Sleep Country Canada Holdings

ZZZ-T

TSE:ZZZ

16.57
0.50 (3.11%)
Sleep Country Canada Inc. is a Canadian mattress retailer, with over 185 stores operating in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, PEI and Nova Scotia.
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Analysis and Opinions about ZZZ-T

Signal
Opinion
Expert
HOLD
HOLD
October 30, 2019
He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
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He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
PAST TOP PICK
PAST TOP PICK
August 27, 2019
(A Top Pick Aug 23/18, Down 31%) A victim of sentiment and they reported a couple of soft earnings quarters. Still opening new stores. A huge contraction in the PE multiple from 18 down to 11.5 times. It could be bought here. Yield 3.8%
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(A Top Pick Aug 23/18, Down 31%) A victim of sentiment and they reported a couple of soft earnings quarters. Still opening new stores. A huge contraction in the PE multiple from 18 down to 11.5 times. It could be bought here. Yield 3.8%
DON'T BUY
DON'T BUY
July 24, 2019
A dividend play? No. Their sales have struggled lately, and why do they have so many stores? They could rebound, and they have consolidated stores, but no reason to enter it.
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A dividend play? No. Their sales have struggled lately, and why do they have so many stores? They could rebound, and they have consolidated stores, but no reason to enter it.
DON'T BUY
DON'T BUY
June 3, 2019
He has looked at it many times over the years and has found it quite pricy. They reached a saturation point in the market. The stock is not reflecting high growth days going forward.
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He has looked at it many times over the years and has found it quite pricy. They reached a saturation point in the market. The stock is not reflecting high growth days going forward.
BUY
BUY
May 29, 2019
They announced results about 3 weeks ago and same store sales were down shockingly, yet the stock price did not drop materially -- he sees that as good support. The multiples are now more reasonable -- trading under 12 times earnings. He would be a buyer now. Yield 4.2%.
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They announced results about 3 weeks ago and same store sales were down shockingly, yet the stock price did not drop materially -- he sees that as good support. The multiples are now more reasonable -- trading under 12 times earnings. He would be a buyer now. Yield 4.2%.
DON'T BUY
DON'T BUY
May 7, 2019
He never understood its story when it came out. It did very well initially but has come back to earth. He's never owned it nor would. He'd sell it, based on weak results (negative same-store sales growth).
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He never understood its story when it came out. It did very well initially but has come back to earth. He's never owned it nor would. He'd sell it, based on weak results (negative same-store sales growth).
SELL
SELL
February 20, 2019
Reporting soon. Last results were not good. Negative sentiment in Canada because of high debt levels. Sold her position. New products have higher margins, so that contributed to growth. But that's slowed down. Not loving it here. (Analysts’ price target is $30.19)
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Reporting soon. Last results were not good. Negative sentiment in Canada because of high debt levels. Sold her position. New products have higher margins, so that contributed to growth. But that's slowed down. Not loving it here. (Analysts’ price target is $30.19)
BUY
BUY
January 30, 2019
He's recommended it before. There's been a malaise in the North American mattress space (i.e. Sears going under). They continue to do well online and will continue to grow their market share.
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He's recommended it before. There's been a malaise in the North American mattress space (i.e. Sears going under). They continue to do well online and will continue to grow their market share.
PAST TOP PICK
PAST TOP PICK
December 21, 2018
(A Top Pick Nov 30/17, Down 37%) The 2018 earnings have kept pace, the valuation multiples have simply collapsed. They trade at 7.3 times EBITDA versus historical levels of 11 times. They still see new store openings, maybe not with the same growth rate. Housing has slowed, which may slow sales. Still a great bet and very cheap. If he had new money, he would be buying.
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(A Top Pick Nov 30/17, Down 37%) The 2018 earnings have kept pace, the valuation multiples have simply collapsed. They trade at 7.3 times EBITDA versus historical levels of 11 times. They still see new store openings, maybe not with the same growth rate. Housing has slowed, which may slow sales. Still a great bet and very cheap. If he had new money, he would be buying.
WATCH
WATCH
December 3, 2018
This was a real high flying stock for so many years. They came out with disappointing same store sales growth just as Sears was closing down and they were expected to gain additional market share. They are buying an online mattress company. It may move the needle – time will tell.
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This was a real high flying stock for so many years. They came out with disappointing same store sales growth just as Sears was closing down and they were expected to gain additional market share. They are buying an online mattress company. It may move the needle – time will tell.
PAST TOP PICK
PAST TOP PICK
October 29, 2018

(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

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(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

WATCH
WATCH
October 26, 2018

One of the better IPO's and had run up a lot, but it has been struggling lately. It's facing competition from new players offering cheap beds. They're good operators, and they dominate the Canadian market share, especially since Sears went out of business. The valuation is not expensive and has decreased. It could possibly get bought. He's monitoring the stock.

