Groupe Dynamite Inc. (GRGD) AI Stock Analysis

• Market Cap: C$2.40B
• Dividend Yield: N/A
• Average Volume (3M): 112.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 1,950
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): 0.25
• Shares Outstanding: 15,305,752
• 10 Day Avg. Volume: 85,086
• 30 Day Avg. Volume: 112,040
• PEG Ratio: 9.02
• Price to Book (P/B): 20.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.56
• 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$26.94
• Price Target Upside: -9.60% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: C$33.00 ▲(10.74%Upside)

Groupe Dynamite Inc. has a strong financial foundation with robust revenue and profit growth, supporting its position in the industry. However, technical indicators warn of possible short-term volatility due to overbought conditions. The stock's valuation remains uncertain due to missing data, but positive corporate developments and strategic initiatives bolster the outlook.

Positive Factors

Earnings

Strong comparable sales growth of 13% and a 20% increase in adjusted EBITDA reflect strong performance.

Market Position

The company is positioned for growth in the North American fast fashion women's apparel market, with multiple drivers for annual mid-teens adjusted EBITDA growth.

Trade Relations

U.S.-China trade tensions have eased, which is seen as a positive factor for the stock.

Negative Factors

Brand Engagement

Direct traffic declined in both Canada and the U.S., suggesting a decrease in users directly seeking out the brand.

User Metrics

New and returning users both declined in Canada, with new users down 12% and returning users down 5%.

Web Traffic

Web traffic in Canada declined with a -7% year-over-year decrease in visits.

Groupe Dynamite Inc. Business Overview & Revenue Model

Company Description

Groupe Dynamite Inc. (GRGD) is a Canadian fashion retailer known for its trendy and affordable women's clothing. The company operates two main brands: Garage and Dynamite, each offering a wide range of apparel and accessories designed to appeal to young, fashion-conscious consumers. With a strong presence in North America, Groupe Dynamite has cultivated a loyal customer base through its stylish collections and commitment to quality.

How the Company Makes Money

Groupe Dynamite Inc. generates revenue primarily through the sale of women's clothing and accessories under its Garage and Dynamite brands. The company operates a network of retail stores across North America and has complemented its physical presence with a robust e-commerce platform, allowing customers to shop online. Key revenue streams include direct sales from its brick-and-mortar locations and online sales through its website. Groupe Dynamite also benefits from its strategic marketing efforts and brand collaborations, which help drive customer engagement and sales. The company's focus on appealing to young, fashion-forward consumers and its ability to adapt to changing fashion trends contribute significantly to its financial performance.

Groupe Dynamite Inc. Financial Statement Overview

Summary

Groupe Dynamite Inc. exhibits strong financial performance with significant revenue and profit growth, improved margins, and robust cash flow generation. However, high leverage remains a concern that could pose future risks.

Income Statement

Groupe Dynamite Inc. has demonstrated strong revenue growth with a 19.7% increase from 2024 to 2025, continuing a positive trajectory from the previous year. Gross profit margin improved to 54.7% in 2025, reflecting efficient cost management. The net profit margin also saw a notable increase to 14.2%, indicating enhanced profitability. EBIT and EBITDA margins rose significantly, suggesting operational efficiencies and strong earnings performance.

Balance Sheet

The company's debt-to-equity ratio improved significantly due to increased stockholders' equity, showing reduced leverage risk. However, the equity ratio remains low at 22.8% in 2025, indicating a high reliance on debt financing. Return on Equity (ROE) is impressive at 96.1%, driven by substantial net income growth, but high leverage may pose future risks.

Cash Flow

Operating cash flow increased robustly, reflecting strong cash generation capabilities with a 55.7% growth from 2024 to 2025. Free cash flow exhibited significant growth, enhancing financial flexibility. The operating cash flow to net income ratio of 1.67 demonstrates efficient cash conversion, while the free cash flow to net income ratio of 1.21 indicates sustainable cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	757.19M	958.52M	800.83M	697.44M
Gross Profit	463.95M	524.83M	487.19M	419.56M
EBITDA	225.49M	298.92M	224.40M	169.98M
Net Income	98.81M	135.77M	85.82M	62.85M
Balance Sheet
Total Assets	683.88M	618.64M	516.48M	471.63M
Cash, Cash Equivalents and Short-Term Investments	106.57M	74.19M	8.13M	33.69M
Total Debt	405.51M	383.10M	433.27M	469.18M
Total Liabilities	537.50M	477.32M	511.55M	547.59M
Stockholders Equity	146.38M	141.31M	4.93M	-75.95M
Cash Flow
Free Cash Flow	139.09M	163.67M	92.37M	106.45M
Operating Cash Flow	190.61M	226.97M	145.76M	125.98M
Investing Cash Flow	58.48M	46.69M	-53.39M	-129.53M
Financing Cash Flow	-171.49M	-206.20M	-117.34M	-56.45M

Groupe Dynamite Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	79 Outperform	$7.16B	36.13	23.27%	―	22.57%	197.68%
CTC.A	78 Outperform	$10.55B	12.53	14.70%	4.03%	-1.12%	201.58%
GOOS	77 Outperform	$1.87B	19.87	19.34%	―	1.20%	60.11%
DOL	72 Outperform	$52.06B	42.77	138.71%	0.21%	9.20%	18.11%
GRGD	71 Outperform	C$2.40B	―		―	―	―
ROOT	60 Neutral	C$124.28M	30.45	-19.69%	―	2.63%	-3376.73%
Sector *	58 Neutral	HK$21.56B	22.59	-16.35%	3.28%	7.50%	-107.03%

Groupe Dynamite Inc. Corporate Events

Groupe Dynamite Elects New Board of Directors

Groupe Dynamite Inc. announced the election of its board of directors at the Annual Meeting of Shareholders. The nominees were overwhelmingly supported, reflecting strong shareholder confidence in the company’s leadership. This election is crucial for maintaining the company’s strategic direction and ambitious growth plans in the competitive fashion industry.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Groupe Dynamite Inc. stock, see the TSE:GRGD Stock Forecast page.

Groupe Dynamite Reports Strong Q1 2025 Results with Continued Sales Growth

Groupe Dynamite Inc. reported a strong first quarter for fiscal 2025, marking its 10th consecutive quarter of positive comparable store sales growth with a 13.0% increase. The company raised its guidance for the fiscal year, demonstrating robust financial performance with a 20% revenue increase and improved operational metrics. Key strategic moves include a reduction in China receipts to the U.S., the initiation of a share buyback program, and the upcoming launch of a U.S. distribution center, all of which are expected to enhance the company’s market positioning and stakeholder value.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Groupe Dynamite Inc. stock, see the TSE:GRGD Stock Forecast page.

Groupe Dynamite to Announce Q1 Fiscal 2025 Results

Groupe Dynamite Inc. announced it will release its first quarter fiscal 2025 financial results on June 17, 2025, before the market opens. The company will hold a conference call on the same day to discuss the results, featuring key executives including CEO Andrew Lutfy. This announcement highlights the company’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting its market position and investor relations.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Groupe Dynamite Inc. stock, see the TSE:GRGD Stock Forecast page.