CN GROCERS: EMP/A CN, L CN, MRU CN

Empire Co Ltd

Consumer


Presented:12/06/2017
Price:CA$25.75
Cap:$5.59B
Current Price:CA$40.88
Cap:$7.80B

Presented

Date12/06/2017
PriceCA$25.75
Market Cap$5.59B
Ent Value$5.74B
P/E Ratio47.69x
Book ValueCA$13.56
Div Yield1.63%
Shares O/S271.60M
Ave Daily Vol459,067
Short IntN/A

Current

PriceCA$40.88
Market Cap$7.80B
Empire Co. Ltd. engages in the food retailing and corporate investment activities. It operates through two segments: Food Retailing and Investments and Other Operations. The Food Retailing Segment consists of distribution of food products in Canada. The Investments and Other Operations segment consist equity accounted interest in Crombie REIT, Genstar and wholly-owned Empire Theatres. The firm also operates under retail banners that include Sobeys, Sobeys extra, IGA, IGA extra, Thrifty Foods, Foodland, FreshCo and Safeway. The company was founded on February 12, 1963 and is headquartered in Stellarton, Canada.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Costco Wholesale Corp (COST), Empire Company Limited (EMP/A CN), Loblaw Companies Ltd (L CN), Metro Inc (MRU CN), Wal-Mart Stores Inc (WMT) 

Highlights

The presenter is short the Canadian grocery space, with positions in Empire (EMP/A CN), Loblaw (L CN), and Metro (MRU CN). He sees mounting competition from international players as well as minimum wage regulations that will pressure margins, and threats from e-commerce encroachment. As a competitive industry with limited pricing power, Canadian grocers will likely suffer.

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