Reitmans (Canada) Ltd
Is it a good company at a reasonable price? Who knows if this company will fully recover. There is a big risk here. They seem to be making some progress. It is not a good sign that they have little in the way of analyst’s comments. I am following it was I am curious on how long it will take for it to recover, if and/or when this happens. They price seems to be coming in as reasonable. It would be better for investment if price was cheap. However, the 12 month stock price of $5.00 seems to imply this.
I do not own this stock of Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF), but I used to. I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but it is taking too long. I sold in January 2021 and I lost money on this stock but did collect some dividends.
When I was updating my spreadsheet, I noticed they lost money for the January 2026 financial year because of a Strategic Transformation Expenses and higher Net Finance costs. Note that the financial year ends around the end of January each year.
If you had invested in this company in December 2015, for $1,001.22 you would have bought 246 shares at $4.07 per share. In December 2025, after 10 years you would have received $184.50 in dividends. The stock would be worth $528.90. Your total return would have been $713.40. This would be a total loss of 4.02% per year with 6.18% from capital loss and 2.16% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.07 | $1,001.22 | 246 | 10 | $184.50 | $528.90 | $713.40 |
However, if you had invested in this company in December 2020, for $1,000.08 you would have bought 4,167 shares if at $0.24 per share. In December 2025, after 5 years you would have received $0 in dividends. The stock would be worth $8,595.05. Your total return would have been $8,959.05. This would be a total gain of 55.04% per year with 55.04% from capital gain and 0% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $0.24 | $1,000.08 | 4,167 | 5 | $0.00 | $8,959.05 | $8,959.05 |
This company has stopped paying a dividend. So, there is dividend yield and no Dividend Payout Ratios.
Debt Ratios are mostly fine for this stock that is in recovery. The Long Term Debt/Market Cap Ratio for 2025 is too high at 1.11 and currently at 1.17. This company got into financial difficulties some time ago and the stock price fell until 2020 and it is sort of picking up again. The Liquidity Ratio for 2025 is good at 2.46 and 2.46 currently. The Debt Ratio for 2025 is good at 2.07 and 2.07 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.93 and 0.93 and currently at 1.93 and 0.93.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 1.11 | 1.17 |
| Intang/GW | 0.06 | 0.06 |
| Liquidity | 1.96 | 1.96 |
| Liq. + CF | 2.46 | 2.46 |
| Debt Ratio | 2.07 | 2.07 |
| Leverage | 1.93 | 1.93 |
| D/E Ratio | 0.93 | 0.93 |
The Total Return per year is shown below for years of 5 to 38 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 0.00% | 55.04% | 55.04% | 0.00% |
| 2015 | 10 | 0.00% | -4.02% | -6.18% | 2.16% |
| 2010 | 15 | 0.00% | -11.42% | -13.42% | 2.00% |
| 2005 | 20 | 0.00% | -5.87% | -9.86% | 3.99% |
| 2000 | 25 | 0.00% | 17.55% | 0.47% | 17.08% |
| 1995 | 30 | 0.00% | 11.96% | 0.40% | 11.56% |
| 1990 | 35 | 0.00% | 10.43% | 0.79% | 9.64% |
| 1987 | 38 | 0.00% | 7.85% | 0.07% | 7.77% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.50, 1.36 and 2.23. The corresponding 10 year ratios are 0.27, 0.87 and 1.46. The corresponding historical ratios are 9.63, 12.02 and 15.21. The current ratio is 21.67 based on a stock price of $1.95 and EPS estimate for 2026 of 0.09. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is expensive. I notice that the 5 and 10 year ratios are extremely low. The current one is quite high.
I get a Graham Price of $3.40. The 10-year low, median, and high median Price/Graham Price Ratios are 0.34, 0.66 and 1.02. The current ratio is 0.35 based on a stock price of $1.95. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 0.61. The current ratio is 0.34 based on Book Value of $286.52, Book Value per Share of $5.69 and a stock price of $1.95. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. However, these ratios are really low. Normal generally is thought of around 1.50.
I get a 10-year median Price/Cash Flow per Share Ratio of 1.49. The current ratio is 1.37 based on a Cash Flow per Share for the last 12 months of $1.42, Cash Flow of $71.6M and a stock price of $1.95. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I cannot do any dividend yield testing because the company currently does not pay a dividend.
The 10-year median Price/Sales (Revenue) Ratio is 0.16. The current ratio is 0.13 based on Revenue for the last 12 months of $776.8M, Revenue per Share of $15.44 and a stock price of $1.95. The current ratio is 18.8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio testing says this. The P/B Ratio and P/GP Ratio tests say this same thing. The other tests show the stock price as cheap and expensive. A lot of ratios are very low ones. There is little in the way of estimates and mainly I reply on the last 12 month’s values. There are few analysts following this stock.
When I look at analysts’ recommendations, I find a number of sites say that there is one recommendation of a Hold and 12 month stock price of $5.00. A 12 month stock price of $5.00 implies a total return of $156.41% all from capital gains based on a current stock price of $1.95. It is possible, maybe.
They have an entry on Stock Chase for this stock, but no analyst write up. Andrew Button on Motley Fool wrote about this stock in 2024 and said it was so cheap that Bay Street is practically giving this stock away. The company put out a press release via Newswire about their January 2026 fourth quarter results. They have a financial year end around the end of January each year.
Cision via Yahoo Finance has an interesting article about Reitmans and Canadian Fashion.
Reitmans (Canada) Ltd is engaged in the sale of women’s specialty apparel to consumers through its retail banners. Reitmans (Canada) currently operates under the following banners: Reitmans, PENN. Penningtons, and RW&CO. Its web site is here Reitmans (Canada) Ltd.
The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) … learn more. The next stock I will write about will be RB Global Inc (TSX-RBA, NYSE-RBA) … learn more on Friday, June 10, 2026 around 5 pm. Tomorrow on my other blog I will write about Financial Crime in Canada…. learn more on Thursday, June 11, 2026 around 5 pm.
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