Sleep Country Canada Holdings Inc.
Sleep Country Canada Holdings Inc. Fundamental Analysis
Sleep Country Canada Holdings Inc. (SCCAF) shows weak financial fundamentals with a PE ratio of 17.18, profit margin of 7.61%, and ROE of 17.02%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCCAF's fundamental strength across five key dimensions:
Efficiency Score
WeakSCCAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSCCAF trades at attractive valuation levels.
Growth Score
ModerateSCCAF shows steady but slowing expansion.
Financial Health Score
WeakSCCAF carries high financial risk with limited liquidity.
Profitability Score
ModerateSCCAF maintains healthy but balanced margins.
Key Financial Metrics
Is SCCAF Expensive or Cheap?
P/E Ratio
SCCAF trades at 17.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCCAF's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Sleep Country Canada Holdings Inc. at 2.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.91 times EBITDA. This is generally considered low.
How Well Does SCCAF Make Money?
Net Profit Margin
For every $100 in sales, Sleep Country Canada Holdings Inc. keeps $7.61 as profit after all expenses.
Operating Margin
Core operations generate 15.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.02 in profit for every $100 of shareholder equity.
ROA
Sleep Country Canada Holdings Inc. generates $6.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sleep Country Canada Holdings Inc. produces operating cash flow of $127.06M, showing steady but balanced cash generation.
Free Cash Flow
Sleep Country Canada Holdings Inc. produces free cash flow of $84.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.49 in free cash annually.
FCF Yield
SCCAF converts 7.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SCCAF Stacks Against Its Sector Peers
| Metric | SCCAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.18 | 25.25 | Better (Cheaper) |
| ROE | 17.02% | 1170.00% | Weak |
| Net Margin | 7.61% | 742.00% | Weak |
| Debt/Equity | 1.15 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.86 | 9.19 | Weak Liquidity |
| ROA | 6.40% | -6467.00% (disorted) | Weak |
SCCAF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sleep Country Canada Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary