DB:C15

Stock Analysis Report

Executive Summary

Empire Company Limited, together with its subsidiaries, engages in the food retail and related real estate businesses in Canada.


Snowflake Analysis

Solid track record average dividend payer.

Share Price & News

How has Empire's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C15 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.5%

C15

-7.0%

DE Consumer Retailing

-9.1%

DE Market


1 Year Return

-2.5%

C15

-4.4%

DE Consumer Retailing

2.9%

DE Market

Return vs Industry: C15 exceeded the German Consumer Retailing industry which returned -4.4% over the past year.

Return vs Market: C15 exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

C15IndustryMarket
7 Day-10.5%-7.0%-9.1%
30 Day-7.9%-5.0%-7.2%
90 Day-17.9%-3.7%-6.5%
1 Year-1.0%-2.5%-0.6%-4.4%6.1%2.9%
3 Year80.1%71.1%1.0%-9.0%3.5%-5.6%
5 Year-4.2%-12.2%1.5%-14.1%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Empire's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C15 (€21.2) is trading below our estimate of fair value (€24.31)

Significantly Below Fair Value: C15 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: C15 is good value based on its PE Ratio (17.6x) compared to the Consumer Retailing industry average (19.3x).

PE vs Market: C15 is good value based on its PE Ratio (17.6x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate C15's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: C15 is overvalued based on its PB Ratio (2.2x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Empire forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if C15's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if C15's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: C15's revenue (2.4% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: C15's revenue (2.4% 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 C15's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Empire performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C15 has high quality earnings.

Growing Profit Margin: C15's current net profit margins (1.8%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: C15 has become profitable over the past 5 years, growing earnings by 24.9% per year.

Accelerating Growth: C15's earnings growth over the past year (44.6%) exceeds its 5-year average (24.9% per year).

Earnings vs Industry: C15 earnings growth over the past year (44.6%) exceeded the Consumer Retailing industry 2.3%.


Return on Equity

High ROE: C15's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is Empire's financial position?


Financial Position Analysis

Short Term Liabilities: C15's short term assets (CA$2.6B) do not cover its short term liabilities (CA$3.0B).

Long Term Liabilities: C15's short term assets (CA$2.6B) do not cover its long term liabilities (CA$7.0B).


Debt to Equity History and Analysis

Debt Level: C15's debt to equity ratio (46%) is considered high.

Reducing Debt: C15's debt to equity ratio has reduced from 52.6% to 46% over the past 5 years.


Balance Sheet

Inventory Level: C15 has a high level of physical assets or inventory.

Debt Coverage by Assets: C15's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: C15 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: C15 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: C15's dividend (1.57%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: C15's dividend (1.57%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: C15's dividends per share have been stable in the past 10 years.

Growing Dividend: C15's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.1%), C15's dividend payments are well 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?

2.7yrs

Average management tenure


CEO

Mike Medline (56yo)

3.1yrs

Tenure

CA$5,414,943

Compensation

Mr. Michael Bennett Medline, also known as Mike, has been the Chief Executive Officer and President of Empire Company Limited since January 12, 2017. Mr. Medline has been Chief Executive Officer and Presid ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.05M) is about average for companies of similar size in the German market ($USD3.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Medline
President3.1yrsCA$5.41m0.030% CA$1.7m
Michael Vels
Chief Financial Officer2.7yrsCA$2.13m0.030% CA$1.7m
Pierre St-Laurent
Executive VP & COO - Full Service0.8yrsCA$4.21m0.00054% CA$30.1k
Simon Gagné
Executive Vice President of Human Resources0yrsCA$1.81m0.0052% CA$291.0k
Katie Brine
Director of Investor Relations0yrsno datano data
Douglas Nathanson
Senior VP0yrsno data0.00091% CA$50.7k
Andrew Walker
Senior Vice President of Communications & Corporate Affairs0yrsno datano data
Sandra Sanderson
Senior Vice President of Marketing0yrsno datano data
Adam Sheparski
Senior Vice President of Finance0yrsno datano data
Vivek Sood
Executive Vice President of Related Businesses0yrsno data0.00063% CA$35.1k

2.7yrs

Average Tenure

Experienced Management: C15's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Medline
President3.1yrsCA$5.41m0.030% CA$1.7m
Martine Turcotte
Independent Director8.1yrsCA$156.00k0.0042% CA$236.3k
Donald Creighton Sobey
Chairman Emeritus0yrsCA$55.00kno data
Robert G. Sobey
Independent Director22.1yrsCA$163.00k0.0027% CA$152.2k
Paul Sobey
Independent Director27.1yrsCA$142.50k0.23% CA$12.7m
Frank Sobey
Independent Director13.1yrsCA$130.00k0.25% CA$13.8m
Karl Sobey
Independent Director19.1yrsCA$141.00k0.0026% CA$142.7k
James Dickson
Independent Chairman3.3yrsCA$400.00k0.0082% CA$458.7k
John Sobey
Independent Director41.1yrsCA$133.00k0.074% CA$4.1m
Cynthia Devine
Independent Director7.1yrsCA$173.00k0.0011% CA$62.4k

13.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: C15's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: C15 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

Empire Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empire Company Limited
  • Ticker: C15
  • Exchange: DB
  • Founded: 1907
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$8.223b
  • Listing Market Cap: CA$5.574b
  • Shares outstanding: 269.09m
  • Website: https://www.empireco.ca

Number of Employees


Location

  • Empire Company Limited
  • 115 King Street
  • Stellarton
  • Nova Scotia
  • B0K 1S0
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMP.ATSX (The Toronto Stock Exchange)YesNon-Voting Class A SharesCACADJul 1982
C15DB (Deutsche Boerse AG)YesNon-Voting Class A SharesDEEURJul 1982
EMLA.FOTCPK (Pink Sheets LLC)YesNon-Voting Class A SharesUSUSDJul 1982

Biography

Empire Company Limited, together with its subsidiaries, engages in the food retail and related real estate businesses in Canada. It operates through two segments, Food Retailing, and Investments and Other Operations. The company owns, affiliates, and franchises approximately 1,500 retail stores under various retail banners, including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy, and Lawtons Drugs; and approximately 350 retail fuel locations. It also owns interest in Crombie Real Estate Investment Trust, an open-ended Canadian real estate investment trust to own, operate, and develop a portfolio of grocery and drug store anchored shopping centers, freestanding stores, and mixed use developments; and various equity accounted interests in Genstar real estate partnerships that develop residential real estate properties in Ontario, Western Canada, and the United States. The company was founded in 1907 and is headquartered in Stellarton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:20
End of Day Share Price2020/02/28 00:00
Earnings2019/11/02
Annual Earnings2019/05/04


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.