Groupe Dynamite Inc. (TSE:GRGD)
TSX:GRGD
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Groupe Dynamite Inc.
(TSX:GRGD)
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Rating:67Neutral
Price Target:
C$52.00
▼(-45.14% Downside)
Action:Reiterated
Date:06/17/26
The score is driven primarily by strong operating performance and an upbeat FY26 outlook, partially tempered by meaningful balance-sheet leverage risk. Technicals are a key drag due to a clear downtrend versus major moving averages, while valuation appears reasonable but not a strong catalyst.
Positive Factors
Strong free cash flow generation
Consistent, substantial free cash flow (FY FCF $335.2M; Q4 $101.5M) provides durable funding for organic growth, store openings, digital investment, debt reduction and buybacks. Reliable cash conversion enhances flexibility to fund CapEx and absorb shocks over the next several quarters.
Negative Factors
High balance-sheet leverage
Material leverage (debt/equity ~5.1) and a thin, volatile equity base constrain financial flexibility and raise refinancing and interest-rate sensitivity. High leverage can limit ability to fund growth, increase downside risk in weaker sales periods, and magnify execution missteps over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, substantial free cash flow (FY FCF $335.2M; Q4 $101.5M) provides durable funding for organic growth, store openings, digital investment, debt reduction and buybacks. Reliable cash conversion enhances flexibility to fund CapEx and absorb shocks over the next several quarters.
Read all positive factors
Groupe Dynamite Inc. (GRGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.56B
Dividend YieldN/A
Average Volume (3M)231.34K
Price to Earnings (P/E)20.2
Beta (1Y)2.55
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees1,950
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.54
Shares Outstanding20,496,012
10 Day Avg. Volume198,935
30 Day Avg. Volume231,336
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)81.67
Price to Sales (P/S)5.85
P/FCF Ratio22.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$85.10Price Target Upside-10.22% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)3.06
Revenue Forecast (FY)C$1.62B
Groupe Dynamite Inc. Business Overview & Revenue Model
Company Description
Groupe Dynamite Inc. functions as an online retailer, primarily focusing on women's fashion. Their broad selection of apparel features outerwear like coats and jackets, blazers, a variety of tops including camisoles, shirts, tunics, and sweaters, ...
How the Company Makes Money
Groupe Dynamite makes money primarily by selling women’s apparel and accessories to consumers through two main channels: (1) retail stores and (2) direct-to-consumer e-commerce. Revenue is recognized from merchandise sales, with performance driven...
Groupe Dynamite Inc. Earnings Call Summary
Earnings Call Date:Apr 01, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 16, 2026
Earnings Call Sentiment Positive
The call presented overwhelmingly positive operational and financial results: strong top-line growth, record margins, exceptional inventory turns, rapid e-commerce expansion, robust cash generation and a confident FY26 outlook. Management acknowledged some risks—past tariffs (now resolved), rising transport costs, higher CapEx, real estate competition and concentration of growth in GARAGE—but framed them as manageable given the company's agile supply chain, strong balance sheet and proven playbook. Overall the highlights substantially outweigh the lowlights.Positive Updates
Strong Top-Line Growth
Total revenue for Q4 2025 increased 45% to $394.2 million; comparable brick-and-mortar sales were up 30.4% in Q4 and 26.7% for the full fiscal year.
Negative Updates
Past Tariff Headwinds (Now Lapsed)
Fiscal 2025 first half was impacted by elevated tariffs (145% on imports from China); management indicates these headwinds have fully flowed through the P&L and are no longer impacting results, but they weighed on early-year comparables.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue for Q4 2025 increased 45% to $394.2 million; comparable brick-and-mortar sales were up 30.4% in Q4 and 26.7% for the full fiscal year.
Read all positive updates
Company Guidance
Groupe Dynamite guided fiscal 2026 to 24–26 gross new stores (including five U.K. locations) — ~10–12 net new openings as ~14 stores are expected to close — targeting ~350 stores by FY2028; management expects comparable store sales growth of 11–14% and total revenue growth of 22–25%, with online revenue continuing to outpace brick‑and‑mortar and a medium‑term e‑commerce penetration goal of ~25%. They forecast adjusted EBITDA margin expansion to 37.75–39.25% (vs. 36.5% in FY25), driven roughly half by gross‑margin tailwinds (IMU expansion, tariffs unwinding, U.S. DC ramp) and half by SG&A operating leverage (midpoint implies ~200 bp y/y improvement). CapEx is guided to $100–110M, building on FY25 CapEx of $85.5M; FY25 metrics cited as context include inventory turns ~9.85x, ROA 36.2%, ROCE 70.3%, net leverage 0.83x, cash >$82M and $312M available on the credit facility, with free cash flow of $335.2M for the year (Q4 $101.5M) and strong early‑FY26 momentum (8 weeks into Q1 comps +28%).Groupe Dynamite Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.39B | 1.31B | 958.52M | 800.83M | 697.44M |
| Gross Profit | 877.86M | 836.52M | 524.83M | 487.19M | 419.56M |
| EBITDA | 490.24M | 476.39M | 298.92M | 224.40M | 169.98M |
| Net Income | 276.52M | 252.17M | 135.77M | 85.82M | 62.85M |
Balance Sheet | |||||
| Total Assets | 801.52M | 805.89M | 618.64M | 516.48M | 471.63M |
| Cash, Cash Equivalents and Short-Term Investments | 8.68M | 82.48M | 74.19M | 8.13M | 33.69M |
| Total Debt | 518.92M | 477.25M | 383.10M | 433.27M | 469.18M |
| Total Liabilities | 744.42M | 711.96M | 477.32M | 511.55M | 547.59M |
| Stockholders Equity | 57.11M | 93.93M | 141.31M | 4.93M | -75.95M |
Cash Flow | |||||
| Free Cash Flow | 300.88M | 335.22M | 163.67M | 92.37M | 106.45M |
| Operating Cash Flow | 388.11M | 420.74M | 226.97M | 145.76M | 125.98M |
| Investing Cash Flow | -90.55M | -85.52M | 46.69M | -53.39M | -129.53M |
| Financing Cash Flow | -396.65M | -328.02M | -206.20M | -117.34M | -56.45M |
Groupe Dynamite Inc. Technical Analysis
Negative
94.79
Price Trends
80.90
Negative
79.62
Negative
73.60
Negative
Market Momentum
-7.01
Positive
29.75
Positive
11.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRGD, the sentiment is Negative. The current price of 94.79 is above the 20-day moving average (MA) of 70.21, above the 50-day MA of 80.90, and above the 200-day MA of 73.60, indicating a bearish trend. The MACD of -7.01 indicates Positive momentum. The RSI at 29.75 is Positive, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GRGD.
Groupe Dynamite Inc. Peers Comparison
UnderperformOutperform
Sector (63)
TSE:GRGD
Groupe Dynamite Inc.
51.00
28.40
125.61%
TSE:BDI
Black Diamond
18.82
9.29
97.42%
Groupe Dynamite Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Groupe Dynamite Posts Record 2025 Results and Accelerates Global Expansion
Positive
Apr 1, 2026
Groupe Dynamite reported record fiscal 2025 results, with revenue up 36.7% to $1.31 billion and comparable store sales rising 26.7%, reflecting strong store productivity and robust e-commerce growth. Gross margin improved to 63.8% and adjusted EBI...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.