Section1: Company Overview

Empire Co Ltd (TSX: EMP.A) key businesses are food retailing, investments, and other operations. The food retail division operates through Empire's subsidiary Sobeys and represents nearly all the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.

This Report covers the Key Recommendation Rationale, Valuation, Target Price, and Recommendation on the stock.

1.1 Key Recommendation Rationale

Section 2:  Stock Recommendation Summary

2.1 Valuation Methodology

Valuation Methodology (Illustrative): EV to Sales based Relative Valuation

2.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~7.94% and ~15.24% over the last 1 month and 3 months respectively. Moreover, the stocks is trading above the average 52-week high price of CAD 50.65 and the 52-week low price of CAD 31.60, providing an opportunity to exit, as the stock might make some correction.

2.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of April 24, 2025). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 24, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.