# Empire Company Limited Class A (EMP.A) (EMP-A.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Consumer Defensive / Grocery & Drug Retail. Price C$49.55, market value C$11.1 billion.

## Valuation
- **P/E (trailing): 51.1×** (5-yr avg 23.5×, 3-yr avg 27.0×). Empire Company Limited Class A (EMP.A) trades at 51.1× trailing earnings, well above its own five-year average of 23.5×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 12.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.2×**. Enterprise value is 10.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 11.2%** (5-yr avg 12.0%). Free cash flow equals 11.2% of the market value, in line with its five-year average of 12.0%. Above 5% is generally attractive.
- **Earnings yield: 2.0%**. The inverse of the P/E: 2.0% of the price is earned each year.

## Profitability
- **Gross margin: 27.0%**. Empire Company Limited Class A (EMP.A) keeps 27.0% of revenue after the direct cost of what it sells.
- **Operating margin: 3.9%**. 3.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 0.6%**. 0.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.0%**. 4.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 7.9%**. Return on all capital, debt included, is 7.9%.
- **Return on assets: 1.3%**. Each dollar of assets produces 1.3% of profit.

## Growth
- **Revenue growth (1 yr): 2.2%** (3-yr 1.6%/yr). Revenue grew 2.2% over the last year.
- **EPS growth (1 yr): -70.6%** (3-yr -31.2%/yr). Earnings per share fell 70.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 8.4%/yr**. Free cash flow has compounded at 8.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.57**. Debt is 1.57 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 4.1×**. It would take 4.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 3.9×**. Operating profit covers interest 3.9× over, a safe margin.
- **Current ratio: 0.82** (quick 0.36). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 3.03**. A Z-score of 3.03 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.96%** (C$0.90 per share, trailing). Empire Company Limited Class A (EMP.A) yields 1.96%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 103%** (17% of free cash flow). The dividend exceeds earnings (103% payout), though free cash flow still covers it.
- **Consecutive years of increases: 10**. 10 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 10.9%/yr** (1-yr 9.7%). The dividend has compounded at 10.9% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 5.5%**. Dividends plus net buybacks return 5.5% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (8 analysts). 8 analysts cover Empire Company Limited Class A (EMP.A); the consensus is hold, with an average price target of C$53.50 (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 9.2%** (YTD 7.4%, 3-mo -1.5%). The shares are up 9.2% over twelve months including dividends.
- **From 52-week high: -5.9%** (13.1% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): -0.01** (volatility 24%). Beta of -0.01 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=EMP-A.TO · Page: https://foliofundamentals.com/stocks/emp-a.to

Not investment advice.