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EMP.

Empire TSX:EMP.A Stock Report

Last Price

CA$39.89

Market Cap

CA$10.4b

7D

-1.2%

1Y

3.2%

Updated

26 Jun, 2022

Data

Company Financials +
EMP.A fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

EMP.A Stock Overview

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

Rewards

Earnings have grown 33% per year over the past 5 years

Risk Analysis

EMP.A passed our risk checks.

Empire Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Empire
Historical stock prices
Current Share PriceCA$39.89
52 Week HighCA$46.04
52 Week LowCA$36.20
Beta0.34
1 Month Change-2.16%
3 Month Change-7.51%
1 Year Change3.21%
3 Year Change20.95%
5 Year Change80.34%
Change since IPO1,431.78%

Recent News & Updates

Jun 10
Empire (TSE:EMP.A) Might Have The Makings Of A Multi-Bagger

Empire (TSE:EMP.A) Might Have The Makings Of A Multi-Bagger

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 15
Is Empire Company Limited (TSE:EMP.A) Expensive For A Reason? A Look At Its Intrinsic Value

Is Empire Company Limited (TSE:EMP.A) Expensive For A Reason? A Look At Its Intrinsic Value

Does the May share price for Empire Company Limited ( TSE:EMP.A ) reflect what it's really worth? Today, we will...

Shareholder Returns

EMP.ACA Consumer RetailingCA Market
7D-1.2%3.4%0.3%
1Y3.2%27.0%-4.0%

Return vs Industry: EMP.A underperformed the Canadian Consumer Retailing industry which returned 27% over the past year.

Return vs Market: EMP.A exceeded the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is EMP.A's price volatile compared to industry and market?
EMP.A volatility
EMP.A Average Weekly Movement4.0%
Consumer Retailing Industry Average Movement3.9%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: EMP.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EMP.A's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1907130,000Mike 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$10.45b
Earnings (TTM)CA$745.80m
Revenue (TTM)CA$30.27b

14.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMP.A income statement (TTM)
RevenueCA$30.27b
Cost of RevenueCA$22.50b
Gross ProfitCA$7.77b
Other ExpensesCA$7.02b
EarningsCA$745.80m

Last Reported Earnings

May 07, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)2.85
Gross Margin25.67%
Net Profit Margin2.46%
Debt/Equity Ratio22.9%

How did EMP.A perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

21%

Payout Ratio

Does EMP.A pay a reliable dividends?

See EMP.A dividend history and benchmarks
When do you need to buy EMP.A by to receive an upcoming dividend?
Empire dividend dates
Ex Dividend DateJul 14 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend18 days
Days until Dividend pay date33 days

Does EMP.A pay a reliable dividends?

See EMP.A dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is EMP.A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMP.A?

Other financial metrics that can be useful for relative valuation.

EMP.A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA9.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does EMP.A's PE Ratio compare to its peers?

EMP.A PE Ratio vs Peers
The above table shows the PE ratio for EMP.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.2x

Price-To-Earnings vs Peers: EMP.A is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

How does EMP.A's PE Ratio compare vs other companies in the Consumer Retailing Industry?

Price-To-Earnings vs Industry: EMP.A is expensive based on its Price-To-Earnings Ratio (14x) compared to the Canadian Consumer Retailing industry average (14x)


Price to Earnings Ratio vs Fair Ratio

What is EMP.A'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.

EMP.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EMP.A's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of EMP.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMP.A (CA$39.89) is trading above our estimate of fair value (CA$31.29)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.8%

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 EMP.A's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EMP.A's revenue (1.8% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: EMP.A's revenue (1.8% 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


Discover growth companies

Past Performance

How has Empire performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.0%

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 (2.5%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: EMP.A's earnings have grown significantly by 33% per year over the past 5 years.

Accelerating Growth: EMP.A's earnings growth over the past year (6.3%) is below its 5-year average (33% per year).

Earnings vs Industry: EMP.A earnings growth over the past year (6.3%) underperformed the Consumer Retailing industry 6.3%.


Return on Equity

High ROE: EMP.A's Return on Equity (15.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Empire's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EMP.A's short term assets (CA$3.2B) do not cover its short term liabilities (CA$4.2B).

Long Term Liabilities: EMP.A's short term assets (CA$3.2B) do not cover its long term liabilities (CA$7.2B).


Debt to Equity History and Analysis

Debt Level: EMP.A's net debt to equity ratio (7.1%) is considered satisfactory.

Reducing Debt: EMP.A's debt to equity ratio has reduced from 50.5% to 22.9% over the past 5 years.

Debt Coverage: EMP.A's debt is well covered by operating cash flow (179.1%).

Interest Coverage: EMP.A's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.65%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 26 2022Ex Dividend DateJul 14 2022Dividend Pay DateJul 29 202215 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EMP.A's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: EMP.A's dividend (1.65%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.3%), EMP.A's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13%), EMP.A's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure


CEO

Mike Medline (58 yo)

5.42yrs

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 ($USD5.80M) is about average for companies of similar size in the Canadian market ($USD4.78M).

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 not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: EMP.A's board of directors are seasoned and experienced ( 10.4 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 only sold shares 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
  • Implied Market Cap: CA$10.446b
  • Shares outstanding: 261.86m
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/05/07
Annual Earnings2022/05/07


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.