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One of the better IPO's and had run up a lot, but it has been struggling lately. It's facing competition from new players offering cheap beds. They're good operators, and they dominate the Canadian market share, especially since Sears went out of business. The valuation is not expensive and has decreased. It could possibly get bought. He's monitoring the stock.

WATCH
WATCH
September 25, 2018

In general, he finds retail stocks hard to make money on, especially fashion-oriented ones. Sleep Country sells mattresses, not fashion goods, so it is more interesting to him. However, its market cap is too small for his investing approach. He has looked at it several times and has missed several good opportunities in the stock. The stock price has suffered over the past year after very strong growth in the years before that. There has been a proliferation of online providers of mattresses and they are competing effectively against companies like Sleep Country. Sleep Country has gone online as well, and he thinks they provide an excellent customer experience. However, he expects them to lose more share and he expects the stock price to go further down. At some point, the drop will be overdone and it will be a good company to buy. But not yet.

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In general, he finds retail stocks hard to make money on, especially fashion-oriented ones. Sleep Country sells mattresses, not fashion goods, so it is more interesting to him. However, its market cap is too small for his investing approach. He has looked at it several times and has missed several good opportunities in the stock. The stock price has suffered over the past year after very strong growth in the years before that. There has been a proliferation of online providers of mattresses and they are competing effectively against companies like Sleep Country. Sleep Country has gone online as well, and he thinks they provide an excellent customer experience. However, he expects them to lose more share and he expects the stock price to go further down. At some point, the drop will be overdone and it will be a good company to buy. But not yet.

TOP PICK
TOP PICK
August 23, 2018

Combination of valuation, same store sales and growth. Ticks on all boxes. Trading at 15 times earnings. Leader in their field. Great entry point. Yield 2.4% (Analysts’ price target is $39.11)

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Combination of valuation, same store sales and growth. Ticks on all boxes. Trading at 15 times earnings. Leader in their field. Great entry point. Yield 2.4% (Analysts’ price target is $39.11)

WEAK BUY
WEAK BUY
August 3, 2018

There are some US competitors who recently reported poor earnings. The mattress-in-a-box is a real threat to the industry. The recent earnings report showed same store sales growth of only 4.4%, from over 7% previously. He thinks there is an opportunity right now and would begin to step in as a buyer.

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There are some US competitors who recently reported poor earnings. The mattress-in-a-box is a real threat to the industry. The recent earnings report showed same store sales growth of only 4.4%, from over 7% previously. He thinks there is an opportunity right now and would begin to step in as a buyer.

PAST TOP PICK
PAST TOP PICK
April 20, 2018

(A Top Pick November 30/17 Up 2%) Concerns about the Canadian economy are weighing on this. Shoppers were given bargains following the Sears closure. Mattress in a box competition is growing, which they plan to roll out their own product to combat it.

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(A Top Pick November 30/17 Up 2%) Concerns about the Canadian economy are weighing on this. Shoppers were given bargains following the Sears closure. Mattress in a box competition is growing, which they plan to roll out their own product to combat it.

BUY
BUY
April 12, 2018

One of the stronger retailers in Canada. They meet his criteria for high return on equity. He thinks it is a good entry point. They are more reasonably priced this year than last because of higher earnings. They are adding stores and are an incredibly well run company. Possibly add to the position.

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One of the stronger retailers in Canada. They meet his criteria for high return on equity. He thinks it is a good entry point. They are more reasonably priced this year than last because of higher earnings. They are adding stores and are an incredibly well run company. Possibly add to the position.

COMMENT
COMMENT
February 28, 2018

They've introduced sheets and pillowcases which enjoy wider margins than mattresses, so they've been doing well. However, they face competition from Casper. Sure, they will grab Sears' market share, but Sears is now liquidating their beds at a discount. Three to five years this will be a buy, but not this year. Rather, own it for the longer term, like three years.

