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Sleep Country Canada Holdings

TSX:ZZZ
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZZZ
TSX
CA$734M
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Sleep Country Canada Holdings Inc., together with its subsidiaries, engages in retailing mattress and bedding related products in Canada. The last earnings update was 14 days ago. More info.


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ZZZ Share Price and Events
7 Day Returns
1.1%
TSX:ZZZ
-0.7%
CA Specialty Retail
1.1%
CA Market
1 Year Returns
-7.3%
TSX:ZZZ
-20.7%
CA Specialty Retail
6.9%
CA Market
ZZZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sleep Country Canada Holdings (ZZZ) 1.1% -6.4% -4.5% -7.3% -30.4% -
CA Specialty Retail -0.7% -2.9% -6.6% -20.7% -28.7% -39.4%
CA Market 1.1% 2.6% 4.6% 6.9% 8% 8.6%
1 Year Return vs Industry and Market
  • ZZZ outperformed the Specialty Retail industry which returned -20.7% over the past year.
  • ZZZ underperformed the Market in Canada which returned 6.9% over the past year.
Price Volatility
ZZZ
Industry
5yr Volatility vs Market

ZZZ Value

 Is Sleep Country Canada Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sleep Country Canada Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sleep Country Canada Holdings.

TSX:ZZZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ZZZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.855 (1 + (1- 26.5%) (65.75%))
1.18
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.18 * 5.96%)
8.98%

Discounted Cash Flow Calculation for TSX:ZZZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sleep Country Canada Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:ZZZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.98%)
2020 92.64 Analyst x3 85.01
2021 90.00 Analyst x1 75.78
2022 88.85 Est @ -1.28% 68.65
2023 88.57 Est @ -0.31% 62.80
2024 88.90 Est @ 0.37% 57.84
2025 89.64 Est @ 0.84% 53.52
2026 90.69 Est @ 1.17% 49.69
2027 91.97 Est @ 1.4% 46.23
2028 93.41 Est @ 1.57% 43.09
2029 94.98 Est @ 1.68% 40.20
Present value of next 10 years cash flows CA$582.00
TSX:ZZZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$94.98 × (1 + 1.95%) ÷ (8.98% – 1.95%)
CA$1,377.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,377.31 ÷ (1 + 8.98%)10
CA$583.00
TSX:ZZZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$582.00 + CA$583.00
CA$1,165.00
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,165.00 / 37.15
CA$31.36
TSX:ZZZ Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$31.36
Current discount Discount to share price of CA$19.75
= -1 x (CA$19.75 - CA$31.36) / CA$31.36
37%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sleep Country Canada Holdings is available for.
Intrinsic value
37%
Share price is CA$19.75 vs Future cash flow value of CA$31.36
Current Discount Checks
For Sleep Country Canada Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sleep Country Canada Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sleep Country Canada Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sleep Country Canada Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sleep Country Canada Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ZZZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$1.48
TSX:ZZZ Share Price ** TSX (2019-11-13) in CAD CA$19.75
Canada Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 12.94x
Canada Market PE Ratio Median Figure of 517 Publicly-Listed Companies 14.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sleep Country Canada Holdings.

TSX:ZZZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ZZZ Share Price ÷ EPS (both in CAD)

= 19.75 ÷ 1.48

13.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sleep Country Canada Holdings is overvalued based on earnings compared to the CA Specialty Retail industry average.
  • Sleep Country Canada Holdings is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Sleep Country Canada Holdings's expected growth come at a high price?
Raw Data
TSX:ZZZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
10.4%per year
North America Specialty Retail Industry PEG Ratio Median Figure of 49 Publicly-Listed Specialty Retail Companies 2.17x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1.04x

*Line of best fit is calculated by linear regression .

