Fact based stock research
Empire (TSX:EMP.A)

CA2918434077

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Empire stock research in summary

empireco.ca

ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Empire (Food Retail, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Empire are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives) but show below-average growth (Growth Rank of 33), and are riskily financed (Safety Rank of 17), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Empire's financial characteristics. As the company Empire's key financial metrics exhibit good value (Obermatt Value Rank of 85) but low growth (Obermatt Growth Rank of 33) and risky financing practices (Obermatt Safety Rank of 17), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 85% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	85
Growth Rank	33
Safety Rank	17
Combined Rank	28

Country	Canada
Industry	Food Retail
Index	TSX Composite
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Empire

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	79	73	85
GROWTH
GROWTH	13	27	23	33
SAFETY
SAFETY	17	32	18	17
SENTIMENT
SENTIMENT	n/a	49	12	^new
360° VIEW
360° VIEW	n/a	37	8	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 3-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Empire is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	79	73	85
GROWTH
GROWTH	13	27	23	33
SAFETY
SAFETY	17	32	18	17
COMBINED
COMBINED	26	42	19	28

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Empire the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2024, Empire shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Empire. Price-to-Sales is 75 which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value for Empire's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 71% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 63. Compared with other companies in the same industry, dividend yields of Empire are expected to be higher than for 67% of all competitors (a Dividend Yield rank of 67). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Empire's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Empire based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	77	73	70	75
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	64	80	71
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	50	65	42	63
DIVIDEND YIELD
DIVIDEND YIELD	42	66	75	67
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	63	79	73	85

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Empire; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), Empire shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Empire. While Profit Growth has a good rank of 63, as professionals currently expect the company to grow its profits more than 63% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 37, which means that currently professionals expect the company to grow less than 63% of its competitors, while Capital Growth has a rank of 20 and Stock Returns have been below market median, with a rank of 47 (53% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	13	42	37
PROFIT GROWTH
PROFIT GROWTH	20	34	55	63
CAPITAL GROWTH
CAPITAL GROWTH	n/a	69	14	20
STOCK RETURNS
STOCK RETURNS	37	41	37	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13	27	23	33

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Empire.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 17 (better than 17% compared with alternatives), the company Empire has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Empire is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Empire. Liquidity is at 37, meaning that the company generates less profit to service its debt than 63% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 38, meaning the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. Finally, Refinancing is at a rank of 17 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 17 (worse than 83% compared with alternatives), Empire has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Empire because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	27	40	42	38
REFINANCING
REFINANCING	27	19	31	17
LIQUIDITY
LIQUIDITY	54	63	34	37
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	17	32	18	17

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Empire and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	64	24	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	32	4	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	21	33	^new
MARKET PULSE
MARKET PULSE	n/a	80	76	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	49	12	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Empire.
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