Is it a good company at a reasonable price? I am not particularly fond of consumer stocks. Some seem fine, but a lot do not seem to do well over the long term. This consumer stock is into fashion and fashion is not exactly a long term thing. I wonder about all the complaints in the reviews of the clothes Reitman is selling. On the other hand, it would seem that the company is doing somewhat better and it would also seem to be cheap. It would also be a rather high risk stock.
I do not own this stock of Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF). 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. My total loss was 32.10% per year with 40.75% from capital loss and 8.65% from dividends. I did not have much invested as this was a fashion store type company.
When I was updating my spreadsheet, I noticed that this company is digging itself out of its bankruptcy problems. It is making a profit. Unfortunately, the EPS it is making has been going down for the last 4 years. It has made a profit for people who have held this stock for 5 years. For investor who have had this company for 10 to 20 years, there is no profit. Note that the company has year ending around January 31 each year.
If you had invested in this company in December 2014, for $1,002.30 you would have bought 130 shares at $7.71 per share. In December 2024, after 10 years you would have received $123.50 in dividends. The stock would be worth $318.50. Your total return would have been $442.00. This would be a total loss of 9.22% per year with 10.83% from capital loss and 1.62% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $7.71 | $1,002.30 | 130 | 10 | $123.50 | $318.50 | $442.00 |
If you had invested in this company in December 2019, for $1,001.80 you would have bought 863 shares at $1.16 per share. In December 2024, after 5 years you would have received $0 in dividends. The stock would be worth $2,114.53. Your total return would have been $2,114.35. This would be a total return of 16.13% per year with 16.13% from capital gain and 0.00% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $1.16 | $1,001.08 | 863 | 5 | $0.00 | $2,114.35 | $2,114.35 |
This company no longer pays a dividend, so there is no current dividend yield and no Dividend Payout Ratios (DPR).
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. They have no long term debt. The Liquidity Ratio for 2024 is good at 2.06 and 2.06 currently. The Debt Ratio for 2024 is good at 2.07 and 2.07 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.94 and 0.94 and currently at 1.94 and 0.94.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 0.00 | 0.00 |
| Intang/GW | 0.01 | 0.01 |
| Liquidity | 2.06 | 2.06 |
| Liq. + CF | 2.73 | 2.73 |
| Debt Ratio | 2.07 | 2.07 |
| Leverage | 1.94 | 1.94 |
| D/E Ratio | 0.94 | 0.94 |
The Total Return per year is shown below for years of 5 to 37 to the end of 2024. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 16.13% | 16.13% | 0.00% |
| 2014 | 10 | 0.00% | -9.22% | -10.83% | 1.62% |
| 2009 | 15 | 0.00% | -9.25% | -12.03% | 2.78% |
| 2004 | 20 | 0.00% | -3.56% | -8.44% | 4.88% |
| 1999 | 25 | 0.00% | 12.60% | -0.18% | 12.77% |
| 1994 | 30 | 0.00% | 11.25% | 0.78% | 10.47% |
| 1989 | 35 | 0.00% | 8.71% | 0.55% | 8.16% |
| 1987 | 37 | 0.00% | 7.92% | 0.43% | 7.49% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.50, 1.36 and 2.23. The corresponding 10 year ratios are 0.27, 0.87 and 1.46. The corresponding historical ratios are 9.68, 12.24 and 15.28. The current ratio is 9.54 based on a stock price of $2.29 and EPS for last 12 months of $0.24. This ratio is above the low ratio of the 10 year median ratios. However, the 5 and 10 year P/E Ratios are exceedingly low. Generally, any ratio below 10.00 is considered cheap.
I have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.50, 1.36 and 2.23. The corresponding 10 year ratios are 0.28, 0.89 and 1.50. The current P/AEPS Ratio is 9.54 based on a stock price of $2.29 and AEPS for last 12 months of $0.24. This ratio is above the low ratio of the 10 year median ratios. However, the 5 and 10 year P/E Ratios are exceedingly low. Generally, any ratio below 10.00 is considered cheap. The EPS and AEPS is often the same.
I get a Graham Price of $5.68. The 10-year low, median, and high median Price/Graham Price Ratios are 0.38, 0.60 and 0.89. The current P/GP Ratio is 0.40 based on a stock price of $2.29. The current ratio is between the low and median 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 0.68. The current P/B Ratio is 0.38 based on a stock price of $2.29, Book Value of $296M and Book Value per Share of $5.98. The current ratio is 44% 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 1.98. The current ratio is 1.09 based on a stock price of $2.29, Cash Flow for the last 12 months of $104M, and Cash Flow per Share of $2.10. The current ratio is 45% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any dividend yield tests as this company does not currently pay a dividend.
The 10-year median Price/Sales (Revenue) Ratio is 0.19. The current ratio is 0.15 based on a stock price of $2.29, Revenue for the last 12 months of $774M and Revenue per Share of $15.45. The current ratio is 22% 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 but could be just reasonable. The P/S Ratio test says this the stock price is cheap. However, the P/GP Ratio test just says it is reasonable. However, the P/E Ratio counts in the P/GP Ratio and these ratios are really low. The P/B Ratio test is a good one and it says that the stock price is cheap as does the P/CF Ratio test.
When I look at analysts’ recommendations, I find a Hold (1). The consensus would be a Hold. The 12 month target price is $5.00. There is only one target price. This target price suggests a total return of 118.34% with all this from capital gain. No one seems to be giving out estimates for this stock except for the 12 month stock price target.
There is only one comment on Stock Chase for 2025. He says he sees a big upside, but sees as an issue the fact that the company does not want to return to the TSX. Andrew Button on Motley Fool says it is a deep value stock that got suffer major damage during covid. That is true, but it is also true that the stock peak a lot earlier in 2010. As far as I can see there is only one entry on Motley Fool for this company. The company put out a Press Release via Newswire about their fourth quarter of 2025.
This stock is not well followed and I could not find any write ups on this stock. Simply Wall Street has one warning of does not have a meaningful market cap (CA$85M). I was hunting around for reviews on this company and came across one for reviews. The reviews from customers were not good. There was another reviews site I came across. Most of the reviews are awful. I would think people more likely to put in a store review if they had problems than if they were happy with purchases. But still, it does not sound good with all these poor reviews. However, on the job review site of Indeed it sounds like it was a reasonable place to work.
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.
The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be RB Global Inc (TSX-RBA, NYSE-RBA) ... learn more on Monday, June 2, 2025 around 5 pm.
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