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Groupe Dynamite Inc.
(TSX:GRGD)
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Rating:67Neutral
Price Target:
C$65.00
▼(-0.58% Downside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by strong profitability and cash generation, reinforced by a notably upbeat earnings call with raised fiscal-2026 guidance. Offsetting these positives are high leverage/low equity on the balance sheet and a weak technical setup with the stock in a clear downtrend despite near-oversold readings.
Positive Factors
Profitability
Profitability has strengthened substantially, with expanding net, operating, and EBITDA margins indicating effective pricing, merchandising, and cost control. These gains improve the company’s ability to fund growth internally and provide a stronger earnings base over the next several quarters.
Negative Factors
High Leverage
Very high debt relative to equity leaves the company with a thin capital cushion and less flexibility if retail demand or earnings weaken. Although equity has improved from negative levels, the leverage increase heightens sensitivity to volatility and may constrain future capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Profitability has strengthened substantially, with expanding net, operating, and EBITDA margins indicating effective pricing, merchandising, and cost control. These gains improve the company’s ability to fund growth internally and provide a stronger earnings base over the next several quarters.
Read all positive factors
Groupe Dynamite Inc. (GRGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.30B
Dividend Yield2.83%
Average Volume (3M)206.29K
Price to Earnings (P/E)19.4
Beta (1Y)2.57
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees7,200
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.99
Shares Outstanding19,810,068
10 Day Avg. Volume178,930
30 Day Avg. Volume206,292
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)81.67
Price to Sales (P/S)5.85
P/FCF Ratio22.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$88.25Price Target Upside34.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.28
Revenue Forecast (FY)C$1.65B
Groupe Dynamite Inc. Business Overview & Revenue Model
Company Description
Groupe Dynamite Inc. designs, distributes, and sells women’s apparel under the Dynamite and Garage brand names in Canada, the United Kingdom, and the United States. The company offers a range of women's fashion apparel, such as blouses, tops, tees...
Groupe Dynamite Inc. Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 22, 2026
Earnings Call Sentiment Positive
The call was strongly positive. Management reported broad-based revenue, profitability, earnings, cash flow, productivity, and customer-growth improvements, raised all three guidance metrics, and emphasized continued U.S. and international expansion. The main challenges were softer Canadian performance, the Canadian assortment transition, fuel inflation, and tougher second-half comparisons, but these issues were presented alongside raised guidance and continued operating momentum.Positive Updates
Strong Q2 Revenue Growth
Total revenue increased 29.8% year over year to $423.6 million. Brick-and-mortar comparable store sales grew 10.3%, or 12.3% on a constant currency basis, with the two-year comparable sales stack reaching 38.9%.
Negative Updates
Canadian Revenue Decline
Canada revenue was $145.1 million, down 1.9% year over year on a fleet that was 13 stores smaller. First-half Canadian revenue was up 2.1%, while management characterized Q2 Canadian same-store performance as approximately flattish.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Revenue Growth
Total revenue increased 29.8% year over year to $423.6 million. Brick-and-mortar comparable store sales grew 10.3%, or 12.3% on a constant currency basis, with the two-year comparable sales stack reaching 38.9%.
Read all positive updates
Company Guidance
For the remainder of fiscal 26, management raised total revenue growth guidance to a range of 25% to 27% from 22% to 25%, brick and mortar comparable sales guidance to a range of 12% to 14%, implying 9.5% to 13% growth over last year in the second half, and adjusted EBITDA margin guidance to a range of 39.5% to 40.5% from 38.25% to 39.5%; it expects 24 to 26 openings in fiscal 26 including 5 total in The UK, has established a target of 350 stores by the end of 2028 across both banners, assumes that 70% stores versus 57% today will be in investment grade locations, targets online revenue at 25% of total revenue and aims to add roughly 1 to 1.5 percentage points of online penetration a year toward that 25% goal, and assumes the markdown rate will remain at or around these levels, with “Could be a point to the left, could be a point to the right, but broadly speaking, we assume status quo.”Groupe Dynamite Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
38
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.49B | 1.31B | 958.52M | 800.83M | 697.44M |
| Gross Profit | 933.07M | 836.52M | 524.83M | 487.19M | 419.56M |
| EBITDA | 581.65M | 476.39M | 298.92M | 224.40M | 169.98M |
| Net Income | 326.03M | 252.17M | 135.77M | 85.82M | 62.85M |
Balance Sheet | |||||
| Total Assets | 905.48M | 805.89M | 618.64M | 516.48M | 471.63M |
| Cash, Cash Equivalents and Short-Term Investments | 31.92M | 82.48M | 74.19M | 8.13M | 33.69M |
| Total Debt | 557.50M | 477.25M | 383.10M | 433.27M | 469.18M |
| Total Liabilities | 793.65M | 711.96M | 477.32M | 511.55M | 547.59M |
| Stockholders Equity | 111.83M | 93.93M | 141.31M | 4.93M | -75.95M |
Cash Flow | |||||
| Free Cash Flow | 337.83M | 335.22M | 163.67M | 92.37M | 106.45M |
| Operating Cash Flow | 440.67M | 420.74M | 226.97M | 145.76M | 125.98M |
| Investing Cash Flow | -106.22M | -85.52M | 46.69M | -53.39M | -129.53M |
| Financing Cash Flow | -452.93M | -328.02M | -206.20M | -117.34M | -56.45M |
Groupe Dynamite Inc. Technical Analysis
Neutral
65.38
Price Trends
57.78
Positive
57.19
Positive
69.04
Negative
Market Momentum
0.88
Negative
51.76
Neutral
35.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRGD, the sentiment is Neutral. The current price of 65.38 is above the 20-day moving average (MA) of 57.24, above the 50-day MA of 57.78, and below the 200-day MA of 69.04, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GRGD.
Groupe Dynamite Inc. Peers Comparison
UnderperformOutperform
Sector (55)
TSE:GRGD
Groupe Dynamite Inc.
58.45
-15.82
-21.30%
TSE:BDI
Black Diamond
19.45
4.59
30.89%
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.