Is it a good company at a reasonable price? This stock price testing says that the stock price is cheap. However, a cheap stock is not always a good buy. This company is looking like it is trying to come back. I hope it succeeds, but it is hard to tell whether or not it will. I am no longer interested in having shares in this company, but I keep track of it because I am interested to see if it can come back.
I do not own this stock of Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF), but I used to. I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but it is taking too long. I sold in January 2021 and I lost money on this stock but did collect some dividends.
When I was updating my spreadsheet, I noticed that the investment community has lost all interest in this stock. I cannot find any estimates on any of the sites that normally carry them.
If you had invested in this company in December 2013, for $1,006.40 you would have bought 148 shares at $6.80 per share. In December 2023, after 10 years you would have received $170.20 in dividends. The stock would be worth $347.80. Your total return would have been $518.00. This would be a total loss of 7.76% per year with 9.00% from capital loss and 2.32% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $6.80 | $1,006.40 | 148 | 10 | $170.20 | $347.80 | $518.00 |
This company no longer pays dividends, so there is no dividend yield or Dividend Payout Ratios.
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2023 is good at 2.46 and 2.46 currently. The Debt Ratio for 2023 is good at 2.32 and 2.32 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.76 and 0.76.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 0.00 | 0.00 |
| Intang/GW | 0.01 | 0.01 |
| Liquidity | 2.46 | 2.46 |
| Liq. + CF | 3.13 | 3.13 |
| Debt Ratio | 2.32 | 2.32 |
| Leverage | 1.76 | 1.76 |
| D/E Ratio | 0.76 | 0.76 |
The Total Return per year is shown below for years of 5 to 36 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | -9.00% | -9.77% | 0.78% |
| 2013 | 10 | 0.00% | -7.76% | -10.08% | 2.32% |
| 2008 | 15 | 0.00% | -5.38% | -10.12% | 4.75% |
| 2003 | 20 | 0.00% | 4.63% | -4.87% | 9.51% |
| 1998 | 25 | 0.00% | 12.34% | -0.10% | 12.44% |
| 1993 | 30 | 0.00% | 7.81% | -0.68% | 8.48% |
| 1988 | 35 | 0.00% | 7.94% | 0.20% | 7.74% |
| 1987 | 36 | 0.00% | 7.93% | 0.33% | 7.61% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.05, 0.37 and 0.69. The corresponding 10 year ratios are 0.27, 0.87 and 1.46. The corresponding historical ratios are 9.72, 12.28 and 15.30. The current P/E Ratio is 7.83 based on a stock price of $2.35 and EPS for last 12 months of $0.30. The ratios are extremely low because of earning losses. The current ratio of 7.83 is considered low, as generally any ratio under 10.00 is considered low. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 0.06, 0.41 and 0.77. The corresponding 10 year ratios are 0.28, 0.89 and 1.50. The current P/AEPS is 7.87 based on a stock price of $2.35 and AEPS for last 12 months of 0.30. Here again the ratios are extremely low and 7.87 is a low ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $6.18. The 10-year low, median, and high median Price/Graham Price Ratios are 0.52, 1.10 and 1.31. The current P/GP Ratio is 0.38 based on a stock price of $2.35. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 0.83. The current P/B Ratio is 0.42 based on a Book Value of $279M, Book Value per Share of $5.66 and a stock price of $2.35. The current P/B Ratio is 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.42. The current P/CF Ratio is 1.66 based on Cash Flow for the last 12 months of $69.8M, Cash Flow per Share of $1.42 and a stock price of $2.35. The current ratio is 62% below the 10 year median ratio. This stock price testing suggests that the stock price is cheap.
I cannot do any dividend yield tests as dividends have been suspended.
The 10-year median Price/Sales (Revenue) Ratio is 0.23. The current P/S Ratio is 0.15 based on Revenue for the past 12 months of $795M, Revenue per Share of $16.12 and a stock price of $2.35. The current ratio is 37% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. The P/S Ratio test says this. The P/E Ratio and P/AEPS Ratio tests show very low ratios which could be taken as the stock price being cheap. The rest of the testing is pointing to a cheap price.
When I look at analysts’ recommendations, I find that only that the WSJ site has any Analysts Ratings and that rating is a Hold (1). The consensus would be a Hold. WSJ also gives a stock price target of $5.00. This would imply a total return of 112.77% all from capital gains. There seems to be little interest in this company from analysts.
There are no Stock Chase comments on this stock since 2019 when it was a TSX stock rather than a TSXV stock. Stock Chase gives this stock 1 star out of 5. Motley Fool authors have not talked about this stock since 2014. The company put out a press release via newswire about their fourth quarter in 2024.
Simply Wall Street gives this stock 2 and one half stars out of 5. There is an entry on Simply Wall Street for this stock. Simply Wall Street has two warnings of profit margins (1.9%) are lower than last year (9.6%); and does not have a meaningful market cap (CA$91M). The last time Simply Wall Street put out a report on this stock was 2019.
Reitmans (Canada) Ltd is an apparel retailer based in Canada. Its main business is the sale of ladies' specialty apparel to consumers. The group offers its products through the retail banners of Reitmans, Penningtons, and RW & CO. The Company's operating segments, operate in the women apparel business, in Canada. Its web site is here Reitmans (Canada) Ltd.
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