Empire Company Limited Stock Analysis:
Scotiabank Capital lowers the target price on Empire Co. Ltd. to $42 from $42.50 and maintains the Outperform rating.
CIBC maintain the Outperform rating on Empire Co. Ltd and lower the target price to $42 from $45 on the company’s stock.
The average analyst target price for Empire Company Limited over the next 12 months, based on the stock predictions from 7 analysts, is CAD 43.47. The average analyst recommendation for Empire Company Limited is Strong Buy. Empire Company Limited’s stock analysis by Stock Target Advisor is Slightly Bullish and is based on 11 positive and 7 negative signals. The stock price of Empire Company Limited was CAD 36.48 at the most recent closure. The stock price of Empire Company Limited has moved by +0.00% in the last week, +8.47% in the last month, and -5.91% in the last year.
Fundamental Stock Analysis:
Positive Fundamentals:
Superior returns on risk:
In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.
Attractive dividend yield:
The stock has outperformed its industry rivals over the past 5 years (for a hold duration of at least 12 months) and is in the top percentile in terms of average annual dividend returns. For investors seeking high income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.
Priced below what the book would bear:
On a price to book value metric, the stock is trading at a low price compared to its peers and is in the top quartile.
Superior capital efficiency:
In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.
Small debt:
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. However, keep an eye on the news and consider the industry.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
A favourable free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Cheap, based on free cash flow:
On a price to free cash flow ratio, the stock is trading at a low price compared to its peers and is in the top quartile.
Superior growth in earnings:
In the preceding five years, this stock’s profits growth was in the top quartile for its industry.
Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.
High Asset to Gross Profit Ratio:
When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.
Negative Fundamentals:
Inadequate market capitalization:
This is one of the less significant companies in its industries with a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop or be purchased in the future, it may make it less stable in the long run.
High turbulence:
Over the past five years, this company’s total returns have been erratic and higher above the industry average.
Lower than average total returns:
In terms of annual average total returns during the previous five years, the company lagged behind its competitors.
Excessive in comparison to wages:
The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.
Low equity return:
In comparison to its peers, the management of the company has produced a lower-than-average return on equity during the past four quarters.
Poor asset return:
In comparison to its peers, the management of the company produced a lower median return on assets during the past four quarters.
Priced excessively based on free cash flow:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Fundamental Analysis Score
Based on numerous calculations the stock scores a fundamental rating of 6.1 out of 10, where 0 is highly bearish and 10 is very bullish. The stock is currently considered to be slightly bullish.
