ScoreWhy is Aritzia, Inc. ?
1
High Management Efficiency with a high ROE of 20.27%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.39
3
Healthy long term growth as Net Sales has grown by an annual rate of 33.99% and Operating profit at 59.30%
4
With a growth in Operating Profit of 39.19%, the company declared Very Positive results in Feb 26
- The company has declared positive results for the last 7 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CAD 822.78 MM
- ROCE(HY) Highest at 31.1%
- INTEREST COVERAGE RATIO(Q) Highest at 1,571.27
5
With ROE of 25.48%, it has a expensive valuation with a 14.20 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 146.24%, its profits have risen by 80.9% ; the PEG ratio of the company is 0.7
6
Majority shareholders : Non Institution
7
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
8
Consistent Returns over the last 3 years
- Along with generating 146.24% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aritzia, Inc. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aritzia, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Aritzia, Inc.
146.24%
8.96
37.70%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
33.99%
EBIT Growth (5y)
59.30%
EBIT to Interest (avg)
6.39
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.45
Tax Ratio
28.11%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
36.11%
ROE (avg)
20.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
14.20
EV to EBIT
35.94
EV to EBITDA
25.51
EV to Capital Employed
21.55
EV to Sales
5.09
PEG Ratio
0.74
Dividend Yield
NA
ROCE (Latest)
59.97%
ROE (Latest)
25.48%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 822.78 MM
ROCE(HY)
Highest at 31.1%
INTEREST COVERAGE RATIO(Q)
Highest at 1,571.27
RAW MATERIAL COST(Y)
Fallen by -2.5% (YoY
CASH AND EQV(HY)
Highest at CAD 1,212.63 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 29.66 %
INVENTORY TURNOVER RATIO(HY)
Highest at 4.73 times
NET SALES(Q)
Highest at CAD 1,186.52 MM
OPERATING PROFIT(Q)
Highest at CAD 241.38 MM
PRE-TAX PROFIT(Q)
Highest at CAD 170.1 MM
NET PROFIT(Q)
Highest at CAD 128.38 MM
-7What is not working for the Company
INTEREST(HY)
At CAD 30.13 MM has Grown at 28.89%
Here's what is working for Aritzia, Inc.
Operating Cash Flow
Highest at CAD 822.78 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Interest Coverage Ratio
Highest at 1,571.27
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at CAD 1,186.52 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Operating Profit
Highest at CAD 241.38 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Pre-Tax Profit
Highest at CAD 170.1 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 128.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Cash and Eqv
Highest at CAD 1,212.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 29.66 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 4.73 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -2.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at CAD 58.36 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Aritzia, Inc.
Interest
At CAD 30.13 MM has Grown at 28.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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