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Highlights
- One of the companies listed here posted a return on equity of 487.23 per cent.
- One of the stocks among them noted a price-to-earnings ratio of 72.70.
- One of the stocks mentioned below experienced a surge of more than 126 per cent in the past year.
The outbreak of COVID-19, undoubtedly, took a toll on retail brands and the industry. The temporary shutdown of the stores directly affected the normalcy of retail businesses. However, there are some retail companies which tackled the pandemic situation gracefully and are expected to outperform the pre-pandemic levels.
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On that front, let us explore some of the retail companies listed on the Toronto Stock Exchange (TSX) which are may grow in the post-pandemic phase.
1. Dollarama Inc. (TSX:DOL)
The Montreal-based retailer Dollarama Inc. witnessed its scrip closing at C$ 55.76 apiece, on Friday, October 8, up by about one per cent. This marked more than an eight per cent slip from its 52-week high of C$ 60.87 on August 20.
The retailer’s scrip rose by more than seven per cent on a year-to-date (YTD) basis and climbed nearly eight per cent in the past year.
Dollarama, in its latest quarter, posted an increase in sales of 1.6 per cent year-over-year (YoY) to C$ 1.03 billion. It reported a net income of C$ 146.2 million in the second quarter of fiscal 2021, up from that of C$ 142.5 million in the same quarter a year ago.
The retail company is expected to pay a quarterly dividend of C$ 0.05 per share to its shareholders on November 5 (ex-dividend-date October 7).
On Tuesday, October 12, the C$ 16 billion market cap company held its earnings per share (EPS) at 1.93, a price-to-earnings (P/E) ratio of 28.90, a price-to-book (P/B) ratio of 122.911, and a return on equity (ROE) of 487.23 per cent.
2. Jamieson Wellness Inc. (TSX:JWEL)
The Canadian natural health firm Jamieson Wellness Inc. saw its stock wrapping at C$ 37.74 apiece on Friday, October 8. In the last one year, its scrip slumped by approximately 10 per cent, however, it experienced a YTD growth of more than four per cent.
Its stock increased by nearly 11 per cent in the past three months and grew by more than four per cent on a quarter-to-date (QTD) basis.
The Toronto headquartered health brand operator reported a rise of 18.6 per cent in its revenue to C$ 110.6 million in Q2 2021, up from that of C$ 93.2 million in the same quarter of 2021. This increase resulted from 10.9 per cent revenue growth from Jamieson Brands and 48.9 per cent growth in Strategic Partners.
The firm recorded net earnings of C$ 11.5 million in its latest quarter corresponding to that of C$ 6 million in the same quarter of the previous year.
The health products provider held an EPS of 1.14, a P/E ratio of 33.10, an ROE of 15.74 per cent, a return on assets (ROA) of 7.49 per cent and a dividend yield of 1.59 per cent, at the time of writing.
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3. Leon’s Furniture Limited (TSX:LNF)
One of the largest home furnishing retailers of Canada, Leon’s Furniture Limited, noted a jump of 2.808 per cent to C$ 24.16 per share at market close on October 8. Its stock surged by nearly 36 per cent in the past year and climbed about 24 per cent in the last nine months.
The Toronto-based furniture provider reached its 52-week high of C$ 25 on September 23, which is more than three per cent above the closing price on October 8.
Leon’s Furniture Limited, in the second quarter of 2021, reported revenue growth of 41.2 per cent YoY to C$ 588.5 million and an adjusted net income of C$ 46.6 million.
At the time of writing, the company held an EPS of 2.42, P/E ratio of 10, an ROE of 18.96 per cent, an ROA of 8.58 per cent and a dividend yield of 2.649 per cent.
Leon’s Furniture was expected to pay a quarterly dividend of C$ 0.16 per share to its shareholders on October 8.
4. Aritzia Inc. (TSX:ATZ)
The fashion house Aritzia Inc. witnessed a surge in its stock price of more than 126 per cent in the past year. On a YTD basis, its stock climbed about 63 per cent and expanded by almost 34 per cent in the last six months.
At the market close of Friday, October 8, its stock was priced at C$ 42.15, up by 0.309 per cent. At this point, its stock had slipped by nearly four per cent from its 52-week high of C$ 43.825 (September 17).
For the first quarter of fiscal 2022, the integrated fashion retailer posted a YoY increase of 121.7 per cent to C$ 246.9 million in its net revenue and adjusted net income amounted to C$ 0.19 per share.
The C$ 3 billion market cap firm held a P/E ratio of 72.7, a P/B ratio of 11.63, a debt-to-equity (D/E) ratio of 1.51, and an ROE of 18.84 per cent on October 12.
Aritzia is about to release the financial results for the second quarter of fiscal 2022 after the market close on Wednesday, October 13.
5. Alimentation Couche-Tard Inc. (TSX:ATD.B)
The Quebec-based convenience store operator Alimentation Couche-Tard's stock dipped about one per cent to C$ 47.68 apiece, at the market close on October 8. Its scrip jumped more than 15 per cent in the past nine months and surged by nearly 10 per cent on a YTD basis.
The Laval-headquartered retailer scored its 52-week high of C$ 52.28 on August 23.
The company, in the first quarter of fiscal 2022, recorded net earnings of C$ 764.4 million compared to that of C$ 777.1 million in the same quarter of 2021.
Alimentation Couch-Tard noted an EPS of 3.04, a P/E ratio of 15.70, D/E ratio of 0.77, an ROE of 22.78 per cent, an ROA of 9.68 per cent and a dividend yield of 0.734 per cent, at the time of writing.
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Bottom line
With the increasing vaccination rates and relaxations in Covid-19 restrictions, these retail companies possess the opportunity to perform better and perhaps even exceed the pre-pandemic levels assuming they implement the right strategies to capture the market.