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They've introduced sheets and pillowcases which enjoy wider margins than mattresses, so they've been doing well. However, they face competition from Casper. Sure, they will grab Sears' market share, but Sears is now liquidating their beds at a discount. Three to five years this will be a buy, but not this year. Rather, own it for the longer term, like three years.

PAST TOP PICK
PAST TOP PICK
December 29, 2017

(A Top Pick Oct 20/17. Down 13%.) Sold this, because revenues have been coming off and the costs are rising. One of the short-term catalysts was Sears going bankrupt, and putting their mattresses on fire sale.

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(A Top Pick Oct 20/17. Down 13%.) Sold this, because revenues have been coming off and the costs are rising. One of the short-term catalysts was Sears going bankrupt, and putting their mattresses on fire sale.

BUY
BUY
December 4, 2017

They are a Canadian retail success story and there aren’t many of them. They dominate the space they are in. Their net income has been growing lately. They are taking their business model to on-line retailing. He is going to take another hard look at them.

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They are a Canadian retail success story and there aren’t many of them. They dominate the space they are in. Their net income has been growing lately. They are taking their business model to on-line retailing. He is going to take another hard look at them.

COMMENT
COMMENT
December 4, 2017

Chart shows this is coming back to its formal level of around $32 and has been sort of basing. It looks like the market really likes that level, and some of the indicators are starting to turn up. If not sure about the story, the easiest thing to do is to look at the bases the chart shows, and anything below around $32.25, there may be another leg down. Pretty attractive yield. If it breaks down, there is going to be a lot of buying between $32 and $26. Dividend yield of 2%+.

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Chart shows this is coming back to its formal level of around $32 and has been sort of basing. It looks like the market really likes that level, and some of the indicators are starting to turn up. If not sure about the story, the easiest thing to do is to look at the bases the chart shows, and anything below around $32.25, there may be another leg down. Pretty attractive yield. If it breaks down, there is going to be a lot of buying between $32 and $26. Dividend yield of 2%+.

TOP PICK
TOP PICK
November 30, 2017

It is a good entry point at these levels with the demise of Sears, who were liquidating everything they could. It hurt ZZZ-T temporarily. They have a great runway to open 12 or more stores for the next two years. They are back down to 18 times earnings. It is a great entry point. (Analysts’ target: $41.00).

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It is a good entry point at these levels with the demise of Sears, who were liquidating everything they could. It hurt ZZZ-T temporarily. They have a great runway to open 12 or more stores for the next two years. They are back down to 18 times earnings. It is a great entry point. (Analysts’ target: $41.00).

COMMENT
COMMENT
November 24, 2017

The stock had gotten a bit too expensive, and is still reasonably expensive at north of 20X earnings, but at the same time it is a very dependable business model, as most people would want to try a mattress before they bought it. A brick and mortar business that should live on. There is nothing not to like about this, other than the valuation.

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The stock had gotten a bit too expensive, and is still reasonably expensive at north of 20X earnings, but at the same time it is a very dependable business model, as most people would want to try a mattress before they bought it. A brick and mortar business that should live on. There is nothing not to like about this, other than the valuation.

PAST TOP PICK
PAST TOP PICK
November 23, 2017

(A Top Pick March 8/17. Up 4%.) Had a weak quarter with lower than expected sales and higher than expected costs in accessories, their high margin stuff. Sears bankruptcy should be good, but Sears is now liquidating their holdings which will create problems. Sold this at $33.79. It needs to be retesting the $37-$38 level before getting in.

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(A Top Pick March 8/17. Up 4%.) Had a weak quarter with lower than expected sales and higher than expected costs in accessories, their high margin stuff. Sears bankruptcy should be good, but Sears is now liquidating their holdings which will create problems. Sold this at $33.79. It needs to be retesting the $37-$38 level before getting in.

DON'T BUY
DON'T BUY
November 13, 2017

It has been a position of his for some time. But margins are under pressure. They have been increasing their adverting budget. He thinks there will be pressure on margins for some time. He recently sold it. It was a darling for such a long time and it made a high and then made a lower high. There are better opportunities in the Canadian market.

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It has been a position of his for some time. But margins are under pressure. They have been increasing their adverting budget. He thinks there will be pressure on margins for some time. He recently sold it. It was a darling for such a long time and it made a high and then made a lower high. There are better opportunities in the Canadian market.

