP.A's price volatile compared to industry and market?
EMP.A volatility
EMP.A Beta0.30
Industry Beta0.70
Market Beta1

Stable Share Price: EMP.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: EMP.A's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1907134,000Mike Medlinehttps://www.empireco.ca

Empire Company Limited, together with its subsidiaries, engages in the food retail and related real estate businesses in Canada. It operates through two segments, Food Retailing, and Investments and Other Operations. The company owns, affiliates, and franchises approximately 1,500 retail stores under various retail banners, including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy, Longo’s, and Lawtons Drugs; and approximately 350 retail fuel locations, as well as operates grocery e-commerce stores under the banners, such as Voilà by Sobeys, Grocery Gateway, IGA.net, and ThriftyFoods.com.

Empire Fundamentals Summary

How do Empire's earnings and revenue compare to its market cap?
EMP.A fundamental statistics
Market CapCA$9.87b
Earnings (TTM)CA$698.10m
Revenue (TTM)CA$28.62b

14.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMP.A income statement (TTM)
RevenueCA$28.62b
Cost of RevenueCA$21.28b
Gross ProfitCA$7.34b
ExpensesCA$6.64b
EarningsCA$698.10m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)2.63
Gross Margin25.65%
Net Profit Margin2.44%
Debt/Equity Ratio26.0%

How did EMP.A perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

21%

Payout Ratio

Valuation

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

14.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMP.A (CA$37.21) is trading above our estimate of fair value (CA$23.47)

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


Price To Earnings Ratio

PE vs Industry: EMP.A is good value based on its PE Ratio (14.1x) compared to the Canadian Consumer Retailing industry average (15.4x).

PE vs Market: EMP.A is poor value based on its PE Ratio (14.1x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EMP.A's PB Ratio (2.2x) is in line with the CA Consumer Retailing industry average.


Future Growth

How is Empire forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

2.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EMP.A's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if EMP.A's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EMP.A's revenue (2.3% per year) is forecast to grow slower than the Canadian market (6.8% per year).

High Growth Revenue: EMP.A's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EMP.A's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Empire performed over the past 5 years?

69.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMP.A has high quality earnings.

Growing Profit Margin: EMP.A's current net profit margins (2.4%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: EMP.A has become profitable over the past 5 years, growing earnings by 69.1% per year.

Accelerating Growth: EMP.A's earnings growth over the past year (8.4%) is below its 5-year average (69.1% per year).

Earnings vs Industry: EMP.A earnings growth over the past year (8.4%) exceeded the Consumer Retailing industry 5.1%.


Return on Equity

High ROE: EMP.A's Return on Equity (16.1%) is considered low.


Financial Health

How is Empire's financial position?


Financial Position Analysis

Short Term Liabilities: EMP.A's short term assets (CA$2.9B) do not cover its short term liabilities (CA$3.6B).

Long Term Liabilities: EMP.A's short term assets (CA$2.9B) do not cover its long term liabilities (CA$7.7B).


Debt to Equity History and Analysis

Debt Level: EMP.A's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: EMP.A's debt to equity ratio has reduced from 52.6% to 26% over the past 5 years.

Debt Coverage: EMP.A's debt is well covered by operating cash flow (153.5%).

Interest Coverage: EMP.A's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMP.A's dividend (1.61%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: EMP.A's dividend (1.61%) is low compared to the top 25% of dividend payers in the Canadian market (4.5%).


Stability and Growth of Payments

Stable Dividend: EMP.A's dividends per share have been stable in the past 10 years.

Growing Dividend: EMP.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.7%), EMP.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Mike Medline (58 yo)

4.75yrs

Tenure

CA$7,491,355

Compensation

Mr. Michael Bennett Medline, also known as Mike, has been the Chief Executive Officer and President of Empire Company Limited since January 12, 2017. Mr. Medline has been Chief Executive Officer and Presid...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.07M) is above average for companies of similar size in the Canadian market ($USD3.58M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EMP.A's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: EMP.A's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Empire Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Empire Company Limited
  • Ticker: EMP.A
  • Exchange: TSX
  • Founded: 1907
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$9.870b
  • Shares outstanding: 265.26m
  • Website: https://www.empireco.ca

Number of Employees


Location

  • Empire Company Limited
  • 115 King Street
  • Stellarton
  • Nova Scotia
  • B0K 1S0
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 23:00
End of Day Share Price2021/10/21 00:00
Earnings2021/07/31
Annual Earnings2021/05/01


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.