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

• Market Cap: C$12.71B
• Dividend Yield: 1.5%
• Average Volume (3M): 355.48K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.27
• Revenue Growth: 1.77%
• EPS Growth: 0.77%
• Country: CA
• Employees: 128,000
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Grocery Stores
• EPS (TTM): 0.74
• Shares Outstanding: 133,636,890
• 10 Day Avg. Volume: 373,092
• 30 Day Avg. Volume: 355,480
• PEG Ratio: 3.73
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.55
• 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$59.00
• Price Target Upside: 5.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: C$64.00 ▲(14.96%Upside)

Empire Co Cl A NV scores highly due to its strong financial performance, effective management strategies, and positive market momentum. The bullish technical indicators and strategic corporate actions, such as dividend increases and share buybacks, further support the stock's favorable outlook. However, the valuation is a bit stretched, suggesting careful consideration for entry points.

Positive Factors

Earnings Growth

FQ4/25 was a better SG&A result than historical trends, which is a key component to drive consistent 8-11% EPS growth.

Stock Performance

Empire continues to trade at a wider-than-historical discount to Loblaw and MRU, but the stock's absolute return has been very strong over the past 1.5 years.

Store Expansion

The company plans to open 24 new store locations, which is expected to contribute to sales growth.

Negative Factors

Comparative Performance

There is hesitation to assume further sequential acceleration in same-store sales due to lapping stronger comparisons.

Operational Expenses

Operating expenses, specifically SG&A, are anticipated to grow year-over-year due to increased stock-based compensation.

Sales Trends

There is concern that the 'Buy Canadian' trend may be subsiding, which could affect future sales.

Empire Co Cl A NV Business Overview & Revenue Model

Company Description

Empire Company Limited (EMP.A) is one of Canada's leading food retailers, primarily operating through its wholly-owned subsidiary, Sobeys Inc. The company is headquartered in Stellarton, Nova Scotia, and operates a network of over 1,500 stores across Canada under various banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Farm Boy, and more. Empire also owns a significant real estate portfolio through its subsidiary Crombie REIT, which manages properties leased to retail tenants. Empire's core services include food retailing, pharmacy operations, and real estate investments, making it a major player in the Canadian grocery and real estate sectors.

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 shows solid financial performance with consistent revenue and profit growth, stable margins, and strong cash flows. The company's balanced capital structure and effective cash management practices are notable. However, leverage is slightly above optimal levels, suggesting room for improvement.

Income Statement

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

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

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.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	31.28B	30.73B	30.48B	30.16B	28.27B
Gross Profit	8.38B	8.07B	7.79B	7.66B	7.20B
EBITDA	2.44B	2.40B	2.28B	2.35B	2.17B
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	259.60M	221.30M	812.30M	890.50M
Total Debt	7.46B	7.36B	7.27B	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: Neutral
• Last Price: 55.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 55.67 is below the 20-day moving average (MA) of 55.76, above the 50-day MA of 53.45, and above the 200-day MA of 46.15, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
EMP.A	80 Outperform	C$12.71B	18.64	13.02%	1.50%	1.77%	0.77%
L	78 Outperform	C$66.34B	29.98	21.77%	0.97%	3.26%	22.09%
WN	76 Outperform	C$33.61B	29.48	19.58%	1.27%	2.36%	-6.97%
MRU	76 Outperform	C$22.65B	23.25	14.26%	1.36%	2.31%	4.45%
SAP	70 Outperform	C$11.87B	42.30	-2.51%	2.65%	9.91%	-165.83%
NWC	65 Neutral	C$2.22B	16.21	18.85%	3.46%	4.19%	2.56%
Sector *	53 Neutral	C$4.45B	4.20	-20.57%	3.55%	8.21%	2.02%

Empire Co Cl A NV Corporate Events

Empire Company Limited Reports Strong Fiscal 2025 Results and Announces Shareholder Returns

Empire Company Limited reported strong financial results for the fourth quarter and fiscal year 2025, with earnings per share increasing to $0.74 from $0.61 the previous year. The company saw a 3.0% increase in sales to $7,637 million and same-store sales growth of 3.8%. Empire also announced a 10% dividend increase, marking the 30th consecutive year of dividend growth, and plans to repurchase up to $400 million in shares in fiscal 2026. These actions reflect Empire’s robust financial health and commitment to returning value to shareholders, positioning the company well within the competitive retail market.

The most recent analyst rating on ($TSE:EMP.A) stock is a Buy with a C$40.00 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.