company background image
ZZZ

Sleep Country Canada Holdings TSX:ZZZ Stock Report

Last Price

CA$24.70

Market Cap

CA$907.3m

7D

0.9%

1Y

-26.5%

Updated

29 Sep, 2022

Data

Company Financials +
ZZZ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
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$24.70
52 Week HighCA$41.97
52 Week LowCA$23.54
Beta1.68
1 Month Change-7.35%
3 Month Change2.83%
1 Year Change-26.49%
3 Year Change20.84%
5 Year Change-34.40%
Change since IPO52.94%

Recent News & Updates

Sep 16
Here's Why We Think Sleep Country Canada Holdings (TSE:ZZZ) Is Well Worth Watching

Here's Why We Think Sleep Country Canada Holdings (TSE:ZZZ) Is Well Worth Watching

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

ZZZCA Specialty RetailCA Market
7D0.9%0.04%-2.9%
1Y-26.5%-13.7%-5.6%

Return vs Industry: ZZZ underperformed the Canadian Specialty Retail industry which returned -13.7% over the past year.

Return vs Market: ZZZ underperformed the Canadian Market which returned -5.6% over the past year.

Price Volatility

Is ZZZ's price volatile compared to industry and market?
ZZZ volatility
ZZZ Average Weekly Movement5.5%
Specialty Retail Industry Average Movement6.6%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.2%
10% least volatile stocks in CA Market3.8%

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$907.25m
Earnings (TTM)CA$104.35m
Revenue (TTM)CA$979.60m

8.7x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZZZ income statement (TTM)
RevenueCA$979.60m
Cost of RevenueCA$600.48m
Gross ProfitCA$379.12m
Other ExpensesCA$274.77m
EarningsCA$104.35m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 07, 2022

Earnings per share (EPS)2.84
Gross Margin38.70%
Net Profit Margin10.65%
Debt/Equity Ratio20.3%

How did ZZZ perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZZZ?

Other financial metrics that can be useful for relative valuation.

ZZZ 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/Revenue1.3x
Enterprise Value/EBITDA7x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does ZZZ's PE Ratio compare to its peers?

ZZZ PE Ratio vs Peers
The above table shows the PE ratio for ZZZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.5x
LNF Leon's Furniture
5.5xn/aCA$1.1b
GBT BMTC Group
7.9xn/aCA$452.8m
ACQ AutoCanada
4x33.8%CA$641.4m
DIV Diversified Royalty
12.4xn/aCA$345.0m
ZZZ Sleep Country Canada Holdings
8.7x8.6%CA$909.1m

Price-To-Earnings vs Peers: ZZZ is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (7.5x).


Price to Earnings Ratio vs Industry

How does ZZZ's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Earnings vs Industry: ZZZ is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the North American Specialty Retail industry average (6.4x)


Price to Earnings Ratio vs Fair Ratio

What is ZZZ'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.

ZZZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: ZZZ is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).


Share Price vs Fair Value

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

Below Fair Value: ZZZ (CA$24.7) is trading below our estimate of fair value (CA$61.7)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Sleep Country Canada Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZZZ's forecast earnings growth (8.6% per year) is above the savings rate (1.6%).

Earnings vs Market: ZZZ's earnings (8.6% 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 (5.8% 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: ZZZ's Return on Equity is forecast to be high in 3 years time (27.5%)


Discover growth companies

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


11.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZZZ has high quality earnings.

Growing Profit Margin: ZZZ's current net profit margins (10.7%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: ZZZ's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: ZZZ's earnings growth over the past year (23.5%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: ZZZ earnings growth over the past year (23.5%) underperformed the Specialty Retail industry 23.5%.


Return on Equity

High ROE: ZZZ's Return on Equity (25.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Sleep Country Canada Holdings'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: ZZZ's short term assets (CA$170.0M) do not cover its short term liabilities (CA$177.8M).

Long Term Liabilities: ZZZ's short term assets (CA$170.0M) do not cover its long term liabilities (CA$397.5M).


Debt to Equity History and Analysis

Debt Level: ZZZ's net debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: ZZZ's debt to equity ratio has reduced from 43.9% to 20.3% over the past 5 years.

Debt Coverage: ZZZ's debt is well covered by operating cash flow (225%).

Interest Coverage: ZZZ's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Sleep Country Canada Holdings's 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

  • Cash Flow Coverage


3.48%

Current Dividend Yield

Dividend Yield vs Market

Sleep Country Canada Holdings Dividend Yield vs Market
How does Sleep Country Canada Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Sleep Country Canada Holdings)3.5%
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.0%
Industry Average (Specialty Retail)4.1%
Analyst forecast in 3 Years (Sleep Country Canada Holdings)3.6%

Notable Dividend: ZZZ's dividend (3.48%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: ZZZ's dividend (3.48%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


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 (28.3%), ZZZ's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.3%), 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?

