National Bank of Canada maintains Sleep Country Canada Holdings Inc. with a Sector Perform rating, and raises the target price to $37 from $33 on the company’s stock.
Based on the Sleep Country Canada Holdings Inc stock forecasts from 6 analysts, the average analyst target price for Sleep Country Canada Holdings Inc is CAD 40.94 over the next 12 months. Sleep Country Canada Holdings Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Sleep Country Canada Holdings Inc is Slightly Bullish , which is based on 7 positive signals and 4 negative signals. At the last closing, Sleep Country Canada Holdings Inc’s stock price was CAD 27.22. Sleep Country Canada Holdings Inc’s stock price has changed by +8.32% over the past week, -1.09% over the past month and -21.24% over the last year.
What we like:
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
Low market capitalization
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.
Poor risk adjusted returns
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
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