Why is Reitmans (Canada) Ltd. ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 6.30% over the last 5 years
3
Positive results in Apr 26
- OPERATING CASH FLOW(Y) Highest at CAD 89.99 MM
- RAW MATERIAL COST(Y) Fallen by 1.11% (YoY)
- CASH AND EQV(HY) Highest at CAD 252.88 MM
4
With ROE of 1.11%, it has a attractive valuation with a 0.26 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 -2.91%, its profits have fallen by -23.3%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.91% 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 hold?
- Overall Portfolio exposure to Reitmans (Canada) Ltd. 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 Reitmans (Canada) Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Reitmans (Canada) Ltd.
3.52%
-0.44
35.60%
S&P/TSX 60
29.63%
2.23
12.57%
Quality key factors
Factor
Value
Sales Growth (5y)
6.30%
EBIT Growth (5y)
16.61%
EBIT to Interest (avg)
4.23
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.42
Tax Ratio
20.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.81%
ROCE (avg)
11.91%
ROE (avg)
11.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
0.26
EV to EBIT
1.04
EV to EBITDA
0.15
EV to Capital Employed
0.05
EV to Sales
0.01
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.59%
ROE (Latest)
1.11%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 89.99 MM
RAW MATERIAL COST(Y)
Fallen by 1.11% (YoY
CASH AND EQV(HY)
Highest at CAD 252.88 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.09 times
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 80.71 times
Here's what is working for Reitmans (Canada) Ltd.
Operating Cash Flow
Highest at CAD 89.99 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Cash and Eqv
Highest at CAD 252.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 3.09 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 1.11% (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
Here's what is not working for Reitmans (Canada) Ltd.
Debtors Turnover Ratio
Lowest at 80.71 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






