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Metro Inc. (MRU)
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Empire Company Limited Non-Voting Class A Shares (EMP.A)
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North West Company Inc. (The) (NWC)
Q: Empire is hitting new 52 week lows, is it a buy at here levels? Would you recommend this as buy for a consumer staple holding?
DON
DON
5i Research Answer:
EMP.A is now trading at 10.9x times' Forward P/E. In the last three years, revenue growth was largely flat, (from 1% to 3%). The balance sheet is slightly leveraged, but still acceptable for a recurring business like grocery; net debt is $7B and net debt/EBITDA of 3.1x. The company has been paying growing dividends and repurchasing shares here and there over the years. Overall, a value type of name with lots of cash flow but it is 'stalled' growth. We do like MRU and NWC better in this field due to their more attractive capital returns and healthier growth over the years.