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

• Market Cap: C$11.08B
• Dividend Yield: 1.74%
• Average Volume (3M): 476.25K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.22
• Revenue Growth: 1.96%
• EPS Growth: 9.26%
• Country: CA
• Employees: 128,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.91
• Shares Outstanding: 132,007,250
• 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$58.20
• Price Target Upside: 20.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: C$55.00 ▲(14.23% Upside)

Empire Co Cl A NV's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. However, technical indicators suggest bearish momentum, and the valuation is not particularly compelling. The company's focus on expansion and technology initiatives provides a positive outlook, but challenges in profitability and cash flow need addressing.

Positive Factors

Revenue Growth

The robust revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and profitability.

Expansion Plans

Strategic expansion through new store openings enhances market penetration and supports sustained revenue growth, strengthening competitive positioning.

Technology Initiatives

Investing in technology upgrades improves operational efficiency and data accuracy, which can lead to better decision-making and cost savings over time.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests limited profitability, which could hinder the company's ability to reinvest in growth and withstand economic downturns.

Declining Free Cash Flow

Declining free cash flow limits financial flexibility and may affect the company's ability to fund new projects or return capital to shareholders.

Higher SG&A Costs

Rising SG&A costs can pressure margins and reduce profitability, necessitating cost control measures 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 displays a solid financial performance with consistent revenue and profit growth, stable margins, and strong cash flows. The company maintains a balanced capital structure, though leverage is slightly above optimal levels. Overall, the financial health is robust, positioning the company well in the competitive grocery industry.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.48B	31.36B	30.80B	30.58B	30.27B	28.34B
Gross Profit	8.57B	8.46B	8.14B	7.90B	7.77B	7.27B
EBITDA	2.34B	2.29B	2.12B	1.66B	1.77B	1.65B
Net Income	704.20M	700.00M	725.20M	686.00M	745.80M	701.50M
Balance Sheet
Total Assets	17.15B	17.02B	16.79B	16.48B	16.59B	15.17B
Cash, Cash Equivalents and Short-Term Investments	372.00M	285.00M	260.00M	221.30M	812.30M	890.50M
Total Debt	7.62B	7.46B	7.36B	7.20B	7.46B	7.13B
Total Liabilities	11.55B	11.47B	11.32B	11.15B	11.46B	10.68B
Stockholders Equity	5.46B	5.41B	5.34B	5.20B	4.99B	4.37B
Cash Flow
Free Cash Flow	1.32B	1.35B	1.28B	847.60M	1.33B	1.20B
Operating Cash Flow	2.04B	2.13B	2.07B	1.61B	2.11B	1.86B
Investing Cash Flow	-622.50M	-597.00M	-608.50M	-684.70M	-891.40M	-502.30M
Financing Cash Flow	-1.36B	-1.50B	-1.43B	-1.51B	-1.29B	-1.48B

Empire Co Cl A NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 48.15 is below the 20-day moving average (MA) of 48.76, below the 50-day MA of 51.51, and below the 200-day MA of 49.15, indicating a bearish trend. The MACD of -0.92 indicates Negative momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 13.68 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
MRU	77 Outperform	C$20.78B	20.90	14.60%	1.50%	2.26%	12.56%
L	75 Outperform	$70.26B	29.02	21.77%	1.58%	3.26%	22.10%
EMP.A	70 Outperform	C$11.08B	16.07	12.97%	1.74%	1.96%	9.26%
WN	65 Neutral	C$34.21B	34.05	17.72%	1.28%	3.21%	-12.20%
SAP	63 Neutral	C$13.96B	42.30	-2.20%	2.27%	7.58%	-155.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NWC	61 Neutral	C$2.21B	16.09	18.55%	3.48%	3.04%	4.17%

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.