TSX:ZZZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.39x ÷ 10.4%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sleep Country Canada Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sleep Country Canada Holdings's assets?
Raw Data
TSX:ZZZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$8.31
TSX:ZZZ Share Price * TSX (2019-11-13) in CAD CA$19.75
Canada Specialty Retail Industry PB Ratio Median Figure of 13 Publicly-Listed Specialty Retail Companies 1.31x
Canada Market PB Ratio Median Figure of 2,288 Publicly-Listed Companies 1.28x
TSX:ZZZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ZZZ Share Price ÷ Book Value per Share (both in CAD)

= 19.75 ÷ 8.31

2.38x

* Primary Listing of Sleep Country Canada Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sleep Country Canada Holdings is overvalued based on assets compared to the CA Specialty Retail industry average.
X
Value checks
We assess Sleep Country Canada Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Sleep Country Canada Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZZZ Future Performance

 How is Sleep Country Canada Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sleep Country Canada Holdings expected to grow at an attractive rate?
  • Sleep Country Canada Holdings's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Sleep Country Canada Holdings's earnings growth is positive but not above the Canada market average.
  • Sleep Country Canada Holdings's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ZZZ Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ZZZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 10.4%
TSX:ZZZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.3%
Canada Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 27.8%
Canada Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ZZZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ZZZ Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 759 138 63 6
2019-12-31 708 123 59 6
2019-11-14
TSX:ZZZ Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 686 114 55
2019-06-30 660 87 57
2019-03-31 637 75 57
2018-12-31 623 68 60
2018-09-30 616 79 61
2018-06-30 609 81 60
2018-03-31 598 81 59
2017-12-31 587 93 59
2017-09-30 569 85 56
2017-06-30 553 73 54
2017-03-31 541 63 53
2016-12-31 524 54 50

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sleep Country Canada Holdings's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
  • Sleep Country Canada Holdings's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ZZZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Sleep Country Canada Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ZZZ Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-11-14
TSX:ZZZ Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 1.48
2019-06-30 1.54
2019-03-31 1.54
2018-12-31 1.61
2018-09-30 1.65
2018-06-30 1.62
2018-03-31 1.58
2017-12-31 1.58
2017-09-30 1.48
2017-06-30 1.44
2017-03-31 1.40
2016-12-31 1.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sleep Country Canada Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sleep Country Canada Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sleep Country Canada Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZZZ Past Performance

  How has Sleep Country Canada Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sleep Country Canada Holdings's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sleep Country Canada Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Sleep Country Canada Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sleep Country Canada Holdings's 1-year earnings growth is negative, it can't be compared to the CA Specialty Retail industry average.
Earnings and Revenue History
Sleep Country Canada Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sleep Country Canada Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ZZZ Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 685.99 54.75 163.16
2019-06-30 659.91 56.99 137.44
2019-03-31 637.02 57.10 142.53
2018-12-31 622.98 59.64 142.76
2018-09-30 616.49 61.18 135.47
2018-06-30 608.79 60.28 152.13
2018-03-31 598.02 59.26 145.44
2017-12-31 586.95 59.25 128.21
2017-09-30 568.76 55.57 122.56
2017-06-30 553.41 54.15 119.31
2017-03-31 540.70 52.59 117.84
2016-12-31 523.79 49.57 115.14
2016-09-30 507.46 47.02 108.51
2016-06-30 489.56 38.95 105.49
2016-03-31 471.87 -21.82 103.39
2015-12-31 456.19 -52.87 102.87
2015-09-30 437.73 -63.31 98.03
2015-06-30 416.21 -72.55 95.95
2015-03-31 406.35 -50.86 96.95
2014-12-31 396.09 -31.00 96.90
2013-12-31 353.92 0.54 50.23
2012-12-31 332.58 2.98 42.64

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sleep Country Canada Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sleep Country Canada Holdings used its assets more efficiently than the CA Specialty Retail industry average last year based on Return on Assets.
  • Sleep Country Canada Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sleep Country Canada Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sleep Country Canada Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZZZ Health

 How is Sleep Country Canada Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sleep Country Canada Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sleep Country Canada Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sleep Country Canada Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sleep Country Canada Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sleep Country Canada Holdings Company Filings, last reported 1 month ago.

