Want to see TSE:EMP.A full AI Analyst Report?
Top Page
Empire Co Cl A NV
(TSX:EMP.A)
Select Model
Select Model
Rating:55Neutral
Price Target:
C$51.00
▲(5.90% Upside)
Action:Reiterated
Date:09/12/26
The score is mainly driven by mixed fundamentals: strong cash generation and steady sales are offset by a sharp TTM profitability/ROE deterioration and elevated leverage. Technicals add pressure with the stock trading below major moving averages and negative MACD/low RSI. Valuation is a notable headwind given the high P/E, while the latest earnings call provides a partial offset via positive execution, raised expansion plans, and maintained FY2027 growth targets.
Positive Factors
Positive cash generation
Improving operating and free cash flow gives Empire internal funding for store renovations, expansion, technology, and other strategic priorities. This supports resilience and reduces reliance on external financing, although the available cushion remains moderate relative to broader funding needs.
Negative Factors
Sharp profitability deterioration
The substantial decline in net and operating margins reduces the earnings produced by each dollar of sales and leaves less room to absorb cost inflation or competitive pricing. Unless operating improvements persist, weaker profitability could constrain reinvestment and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Improving operating and free cash flow gives Empire internal funding for store renovations, expansion, technology, and other strategic priorities. This supports resilience and reduces reliance on external financing, although the available cushion remains moderate relative to broader funding needs.
Read all positive factors
Empire Co Cl A NV (EMP.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.11B
Dividend Yield1.85%
Average Volume (3M)694.16K
Price to Earnings (P/E)50.9
Beta (1Y)0.06
Revenue Growth2.45%
EPS Growth-67.24%
CountryCA
Employees130,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.98
Shares Outstanding124,661,070
10 Day Avg. Volume682,924
30 Day Avg. Volume694,156
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)2.13
Price to Sales (P/S)0.33
P/FCF Ratio9.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$54.29Price Target Upside12.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.58
Revenue Forecast (FY)C$32.90B
Empire Co Cl A NV Business Overview & Revenue Model
Company Description
Headquartered in Stellarton, Canada, Empire Company Limited, established in 1907, is a prominent player in Canadian food retail and related real estate. Its operations are bifurcated into Food Retailing, and Investments and Other Operations. Under...
How the Company Makes Money
Empire primarily makes money by selling groceries and related consumer products through its store network, generating revenue at the point of sale from a mix of fresh foods, packaged foods, household items, and other everyday essentials. A key dri...
Empire Co Cl A NV Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call was strongly constructive. Empire reported record EPS, improving EBITDA margins, operating leverage, sales growth, expanding market share in full-service, a raised store-opening plan, and continued progress in ecommerce and strategic growth initiatives. The main challenges were a cautious, value-focused consumer, softer industry tonnage, flat gross margin due to supply-chain and fuel costs, and uncertainty surrounding trade tensions. Management nevertheless maintained its fiscal 2027 outlook and expressed confidence in its strategy and execution.Positive Updates
Record First-Quarter EPS
Fiscal Q1 EPS reached a record $1.04, up 14.3% year over year, reflecting improvement in the core business, cost-efficiency initiatives, sales growth, disciplined cost control, ecommerce changes, and share repurchases.
Negative Updates
Challenging Consumer Environment
The market environment remains challenging, with customers focused on value and affordability amid fuel-price volatility and ongoing trade-related uncertainty. Management also said industry tonnage is softer and retailers across North America are seeing a more cautious customer environment.
Read all updates
Q1-2027 Updates
Positive
Negative
Record First-Quarter EPS
Fiscal Q1 EPS reached a record $1.04, up 14.3% year over year, reflecting improvement in the core business, cost-efficiency initiatives, sales growth, disciplined cost control, ecommerce changes, and share repurchases.
