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Groupe Dynamite Inc.
(TSX:GRGD)
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Rating:66Neutral
Price Target:
C$60.00
▼(-36.70% Downside)
Action:Reiterated
Date:06/22/26
The score is driven primarily by strong underlying profitability/cash conversion and a constructive earnings call with reaffirmed growth and higher margin guidance. Offsetting this are elevated balance-sheet risk in the financial statements and weak technical trend/momentum despite oversold conditions. Valuation is neutral with no dividend support.
Positive Factors
Revenue and Profit Growth
Sustained top-line growth with meaningful margin expansion shows the business is scaling profitably. Higher margins and revenue momentum indicate stronger pricing, better product mix and operational control, supporting durable cash generation and reinvestment capacity over the medium term.
Negative Factors
Elevated Financial Leverage
A large debt load relative to equity reduces financial flexibility and raises refinancing and covenant risk if sales weaken. Volatile or thin equity magnifies leverage metrics and can produce distorted returns, making downside more acute in adverse macro or retail demand cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Growth
Sustained top-line growth with meaningful margin expansion shows the business is scaling profitably. Higher margins and revenue momentum indicate stronger pricing, better product mix and operational control, supporting durable cash generation and reinvestment capacity over the medium term.
Read all positive factors
Groupe Dynamite Inc. (GRGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.08B
Dividend YieldN/A
Average Volume (3M)231.34K
Price to Earnings (P/E)19.1
Beta (1Y)2.57
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees7,200
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.54
Shares Outstanding20,406,765
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$84.90Price Target Upside-10.43% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)3.09
Revenue Forecast (FY)C$1.61B
Groupe Dynamite Inc. Business Overview & Revenue Model
Company Description
Groupe Dynamite Inc. designs, distributes, and sells women’s apparel under the Dynamite and Garage brand names in Canada, the United Kingdom, and the United States. The company offers a range of women's fashion apparel, such as blouses, tops, tees...
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:Jun 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: robust top-line growth (+37%), significant margin expansion (gross margin +530 bps; adjusted EBITDA margin +730 bps), doubling of adjusted EPS, meaningful e-commerce and store productivity gains, and disciplined capital allocation with share buybacks. Headwinds noted include higher absolute SG&A, modest free cash flow due to tax timing, some category (denim) and Canadian softness, a temporary tailwind from lower tariffs that will be lapped later in the year, and freight inflation. On balance, the positive financial performance, margin expansion, healthy balance sheet metrics and reaffirmed guidance outweigh the manageable challenges discussed.Positive Updates
Strong Top-Line Growth
Total revenue increased 37% year-over-year to CAD 310.6 million for Q1 2026, driven by comparable store sales growth of 22.6% (24.7% constant currency), contributions from new store openings (including two U.K. locations), and momentum across both banners.
Negative Updates
Increase in Absolute SG&A
SG&A increased to CAD 102.2 million from CAD 74.7 million year-over-year (driven by scale, higher wages, selling & marketing, U.K. launch and IT investments), though adjusted SG&A as a percent of sales improved (down 190 bps to 30.5%).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue increased 37% year-over-year to CAD 310.6 million for Q1 2026, driven by comparable store sales growth of 22.6% (24.7% constant currency), contributions from new store openings (including two U.K. locations), and momentum across both banners.
Read all positive updates
Company Guidance
Management reiterated fiscal 2026 guidance while tightening margins and outlining capital plans: comparable store sales 11–14% and total revenue growth 22–25%; adjusted EBITDA margin raised to 38.25–39.5% (up 50 bps at the low end / 25 bps at the high end from prior range) — reflecting Q1 gross margin strength (Q1 gross margin 67.4%, +530 bps) and SG&A leverage (adjusted SG&A 30.5%, -190 bps) — after Q1 results of CAD 310.6M revenue (+37%), e‑commerce up 35.7% to CAD 50.6M, adjusted EBITDA CAD 114.4M (36.8%, +730 bps YoY) and adjusted net earnings CAD 57.3M; they expect 24–26 gross new store openings and ~8–10 net new stores (after accelerating two closures), CapEx of CAD 100–110M, open‑to‑buy >50% of inventory dollars, Q2‑to‑date comps +9% CAD/+11% CC, and balance‑sheet flexibility with ~CAD 292M available credit, net leverage ~1.01x, Q1 free cash flow ~CAD 4M, ROA 38.6% and ROCE 74.4% (plus CAD ~38.6M repurchased under NCIB and an additional ~CAD 51M cancellation).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 | 517.58M | 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 | 297.56M | 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
64.67
Negative
74.02
Negative
73.57
Negative
Market Momentum
-4.77
Negative
39.10
Neutral
40.84
Neutral
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 50.93, above the 50-day MA of 64.67, and above the 200-day MA of 73.57, indicating a bearish trend. The MACD of -4.77 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.84 is Neutral, 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 (55)
TSE:GRGD
Groupe Dynamite Inc.
48.46
19.50
67.33%
TSE:BDI
Black Diamond
20.02
8.09
67.83%
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.