2.4yrs

Average management tenure


CEO

Stewart Schaefer (57 yo)

0.67yr

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

Stewart Schaefer's Compensation vs Sleep Country Canada Holdings Earnings
How has Stewart Schaefer's remuneration changed compared to Sleep Country Canada Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

CA$104m

Mar 31 2022n/an/a

CA$99m

Dec 31 2021CA$2mCA$525k

CA$89m

Sep 30 2021n/an/a

CA$89m

Jun 30 2021n/an/a

CA$84m

Mar 31 2021n/an/a

CA$67m

Dec 31 2020CA$2mCA$486k

CA$63m

Sep 30 2020n/an/a

CA$51m

Jun 30 2020n/an/a

CA$40m

Mar 31 2020n/an/a

CA$53m

Dec 31 2019CA$1mCA$468k

CA$55m

Sep 30 2019n/an/a

CA$55m

Jun 30 2019n/an/a

CA$57m

Mar 31 2019n/an/a

CA$57m

Dec 31 2018CA$1mCA$449k

CA$60m

Sep 30 2018n/an/a

CA$61m

Jun 30 2018n/an/a

CA$60m

Mar 31 2018n/an/a

CA$59m

Dec 31 2017CA$2mCA$432k

CA$59m

Sep 30 2017n/an/a

CA$56m

Jun 30 2017n/an/a

CA$54m

Mar 31 2017n/an/a

CA$53m

Dec 31 2016CA$1mCA$411k

CA$50m

Sep 30 2016n/an/a

CA$47m

Jun 30 2016n/an/a

CA$39m

Mar 31 2016n/an/a

-CA$22m

Dec 31 2015CA$1mCA$400k

-CA$53m

Compensation vs Market: Stewart's total compensation ($USD1.26M) is about average for companies of similar size in the Canadian market ($USD1.54M).

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 (2.4 years average tenure).


Board Members

Experienced Board: ZZZ's board of directors are considered experienced (5.6 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

TSX:ZZZ Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 Jun 22BuyCA$90,312David HowcroftIndividual3,438CA$26.75
07 Dec 21SellCA$383,700Stewart SchaeferIndividual10,000CA$38.37
03 Dec 21BuyCA$7,342David FriesemaIndividual198CA$37.08
03 Dec 21BuyCA$334David HowcroftIndividual9CA$37.08
03 Dec 21BuyCA$260Sieg WillIndividual7CA$37.08
03 Dec 21BuyCA$185Eric SolomonIndividual5CA$37.08
29 Nov 21SellCA$62,346David HowcroftIndividual1,667CA$37.40
26 Nov 21SellCA$268,123David HowcroftIndividual11,563CA$37.00
19 Nov 21SellCA$137,700David HowcroftIndividual3,600CA$38.25
16 Nov 21SellCA$1,178,862Eric SolomonIndividual29,642CA$39.77
16 Nov 21SellCA$12,225David HowcroftIndividual300CA$40.75

Ownership Breakdown

What is the ownership structure of ZZZ?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders613,6131.7%
General Public10,277,44628.0%
Institutions25,839,74770.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 67.64% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.32%
Mawer Investment Management Ltd.
3,789,651CA$93.6m-21.05%0.19%
9.65%
Mackenzie Financial Corporation
3,543,862CA$87.5m-6.43%0.08%
9.61%
Burgundy Asset Management Ltd.
3,528,065CA$87.1m0%0.64%
9.11%
FMR LLC
3,344,542CA$82.6m0%0.01%
3.9%
Leith Wheeler Investment Counsel Ltd.
1,433,465CA$35.4m-2.47%0.82%
3.77%
RBC Global Asset Management Inc.
1,384,355CA$34.2m0.44%0.02%
3.25%
IG Investment Management, Ltd.
1,194,732CA$29.5m0%0.07%
1.95%
Beutel Goodman & Company Ltd.
716,280CA$17.7m0%0.07%
1.9%
Fidelity International Ltd
699,358CA$17.3m0%0.01%
1.79%
Dimensional Fund Advisors LP
656,469CA$16.2m0.13%no data
1.58%
1832 Asset Management L.P.
581,200CA$14.4m4.63%0.02%
1.37%
Pembroke Management Ltd.
502,956CA$12.4m-0.35%0.82%
1.29%
AGF Management Limited
474,300CA$11.7m3.04%0.06%
1.15%
HSBC Global Asset Management (UK) Limited
423,538CA$10.5m0%0.01%
1%
Oberweis Asset Management, Inc.
368,700CA$9.1m-20.13%0.52%
0.94%
Industrial Alliance Investment Management Inc.
346,528CA$8.6m0%0.08%
0.88%
BlackRock, Inc.
324,751CA$8.0m9.03%no data
0.8%
Christine Magee
293,198CA$7.2m0%no data
0.61%
Stewart Schaefer
222,619CA$5.5m0%no data
0.52%
Desjardins Global Asset Management Inc.
189,918CA$4.7m0%0.04%
0.49%
Forge First Asset Management Inc.
179,100CA$4.4m0%0.96%
0.48%
TD Asset Management, Inc.
175,694CA$4.3m-3.24%no data
0.45%
Wutherich & Company Investment Counsel Inc.
166,935CA$4.1m31.51%4.4%
0.45%
Manulife Asset Management
166,264CA$4.1m86.95%no data
0.38%
Cumberland Partners Limited
139,200CA$3.4m0%0.22%

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$907.251m
  • Shares outstanding: 36.73m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
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.