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Empire Co Cl A NV
(TSX:EMP.A)
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Rating:57Neutral
Price Target:
C$53.00
▲(11.96% Upside)
Action:Reiterated
Date:06/20/26
The score is held back primarily by weakened profitability and compressed returns alongside elevated leverage, despite solid cash generation. Technicals are constructive with price strength above major moving averages and positive momentum. Valuation is the main additional drag due to the very high P/E, with the dividend yield providing only modest support.
Positive Factors
Operating and free cash flow
Reliable operating cash flow (~$1.9B) and positive free cash flow (~$1.1B) show the business consistently converts sales into cash. That durable cash generation supports dividends, reinvestment in stores and logistics, and provides runway to address debt or fund strategic initiatives over the medium term.
Negative Factors
Sharp profitability deterioration
A material drop in net income to ~$198M from prior ~$700M+ reduces internal funding capacity and signals weakening operating performance. Persistently lower profitability undermines ability to deleverage, invest in store upgrades, and sustain shareholder returns, raising structural execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating and free cash flow
Reliable operating cash flow (~$1.9B) and positive free cash flow (~$1.1B) show the business consistently converts sales into cash. That durable cash generation supports dividends, reinvestment in stores and logistics, and provides runway to address debt or fund strategic initiatives over the medium term.
Read all positive factors
Empire Co Cl A NV (EMP.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.14B
Dividend Yield1.78%
Average Volume (3M)476.25K
Price to Earnings (P/E)58.1
Beta (1Y)0.10
Revenue Growth2.15%
EPS Growth-70.90%
CountryCA
Employees128,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.85
Shares Outstanding126,170,975
10 Day Avg. Volume438,724
30 Day Avg. Volume476,255
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)2.13
Price to Sales (P/S)0.33
P/FCF Ratio9.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$54.67Price Target Upside15.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)3.59
Revenue Forecast (FY)C$32.97B
Empire Co Cl A NV Business Overview & Revenue Model
Company Description
Headquartered in Stellarton, Canada, Empire Company Limited, established in 1907, is a prominent player in Canadian food retail and related real estate. Its operations are bifurcated into Food Retailing, and Investments and Other Operations. Under...
How the Company Makes Money
Empire primarily makes money through the sale of consumer goods—especially groceries—via its retail store banners. Revenue is generated at the point of sale from food and non-food items (including private-label and national brands) and, where offe...
Empire Co Cl A NV Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a positive outlook on Empire's core business growth and strategic priorities, despite challenges in adjusted EPS and increased SG&A expenses. The company is actively working on improving profitability in its e-commerce segment and leveraging past investments for future growth.Positive Updates
Core Business Growth
Excluding other income and share of earnings from equity investments, the core business improved by 12.5% over last year. Same-store sales grew by 2.5%, and food sales increased by 3.4%.
Negative Updates
Adjusted EPS Decline
Adjusted EPS was $0.69, $0.04 lower than last year, mainly due to lower real estate-related earnings.
Read all updates
Q2-2026 Updates
Positive
Negative
Core Business Growth
Excluding other income and share of earnings from equity investments, the core business improved by 12.5% over last year. Same-store sales grew by 2.5%, and food sales increased by 3.4%.
Read all positive updates
Company Guidance
During the Empire Second Quarter 2026 conference call held on December 11, 2025, Pierre St. Laurent, the new President and CEO, and Constantine Pefanis, the CFO, provided detailed guidance on the company's financial performance and strategic priorities. Empire reported a 12.5% year-over-year improvement in core business operations, with food sales growing by 3.4% and same-store sales increasing by 2.5%. The company's gross margin improved by 14 basis points, excluding fuel, driven by operational efficiencies and enhanced inventory control. Excluding real estate-related earnings, Empire achieved a 12.5% growth in adjusted EPS. The company maintained its guidance for real estate-related income at the lower end of the $120 million to $140 million range. Empire plans to allocate approximately 50% of its fiscal 2026 capital expenditures of $850 million to store renovations and new store expansions. The company also highlighted its focus on cost control, customer value, and leveraging investments to realize growth opportunities. Additionally, Empire's wholesale business experienced growth due to new contracts, and the company plans to continue expanding its discount and full-service store formats across various regions.Empire Co Cl A NV Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.95B | 31.36B | 30.80B | 30.58B | 30.27B |
| Gross Profit | 8.66B | 8.46B | 8.14B | 7.90B | 7.77B |
| EBITDA | 1.79B | 2.29B | 2.12B | 1.66B | 1.77B |
| Net Income | 198.00M | 700.00M | 725.20M | 686.00M | 745.80M |
Balance Sheet | |||||
| Total Assets | 17.08B | 17.02B | 16.79B | 16.48B | 16.59B |
| Cash, Cash Equivalents and Short-Term Investments | 291.00M | 285.00M | 260.00M | 221.30M | 812.30M |
| Total Debt | 7.86B | 7.46B | 7.36B | 7.20B | 7.46B |
| Total Liabilities | 11.93B | 11.47B | 11.32B | 11.15B | 11.46B |
| Stockholders Equity | 5.00B | 5.41B | 5.34B | 5.20B | 4.99B |
Cash Flow | |||||
| Free Cash Flow | 1.08B | 1.35B | 1.28B | 847.60M | 1.33B |
| Operating Cash Flow | 1.91B | 2.13B | 2.07B | 1.61B | 2.11B |
| Investing Cash Flow | -550.00M | -597.00M | -608.50M | -684.70M | -891.40M |
| Financing Cash Flow | -1.35B | -1.50B | -1.43B | -1.51B | -1.29B |
Empire Co Cl A NV Technical Analysis
Positive
47.34
Price Trends
48.07
Positive
48.43
Positive
48.27
Positive
Market Momentum
0.91
Negative
61.78
Neutral
78.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMP.A, the sentiment is Positive. The current price of 47.34 is below the 20-day moving average (MA) of 49.65, below the 50-day MA of 48.07, and below the 200-day MA of 48.27, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 78.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EMP.A.
Empire Co Cl A NV Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$16.46B | 25.10 | 9.98% | 1.89% | -3.40% | ― | |
71 Outperform | C$50.80B | 38.46 | 95.90% | 0.20% | 16.11% | 11.08% | |
70 Outperform | C$19.02B | 19.38 | 14.38% | 1.50% | 3.52% | 5.04% | |
66 Neutral | C$74.59B | 15.58 | 24.88% | 1.52% | 4.36% | 28.73% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | C$11.14B | 58.13 | 2.98% | 1.78% | 2.15% | -70.90% | |
57 Neutral | C$38.18B | 23.84 | 21.74% | 1.23% | 4.36% | -0.82% |
* Consumer Defensive Sector Average
TSE:EMP.A
Empire Co Cl A NV
49.67
-5.84
-10.52%
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Empire Co Cl A NV Corporate Events
Business Operations and StrategyM&A Transactions
Empire to Buy Mayrand, Entering Quebec Discount Food Market
Positive
Apr 9, 2026
Empire Company Limited, through Sobeys Inc., has agreed to acquire Mayrand Food Group, a long-established Quebec food retailer with four large-format stores in the Greater Montreal Area. The deal, subject to court and regulatory approvals and expe...
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.