DB:280

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Solid track record with excellent 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: 280's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.2%

280

7.2%

DE Luxury

4.4%

DE Market


1 Year Return

10.6%

280

-1.6%

DE Luxury

4.4%

DE Market

Return vs Industry: 280 exceeded the German Luxury industry which returned -2% over the past year.

Return vs Market: 280 exceeded the German Market which returned 4.1% over the past year.


Shareholder returns

280IndustryMarket
7 Day13.2%7.2%4.4%
30 Day31.0%28.0%12.1%
90 Day-4.4%0.3%5.4%
1 Year10.6%10.6%-1.5%-1.6%6.1%4.4%
3 Year31.7%31.7%44.7%39.6%-0.6%-8.2%
5 Yearn/a179.5%153.1%10.4%-3.8%

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

No news available

Valuation

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

25.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 280 (€12.9) is trading above our estimate of fair value (€12.8)

Significantly Below Fair Value: 280 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 280 is good value based on its PE Ratio (25.6x) compared to the Luxury industry average (28.8x).

PE vs Market: 280 is poor value based on its PE Ratio (25.6x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: 280 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 280 is overvalued based on its PB Ratio (7x) compared to the DE Luxury industry average (1.6x).


Next Steps

Future Growth

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

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 280's forecast earnings growth (13.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 280's earnings (13.4% per year) are forecast to grow slower than the German market (22.7% per year).

High Growth Earnings: 280's earnings are forecast to grow, but not significantly.

Revenue vs Market: 280's revenue (6.6% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: 280's revenue (6.6% 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 280's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aritzia performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 280 has high quality earnings.

Growing Profit Margin: 280's current net profit margins (9.2%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 280's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: 280's earnings growth over the past year (15.1%) is below its 5-year average (44.3% per year).

Earnings vs Industry: 280 earnings growth over the past year (15.1%) exceeded the Luxury industry -27%.


Return on Equity

High ROE: 280's Return on Equity (27.3%) is considered high.


Next Steps

Financial Health

How is Aritzia's financial position?


Financial Position Analysis

Short Term Liabilities: 280's short term assets (CA$231.4M) exceed its short term liabilities (CA$153.8M).

Long Term Liabilities: 280's short term assets (CA$231.4M) do not cover its long term liabilities (CA$550.8M).


Debt to Equity History and Analysis

Debt Level: 280's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: 280's debt to equity ratio has reduced from 215.1% to 22.5% over the past 5 years.

Debt Coverage: 280's debt is well covered by operating cash flow (297.1%).

Interest Coverage: 280's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 280's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 280'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 280's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 280'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 280's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Brian Hill (58yo)

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 ($USD6.23K) is below average for companies of similar size in the German market ($USD1.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Hill
Founderno dataCA$8.40k22.84% CA$352.7m
Jennifer Wong
President5.42yrsCA$992.61k0.014% CA$212.3k
Todd Ingledew
Chief Financial Officer4yrsCA$628.02kno data
Dave MacIver
Chief Information Officer4.42yrsCA$772.95kno data
Pippa Morgan
Executive Vice President of Retail10.42yrsCA$772.95k0.0080% CA$122.9k
Helen Kelly
Vice President of Investor Relationsno datano datano data
Karen Kwan
Chief People & Culture Officer3.42yrsno datano data
Catherine Tang
VP of Project Management Office2.08yrsno datano data

4.2yrs

Average Tenure

Experienced Management: 280's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Hill
Founderno dataCA$8.40k22.84% CA$352.7m
Jennifer Wong
President5.42yrsCA$992.61k0.014% CA$212.3k
Glen Senk
Independent Director4.42yrsCA$125.00kno data
John Currie
Lead Independent Directorno dataCA$155.00k0.025% CA$382.7k
Aldo Bensadoun
Independent Director8.42yrsCA$125.00k0.17% CA$2.6m
Marcia Smith
Independent Director1.67yrsCA$49.45k0.0055% CA$84.8k
Marni Payne
Independent Director7.42yrsno datano data
John Montalbano
Independent Director0.92yrno data0.0080% CA$122.9k
David Labistour
Independent Director4.42yrsCA$125.00kno data
Ryan Holmes
Independent Director4.42yrsCA$125.00kno data

4.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 280's board of directors are considered experienced (4.4 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: 280
  • Exchange: DB
  • Founded: 1984
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: CA$2.340b
  • Listing Market Cap: CA$1.544b
  • Shares outstanding: 109.35m
  • Website: https://www.aritzia.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATZTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADOct 2016
280DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEUROct 2016
ATZA.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDOct 2016

Biography

Aritzia Inc., together with its subsidiaries, designs apparels and accessories for women. It designs and sells blouses, T-shirts, pants, dresses, sweaters, jackets and coats, blazers, skirts, shorts, denims, leggings, sweatshirts, bodysuits, and jumpsuits; and accessories, including hats, scarves, bags and pouches, bralette and sport bras, socks and tights, shoes and sneakers, belts, iPhone cases, and gloves and mittens. As of March 03, 2019, the company had 91 boutiques in Canada and the United States. In addition, it sells its products online at aritzia.com. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 00:39
End of Day Share Price2020/06/03 00:00
Earnings2020/03/01
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.