PAST TOP PICK
PAST TOP PICK
October 20, 2017

(A Top Pick Sept 16/16. Up 27%.) Just added to his holdings recently. They had very good execution. Salespeople are very helpful and knowledgeable, unlike the Bay or other big department stores. They’ve also branched out into accessories such as pillowcases, duvets and headboards. Improving about 15 to 20 stores a year. Strong balance sheet and good execution.

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(A Top Pick Sept 16/16. Up 27%.) Just added to his holdings recently. They had very good execution. Salespeople are very helpful and knowledgeable, unlike the Bay or other big department stores. They’ve also branched out into accessories such as pillowcases, duvets and headboards. Improving about 15 to 20 stores a year. Strong balance sheet and good execution.

TOP PICK
TOP PICK
October 20, 2017

This is executing very well. Very strong balance sheet and a good cash position. Management is keeping an eye on the ball, renovating the stores. Staff are well-trained. (Analysts’ price target is $44.)

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This is executing very well. Very strong balance sheet and a good cash position. Management is keeping an eye on the ball, renovating the stores. Staff are well-trained. (Analysts’ price target is $44.)

PAST TOP PICK
PAST TOP PICK
September 14, 2017

(A Top Pick Sept 21/16. 0% return.) This has gone up and has come back down. Growth continues to be really strong. Same-store sales growth was 7% and the multiple probably got a little ahead of itself. Also, there is more talk about the online “Bed in a Box”.

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(A Top Pick Sept 21/16. 0% return.) This has gone up and has come back down. Growth continues to be really strong. Same-store sales growth was 7% and the multiple probably got a little ahead of itself. Also, there is more talk about the online “Bed in a Box”.

COMMENT
COMMENT
September 13, 2017

Hasn’t been spending a lot of time working on this, but what is impeding its progress lately probably has more to do with encroaching competition in that industry. There have been more Internet mattress sellers coming on stream lately. Also, they are facing some cost escalations. Feels they are generally facing some fundamental shifts in retail. He would be very sensitive to the valuation you pay on this.

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Hasn’t been spending a lot of time working on this, but what is impeding its progress lately probably has more to do with encroaching competition in that industry. There have been more Internet mattress sellers coming on stream lately. Also, they are facing some cost escalations. Feels they are generally facing some fundamental shifts in retail. He would be very sensitive to the valuation you pay on this.

HOLD
HOLD
August 29, 2017

The underperformance in the near term has mostly been related to the last quarter they reported, where same-store sales performance was not as good as the analysts had expected. Over the last number of years, this has been a very, very well-run company, and the stock has done extremely well. Expectations may have gotten too high. They’ve been gaining share from Sears Canada, which should continue.

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The underperformance in the near term has mostly been related to the last quarter they reported, where same-store sales performance was not as good as the analysts had expected. Over the last number of years, this has been a very, very well-run company, and the stock has done extremely well. Expectations may have gotten too high. They’ve been gaining share from Sears Canada, which should continue.

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Sleep Country Canada Holdings(ZZZ-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for Sleep Country Canada Holdings is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Sleep Country Canada Holdings(ZZZ-T) Frequently Asked Questions

What is Sleep Country Canada Holdings stock symbol?

Sleep Country Canada Holdings is a Canadian stock, trading under the symbol ZZZ-T on the Toronto Stock Exchange (ZZZ-CT). It is usually referred to as TSX:ZZZ or ZZZ-T

Is Sleep Country Canada Holdings a buy or a sell?

In the last year, 3 stock analysts published opinions about ZZZ-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is HOLD. Read the latest stock experts' ratings for Sleep Country Canada Holdings.

Is Sleep Country Canada Holdings a good investment or a top pick?

Sleep Country Canada Holdings was recommended as a Top Pick by Don Lato on 2019-10-30. Read the latest stock experts ratings for Sleep Country Canada Holdings.

Why is Sleep Country Canada Holdings stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Sleep Country Canada Holdings worth watching?

3 stock analysts on Stockchase covered Sleep Country Canada Holdings In the last year. It is a trending stock that is worth watching.

What is Sleep Country Canada Holdings stock price?

On 2020-07-02, Sleep Country Canada Holdings (ZZZ-T) stock closed at a price of $16.57.