TSX:ZZZ Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 308.88 175.00 48.00
2019-06-30 293.77 174.92 14.93
2019-03-31 288.61 174.63 13.64
2018-12-31 303.74 170.72 29.99
2018-09-30 296.35 105.61 32.93
2018-06-30 278.56 112.68 17.00
2018-03-31 272.23 112.80 11.84
2017-12-31 267.17 107.81 23.62
2017-09-30 292.93 102.10 28.78
2017-06-30 275.61 121.26 23.72
2017-03-31 269.91 119.74 18.58
2016-12-31 251.30 119.20 23.82
2016-09-30 258.82 119.34 16.39
2016-06-30 242.59 129.40 8.85
2016-03-31 237.42 139.79 21.57
2015-12-31 233.59 124.95 16.64
2015-09-30 229.11 156.13 47.02
2015-06-30 44.74 329.03 24.59
2015-03-31 95.99 251.90 13.49
2014-12-31 107.33 265.21 41.33
2013-12-31 128.97 221.00 27.40
2012-12-31
  • Sleep Country Canada Holdings's level of debt (56.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (225.5% vs 56.7% today).
  • Debt is well covered by operating cash flow (65.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).
X
Financial health checks
We assess Sleep Country Canada Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sleep Country Canada Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZZZ Dividends

 What is Sleep Country Canada Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.95%
Current annual income from Sleep Country Canada Holdings dividends. Estimated to be 4.08% next year.
If you bought CA$2,000 of Sleep Country Canada Holdings shares you are expected to receive CA$79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sleep Country Canada Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Sleep Country Canada Holdings's dividend is below the markets top 25% of dividend payers in Canada (5.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ZZZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ZZZ Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.84 3.00
2019-12-31 0.77 3.00
2019-11-14
TSX:ZZZ Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-10-31 0.780 3.975
2019-08-08 0.780 3.713
2019-05-06 0.780 4.137
2019-02-05 0.740 3.735
2018-11-01 0.740 3.501
2018-08-02 0.740 2.501
2018-05-07 0.740 2.281
2018-03-01 0.660 1.891
2017-08-03 0.660 1.934
2017-08-02 0.660 1.766
2017-05-09 0.660 1.671
2017-02-03 0.600 1.855
2016-11-01 0.600 2.081
2016-07-28 0.600 1.944
2016-05-10 0.520 2.199
2016-01-29 0.520 2.803
2015-11-03 0.520 2.998

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Sleep Country Canada Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Sleep Country Canada Holdings only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Sleep Country Canada Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sleep Country Canada Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sleep Country Canada Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sleep Country Canada Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZZZ Management

 What is the CEO of Sleep Country Canada Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Friesema
COMPENSATION CA$1,517,734
AGE 52
TENURE AS CEO 5 years
CEO Bio

Mr. David Friesema also known as Dave, has been Chief Executive Officer of Sleep Country Canada Holdings Inc. since November 2014. Mr. Friesema serves as the Chief Executive Officer of Sleep Country Canada Inc. He serves as an Executive Vice President of Eastern Canada at Sleep Country Canada Inc., a subsidiary of Sleep Country Canada Income Fund. He serves as Chief Operating Officer of Eastern Canada of Sleep Country Inc. He served as Vice President of Eastern Canada of Sleep Country Canada Inc. He served as General Manager of Eastern Canada at Sleep Country Canada Inc. He has been employed with Sleep Country since 1995. He has been involved in developing many of the sales training programs, creative marketing advertisements and influencing the advance positioning of Sleep Country. Prior to Sleep Country, he helped establish and manage mattress retail organizations in the United States. His prior experience also includes several years in the liquid petroleum industry. He serves as Chairman of the Better Sleep Council of Canada. He has been a Director of Sleep Country Canada Holdings Inc. since May 27, 2015.He serves as a Director of Drug Free Kids Canada. He served as Board Member of Shelternet for Abused Women. He attended the University of Detroit Business School and the University of Missouri-St. Louis School of Psychology.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Sleep Country Canada Holdings management team in years:

