Empire Co. Ltd. (EMP.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Metro, Inc.

The Becker Milk Co. Ltd.

Loblaw Cos. Ltd.

Empire Co. Ltd.

George Weston Ltd.

Nepra Foods, Inc.

Hill, Inc.

Colabor Group, Inc.

Sensible Meats, Inc.

Why is Empire Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.48% over the last 5 years

Flat results in Apr 26

OPERATING CASH FLOW(Y) Lowest at CAD 1,855 MM
ROCE(HY) Lowest at 3.8%
DEBT-EQUITY RATIO (HY) Highest at 151.23 %

Below par performance in long term as well as near term

Along with generating -11.01% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Empire Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Empire Co. Ltd.

-11.01%

3.72

24.14%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.48%

EBIT Growth (5y)

-0.80%

EBIT to Interest (avg)

3.70

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

4.42

Tax Ratio

25.51%

Dividend Payout Ratio

102.10%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

17.34%

ROE (avg)

14.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

7.11

EV to EBITDA

3.52

EV to Capital Employed

1.24

EV to Sales

0.26

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

17.40%

ROE (Latest)

18.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(HY)

At CAD 511.41 MM has Grown at 68.97%

DIVIDEND PER SHARE(HY)

Highest at CAD 35.13

RAW MATERIAL COST(Y)

Fallen by 0.52% (YoY

EPS(Q)

Highest at CAD 0.94

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 1,855 MM

ROCE(HY)

Lowest at 3.8%

DEBT-EQUITY RATIO (HY)

Highest at 151.23 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 35.13 times

Here's what is working for Empire Co. Ltd.

Net Profit

At CAD 511.41 MM has Grown at 68.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 35.13 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

EPS

Highest at CAD 0.94

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by 0.52% (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 297 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Empire Co. Ltd.

Operating Cash Flow

Lowest at CAD 1,855 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 151.23 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 35.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CAD 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income