#stocks # Empire Co #target analysts price #strongbuy
Empire Company ( TSE:EMP.A) is engaged in food retailing, investments. Direct retailing is handled by a subsidiary of Empire Sobeys and accounts for the company’s core revenue.
This segment owns, is affiliated with or franchises more than 1,500 stores in 10 provinces under retail banners such as Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and others. The company also owns about 350 retail fuel outlets and e-commerce grocery stores Voilà by Sobeys, Grocery Gateway, IGA.net and ThriftyFoods.com.
Empire Company also has an interest in Crombie Real Estate Investment Trust, an open-ended real estate investment trust that owns, operates and develops a portfolio of grocery and drugstore malls, and partnership interests in Genstar, which develops residential properties in Western Canada, Ontario and the United States.
The company was founded in 1907 and is headquartered in Stellarton, Canada.
The profit and loss statement from 2014 to 2021 shows that overall earnings as well as net income have been growing steadily.
The only exception was 2016, when a loss of $2.13 billion was recorded. Net income in 2021 was $701.50 million. Total revenue for 2021 reached $28.27 billion , $1.68 billion more than in 2020.
by investing.com
When evaluating a company’s competitive advantage, analysts calculate the company’s earnings value (EPV) using data from the income statement.
EPV = Adjusted Earnings EPV / WACC
17,840 mln. This equals $1,338 mln. USD / 0.075
Since Empire’s total asset value is $12,865 million, we can say that it has a competitive advantage. Because the earning capacity is higher than the reproduction value.
Next, the company’s gross profit , that is, the premium that customers are willing to pay on top of the value of the product. If gross margins are growing, then the company has a sustainable competitive advantage. Empire’s gross margins over the last few years have been in the 24-26% range, which confirms that the company has a competitive advantage.
The company’s share price is currently $40.88 .
by Traidingview
At the end of January 2022, Empire Company Limited’s revenues were up 5% in 39 weeks to C$22.32 billion.
Net income also rose 7% to CAD $567.3 million.
Consensus – Company Rating.
by Investing.com
Empire has a consensus rating of “Strong Buy” based on ten purchases in the last month. Empire has an average target price of $48.67 CAD and has a probable upside of 19.05%.
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