7.8
Average Tenure
53.5
Average Age
  • The average tenure for the Sleep Country Canada Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Christine Magee

TITLE
Executive Chairman
COMPENSATION
CA$281K
AGE
59

Dave Friesema

TITLE
CEO & Director
COMPENSATION
CA$2M
AGE
52
TENURE
5 yrs

Sieg Will

TITLE
Senior Vice-President of Operations
COMPENSATION
CA$723K
AGE
53
TENURE
7.8 yrs

Stewart Schaefer

TITLE
Chief Business Development Officer & Corporate Secretary
COMPENSATION
CA$1M
AGE
54

Dave Howcroft

TITLE
Chief Sales Officer
COMPENSATION
CA$893K
AGE
48
TENURE
7.8 yrs

Craig De Pratto

TITLE
Chief Financial Officer
TENURE
0.2 yrs

Eric Solomon

TITLE
Senior Vice-President of Merchandising & Marketing
AGE
61
TENURE
7.8 yrs

Prajakta Raut

TITLE
Vice President of Corporate Accounting
Board of Directors Tenure

Average tenure and age of the Sleep Country Canada Holdings board of directors in years:

4
Average Tenure
59
Average Age
  • The tenure for the Sleep Country Canada Holdings board of directors is about average.
Board of Directors

Dave Friesema

TITLE
CEO & Director
COMPENSATION
CA$2M
AGE
52
TENURE
4.5 yrs

Doug Bradley

TITLE
Independent Director
COMPENSATION
CA$100K
AGE
67
TENURE
4.3 yrs

Christine Magee

TITLE
Executive Chairman
COMPENSATION
CA$281K
AGE
59
TENURE
0.5 yrs

John Cassaday

TITLE
Independent Director
COMPENSATION
CA$100K
AGE
65
TENURE
4.3 yrs

Andrew R. Moor

TITLE
Independent Director
COMPENSATION
CA$100K
AGE
59
TENURE
4.3 yrs

David Shaw

TITLE
Lead Director
COMPENSATION
CA$100K
AGE
65
TENURE
3.8 yrs

Zabeen Hirji-Nowaczynski

TITLE
Independent Director
COMPENSATION
CA$60K
AGE
58
TENURE
1.3 yrs

Stacey Mowbray

TITLE
Director
AGE
57
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Sleep Country Canada Holdings individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
23. Aug 19 Buy Stacey Mowbray Individual 21. Aug 19 21. Aug 19 2,500 CA$21.05 CA$52,625
06. Sep 19 Buy Sieg Will Individual 04. Sep 19 04. Sep 19 63 CA$21.03 CA$1,325
06. Sep 19 Buy David Howcroft Individual 04. Sep 19 04. Sep 19 38 CA$21.03 CA$799
06. Sep 19 Buy David Friesema Individual 04. Sep 19 04. Sep 19 156 CA$21.03 CA$3,281
20. Aug 19 Sell Eric Solomon Individual 19. Aug 19 19. Aug 19 -2,785 CA$21.00 CA$-58,485
10. Jun 19 Buy Sieg Will Individual 05. Jun 19 05. Jun 19 70 CA$18.58 CA$1,301
10. Jun 19 Buy David Howcroft Individual 05. Jun 19 05. Jun 19 42 CA$18.58 CA$780
10. Jun 19 Buy David Friesema Individual 05. Jun 19 05. Jun 19 175 CA$18.58 CA$3,251
16. May 19 Buy James Bradley Individual 15. May 19 15. May 19 1,100 CA$19.20 CA$21,120
09. May 19 Buy James Bradley Individual 09. May 19 09. May 19 1,040 CA$18.67 CA$19,417
20. Mar 19 Sell Stewart Schaefer Individual 19. Mar 19 19. Mar 19 -20,000 CA$20.27 CA$-405,400
19. Mar 19 Sell Robert Masson Individual 19. Mar 19 19. Mar 19 -18,066 CA$20.06 CA$-362,404
18. Mar 19 Sell Robert Masson Individual 13. Mar 19 13. Mar 19 -4,009 CA$20.17 CA$-80,862
15. Mar 19 Buy Zabeen Hirji-Nowaczynski Individual 15. Mar 19 15. Mar 19 1,230 CA$20.28 CA$24,944
