BMTC Group Inc. (GBT) AI Stock Analysis

• Market Cap: C$401.58M
• Dividend Yield: 2.8%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.04
• 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$13.50 ▲(4.98% 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

Sustained Revenue Growth & Strong Gross Margin

Robust TTM revenue growth with a ~40% gross margin indicates durable demand and healthy unit economics across offerings. Over 2–6 months this supports reinvestment in infrastructure and product development, enabling scale benefits and resilience against cyclical shocks.

Very Low Leverage

Extremely low debt levels materially lower solvency and refinancing risk, giving management flexibility to fund capex, M&A, or weather downturns without stressing liquidity. This structural strength supports long-term strategic optionality and capital allocation choices.

Diversified, Multi‑sector Business Model

A diversified footprint across telecom, renewable energy, and software reduces single-market dependency and smooths revenue volatility. Cross‑selling and partner relationships can broaden addressable markets and support more stable cash flows over multiple business cycles.

Negative Factors

Weak and Volatile Cash Conversion

Severely weakened and volatile cash conversion limits the firm's ability to sustainably fund operations, capex, dividends, or strategic projects from internal cash. Over months this elevates dependence on external financing or equity and constrains long‑term investment flexibility.

Eroding Profitability and Negative TTM EBIT

Declining margins and a negative trailing EBIT signal operating stress and lower earnings quality versus revenue growth. Persistently weak operating profits reduce reinvestment capacity and threaten sustainable returns, making long‑term margin recovery a critical issue.

Modest and Declining Return on Equity

A low and falling ROE shows the company is generating limited returns on a large equity base, implying capital inefficiency. Unless profitability improves, this structural weakness can pressure shareholder returns and raise questions about capital allocation over the medium term.

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

Strong TTM revenue growth (+25.1%) and ~40% gross margin are positives, supported by a very low-leverage balance sheet (debt-to-equity ~0.02). Offsetting this, profitability has weakened (net margin ~4.6% and negative TTM EBIT) and cash conversion is poor and volatile (TTM operating cash flow ~$11.8M; free cash flow ~$4.6M, down -68.8% TTM).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+25.1%), and gross margin held near ~40%, showing resilient merchandising economics. However, profitability has softened versus prior years: net margin fell to ~4.6% (vs ~7.3% in FY2025 and ~10.0% in FY2022), and operating profitability is weak/volatile (TTM EBIT is negative while FY2022–FY2023 were solidly positive). Overall: good top-line momentum, but earnings quality and operating consistency have deteriorated.

Balance Sheet

The balance sheet appears conservatively financed with very low leverage (TTM debt-to-equity ~0.02) and a large equity base (TTM equity ~$531M vs assets ~$701M), which limits solvency risk. Returns are positive but modest in TTM (~5.5% return on equity) compared with higher levels in FY2021–FY2023, suggesting profitability has not kept pace with the capital base recently. Strength is financial flexibility; weakness is declining return profile.

Cash Flow

Cash generation is the key concern. TTM operating cash flow is low (~$11.8M) relative to earnings (only ~0.11x), and free cash flow is positive but small (~$4.6M) with a steep decline (TTM free cash flow growth -68.8%). History is volatile: FY2023–FY2024 showed negative operating and free cash flow despite reported profits, improving in FY2025 but weakening again in TTM. Overall: liquidity is helped by low leverage, but cash conversion and consistency are weak.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GBT, the sentiment is Negative. The current price of 12.86 is below the 20-day moving average (MA) of 13.48, below the 50-day MA of 12.89, and below the 200-day MA of 12.88, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 38.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.93B	11.03	15.07%	3.11%	1.99%	31.36%
CTC.A	69 Neutral	C$9.20B	12.87	13.16%	4.10%	-0.13%	13.73%
GBT	66 Neutral	C$401.58M	13.97	5.60%	2.80%	7.20%	-33.22%
CTC	64 Neutral	C$9.20B	16.41	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 Names Louis-Philippe Auger President of Tanguay Division

BMTC Group Inc. has appointed long-time executive Louis-Philippe Auger as President of its Tanguay division, recognizing his 26-year tenure, prior role as vice-president and significant contributions to the division’s growth and provincial expansion. He succeeds Charles Tanguay, who is stepping down after successfully leading the rollout of Tanguay stores across Quebec, and the leadership transition is intended to sustain the division’s growth trajectory and support the execution of BMTC’s broader strategic plans.

The most recent analyst rating on (TSE:GBT) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on BMTC Group Inc. stock, see the TSE:GBT Stock Forecast page.

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.