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Market Cap

CA$3.5b

Last Updated

2021/04/18 22:20 UTC

Data Sources

Company Financials +

Executive Summary

Aritzia Inc., together with its subsidiaries, designs and sells apparels and accessories for women. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.3%

ATZ

3.3%

CA Specialty Retail

0.6%

CA Market


1 Year Return

120.1%

ATZ

120.4%

CA Specialty Retail

38.5%

CA Market

Return vs Industry: ATZ matched the Canadian Specialty Retail industry which returned 120.4% over the past year.

Return vs Market: ATZ exceeded the Canadian Market which returned 38.5% over the past year.


Shareholder returns

ATZIndustryMarket
7 Day0.3%3.3%0.6%
30 Day2.5%3.6%2.0%
90 Day16.6%18.1%8.5%
1 Year120.1%120.1%124.7%120.4%43.2%38.5%
3 Year156.3%156.3%39.7%31.3%32.0%19.2%
5 Yearn/a53.7%35.1%57.6%33.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

138.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATZ (CA$31.6) is trading above our estimate of fair value (CA$9.65)

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


Price To Earnings Ratio

PE vs Industry: ATZ is poor value based on its PE Ratio (138.9x) compared to the CA Specialty Retail industry average (12.2x).

PE vs Market: ATZ is poor value based on its PE Ratio (138.9x) compared to the Canadian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: ATZ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ATZ is overvalued based on its PB Ratio (10.2x) compared to the CA Specialty Retail industry average (2.5x).


Future Growth

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

194.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATZ's forecast earnings growth (194.3% per year) is above the savings rate (1.5%).

Earnings vs Market: ATZ's earnings (194.3% per year) are forecast to grow faster than the Canadian market (19.8% per year).

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

Revenue vs Market: ATZ's revenue (26.2% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: ATZ's revenue (26.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Aritzia performed over the past 5 years?

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATZ has high quality earnings.

Growing Profit Margin: ATZ's current net profit margins (2.9%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: ATZ's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: ATZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATZ had negative earnings growth (-71.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (-11.9%).


Return on Equity

High ROE: ATZ's Return on Equity (7.3%) is considered low.


Financial Health

How is Aritzia's financial position?


Financial Position Analysis

Short Term Liabilities: ATZ's short term assets (CA$347.8M) exceed its short term liabilities (CA$265.1M).

Long Term Liabilities: ATZ's short term assets (CA$347.8M) do not cover its long term liabilities (CA$548.8M).


Debt to Equity History and Analysis

Debt Level: ATZ's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: ATZ's debt to equity ratio has reduced from 144.1% to 22% over the past 5 years.

Debt Coverage: ATZ's debt is well covered by operating cash flow (233.1%).

Interest Coverage: ATZ's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ATZ'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 ATZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATZ'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 ATZ'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?

5.0yrs

Average management tenure


CEO

Brian Hill (59 yo)

no data

Tenure

CA$8,402

Compensation

Mr. Brian Hill is the Founder of Aritzia Inc. and serves as its Chairman and Chief Executive Officer. Mr. Hill is the Founder of the Aritzia LP and serves as its Chief Executive Officer. He has been an Non...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD6.72K) is below average for companies of similar size in the Canadian market ($USD3.06M).

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


Leadership Team

Experienced Management: ATZ's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: ATZ's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aritzia Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aritzia Inc.
  • Ticker: ATZ
  • Exchange: TSX
  • Founded: 1984
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: CA$3.456b
  • Shares outstanding: 109.95m
  • Website: https://www.aritzia.com

Number of Employees


Location

  • Aritzia Inc.
  • 611 Alexander Street
  • Suite 118
  • Vancouver
  • British Columbia
  • V6A 1E1
  • Canada

Listings


Biography

Aritzia Inc., together with its subsidiaries, designs and sells apparels and accessories for women. It offers sweatshirts, leggings, blouses, pants, dresses, T-shirts, bodysuits, shorts, skirts, jackets an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 22:20
End of Day Share Price2021/04/16 00:00
Earnings2020/11/29
Annual Earnings2020/03/01


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.