11. Mar 19 Buy David Howcroft Individual 08. Mar 19 08. Mar 19 3,119 CA$20.16 CA$62,879
04. Mar 19 Buy Sieg Will Individual 28. Feb 19 28. Feb 19 22 CA$22.36 CA$492
04. Mar 19 Buy Robert Masson Individual 28. Feb 19 28. Feb 19 22 CA$22.36 CA$492
04. Mar 19 Buy Stewart Schaefer Individual 28. Feb 19 28. Feb 19 46 CA$22.36 CA$1,029
04. Mar 19 Buy David Friesema Individual 28. Feb 19 28. Feb 19 55 CA$22.36 CA$1,230
19. Dec 18 Buy David Howcroft Individual 18. Dec 18 18. Dec 18 217 CA$21.10 CA$4,579
17. Dec 18 Buy Sieg Will Individual 14. Dec 18 14. Dec 18 27,500 CA$21.15 CA$581,625
X
Management checks
We assess Sleep Country Canada Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sleep Country Canada Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZZZ News

Simply Wall St News

Have Sleep Country Canada Holdings Inc. (TSE:ZZZ) Insiders Been Selling Their Stock?

Check out our latest analysis for Sleep Country Canada Holdings The Last 12 Months Of Insider Transactions At Sleep Country Canada Holdings In the last twelve months, the biggest single purchase by an insider was when Senior Vice-President of Operations Sieg Will bought CA$582k worth of shares at a price of CA$21.15 per share. … Over the last year we saw more insider selling of Sleep Country Canada Holdings shares, than buying. … TSX:ZZZ Recent Insider Trading, August 26th 2019 Insider Ownership of Sleep Country Canada Holdings Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Why Sleep Country Canada Holdings Inc. (TSE:ZZZ) Is A Dividend Rockstar

It's good to see Sleep Country Canada Holdings has been growing its earnings per share at 129% a year over the past 5 years. … Conclusion To summarise, shareholders should always check that Sleep Country Canada Holdings's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Second, the company has not been able to generate earnings growth, and its history of dividend payments too short for us to thoroughly evaluate the dividend's consistency across an economic cycle.

Simply Wall St -

What Does Sleep Country Canada Holdings Inc.'s (TSE:ZZZ) P/E Ratio Tell You?

Sleep Country Canada Holdings has a price to earnings ratio of 11.38, based on the last twelve months. … See our latest analysis for Sleep Country Canada Holdings How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Sleep Country Canada Holdings: P/E of 11.38 = CA$17.54 ÷ CA$1.54 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Is Sleep Country Canada Holdings Inc.’s (TSE:ZZZ) 11% Return On Capital Employed Good News?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sleep Country Canada Holdings: 0.11 = CA$88m ÷ (CA$865m - CA$90m) (Based on the trailing twelve months to March 2019.) So, Sleep Country Canada Holdings has an ROCE of 11%. … Sleep Country Canada Holdings's current ROCE of 11% is lower than its ROCE in the past, which was 16%, 3 years ago. … What Are Current Liabilities, And How Do They Affect Sleep Country Canada Holdings's ROCE?

Simply Wall St -

Who Has Been Selling Sleep Country Canada Holdings Inc. (TSE:ZZZ) Shares?

