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Empire Co Cl A NV (TSE:EMP.A)
TSX:EMP.A
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Empire Co Cl A NV (EMP.A) AI Stock Analysis

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TSE:EMP.A

Empire Co Cl A NV

(TSX:EMP.A)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
C$56.00
â–²(12.18% Upside)
Empire Co Cl A NV's overall stock score is driven by strong financial performance and a positive earnings call outlook, despite technical analysis indicating bearish trends. Valuation is fair, but not compelling. The company's robust financial health and strategic initiatives provide a solid foundation, though market sentiment remains cautious.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market presence and effective business strategies, supporting long-term financial stability.
Cash Flow Management
Robust cash flow growth highlights efficient capital management, ensuring liquidity for operations and strategic investments.
Expansion Plans
Strategic expansion strengthens market position and enhances revenue potential, aligning with long-term growth objectives.
Negative Factors
Leverage Concerns
High leverage can limit financial flexibility and increase risk, potentially impacting future investment capabilities.
Higher SG&A Costs
Rising SG&A costs can pressure margins, reducing profitability and potentially hindering competitive pricing strategies.
Softer Same-Store Sales
Slower same-store sales growth may signal challenges in maintaining customer engagement and market share.

Empire Co Cl A NV (EMP.A) vs. iShares MSCI Canada ETF (EWC)

Empire Co Cl A NV Business Overview & Revenue Model

Company DescriptionEmpire Company Limited, together with its subsidiaries, engages in the food retail and related real estate businesses in Canada. It operates through two segments, Food Retailing, and Investments and Other Operations. The company owns, affiliates, and franchises approximately 1,600 retail stores under various retail banners, including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy, Longo's, and Lawtons Drugs; and approximately 350 retail fuel locations, as well as operates grocery e-commerce stores under the banners, such as Voilà, Grocery Gateway, IGA.net, and ThriftyFoods.com. It also owns interest in the Crombie Real Estate Investment Trust, an open-ended real estate investment trust to own, operate, and develop a portfolio of grocery and pharmacy-anchored shopping centers, freestanding stores, and mixed-use developments; and various equity accounted interests in Genstar partnerships that develop residential real estate properties in Ontario, Western Canada, and the United States. The company was founded in 1907 and is headquartered in Stellarton, Canada.
How the Company Makes MoneyEmpire Company Limited generates revenue primarily through its grocery retail operations. The company earns money by selling food, pharmacy, and other consumer products across its vast network of stores under multiple banners. Its key revenue streams include in-store sales, pharmacy services, and online grocery shopping platforms. Empire also benefits from its real estate investments, where it collects rental income from properties leased to various tenants, including its own retail stores. Strategic partnerships with suppliers, effective supply chain management, and a customer-centric approach contribute to Empire's ability to maintain competitive pricing and customer loyalty. Additionally, Empire has been investing in digital transformations and e-commerce to enhance its online presence and adapt to changing consumer buying habits, which further supports its revenue growth.

Empire Co Cl A NV Earnings Call Summary

Earnings Call Date:Sep 11, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Dec 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong EPS growth and improvements in gross margin. However, challenges such as softer same-store sales and higher SG&A costs were noted. Overall, the positive aspects appear to outweigh the negatives.
Q1-2026 Updates
Positive Updates
Solid Start to Fiscal 2026
Empire reported an adjusted EPS of $0.91 for Q1, marking a 14.3% year-over-year growth in core operations.
Gross Margin Improvement
Gross margin, excluding fuel, increased by 63 basis points compared to last year, driven by disciplined execution and targeted efficiencies.
Expansion Plans
Empire plans to open about 20 new stores this year, aiming to grow their square footage by about 1.5%, focusing on filling gaps in their network.
Data and Analytics Advancements
Empire has made significant strides in using advanced analytics for better granularity on inventory data, contributing to improved execution and efficiency.
Negative Updates
Softer Same-Store Sales
Same-store sales growth was 1.9%, impacted by cycling several nonrecurring benefits from the previous year and unseasonable weather.
Higher SG&A Costs
SG&A, excluding depreciation and amortization, grew by 4.7%, with increased labor costs and higher incentive program expenses contributing to this rise.
Company Guidance
In the Empire First Quarter 2026 Conference Call, the company provided comprehensive guidance on various financial metrics and strategic initiatives. Empire reported an adjusted EPS of $0.91, reflecting a 14.3% year-over-year improvement in core operations. Same-store sales grew by 1.9%, excluding fuel, with total sales increasing by 2.6%. The gross margin improved by 63 basis points, attributed to disciplined execution and improved inventory control, along with better promotional mix control. SG&A expenses, excluding depreciation and amortization, rose by 4.7%, impacted by higher labor and incentive program costs. The company is maintaining guidance for real estate-related income at the lower end of the $120 million to $140 million range. Empire is also focusing on a key technology initiative, migrating its legacy ERP system to enhance financial reporting and supply chain operations, with implementation set to continue over the next two fiscal years. Looking ahead, Empire plans to open about 20 new stores this fiscal year, expanding its square footage by approximately 1.5%, with a disciplined approach to growth.

