Reitmans (Canada) (RET) AI Stock Analysis

• Market Cap: C$102.65M
• Dividend Yield: N/A
• Average Volume (3M): 3.24K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.46
• Revenue Growth: -3.33%
• EPS Growth: -78.69%
• Country: CA
• Employees: 6,812
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Retail
• EPS (TTM): -0.20
• Shares Outstanding: 13,440,000
• 10 Day Avg. Volume: 3,431
• 30 Day Avg. Volume: 3,244
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$2.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: C$2.00 ▼(-5.66% Downside)

Reitmans (Canada) receives an overall stock score of 61, driven primarily by its financial stability and effective cash management. However, the stock faces challenges with low profitability and a high P/E ratio, suggesting potential overvaluation. Technical indicators show a neutral trend, lacking strong momentum. The absence of earnings call and corporate events data limits further insights.

Reitmans (Canada) Business Overview & Revenue Model

Company Description

Reitmans (Canada) Limited is a Canadian retailing company specializing in women's apparel. Established in 1926, the company operates in the fashion retail sector, offering a wide range of clothing and accessories through its various brands, including Reitmans, Penningtons, and RW&CO. The company aims to provide fashionable, affordable, and versatile clothing options for women of all sizes and ages, catering to diverse customer preferences and lifestyles.

How the Company Makes Money

Reitmans (Canada) Limited generates revenue primarily through the sale of women's apparel and accessories. The company operates a network of retail stores across Canada and has a significant online presence, allowing it to reach a broad customer base. Revenue streams include direct sales from physical stores and e-commerce platforms. The company focuses on creating appealing and trend-responsive fashion lines that attract a wide range of customers. Partnerships with designers and marketing initiatives enhance its brand visibility and drive sales. Additionally, Reitmans manages its inventory and supply chain efficiently to maintain competitive pricing, which is crucial for sustaining profitability in the retail sector.

Reitmans (Canada) Financial Statement Overview

Summary

Reitmans (Canada) displays a mixed financial performance. While there is sound financial stability with a strong equity base and effective cash management, profitability remains a challenge with low margins and declining revenues. The company needs to focus on boosting operational efficiency and revenue growth to enhance its financial health.

Income Statement

Reitmans (Canada) has demonstrated a moderate level of stability in its income statement. The TTM Gross Profit Margin is approximately 56%, indicating effective cost management, although a decline from the previous year. The TTM Net Profit Margin is low at around 0.5%, reflecting thin profitability. Revenue has decreased by around 0.9% compared to the previous year, indicating a slight decline. The EBIT Margin is about 1.1%, and the EBITDA Margin stands at 8.8%, both of which suggest limited operational efficiency improvements are needed.

Balance Sheet

Reitmans (Canada) shows a stable balance sheet with a Debt-to-Equity Ratio of 0.55, indicating conservative leverage. The Return on Equity (ROE) is low at approximately 1.3%, reflecting modest profitability. The Equity Ratio stands at about 54.6%, denoting a solid equity base relative to assets, which is a positive indicator of financial stability.

Cash Flow

The cash flow position of Reitmans (Canada) is relatively strong. The TTM Free Cash Flow to Net Income Ratio is high, indicating strong cash conversion. The Operating Cash Flow to Net Income Ratio is robust, showing effective cash management. However, the Free Cash Flow Growth Rate is negative, highlighting a decline in free cash flow compared to the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	766.96M	773.80M	794.69M	661.95M	533.36M	869.50M
Gross Profit	429.55M	435.04M	431.00M	353.17M	246.25M	444.39M
EBITDA	67.39M	78.44M	76.22M	94.70M	194.46M	-41.58M
Net Income	3.60M	12.14M	14.81M	158.26M	-172.22M	-87.43M
Balance Sheet
Total Assets	511.76M	574.09M	490.75M	314.27M	397.23M	560.17M
Cash, Cash Equivalents and Short-Term Investments	85.43M	158.12M	116.65M	25.50M	77.92M	89.41M
Total Debt	153.09M	155.40M	137.59M	81.94M	123.22M	213.87M
Total Liabilities	232.12M	277.66M	211.73M	130.45M	375.55M	366.35M
Stockholders Equity	279.63M	296.43M	279.02M	183.83M	21.68M	193.82M
Cash Flow
Free Cash Flow	23.73M	73.06M	51.83M	-35.38M	34.03M	53.70M
Operating Cash Flow	60.55M	104.26M	69.53M	-24.73M	40.20M	77.18M
Investing Cash Flow	-36.82M	-31.19M	-17.70M	-15.22M	-6.16M	17.95M
Financing Cash Flow	-44.28M	-40.03M	-39.90M	-9.19M	-46.82M	-121.78M

Reitmans (Canada) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RET, the sentiment is Negative. The current price of 2.12 is above the 20-day moving average (MA) of 2.05, above the 50-day MA of 2.07, and below the 200-day MA of 2.42, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RET.

Reitmans (Canada) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
RET	61 Neutral	C$102.65M	28.42	1.29%	―	-3.33%	-78.69%
ROOT	61 Neutral	C$130.74M	30.45	-19.69%	―	2.63%	-3376.73%
ATZAF	―	$5.89B	41.65	23.27%	―	―	―

Reitmans (Canada) Corporate Events

Reitmans (Canada) Limited Elects Board of Directors at Annual Meeting

Reitmans (Canada) Limited announced the election of its board of directors during the Annual General Meeting of Shareholders in Laval, Québec. All director nominees listed in the Management Proxy Circular were elected, indicating strong shareholder support. This election is significant for the company’s governance as it continues to maintain its position as a prominent apparel retailer in the Canadian market.

Reitmans Reports First Quarter Loss Amid Weather and Economic Challenges

Reitmans (Canada) Limited reported a challenging first quarter for 2025, with a 4.1% decrease in net revenues to $158.9 million, primarily due to severe winter weather and economic uncertainty impacting in-store traffic. Despite growth in e-commerce sales, the company faced a net loss of $10 million, attributed to lower gross profits and increased operational costs. In response, Reitmans is implementing a five-year strategic plan to drive long-term growth, which includes optimizing its store fleet and advancing its digital strategy with new e-commerce storefronts and a migration to Shopify. The company also plans to renew its normal course issuer bid to repurchase shares, reflecting ongoing efforts to strengthen its market position.

Reitmans (Canada) Limited Strengthens Board with Technology Expert Martin Thibodeau

Reitmans (Canada) Limited has appointed Martin Thibodeau, a seasoned technology executive with over three decades of experience in IT within the retail industry, to its Board of Directors. This strategic addition aims to bolster the company’s technological capabilities and support its multi-year strategy for future growth, reflecting a commitment to modernization and strengthening its position in the apparel retail market.

Reitmans Appoints Martin Thibodeau to Board of Directors

Reitmans (Canada) Limited has appointed Martin Thibodeau, a seasoned technology executive, to its Board of Directors. Thibodeau’s extensive experience in IT and fashion retail is expected to support the company’s strategic business objectives and modernization efforts, as it continues to implement its multi-year strategy for future growth.