EMLAF - Empire Company Q4: Investors May Have Checked Out Time To Bag Both Growth And Value

2024-06-25 10:05:37 ET

Summary

• Empire owns several grocery banners including Sobeys, Safeway, IGA, Farm Boy, and Longo’s.
• Over the years, the company has delivered steady results in both revenue and EBITDA.
• The latest quarter was somewhat unremarkable, but there are reasons to be optimistic with opportunities for cost-cutting, share buybacks, store optimization, and private label.
• At 6.4x forward EBITDA and 11.4x forward earnings, the company has rarely been this cheap and trades at a wide discount to peers.

Please note all in , not , unless otherwise stated.

Introduction

If you've never heard of Empire Company Limited ( EMP.A:CA ) before, you've most certainly shopped at (or at least heard of) a few of their stores. Empire is the holding company that owns the Sobeys, Safeway, IGA, Farm Boy, and Longo's grocery banners. Empire also owns a 41.5% stake in Crombie Real Estate Investment Trust ( CRR.UN:CA ), a real estate investment trust that owns much of the real estate the company's stores sit on....

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