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Reitmans Ord Shs V.RET

Alternate Symbol(s):  RTMNF | RTMAF | V.RET.A

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.


TSXV:RET - Post by User

Post by RedeyeGarf2on Feb 16, 2023 12:35pm
121 Views
Post# 35290162

Don't look at history to value your stock

Don't look at history to value your stock Suncor is trading at 6x earnings right now. In the past it trades above 20x earnings.

Will History repeat itself with the oil stocks, I don't thinks so.

With Reitmans - one does not want to look to far out into the future to value this stock.

In 2010 (go to the website and download the annual statements), Reitmans had 1 B in sales, book value was 7.90 per share, 51M was paid out in dividend, they had over 900 stores, net earnings (after paying tax) is 1.30 per share. 

In 2023, Reitman has 800K in sales, book value is 4.80, 0 in dividend, 400 stores, net earnings (no taxes paid due to past losses) is 1.09 (est). 

A reasonable valuation for this stock in the near future is closer to $6-$12 range based on (Cash (68M) + property (150M) + cash flow X 5). If you are more optimistic, use a higher multiple. 
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