See our latest analysis for Sleep Country Canada Holdings Sleep Country Canada Holdings Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider purchase was by Senior Vice-President of Operations Sieg Will for CA$582k worth of shares, at about CA$21.15 per share. … All up, insiders sold more shares in Sleep Country Canada Holdings than they bought, over the last year. … TSX:ZZZ Recent Insider Trading, July 8th 2019 Sleep Country Canada Holdings Insiders Bought Stock Recently Over the last three months, we've seen a bit of insider buying at Sleep Country Canada Holdings.

Simply Wall St -

How Sleep Country Canada Holdings Inc. (TSE:ZZZ) Can Impact Your Portfolio Volatility

Check out our latest analysis for Sleep Country Canada Holdings What does ZZZ's beta value mean to investors? … Looking at the last five years, Sleep Country Canada Holdings has a beta of 0.85. … What this means for you: Since Sleep Country Canada Holdings is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments.

Simply Wall St -

Is It Too Late To Consider Buying Sleep Country Canada Holdings Inc. (TSE:ZZZ)?

Another thing to keep in mind is that Sleep Country Canada Holdings’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. … What kind of growth will Sleep Country Canada Holdings generate? … Sleep Country Canada Holdings’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead.

Simply Wall St -

Does Sleep Country Canada Holdings Inc.'s (TSE:ZZZ) CEO Pay Matter?

David Friesema has been the CEO of Sleep Country Canada Holdings Inc. … Check out our latest analysis for Sleep Country Canada Holdings How Does David Friesema's Compensation Compare With Similar Sized Companies? … You can see a visual representation of the CEO compensation at Sleep Country Canada Holdings, below.

Simply Wall St -

Is Sleep Country Canada Holdings Inc. (TSE:ZZZ) A High Quality Stock To Own?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sleep Country Canada Holdings: 20% = CA$57m ÷ CA$289m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Sleep Country Canada Holdings Have A Good Return On Equity? … Combining Sleep Country Canada Holdings's Debt And Its 20% Return On Equity It's worth noting the significant use of debt by Sleep Country Canada Holdings, leading to its debt to equity ratio of 1.68.

Simply Wall St -

Here's What You Should Know About Sleep Country Canada Holdings Inc.'s (TSE:ZZZ) 4.0% Dividend Yield

(TSE:ZZZ) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. With a four-year payment history and a 4.0% yield, many investors probably find Sleep Country Canada Holdings intriguing. It sure looks interesting on these metrics - but there's always more to the story . Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Looking at the data, we can see that Sleep Country Canada Holdings has been paying a dividend for the past four years. … It's good to see Sleep Country Canada Holdings has been growing its earnings per share at 131% a year over the past 5 years.

Simply Wall St -

ZZZ Company Info

Description

Sleep Country Canada Holdings Inc., together with its subsidiaries, engages in retailing mattress and bedding related products in Canada. The company offers a range of mattresses, adjustable lifestyle bases, box spring bases, pillows, duvets, sheets, headboards, footboards, frames, mattress and pillow protectors, platforms, and other sleep accessories. The company operates under the Dormez-vous, Sleep Country Canada, and Endy retail banners. As of October 15, 2019, it operated 276 stores and 17 distribution centers in Canada. It also sells its products through an e-commerce platform. The company was founded in 1994 and is headquartered in Brampton, Canada.

Details
Name: Sleep Country Canada Holdings Inc.
ZZZ
Exchange: TSX
Founded: 1994
CA$733,772,026
37,153,014
Website: http://www.sleepcountry.ca
Address: Sleep Country Canada Holdings Inc.
7920 Airport Road,
Brampton,
Ontario, L6T 4N8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ZZZ Common Shares The Toronto Stock Exchange CA CAD 16. Jul 2015
OTCPK SCCA.F Common Shares Pink Sheets LLC US USD 16. Jul 2015
DB 1S2 Common Shares Deutsche Boerse AG DE EUR 16. Jul 2015
Number of employees
Current staff
Staff numbers
1,373
Sleep Country Canada Holdings employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 00:43
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/11/04
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.