Why is Reitmans (Canada) Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 3.85% over the last 5 years
2
Negative results in Oct 25
- PRE-TAX PROFIT(Q) At CAD 1.32 MM has Fallen at -53.16%
- NET PROFIT(Q) At CAD 0.92 MM has Fallen at -56.98%
- OPERATING CASH FLOW(Y) Lowest at CAD 71.9 MM
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -13.66%, its profits have fallen by -98%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.66% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
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 Footwear)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Reitmans (Canada) Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Reitmans (Canada) Ltd.
-13.66%
-0.45
38.03%
S&P/TSX 60
21.87%
1.42
15.38%
Quality key factors
Factor
Value
Sales Growth (5y)
3.85%
EBIT Growth (5y)
15.47%
EBIT to Interest (avg)
0.84
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.46
Tax Ratio
13.68%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.81%
ROCE (avg)
11.00%
ROE (avg)
11.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
101
Industry P/E
Price to Book Value
0.34
EV to EBIT
3.25
EV to EBITDA
0.31
EV to Capital Employed
0.09
EV to Sales
0.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.72%
ROE (Latest)
0.12%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
2What is working for the Company
NET PROFIT(HY)
Higher at CAD 14.32 MM
-16What is not working for the Company
PRE-TAX PROFIT(Q)
At CAD 1.32 MM has Fallen at -53.16%
NET PROFIT(Q)
At CAD 0.92 MM has Fallen at -56.98%
OPERATING CASH FLOW(Y)
Lowest at CAD 71.9 MM
ROCE(HY)
Lowest at -0.06%
DEBTORS TURNOVER RATIO(HY)
Lowest at 106.23 times
Here's what is working for Reitmans (Canada) Ltd.
Depreciation
Highest at CAD 14.49 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 Reitmans (Canada) Ltd.
Pre-Tax Profit
At CAD 1.32 MM has Fallen at -53.16%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
At CAD 0.92 MM has Fallen at -56.98%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Debtors Turnover Ratio
Lowest at 106.23 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at CAD 71.9 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)






