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

• Market Cap: C$10.14B
• Dividend Yield: 1.78%
• Average Volume (3M): 476.25K
• Price to Earnings (P/E): 15.0
• 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: 129,941,480
• 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$52.20
• Price Target Upside: 17.36% 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 ▲(16.91% 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 profitability metrics, supported by efficient operations. The balance sheet is stable, though high leverage poses a risk. Cash flow generation is generally strong, but recent declines in free cash flow growth warrant attention.

Income Statement

Empire Co Cl A NV shows strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 5.79%. The gross profit margin is healthy at 27.24%, and the net profit margin is stable at 2.24%. EBIT and EBITDA margins are consistent, indicating efficient operations. However, the slight decline in net income in the latest TTM period suggests some pressure on profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.39, indicating significant leverage, which is typical for the grocery industry. Return on equity is strong at 13.01%, reflecting effective use of equity. The equity ratio is moderate, suggesting a balanced asset structure. Overall, the balance sheet shows stability but with potential risk from high leverage.

Cash Flow

Operating cash flow is robust, but the free cash flow growth rate has declined by 3.23% in the TTM period, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.51, and the free cash flow to net income ratio is 0.65, showing decent cash conversion. While cash flow generation is solid, the recent decline in free cash flow growth is a concern.

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: 44.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 44.48 is below the 20-day moving average (MA) of 45.85, below the 50-day MA of 47.93, and below the 200-day MA of 50.61, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, 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
L	76 Outperform	C$72.37B	29.59	21.51%	1.52%	4.21%	14.03%
WN	70 Outperform	C$36.04B	24.83	26.36%	1.23%	4.15%	149.50%
EMP.A	68 Neutral	C$10.14B	15.04	12.66%	1.78%	2.58%	7.85%
MRU	66 Neutral	C$19.28B	19.98	14.48%	1.50%	3.71%	12.40%
SAP	66 Neutral	C$16.72B	-206.22	-1.32%	1.89%	5.37%	-135.85%
DOL	64 Neutral	C$50.24B	38.88	102.01%	0.20%	14.02%	20.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Empire Co Cl A NV Corporate Events

Empire Company Limited Reports Fiscal 2026 Q2 Results with Strategic Focus on Growth

Empire Company Limited reported its fiscal 2026 second-quarter results, highlighting a 2.8% increase in sales to $7,995 million and a slight decrease in earnings per share from $0.73 to $0.69 compared to the previous year. The company continues to focus on enhancing its store network, digital capabilities, and cost efficiency, aiming to improve sales and margins through strategic investments in renovations, technology, and sustainability initiatives.

The most recent analyst rating on ($TSE:EMP.A) stock is a Buy with a C$58.00 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 Appoints Pierre St-Laurent as New CEO

Empire Company Limited has appointed Pierre St-Laurent as the new President and CEO, succeeding Michael Medline who is retiring. St-Laurent, a 34-year veteran of the company, has been instrumental in Empire’s success and is expected to continue its growth trajectory, emphasizing the company’s commitment to internal talent development and long-term value creation for stakeholders.

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.

Sobeys Inc. Announces $300 Million Note Offering

Sobeys Inc., a subsidiary of Empire Company Limited, has announced a $300 million note offering with a 3.10% interest rate due in 2028. The proceeds from this offering will be used to repay existing debt and for general corporate purposes. The notes have received provisional ratings of ‘BBB’ from Morningstar DBRS and ‘BBB-‘ from S&P Global Ratings. This move marks Sobeys’ re-entry into the debt capital market, potentially strengthening its financial position and providing flexibility for future operations.

The most recent analyst rating on ($TSE:EMP.A) stock is a Buy with a C$55.00 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.