Read all positive updates
Company Guidance
Empire expects to complete more than 25 new stores this year, up from our prior expectation of more than 20, delivering approximately 2% square footage growth; fiscal 27 capital expenditures are expected to be approximately $850 million, with about half allocated to renovation and new store expansion, and new stores are expected to grow net square footage by about 1.5% year-over-year before taking into account the new Mērahs stores. The company continues to target annual gross margin expansion, excluding fuel, of 10 to 20 basis points, fiscal 27 adjusted EPS growth at the high end of its financial framework of 8% to 11%, and fiscal 27 contribution from other income and share of earnings from equity investments of $90 million to $110 million, with approximately 15% in Q2, 20% in Q3, and 15% in Q4.Empire Co Cl A NV Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.17B | 31.95B | 31.36B | 30.80B | 30.58B | 30.27B |
| Gross Profit | 8.40B | 8.66B | 8.46B | 8.14B | 7.90B | 7.77B |
| EBITDA | 1.81B | 1.79B | 2.38B | 2.21B | 2.22B | 2.29B |
| Net Income | 219.00M | 198.00M | 700.00M | 725.20M | 686.00M | 745.80M |
Balance Sheet | ||||||
| Total Assets | 17.05B | 17.08B | 17.02B | 16.79B | 16.48B | 16.59B |
| Cash, Cash Equivalents and Short-Term Investments | 320.00M | 291.00M | 285.00M | 260.00M | 221.30M | 812.30M |
| Total Debt | 7.78B | 7.86B | 7.46B | 7.36B | 7.20B | 7.46B |
| Total Liabilities | 11.78B | 11.93B | 11.47B | 11.32B | 11.15B | 11.46B |
| Stockholders Equity | 5.12B | 5.00B | 5.41B | 5.34B | 5.20B | 4.99B |
Cash Flow | ||||||
| Free Cash Flow | 1.26B | 1.08B | 1.35B | 1.28B | 847.60M | 1.33B |
| Operating Cash Flow | 2.09B | 1.91B | 2.13B | 2.07B | 1.61B | 2.11B |
| Investing Cash Flow | -547.00M | -550.00M | -597.00M | -608.50M | -684.70M | -891.40M |
| Financing Cash Flow | -1.61B | -1.35B | -1.50B | -1.43B | -1.51B | -1.29B |
Empire Co Cl A NV Technical Analysis
Positive
48.16
Price Trends
48.19
Positive
48.82
Positive
48.00
Positive
Market Momentum
0.70
Positive
53.78
Neutral
32.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMP.A, the sentiment is Positive. The current price of 48.16 is below the 20-day moving average (MA) of 49.50, below the 50-day MA of 48.19, and above the 200-day MA of 48.00, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EMP.A.
Empire Co Cl A NV Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$78.22B | 28.44 | 25.25% | 0.87% | 3.75% | 16.92% | |
68 Neutral | C$54.25B | 40.32 | 97.52% | 0.23% | 17.86% | 10.53% | |
67 Neutral | C$15.77B | 32.07 | 7.45% | 2.02% | -4.63% | ― | |
63 Neutral | C$39.11B | 40.19 | 20.42% | 1.18% | 3.74% | -0.07% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | C$19.69B | 22.51 | 12.87% | 1.72% | 2.94% | -8.82% | |
55 Neutral | C$11.11B | 50.89 | 4.27% | 1.85% | 2.45% | -67.24% |
* Consumer Defensive Sector Average
TSE:EMP.A
Empire Co Cl A NV
49.87
4.25
9.32%
TSE:L
Loblaw Companies
67.98
13.79
25.46%
TSE:DOL
Dollarama
201.99
22.14
12.31%
TSE:MRU
Metro Inc.
94.79
4.42
4.89%
TSE:SAP
Saputo Inc.
40.01
7.21
21.97%
TSE:WN
George Weston
104.90
22.70
27.61%
Empire Co Cl A NV Corporate Events
Business Operations and StrategyM&A Transactions
Empire to Acquire Nine Morelli’s Pharmacies in Longo’s Stores Across Ontario
Positive
Aug 18, 2026
Empire Company Limited and Sobeys Inc. have agreed to acquire nine Morelli’s pharmacies located inside Longo’s grocery stores in Ontario, with each site to be integrated into Sobeys’ national pharmacy operations and rebranded as ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.