Imperial Equities (IEI) AI Stock Analysis

• Market Cap: C$34.78M
• Dividend Yield: 2.31%
• Average Volume (3M): 216.00
• Price to Earnings (P/E): 7.1
• Beta (1Y): -0.22
• Revenue Growth: 2.03%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.08
• Shares Outstanding: 9,451,242
• 10 Day Avg. Volume: 230
• 30 Day Avg. Volume: 216
• PEG Ratio: -0.03
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 6.38
• 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$4.00 ▲(15.94% Upside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

Imperial Equities' stock score is primarily driven by its strong valuation, with a low P/E ratio and a reasonable dividend yield, making it attractive for value investors. Financial performance shows robust revenue growth and improved profitability, though cash flow challenges need attention. Technical analysis indicates a bearish trend, suggesting caution in the short term.

Positive Factors

Revenue Growth

Sustained TTM revenue growth of 54.8% signals durable expansion of the company’s underlying business volume or asset base. Over a 2–6 month horizon, elevated top-line momentum supports recurring rental or service income, improves scale economics, and underpins longer-term earnings stability.

High Margins / Profitability Turnaround

A healthy 67.5% gross margin and a material net margin turnaround to 29.2% point to structural profitability improvements. This suggests pricing power or favorable cost structure that can sustain higher retained earnings and more resilient free cash generation over multiple quarters.

Improved Leverage and ROE

A modestly improved debt-to-equity ratio (1.01) alongside rising ROE (5.3%) indicates more balanced capital structure and better equity utilization. This enhances financial flexibility and lowers refinancing risk, supporting durable capacity for investment or distributions over the medium term.

Negative Factors

Weak Operating Cash Conversion

An operating cash flow to net income ratio of 0.15 implies earnings are not translating into cash effectively. Persistently low cash conversion raises concerns about earnings quality and may constrain funding for capex, debt servicing, or dividends across several quarters.

Declining Free Cash Flow Growth

A negative free cash flow growth rate (-2.1%) indicates FCF is trending down despite profit improvement. If this trend persists, it can limit reinvestment, debt reduction, or shareholder returns and reduce the company’s buffer against operational or market shocks over the medium term.

Margin Compression in EBITDA/EBIT

Decreases in EBIT and EBITDA margins point to rising operating costs or weakening operational efficiency. Even with net margin recovery, continued margin compression at the operating level can erode sustainable profitability and make earnings vulnerable to downturns or rising input costs.

Imperial Equities Business Overview & Revenue Model

Company Description

Imperial Equities (IEI) is a Canadian real estate investment and development company that focuses on the acquisition, development, and management of industrial, commercial, and residential properties. With a portfolio that includes a diverse range of assets, IEI aims to generate sustainable income through strategic investments in real estate, leveraging its expertise in property management and development to enhance value for its stakeholders.

How the Company Makes Money

Imperial Equities makes money primarily through rental income generated from its portfolio of properties, which includes multi-tenant industrial and commercial buildings. Additionally, the company engages in property development projects, which can result in significant profits upon completion and sale or lease of these developments. IEI may also benefit from partnerships with other real estate firms and investors, enhancing its capabilities in property management and development. The company may further diversify its revenue streams through strategic acquisitions and dispositions of real estate assets, capitalizing on market opportunities to maximize returns.

Imperial Equities Financial Statement Overview

Summary

Imperial Equities demonstrates strong revenue growth and improved profitability, with a notable turnaround in net profit margin. The balance sheet shows a stable leverage position, although cash flow metrics indicate potential challenges in cash generation. Overall, the company is on a positive trajectory, but attention to operational efficiencies and cash flow management is advisable.

Income Statement

Imperial Equities has shown a strong revenue growth rate of 54.8% in the TTM, indicating a robust expansion trajectory. The gross profit margin remains healthy at 67.5%, and the net profit margin has improved significantly to 29.2% from a negative margin in the previous year, reflecting enhanced profitability. However, the EBIT and EBITDA margins have decreased compared to the previous year, suggesting potential cost pressures or operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 1.01, indicating a more balanced leverage position. Return on equity has increased to 5.3%, showing better utilization of equity to generate profits. However, the equity ratio remains moderate at 46.4%, suggesting a balanced but cautious approach to asset financing.

Cash Flow

Free cash flow has decreased slightly, with a growth rate of -2.1%, indicating potential challenges in cash generation. The operating cash flow to net income ratio is low at 0.15, suggesting that cash generation from operations is not fully aligned with reported profits. However, the free cash flow to net income ratio remains strong at 1.0, indicating that the company is effectively converting its profits into free cash flow.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	19.92M	19.52M	19.74M	19.07M	18.11M
Gross Profit	12.86M	13.03M	13.63M	13.46M	13.14M
EBITDA	11.47M	3.13M	12.14M	14.24M	13.02M
Net Income	4.87M	-4.26M	6.81M	7.85M	6.84M
Balance Sheet
Total Assets	240.55M	242.43M	264.03M	257.18M	249.49M
Cash, Cash Equivalents and Short-Term Investments	270.12K	306.02K	424.45K	233.00K	196.11K
Total Debt	109.95M	115.45M	128.18M	127.49M	129.58M
Total Liabilities	129.03M	135.26M	152.11M	151.30M	150.81M
Stockholders Equity	111.52M	107.16M	111.93M	105.87M	98.68M
Cash Flow
Free Cash Flow	5.39M	9.84M	11.24M	11.21M	10.45M
Operating Cash Flow	5.39M	9.84M	11.24M	11.21M	10.45M
Investing Cash Flow	899.83K	3.45M	-6.53M	-3.01M	-8.00M
Financing Cash Flow	-6.33M	-13.41M	-4.52M	-8.16M	-2.38M

Imperial Equities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.45
• 50DMA: Positive
• 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:IEI, the sentiment is Positive. The current price of 3.45 is below the 20-day moving average (MA) of 3.69, below the 50-day MA of 3.62, and below the 200-day MA of 3.64, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IEI.

Imperial Equities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEK.B	72 Outperform	C$23.60M	22.23	6.55%	6.12%	1.17%	3.44%
IEI	66 Neutral	C$34.78M	7.07	4.41%	2.31%	2.03%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PKT	61 Neutral	$127.70M	4.79	9.18%	―	―	―
BRE	53 Neutral	C$131.07M	17.25	-8.54%	10.31%	58.15%	-235.04%
IVQ	51 Neutral	C$114.26M	-0.59	-28.36%	―	-33.25%	90.14%

Imperial Equities Corporate Events

Imperial Equities Maintains Payout with Q1 2026 Dividend Declaration

Imperial Equities Inc. has declared a quarterly dividend of $0.02 per share for the first quarter of 2026, payable on February 6 to shareholders of record as of January 23, underscoring management’s confidence in the company’s performance and strategic direction. The board’s decision to continue issuing dividends signals ongoing shareholder-focused capital allocation and suggests stable cash generation from its Western Canadian real estate portfolio, offering income-oriented investors continued yield while reinforcing Imperial Equities’ position as a steady player in the regional commercial property market.

The most recent analyst rating on (TSE:IEI) stock is a Hold with a C$3.50 price target. To see the full list of analyst forecasts on Imperial Equities stock, see the TSE:IEI Stock Forecast page.