The Canadian retail stocks on our list are trading at attractive prices relative to their peers
SmallCapPower | December 7, 2017: With the holiday shopping season upon us, we have identified four retail stocks trading at attractive Forward EV/Sales multiples compared to their peer medians. The stocks on our list have returned 8.75% M/M on average, and may still benefit from the upcoming holiday shopping season.
Perry Ellis International Inc. (NASDAQ:PERY) – $24.21
Apparel & Accessories Retailers
Perry Ellis is a clothing retailer that operates a portfolio of its own brands along with licensing agreements with a variety of other brands. The Company sells its products through a variety of distributers including department stores, retail chains and its e-commerce platform.
- Market Cap: $379 Million
- Month over Month Return: 8.4%
- Forward Enterprise Value to Sales (FY2018): 0.40x
- Industry Median EV/Sales: 2.1x
Reitmans Canada Ltd. (TSX:RET.A) – $4.40
Apparel & Accessories Retailers
Founded in 1926, Reitmans is one of Canada’s largest women’s specialty retailers. The Company operates over 650 stores country wide, along with existing e-commerce channels, employing 8,000 individuals.
- Market Cap: $277 Million
- Month over Month Return: -6.2%
- Forward Enterprise Value to Sales (FY2018): 0.10x
- Industry Median EV/Sales: 0.90x
Roots Corp. (TSX:ROOT) – $10.55
Apparel & Accessories Retailers
Established in 1973, Roots is a retailer of apparel, leather goods, accessories and footwear. The franchise has over 250 stores, of which 120 are corporate owned. During the last fiscal year, Roots shipped products to customers in 54 countries worldwide.
- Market Cap: $444 Million
- Month over Month Return: 13.4%
- Forward Enterprise Value to Sales (FY2018): 1.40x
- Industry Median EV/Sales: 1.70x
Aritzia Inc. (TSX:ATZ) – $12.46
Apparel & Accessories Retailers
Aritzia operates as a women’s fashion retailer that designs apparel and accessories for a collection of exclusive brands that sell under the Aritzia banner. The Company operates over 80 retail stores along with an e-commerce business. Aritzia is one of the fastest-growing women’s retail brands in the world, as its revenues has grown at a 21% CAGR since 2005.
- Market Cap: $690 Million
- Month over Month Return: 19.4%
- Forward Enterprise Value to Sales (FY2018): 1.90x
- Industry Median EV/Sales: 1.70x
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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