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ZZZ

Sleep Country Canada Holdings TSX:ZZZ Stock Report

Last Price

CA$25.28

Market Cap

CA$934.2m

7D

-5.2%

1Y

-14.7%

Updated

25 May, 2022

Data

Company Financials +
ZZZ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends3/6

ZZZ Stock Overview

Sleep Country Canada Holdings Inc. engages in retailing mattress and bedding-related products in Canada.

Sleep Country Canada Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sleep Country Canada Holdings
Historical stock prices
Current Share PriceCA$25.28
52 Week HighCA$41.97
52 Week LowCA$24.40
Beta1.67
1 Month Change-2.09%
3 Month Change-15.73%
1 Year Change-14.68%
3 Year Change34.76%
5 Year Change-35.18%
Change since IPO56.53%

Recent News & Updates

May 10
Sleep Country Canada Holdings (TSE:ZZZ) Is Paying Out A Larger Dividend Than Last Year

Sleep Country Canada Holdings (TSE:ZZZ) Is Paying Out A Larger Dividend Than Last Year

Sleep Country Canada Holdings Inc.'s ( TSE:ZZZ ) dividend will be increasing to CA$0.21 on 30th of May. Based on the...

May 06
These 4 Measures Indicate That Sleep Country Canada Holdings (TSE:ZZZ) Is Using Debt Reasonably Well

These 4 Measures Indicate That Sleep Country Canada Holdings (TSE:ZZZ) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

ZZZCA Specialty RetailCA Market
7D-5.2%-7.0%-0.7%
1Y-14.7%-8.5%5.2%

Return vs Industry: ZZZ underperformed the Canadian Specialty Retail industry which returned -8.5% over the past year.

Return vs Market: ZZZ underperformed the Canadian Market which returned 5.2% over the past year.

Price Volatility

Is ZZZ's price volatile compared to industry and market?
ZZZ volatility
ZZZ Average Weekly Movement6.4%
Specialty Retail Industry Average Movement6.4%
Market Average Movement9.8%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: ZZZ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ZZZ's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19941,598Stewart Schaeferhttps://www.sleepcountry.ca

Sleep Country Canada Holdings Inc. engages in retailing mattress and bedding-related products in Canada. The company offers a range of mattresses, adjustable lifestyle bases, pillows, duvets, duvet covers, mattress toppers and protectors, pet beds, weighted blankets, throws, sheets, headboards, footboards, frames, mattress and pillowcases, platforms, metal frames, blankets, mattress pads, and other sleep accessories. The company operates under the Dormez-vous, Sleep Country Canada, and Endy retail banners.

Sleep Country Canada Holdings Fundamentals Summary

How do Sleep Country Canada Holdings's earnings and revenue compare to its market cap?
ZZZ fundamental statistics
Market CapCA$934.18m
Earnings (TTM)CA$98.70m
Revenue (TTM)CA$944.20m

9.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZZZ income statement (TTM)
RevenueCA$944.20m
Cost of RevenueCA$580.46m
Gross ProfitCA$363.74m
Other ExpensesCA$265.04m
EarningsCA$98.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.67
Gross Margin38.52%
Net Profit Margin10.45%
Debt/Equity Ratio18.3%

How did ZZZ perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ZZZ (CA$25.28) is trading below our estimate of fair value (CA$67.52)

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


Price To Earnings Ratio

PE vs Industry: ZZZ is poor value based on its Price-To-Earnings Ratio (9.5x) compared to the Canadian Specialty Retail industry average (7.9x).

PE vs Market: ZZZ is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Canadian market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZZZ is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ZZZ is overvalued based on its Price-To-Book Ratio (2.3x) compared to the CA Specialty Retail industry average (1.3x).


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZZZ's forecast earnings growth (11.4% per year) is above the savings rate (1.6%).

Earnings vs Market: ZZZ's earnings (11.4% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: ZZZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZZZ's revenue (4.7% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: ZZZ's revenue (4.7% 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


Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZZZ has high quality earnings.

Growing Profit Margin: ZZZ's current net profit margins (10.5%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: ZZZ's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: ZZZ's earnings growth over the past year (47.3%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: ZZZ earnings growth over the past year (47.3%) underperformed the Specialty Retail industry 66.1%.


Return on Equity

High ROE: ZZZ's Return on Equity (23.5%) is considered high.


Financial Health

How is Sleep Country Canada Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZZZ's short term assets (CA$153.1M) exceed its short term liabilities (CA$148.4M).

Long Term Liabilities: ZZZ's short term assets (CA$153.1M) do not cover its long term liabilities (CA$409.6M).


Debt to Equity History and Analysis

Debt Level: ZZZ's net debt to equity ratio (10.5%) is considered satisfactory.

Reducing Debt: ZZZ's debt to equity ratio has reduced from 44.4% to 18.3% over the past 5 years.

Debt Coverage: ZZZ's debt is well covered by operating cash flow (222.9%).

Interest Coverage: ZZZ's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ZZZ's dividend (3.4%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: ZZZ's dividend (3.4%) is low compared to the top 25% of dividend payers in the Canadian market (4.92%).


Stability and Growth of Payments

Stable Dividend: ZZZ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ZZZ's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.1%), ZZZ's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.3%), ZZZ's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure


CEO

Stewart Schaefer (56 yo)

1.08yrs

Tenure

CA$1,725,810

Compensation

Mr. Stewart Schaefer serves as President of Sleep Country Canada Holdings Inc. since April 27, 2021 and has been its Chief Executive Officer and Director since January 1, 2022. He served as President of Do...


CEO Compensation Analysis

Compensation vs Market: Stewart's total compensation ($USD1.34M) is about average for companies of similar size in the Canadian market ($USD1.53M).

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


Leadership Team

Experienced Management: ZZZ's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: ZZZ'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: ZZZ 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

Sleep Country Canada Holdings Inc.'s 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
  • Implied Market Cap: CA$934.184m
  • Shares outstanding: 36.95m
  • Website: https://www.sleepcountry.ca

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.