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

• Market Cap: C$12.20B
• Dividend Yield: 1.56%
• Average Volume (3M): 312.66K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.22
• Revenue Growth: 1.77%
• EPS Growth: 0.77%
• Country: CA
• Employees: 128,000
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Grocery Stores
• EPS (TTM): 0.74
• Shares Outstanding: 133,321,760
• 10 Day Avg. Volume: 397,268
• 30 Day Avg. Volume: 312,659
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$59.17
• Price Target Upside: 12.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: C$59.00 ▲(11.89% Upside)

Empire Co Cl A NV's strong financial performance and positive earnings call results are the primary drivers of its score. However, the bearish technical indicators and moderate valuation metrics slightly temper the overall outlook. The company's strategic investments and dividend growth provide a positive long-term perspective.

Positive Factors

Earnings

Empire Co Cl A Nv is expected to report a fourth consecutive quarter of improving same-store sales.

Stock Performance

Empire has delivered a 13% return over the past three months, outperforming both Loblaw and Metro.

Strategic Initiatives

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

Negative Factors

Financial Performance

There is a potential deceleration to same-store sales growth and upward SG&A pressures.

Financial Targets

There is a lack of sufficient visibility to assume Empire can achieve its financial target of 8-11% annual EPS growth.

Operational Costs

Empire could incur approximately $4 million in one-time employment contract expenses related to leadership succession.

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, although leverage is slightly above optimal levels. Future focus on debt reduction could further enhance financial stability.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.28B	31.28B	30.73B	30.48B	30.16B	28.27B
Gross Profit	8.38B	8.38B	8.07B	7.79B	7.66B	7.20B
EBITDA	2.44B	2.44B	2.40B	2.28B	2.35B	2.17B
Net Income	700.00M	700.00M	725.20M	686.00M	745.80M	701.50M
Balance Sheet
Total Assets	17.02B	17.02B	16.79B	16.48B	16.59B	15.17B
Cash, Cash Equivalents and Short-Term Investments	285.00M	285.00M	259.60M	221.30M	812.30M	890.50M
Total Debt	7.46B	7.46B	7.36B	7.27B	7.46B	7.13B
Total Liabilities	11.47B	11.47B	11.32B	11.15B	11.46B	10.68B
Stockholders Equity	5.41B	5.41B	5.34B	5.20B	4.99B	4.37B
Cash Flow
Free Cash Flow	1.35B	1.35B	1.28B	847.60M	1.33B	1.20B
Operating Cash Flow	2.13B	2.13B	2.07B	1.61B	2.11B	1.86B
Investing Cash Flow	-597.00M	-597.00M	-608.50M	-684.70M	-891.40M	-502.30M
Financing Cash Flow	-1.50B	-1.50B	-1.43B	-1.51B	-1.29B	-1.48B

Empire Co Cl A NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 52.73 is below the 20-day moving average (MA) of 55.14, below the 50-day MA of 55.45, and above the 200-day MA of 48.32, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 16.82 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
EMP.A	73 Outperform	C$12.20B	17.91	13.02%	1.56%	1.77%	0.77%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
LBLCF	―	$48.79B	28.26	21.77%	0.92%	―	―
MRU	69 Neutral	C$21.15B	21.09	14.60%	1.49%	2.26%	12.56%
NWC	67 Neutral	C$2.38B	17.31	18.85%	3.17%	4.19%	2.56%
SAP	63 Neutral	C$13.85B	42.30	-2.20%	2.25%	7.58%	-155.93%
WN	62 Neutral	C$33.82B	33.66	17.72%	1.26%	3.21%	-12.20%

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.