TSX:ZZZ

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Sleep Country Canada Holdings

Executive Summary

Sleep Country Canada Holdings Inc., together with its subsidiaries, engages in retailing mattress and bedding related products in Canada.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Sleep Country Canada Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZZZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

ZZZ

-2.3%

CA Specialty Retail

2.1%

CA Market


1 Year Return

-17.3%

ZZZ

-25.7%

CA Specialty Retail

-9.6%

CA Market

Return vs Industry: ZZZ exceeded the Canadian Specialty Retail industry which returned -25.8% over the past year.

Return vs Market: ZZZ underperformed the Canadian Market which returned -10.8% over the past year.


Shareholder returns

ZZZIndustryMarket
7 Day-7.2%-2.3%2.1%
30 Day-4.9%4.6%3.2%
90 Day37.0%15.5%12.4%
1 Year-14.9%-17.3%-23.5%-25.7%-6.4%-9.6%
3 Year-58.4%-61.7%-36.9%-42.0%7.0%-3.3%
5 Year12.7%-0.3%-23.1%-33.3%26.6%7.2%

Price Volatility Vs. Market

How volatile is Sleep Country Canada Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sleep Country Canada Holdings undervalued compared to its fair value and its price relative to the market?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZZZ (CA$15.3) is trading below our estimate of fair value (CA$20.69)

Significantly Below Fair Value: ZZZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZZZ is good value based on its PE Ratio (10.7x) compared to the CA Specialty Retail industry average (10.9x).

PE vs Market: ZZZ is good value based on its PE Ratio (10.7x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZZZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ZZZ is overvalued based on its PB Ratio (1.8x) compared to the CA Specialty Retail industry average (1.1x).


Next Steps

Future Growth

How is Sleep Country Canada Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZZZ's earnings are forecast to decline over the next 3 years (-24.8% per year).

Earnings vs Market: ZZZ's earnings are forecast to decline over the next 3 years (-24.8% per year).

High Growth Earnings: ZZZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ZZZ's revenue (6.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: ZZZ's revenue (6.8% 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 ZZZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sleep Country Canada Holdings performed over the past 5 years?

44.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZZZ has high quality earnings.

Growing Profit Margin: ZZZ's current net profit margins (7.4%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: ZZZ has become profitable over the past 5 years, growing earnings by 44% per year.

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

Earnings vs Industry: ZZZ had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (1.2%).


Return on Equity

High ROE: ZZZ's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Sleep Country Canada Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZZZ's short term assets (CA$140.3M) exceed its short term liabilities (CA$116.3M).

Long Term Liabilities: ZZZ's short term assets (CA$140.3M) do not cover its long term liabilities (CA$507.7M).


Debt to Equity History and Analysis

Debt Level: ZZZ's debt to equity ratio (68.8%) is considered high.

Reducing Debt: ZZZ's debt to equity ratio has reduced from 267.3% to 68.8% over the past 5 years.

Debt Coverage: ZZZ's debt is well covered by operating cash flow (59.5%).

Interest Coverage: ZZZ's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Sleep Country Canada Holdings's current dividend yield, its reliability and sustainability?

5.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZZZ's dividend (5.1%) is higher than the bottom 25% of dividend payers in the Canadian market (1.87%).

High Dividend: ZZZ's dividend (5.1%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ZZZ has been paying a dividend for less than 10 years.

Growing Dividend: ZZZ's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.7%), ZZZ's dividend payments are 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?

7.1yrs

Average management tenure


CEO

Dave Friesema (53yo)

5.67yrs

Tenure

CA$1,409,767

Compensation

Mr. David Friesema also known as Dave, has been Chief Executive Officer of Sleep Country Canada Holdings Inc. since November 2014. Mr. Friesema serves as the Chief Executive Officer of Sleep Country Canada ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.04M) is about average for companies of similar size in the Canadian market ($USD1.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christine Magee
Executive Chairman1.17yrsCA$280.72k0.80% CA$4.6m
David Friesema
CEO & Director5.67yrsCA$1.41m1.11% CA$6.4m
Craig De Pratto
CFO & Corporate Secretary0.83yrCA$570.33kno data
Sieg Will
Senior Vice-President of Operations8.5yrsCA$693.54k0.17% CA$999.2k
David Howcroft
Chief Sales Officer8.5yrsCA$873.06k0.078% CA$443.2k
Stewart Schaefer
Chief Business Development Officer & President of Dormez-vousno dataCA$1.22m0.75% CA$4.3m
Prajakta Raut
Vice President of Corporate Accountingno datano datano data

7.1yrs

Average Tenure

53.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Christine Magee
Executive Chairman1.17yrsCA$280.72k0.80% CA$4.6m
David Friesema
CEO & Director5.67yrsCA$1.41m1.11% CA$6.4m
John Cassaday
Independent Director5yrsCA$100.00k0.056% CA$320.5k
James Bradley
Independent Director5yrsCA$100.00k0.026% CA$149.6k
Andrew R. Moor
Independent Director5yrsCA$100.00k0.032% CA$183.7k
Stacey Mowbray
Independent Director0.92yrCA$57.08k0.011% CA$62.3k
David Shaw
Independent Lead Director4.42yrsCA$100.00k0.056% CA$320.5k
Zabeen Hirji-Nowaczynski
Independent Director1.92yrsCA$100.00k0.0071% CA$40.5k

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: ZZZ's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ZZZ insiders have sold more shares than they have bought 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

Sleep Country Canada Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sleep Country Canada Holdings Inc.
  • Ticker: ZZZ
  • Exchange: TSX
  • Founded: 1994
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: CA$571.431m
  • Shares outstanding: 36.70m
  • Website: https://www.sleepcountry.ca

Number of Employees


Location

  • Sleep Country Canada Holdings Inc.
  • 7920 Airport Road
  • Brampton
  • Ontario
  • L6T 4N8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZZZTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2015
1S2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2015
SCCA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2015

Biography

Sleep Country Canada Holdings Inc., together with its subsidiaries, engages in retailing mattress and bedding related products in Canada. The company offers a range of mattresses, adjustable lifestyle bases, box spring bases, pillows, duvets, sheets, headboards, footboards, frames, mattress and pillow protectors, platforms, metal frames, mattress pads, and other sleep accessories. The company operates under the Dormez-vous, Sleep Country Canada, and Endy retail banners. As of July 2, 2020, it had 278 stores and 17 distribution centers across Canada. It also sells its products through an e-commerce platform. The company was founded in 1994 and is headquartered in Brampton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:00
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.