# Kits Eyecare Ltd. (KITS.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Internet & Direct Marketing Retail. Price C$15.21, market value C$517 million.

## Valuation
- **P/E (trailing): 95.1×** (5-yr avg 145.7×, 3-yr avg 145.7×). Kits Eyecare Ltd. trades at 95.1× trailing earnings, well below its own five-year average of 145.7×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 45.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 7.1×**. The shares trade at 7.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 41.5×**. Enterprise value is 41.5× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.1%** (5-yr avg -2.8%). Free cash flow equals 2.1% of the market value, above its five-year average of -2.8%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.1%**. The inverse of the P/E: 1.1% of the price is earned each year.

## Profitability
- **Gross margin: 37.0%**. Kits Eyecare Ltd. keeps 37.0% of revenue after the direct cost of what it sells.
- **Operating margin: 3.8%**. 3.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.5%**. 1.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.0%**. 5.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 13.1%**. Return on all capital, debt included, is 13.1%.
- **Return on assets: 5.0%**. Each dollar of assets produces 5.0% of profit.

## Growth
- **Revenue growth (1 yr): 27.1%** (3-yr 30.2%/yr, 5-yr 21.9%/yr). Revenue grew 27.1% over the last year, against 21.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -0.8%**. Earnings per share fell 0.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 36.9%/yr**. Free cash flow has compounded at 36.9% a year over three years.

## Financial health
- **Debt to equity: 0.25**. Debt is 0.25 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Kits Eyecare Ltd. holds more cash than debt.
- **Interest coverage: 5.0×**. Operating profit covers interest 5.0× over, a safe margin.
- **Current ratio: 1.34** (quick 0.82). Current assets cover the next year's liabilities 1.34 times.
- **Altman Z-score: 9.10**. A Z-score of 9.10 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: none**. Kits Eyecare Ltd. does not currently pay a dividend, but it returned 0.2% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover Kits Eyecare Ltd.; the consensus is buy, with an average price target of C$22.93 (+51% 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 -17.0%, 3-mo 10.9%). The shares are down 9.2% over twelve months including dividends.
- **From 52-week high: -32.6%** (43.4% above the low). Trading 33% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 1.09** (volatility 51%). Beta of 1.09 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KITS.TO · Page: https://foliofundamentals.com/stocks/kits.to

Not investment advice.