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

• Market Cap: C$10.70B
• Dividend Yield: 1.78%
• Average Volume (3M): 476.25K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.12
• Revenue Growth: 2.58%
• EPS Growth: 7.85%
• Country: CA
• Employees: 128,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.69
• Shares Outstanding: 131,369,140
• 10 Day Avg. Volume: 438,724
• 30 Day Avg. Volume: 476,255
• PEG Ratio: 25.41
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 9.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$53.40
• Price Target Upside: 13.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$52.00 ▲(10.10% Upside)

Empire Co Cl A NV's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting growth in core business and strategic investments. However, technical indicators suggest a bearish trend, and valuation metrics are moderate, impacting the overall score.

Positive Factors

Core Business Growth

The significant growth in core business operations and same-store sales indicates strong market position and effective strategies, supporting long-term revenue stability.

Strategic Investments

Strategic investments in technology and stores position Empire for sustainable growth by enhancing operational efficiency and customer experience.

Expansion and Growth

The expansion of store formats and footprint is likely to increase market share and revenue potential, reinforcing Empire's competitive edge in the grocery sector.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

E-commerce Challenges

Ongoing challenges in e-commerce profitability may hinder growth in this segment, requiring strategic adjustments to improve financial performance.

SG&A Increase

Rising SG&A expenses can pressure margins and reduce profitability, necessitating effective cost management to maintain financial health.

Empire Co Cl A NV Business Overview & Revenue Model

Company Description

Empire 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 Money

Empire 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 Financial Statement Overview

Summary

Empire Co Cl A NV demonstrates strong revenue growth and operational efficiency, with stable margins and a solid return on equity. However, the low net profit margin and declining free cash flow growth are areas of concern. The balance sheet is moderately leveraged, which requires careful management to mitigate financial risk.

Income Statement

Empire Co Cl A NV has shown strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 39%. The gross profit margin remains stable at approximately 27%, indicating efficient cost management. However, the net profit margin is relatively low at 2.23%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 1.38, indicating moderate leverage. The return on equity is strong at 12.97%, demonstrating effective use of shareholder funds. The equity ratio is reasonable, suggesting a balanced capital structure. However, the level of debt could pose a risk if not managed carefully.

Cash Flow

Operating cash flow is robust, but the free cash flow growth rate has declined by 197.8% in the TTM, which is concerning. The operating cash flow to net income ratio is 0.52, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.63, showing decent cash flow conversion, but the negative growth trend needs attention.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.36B	30.80B	30.58B	30.27B	28.34B
Gross Profit	8.46B	8.14B	7.90B	7.77B	7.27B
EBITDA	2.29B	2.12B	1.66B	1.77B	1.65B
Net Income	700.00M	725.20M	686.00M	745.80M	701.50M
Balance Sheet
Total Assets	17.02B	16.79B	16.48B	16.59B	15.17B
Cash, Cash Equivalents and Short-Term Investments	285.00M	260.00M	221.30M	812.30M	890.50M
Total Debt	7.46B	7.36B	7.20B	7.46B	7.13B
Total Liabilities	11.47B	11.32B	11.15B	11.46B	10.68B
Stockholders Equity	5.41B	5.34B	5.20B	4.99B	4.37B
Cash Flow
Free Cash Flow	1.35B	1.28B	847.60M	1.33B	1.20B
Operating Cash Flow	2.13B	2.07B	1.61B	2.11B	1.86B
Investing Cash Flow	-597.00M	-608.50M	-684.70M	-891.40M	-502.30M
Financing Cash Flow	-1.50B	-1.43B	-1.51B	-1.29B	-1.48B

Empire Co Cl A NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 47.23 is below the 20-day moving average (MA) of 49.67, below the 50-day MA of 49.50, and below the 200-day MA of 50.72, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRU	78 Outperform	C$20.95B	21.09	14.48%	1.50%	3.71%	12.40%
L	76 Outperform	C$73.07B	29.87	21.51%	1.51%	4.21%	14.03%
DOL	71 Outperform	C$55.69B	43.10	102.01%	0.20%	14.02%	20.11%
WN	70 Outperform	C$36.22B	24.77	26.36%	1.23%	4.15%	149.50%
EMP.A	68 Neutral	C$10.70B	15.75	12.66%	1.78%	2.58%	7.85%
SAP	66 Neutral	C$16.89B	-209.39	-1.32%	1.87%	5.37%	-135.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Empire Co Cl A NV Corporate Events

Empire Company Announces Unanimous Voting Results and New Board Member

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.

Empire Company Limited Reports Record First-Quarter Earnings for Fiscal 2026

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.