BMTC Group Inc. (GBT) AI Stock Analysis

• Market Cap: C$454.17M
• Dividend Yield: 2.8%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): 15.8
• Beta (1Y): <0.01
• Revenue Growth: 7.20%
• EPS Growth: -33.22%
• Country: CA
• Employees: 1,704
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.32
• Shares Outstanding: 31,871,700
• 10 Day Avg. Volume: 834
• 30 Day Avg. Volume: 2,574
• PEG Ratio: -1.53
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 36.64
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$15.00 ▲(16.64% Upside)

The score is driven primarily by mixed financial quality: strong top-line growth and a very low-debt balance sheet are outweighed by weakened profitability and especially weak/volatile cash flow conversion. Technicals are supportive with price above major moving averages and positive MACD, and valuation appears reasonable with a moderate P/E and a ~2.6% dividend yield.

Positive Factors

Strong revenue growth and healthy gross margins

Sustained TTM revenue growth of ~25% combined with ~40% gross margins indicates durable demand and margin control across product lines. This supports scalable top-line expansion and long-term gross-profit capacity to fund reinvestment and growth initiatives.

Very low leverage and large equity base

Extremely low debt-to-equity (~0.02) and a sizable equity cushion reduce solvency risk and preserve financial flexibility. This balance-sheet strength supports capital allocation for capex or M&A, and buffers the firm through cyclical or industry shocks without near-term refinancing pressure.

Diversified business model with strategic partnerships

Operating across telecom, software and renewable energy with notable partner relationships broadens revenue streams and reduces exposure to a single market. Diversification plus partner channels can sustain long-term growth, cross-sell opportunities, and resilience to sector-specific downturns.

Negative Factors

Weakened profitability and negative trailing operating profit

A low net margin (~4.6%) alongside negative TTM EBIT signals margin compression and operational strain. Persistent weak operating profitability reduces retained earnings for reinvestment, pressures return metrics, and limits ability to scale profitably over the medium term.

Poor and volatile cash conversion

Very weak cash conversion (OCF ≈0.11x of earnings) and a ~68.8% fall in FCF signal inconsistent liquidity generation. This volatility constrains sustainable capex, dividends, and debt service capacity, increasing reliance on equity or external funding for strategic initiatives.

Declining earnings per share and weakening returns

Material EPS contraction (~-33% growth) alongside falling ROE (~5.5%) versus prior years indicates deterioration in profitability per share and capital efficiency. Persisting trends would impair internal funding, investor confidence, and ability to generate attractive long-term shareholder returns.

BMTC Group Inc. Business Overview & Revenue Model

Company Description

BMTC Group Inc., together with its subsidiaries, manages and operates a retail network of furniture, household appliances, and electronic products in Canada. It operates through two divisions, Brault & Martineau and EconoMax. The company was incorporated in 1989 and is headquartered in Montreal, Canada.

How the Company Makes Money

BMTC Group Inc. generates revenue through several key streams. Primarily, the company earns money by providing telecommunications services, such as internet connectivity and voice services, to both residential and commercial customers. Additionally, the company capitalizes on its renewable energy sector by offering energy management solutions that help clients optimize their energy usage, thus creating cost savings and efficiency gains. The software development division also contributes to revenue through custom software solutions and licensing agreements. Significant partnerships with technology providers and energy companies enhance BMTC's offerings and broaden its market reach, contributing positively to its earnings.

BMTC Group Inc. Financial Statement Overview

Summary

BMTC Group Inc. has a solid balance sheet with strong equity but faces challenges in maintaining consistent revenue growth and operating margins. Cash flow has improved, but historical fluctuations present a potential risk. Continued focus on operational efficiency and managing leverage will be crucial for future stability.

Income Statement

The company's gross profit margin and net profit margin have shown some resilience despite revenue fluctuations. The revenue growth rate has been inconsistent, with recent declines. EBIT and EBITDA margins have weakened over the last year, indicating pressure on operating efficiencies.

Balance Sheet

The company maintains a strong equity base with a favorable equity ratio, reflecting financial stability. However, the debt-to-equity ratio has slightly increased, which may indicate growing leverage. ROE remains healthy, suggesting effective use of equity to generate profits.

Cash Flow

Cash flow operations have improved, with a positive shift in free cash flow, though historical volatility is noted. The operating cash flow to net income ratio indicates some challenges in converting income to cash, which should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	627.11M	602.70M	578.95M	717.97M	819.45M	649.06M
Gross Profit	250.62M	236.26M	224.46M	283.11M	323.69M	261.10M
EBITDA	28.07M	14.91M	-6.15M	53.82M	94.23M	77.15M
Net Income	28.80M	43.91M	47.43M	40.84M	81.93M	54.84M
Balance Sheet
Total Assets	700.62M	724.95M	621.03M	581.96M	549.93M	450.21M
Cash, Cash Equivalents and Short-Term Investments	7.45M	1.50M	1.25M	3.05M	18.98M	5.79M
Total Debt	12.98M	32.88M	30.49M	19.76M	12.73M	24.28M
Total Liabilities	169.25M	195.44M	144.13M	141.06M	162.06M	179.50M
Stockholders Equity	531.37M	529.51M	476.90M	440.90M	387.87M	270.71M
Cash Flow
Free Cash Flow	4.59M	11.49M	-11.24M	-5.69M	59.98M	62.20M
Operating Cash Flow	11.76M	32.73M	-9.18M	-1.94M	62.23M	83.95M
Investing Cash Flow	25.37M	-4.61M	16.62M	-3.25M	-17.54M	-62.98M
Financing Cash Flow	-26.13M	-20.33M	-20.88M	-21.79M	-22.51M	-16.65M

BMTC Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GBT, the sentiment is Positive. The current price of 12.86 is below the 20-day moving average (MA) of 12.86, above the 50-day MA of 12.71, and above the 200-day MA of 12.72, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GBT.

BMTC Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	81 Outperform	C$1.97B	11.23	15.07%	3.11%	1.99%	31.36%
CTC.A	69 Neutral	C$9.48B	13.30	13.16%	4.10%	-0.13%	13.73%
GBT	66 Neutral	C$454.17M	15.80	5.60%	2.80%	7.20%	-33.22%
CTC	64 Neutral	C$9.48B	15.76	13.16%	3.17%	-0.13%	13.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

BMTC Group Inc. Corporate Events

BMTC Group Inc. Reports Increased Revenue but Declining Net Earnings

BMTC Group Inc. reported a revenue increase of 5.4% for the nine months ended October 31, 2025, driven by the Tanguay division’s growth. However, net earnings decreased due to losses in the real estate division and severance costs. The company is outsourcing its warehousing activities in Montréal, which has led to additional severance provisions. Despite these challenges, operational improvements and sales growth have helped mitigate the impact on net income.

The most recent analyst rating on (TSE:GBT) stock is a Hold with a C$14.00 price target. To see the full list of analyst forecasts on BMTC Group Inc. stock, see the TSE:GBT Stock Forecast page.