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  5. EMP.A: With another qtr in the books, what is your current ranking of these three and why? [Empire Company Limited Non-Voting Class A Shares]
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Q: With another qtr in the books, what is your current ranking of these three and why?
Appreciate your work.

Asked by Arthur on September 21, 2021
5i Research Answer:

Loblaws is a ~$28.9B company, Metro is ~$14.6B, and Empire is ~$10.2B. All three companies have had solid growth rates over the past ten years, although Loblaws and Empire are slightly ahead of Metro. Loblaw and Empire have very similar net profit margins, whereas Metro outperforms in this metric. Loblaw has the strongest balance sheet, with a very healthy cash position and strong equity position, followed by Empire and then Metro. All three are trading at very comparable valuations, and we would say that Empire is likely trading at the lowest valuation of all three companies. In terms of outer year growth rates, Empire has the most potential in terms of forecasted EPS and revenue growth, and its recent acquisitions in Longos and e-Commerce support this. Due to Empire's future growth potential we rank them the highest, followed by Loblaw due to its strong financial position, and then followed by Metro.