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ZZZ

Sleep Country Canada HoldingsTSX:ZZZ Stock Report

Market Cap

CA$1.4b

7D

-2.5%

1Y

51.5%

Updated

28 Nov, 2021

Data

Company Financials +
ZZZ fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends3/6

ZZZ Stock Overview

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

Sleep Country Canada Holdings Competitors

Amazon.com

NasdaqGS:AMZN

US$1.8t

Casper Sleep

NYSE:CSPR

US$271.8m

Price History & Performance

Summary of all time highs, changes and price drops for Sleep Country Canada Holdings
Historical stock prices
Current Share PriceCA$37.17
52 Week HighCA$41.97
52 Week LowCA$23.68
Beta1.64
1 Month Change7.03%
3 Month Change10.53%
1 Year Change51.53%
3 Year Change68.42%
5 Year Change30.10%
Change since IPO130.16%

Recent News & Updates

Nov 16
Sleep Country Canada Holdings' (TSE:ZZZ) Dividend Will Be CA$0.20

Sleep Country Canada Holdings' (TSE:ZZZ) Dividend Will Be CA$0.20

Sleep Country Canada Holdings Inc.'s ( TSE:ZZZ ) investors are due to receive a payment of CA$0.20 per share on 29th of...

Nov 08
Estimating The Fair Value Of Sleep Country Canada Holdings Inc. (TSE:ZZZ)

Estimating The Fair Value Of Sleep Country Canada Holdings Inc. (TSE:ZZZ)

In this article we are going to estimate the intrinsic value of Sleep Country Canada Holdings Inc. ( TSE:ZZZ ) by...

Shareholder Returns

ZZZCA Specialty RetailCA Market
7D-2.5%-3.8%-1.7%
1Y51.5%58.1%21.9%

Return vs Industry: ZZZ underperformed the Canadian Specialty Retail industry which returned 58.2% over the past year.

Return vs Market: ZZZ exceeded the Canadian Market which returned 22.1% over the past year.

Price Volatility

Is ZZZ's price volatile compared to industry and market?
ZZZ volatility
ZZZ Average Weekly Movement5.1%
Specialty Retail Industry Average Movement5.8%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: ZZZ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ZZZ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19941,448Dave Friesemahttps://www.sleepcountry.ca

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, pillows, duvets, duvet covers, mattress toppers and protectors, pet beds, weighted blankets, throws, sheets, headboards, footboards, frames, mattress and pillow cases, 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$1.37b
Earnings (TTM)CA$88.74m
Revenue (TTM)CA$897.90m

15.4x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZZZ income statement (TTM)
RevenueCA$897.90m
Cost of RevenueCA$571.42m
Gross ProfitCA$326.48m
ExpensesCA$237.74m
EarningsCA$88.74m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.41
Gross Margin36.36%
Net Profit Margin9.88%
Debt/Equity Ratio15.5%

How did ZZZ perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZZZ (CA$37.17) is trading below our estimate of fair value (CA$39.85)

Significantly Below Fair Value: ZZZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZZZ is poor value based on its PE Ratio (15.4x) compared to the Canadian Specialty Retail industry average (9x).

PE vs Market: ZZZ is poor value based on its PE Ratio (15.4x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZZZ is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ZZZ is overvalued based on its PB Ratio (3.4x) compared to the CA Specialty Retail industry average (2.1x).


Future Growth

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

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZZZ's forecast earnings growth (16% per year) is above the savings rate (1.6%).

Earnings vs Market: ZZZ's earnings (16% per year) are forecast to grow faster than the Canadian market (10.6% per year).

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

Revenue vs Market: ZZZ's revenue (7.7% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: ZZZ's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZZZ's Return on Equity is forecast to be high in 3 years time (22.9%)


Past Performance

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

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZZZ has high quality earnings.

Growing Profit Margin: ZZZ's current net profit margins (9.9%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: ZZZ's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: ZZZ's earnings growth over the past year (74.8%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: ZZZ earnings growth over the past year (74.8%) underperformed the Specialty Retail industry 144.8%.


Return on Equity

High ROE: ZZZ's Return on Equity (22%) is considered high.


Financial Health

How is Sleep Country Canada Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZZZ's short term assets (CA$136.3M) do not cover its short term liabilities (CA$166.4M).

Long Term Liabilities: ZZZ's short term assets (CA$136.3M) do not cover its long term liabilities (CA$366.7M).


Debt to Equity History and Analysis

Debt Level: ZZZ's net debt to equity ratio (6.2%) is considered satisfactory.

Reducing Debt: ZZZ's debt to equity ratio has reduced from 46.1% to 15.5% over the past 5 years.

Debt Coverage: ZZZ's debt is well covered by operating cash flow (258.4%).

Interest Coverage: ZZZ's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZZZ's dividend (2.1%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: ZZZ's dividend (2.1%) is low compared to the top 25% of dividend payers in the Canadian market (4.6%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), ZZZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZZZ's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Dave Friesema (54 yo)

7yrs

Tenure

CA$1,901,777

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 ($USD1.49M) is above average for companies of similar size in the Canadian market ($USD1.08M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ZZZ's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: ZZZ's board of directors are considered experienced (4.5 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 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$1.369b
  • Shares outstanding: 36.84m
  • 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 Analysis2021/11/28 23:28
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.