Groupe Dynamite Inc. (GRGD) AI Stock Analysis

• Market Cap: C$7.91B
• Dividend Yield: N/A
• Average Volume (3M): 231.34K
• Price to Earnings (P/E): 39.0
• Beta (1Y): 2.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 1,950
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.72
• Shares Outstanding: 17,095,722
• 10 Day Avg. Volume: 198,935
• 30 Day Avg. Volume: 231,336
• PEG Ratio: 0.22
• Price to Book (P/B): 12.30
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 10.62
• 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$98.80
• Price Target Upside: 34.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$80.00 ▲(8.71% Upside)

The score is driven primarily by strong financial performance (profitability and free cash flow strength) and supportive technical trend signals. These positives are moderated by balance-sheet leverage risk and a rich valuation (high P/E), which reduces the margin of safety if growth or elevated margins soften.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and debt reduction, supporting sustainable growth.

Margin Improvement

Improved margins demonstrate operational efficiency and cost control, contributing to higher profitability and competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk and interest obligations, potentially impacting financial stability and future growth.

Debt Dependency

Dependency on debt financing may limit financial flexibility and increase vulnerability to interest rate fluctuations.

Equity Ratio Concerns

A low equity ratio suggests limited buffer against financial distress, potentially affecting long-term resilience and growth capacity.

Groupe Dynamite Inc. Business Overview & Revenue Model

Company Description

Groupe Dynamite, Inc. operates retails women's clothing through online. It offers coats and jackets, blazers, camis, shirts, tops, tunics, sweaters, shorts denim and pants. The company was founded in 1984 and is headquartered in Mont-Royal, Canada.

How the Company Makes Money

Groupe Dynamite generates revenue primarily through the sale of clothing and accessories in its retail stores and online. The company has established a strong presence in the women's fashion market, leveraging both brick-and-mortar locations and digital sales channels to reach customers effectively. Key revenue streams include direct sales from retail outlets, e-commerce sales, and seasonal promotions that drive traffic and increase sales volume. The company also benefits from strategic partnerships with various suppliers and manufacturers to ensure a steady flow of inventory, allowing it to remain competitive in pricing and product offerings. Additionally, Groupe Dynamite may engage in promotional campaigns and collaborations that enhance brand visibility and attract a broader audience, further contributing to its overall earnings.

Groupe Dynamite Inc. Financial Statement Overview

Summary

Strong operating results and cash generation (revenue +9.6% TTM, high margins, and $289.0M TTM free cash flow with solid cash conversion), but the balance sheet remains a key risk with meaningful leverage (debt-to-equity ~1.43x) and recently rebuilt equity, making results more sensitive if earnings or margins normalize.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up 9.6% with strong profitability: gross margin ~63%, EBIT margin ~26.6%, and net margin ~17.2%. Profit dollars have scaled meaningfully versus prior annual periods (net income $203.8M TTM vs $135.8M in FY2025 and $62.8M in FY2023), showing improved operating leverage. The key watch-out is that margins have moved sharply higher versus prior years, which can be harder to sustain if pricing, product mix, or demand normalize.

Balance Sheet

Leverage is meaningful but improving: debt-to-equity is ~1.43x in TTM (Trailing-Twelve-Months) versus 2.71x in FY2025, and equity has rebuilt to $306.6M (from near-zero in FY2024 and negative in FY2023). Total debt remains sizable at $437.6M against $936.8M of assets, so the capital structure still carries risk if earnings weaken. Return on equity is very high (around ~100% in TTM), largely reflecting the combination of strong profits and a still-moderate equity base.