Empire Co Cl A NV Financial Statement Overview

Summary
Empire Co Cl A NV displays a solid financial performance with consistent revenue and profit growth, stable margins, and strong cash flows. The company maintains a balanced capital structure, although leverage is slightly above optimal levels. Future focus on debt reduction could further enhance financial stability.
Income Statement
85
Very Positive
Empire Co Cl A NV has demonstrated consistent revenue growth over the years, with a revenue increase from $30.2 billion in 2022 to $31.3 billion in 2025, reflecting a solid growth trajectory. The gross profit margin and net profit margin are stable, with the gross margin at approximately 27% and net margin at around 2.2% for the latest year. EBIT and EBITDA margins have shown resilience, maintaining healthy levels above 4% and 7% respectively. These metrics indicate strong operational efficiency and profitability in a competitive industry.
Balance Sheet
75
Positive
The company's balance sheet shows a steady increase in stockholders' equity from $4.37 billion in 2021 to $5.41 billion in 2025, indicating strong equity growth. The debt-to-equity ratio remains relatively high at approximately 1.38 in the latest year, suggesting moderate leverage, which is typical in the grocery industry. Return on Equity (ROE) remains stable around 13%, suggesting efficient use of equity capital. The equity ratio is around 32%, indicating a balanced capital structure with room for improvement in reducing leverage.
Cash Flow
80
Positive
Empire Co Cl A NV maintains a strong cash flow position, with operating cash flow growing from $1.86 billion in 2021 to $2.13 billion in 2025. Free cash flow has shown positive growth, with a notable increase from $0.85 billion in 2023 to $1.35 billion in 2025, emphasizing efficient capital expenditure management. The operating cash flow to net income ratio is robust, reflecting healthy cash generation relative to earnings. The company demonstrates effective cash management practices, crucial for sustaining operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.28B31.28B30.73B30.48B30.16B28.27B
Gross Profit8.38B8.38B8.07B7.79B7.66B7.20B
EBITDA2.44B2.44B2.40B2.28B2.35B2.17B
Net Income700.00M700.00M725.20M686.00M745.80M701.50M
Balance Sheet
Total Assets17.02B17.02B16.79B16.48B16.59B15.17B
Cash, Cash Equivalents and Short-Term Investments285.00M285.00M259.60M221.30M812.30M890.50M
Total Debt7.46B7.46B7.36B7.27B7.46B7.13B
Total Liabilities11.47B11.47B11.32B11.15B11.46B10.68B
Stockholders Equity5.41B5.41B5.34B5.20B4.99B4.37B
Cash Flow
Free Cash Flow1.35B1.35B1.28B847.60M1.33B1.20B
Operating Cash Flow2.13B2.13B2.07B1.61B2.11B1.86B
Investing Cash Flow-597.00M-597.00M-608.50M-684.70M-891.40M-502.30M
Financing Cash Flow-1.50B-1.50B-1.43B-1.51B-1.29B-1.48B

Empire Co Cl A NV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price49.92
Price Trends
50DMA
53.76
Negative
100DMA
53.32
Negative
200DMA
48.98
Positive
Market Momentum
MACD
-1.38
Negative
RSI
32.03
Neutral
STOCH
39.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMP.A, the sentiment is Negative. The current price of 49.92 is below the 20-day moving average (MA) of 50.90, below the 50-day MA of 53.76, and above the 200-day MA of 48.98, indicating a neutral trend. The MACD of -1.38 indicates Negative momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EMP.A.

Empire Co Cl A NV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
64.01B26.4422.36%1.71%3.26%22.10%
69
Neutral
C$11.52B16.5612.97%1.66%1.96%9.26%
69
Neutral
20.01B20.0313.23%1.56%2.26%12.56%
64
Neutral
2.33B16.8517.84%3.30%3.04%4.17%
63
Neutral
13.70B-94.67-2.30%2.32%7.58%-155.93%
63
Neutral
32.29B32.1419.06%1.36%3.21%-12.20%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EMP.A
Empire Co Cl A NV
49.27
9.12
22.71%
LBLCF
Loblaw Companies
38.57
6.03
18.53%
TSE:MRU
Metro Inc.
92.80
9.25
11.07%
TSE:NWC
North West
48.44
-0.91
-1.84%
TSE:SAP
Saputo Inc.
33.24
5.10
18.12%
TSE:WN
George Weston
84.16
10.14
13.70%

Empire Co Cl A NV Corporate Events

Executive/Board ChangesShareholder Meetings
Empire Company Announces Unanimous Voting Results and New Board Member
Positive
Sep 11, 2025

Empire Company Limited announced the results of its Annual General Meeting, where 100% of Class B shares voted in favor of all director nominees and other motions, including the appointment of auditors and executive compensation approach. Notably, Kent R. Sobey, with a background in the media industry, was elected to the Board of Directors, potentially bringing new perspectives to the company’s strategic direction.

The most recent analyst rating on ($TSE:EMP.A) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Empire Co Cl A NV stock, see the TSE:EMP.A Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Empire Company Limited Reports Record First-Quarter Earnings for Fiscal 2026
Positive
Sep 11, 2025

Empire Company Limited reported its fiscal 2026 first-quarter results, showcasing a strong start with record earnings per share of $0.91, up from $0.86 the previous year. The company is focusing on enhancing data capabilities, store renovations, and digital expansion to drive long-term growth, while also implementing cost-saving measures and sustainability initiatives.

The most recent analyst rating on ($TSE:EMP.A) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on Empire Co Cl A NV stock, see the TSE:EMP.A Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 11, 2025