Cash Flow

Cash generation is a clear strength: operating cash flow is $360.8M and free cash flow is $289.0M in TTM (Trailing-Twelve-Months), with free cash flow up 36.5%. Cash conversion is solid with operating cash flow running well ahead of net income (coverage ~1.62x), supporting earnings quality. A notable limitation is that free cash flow is below net income (about ~80%), indicating some ongoing working capital or investment needs despite the strong absolute cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.19B	958.52M	800.83M	697.44M
Gross Profit	748.54M	524.83M	487.19M	419.56M
EBITDA	406.57M	298.92M	224.40M	169.98M
Net Income	203.76M	135.77M	85.82M	62.85M
Balance Sheet
Total Assets	936.82M	618.64M	516.48M	471.63M
Cash, Cash Equivalents and Short-Term Investments	253.82M	74.19M	8.13M	33.69M
Total Debt	437.63M	383.10M	433.27M	469.18M
Total Liabilities	630.25M	477.32M	511.55M	547.59M
Stockholders Equity	306.57M	141.31M	4.93M	-75.95M
Cash Flow
Free Cash Flow	289.00M	163.67M	92.37M	106.45M
Operating Cash Flow	360.76M	226.97M	145.76M	125.98M
Investing Cash Flow	38.24M	46.69M	-53.39M	-129.53M
Financing Cash Flow	-158.39M	-206.20M	-117.34M	-56.45M

Groupe Dynamite Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRGD, the sentiment is Positive. The current price of 73.59 is below the 20-day moving average (MA) of 76.11, below the 50-day MA of 77.12, and above the 200-day MA of 46.97, indicating a neutral trend. The MACD of -1.83 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 38.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRGD.

Groupe Dynamite Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	75 Outperform	C$13.20B	37.74	30.09%	―	26.51%	172.52%
GRGD	73 Outperform	C$7.91B	39.03	―	―	―	―
CTC.A	69 Neutral	C$9.20B	12.87	13.16%	4.10%	-0.13%	13.73%
GOOS	66 Neutral	C$1.68B	62.96	6.07%	―	3.78%	-54.87%
DOL	64 Neutral	C$51.20B	39.62	102.01%	0.20%	14.02%	20.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROOT	48 Neutral	C$123.52M	-3.90	-19.60%	―	4.87%	-1195.39%

Groupe Dynamite Inc. Corporate Events

Groupe Dynamite Completes Internal Share Reorganization With Principal Shareholder

Groupe Dynamite Inc. and its principal shareholder, a company controlled by founder Andrew Lutfy, have completed a corporate reorganization involving transfers of multiple voting shares among entities under common control, with one remaining step to be finalized by early February 2026. Following the reorganization, the principal shareholder continues to hold the same aggregate number of shares and roughly the same proportion of voting rights, leaving overall ownership and capital structure of Groupe Dynamite unchanged, while the process was overseen by an independent special committee and conducted under exemptions from related-party and issuer bid regulations, signaling that the transaction is intended as an internal simplification rather than a shift in control or economic interests for existing shareholders.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$102.00 price target. To see the full list of analyst forecasts on Groupe Dynamite Inc. stock, see the TSE:GRGD Stock Forecast page.

Groupe Dynamite Lifts 2025 Profit Outlook on Strong Holiday, Digital Growth and UK Expansion Plans

Groupe Dynamite reported a robust holiday trading period, with comparable store sales up 30.8% in the first nine weeks of its fourth quarter and 26.6% year-to-date, prompting the retailer to tighten its full-year fiscal 2025 comparable sales growth guidance to 26.5%-27.0% and raise the lower end of its adjusted EBITDA margin outlook to 36.0%-37.0%. Strong digital performance, where online revenue growth is outpacing brick-and-mortar, is boosting overall margins and online penetration, while the company continues selective physical expansion—expecting 20 gross openings and nine net new stores for a year-end total of 307 locations, all recent openings under the Garage banner in the U.S., and is preparing to launch UK e-commerce and its first UK stores in the latter part of the first quarter of fiscal 2026, alongside slightly reduced capital expenditure guidance mainly due to timing of payments.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$91.00 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 Record Q3 Results and Raises Guidance

Groupe Dynamite Inc. reported unprecedented third-quarter results for fiscal 2025, with a 31.6% increase in comparable store sales and a record operating income of $120.1 million. The company raised its full-year guidance, reflecting strong performance driven by its luxury-inspired operating model and strategic initiatives. The U.S. distribution center is enhancing the company’s operational capabilities, fulfilling both store and e-commerce demands. A one-time special dividend of $2.30 per share was announced, underscoring the company’s commitment to long-term shareholder value. The company’s financial health remains robust, with significant liquidity available to support future growth.

The most recent analyst rating on (TSE:GRGD) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Groupe Dynamite Inc. stock, see the TSE:GRGD Stock Forecast page.