LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD
Overall L gets a fundamental rating of 5 out of 10. We evaluated L against 17 industry peers in the Consumer Staples Distribution & Retail industry. While L has a great profitability rating, there are some minor concerns on its financial health. L is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year L was profitable.
In the past year L had a positive cash flow from operations.
L had positive earnings in each of the past 5 years.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
L's Return On Assets of 5.27% is fine compared to the rest of the industry. L outperforms 76.47% of its industry peers.
L's Return On Equity of 19.43% is fine compared to the rest of the industry. L outperforms 64.71% of its industry peers.
The Return On Invested Capital of L (9.73%) is better than 82.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for L is in line with the industry average of 8.14%.
The last Return On Invested Capital (9.73%) for L is above the 3 year average (9.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROIC | 9.73% |
ROA(3y)5.21%
ROA(5y)4.76%
ROE(3y)18.18%
ROE(5y)16.12%
ROIC(3y)9.41%
ROIC(5y)8.49%
1.3 Margins
L has a Profit Margin of 3.53%. This is amongst the best in the industry. L outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
L's Operating Margin of 6.40% is in line compared to the rest of the industry. L outperforms 52.94% of its industry peers.
L's Operating Margin has improved in the last couple of years.
L has a Gross Margin of 32.33%. This is comparable to the rest of the industry: L outperforms 52.94% of its industry peers.
In the last couple of years the Gross Margin of L has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% |
OM growth 3Y5.29%
OM growth 5Y6.41%
PM growth 3Y0.27%
PM growth 5Y9.68%
GM growth 3Y0.9%
GM growth 5Y1.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so L is still creating some value.
Compared to 1 year ago, L has less shares outstanding
The number of shares outstanding for L has been reduced compared to 5 years ago.
Compared to 1 year ago, L has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.39 indicates that L is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.39, L is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
L has a debt to FCF ratio of 5.33. This is a neutral value as L would need 5.33 years to pay back of all of its debts.
The Debt to FCF ratio of L (5.33) is better than 82.35% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, L is in line with its industry, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 3.39 |
ROIC/WACC1.43
WACC6.8%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
L has a Current ratio of 1.24. This is comparable to the rest of the industry: L outperforms 41.18% of its industry peers.
L has a Quick Ratio of 1.24. This is a bad value and indicates that L is not financially healthy enough and could expect problems in meeting its short term obligations.
L has a Quick ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.23% over the past year.
The Earnings Per Share has been growing by 15.72% on average over the past years. This is quite good.
L shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)10.23%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%9.3%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.08%
3.2 Future
The Earnings Per Share is expected to grow by 6.89% on average over the next years.
Based on estimates for the next years, L will show a small growth in Revenue. The Revenue will grow by 3.66% on average per year.
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.89%
Revenue Next Year6.25%
Revenue Next 2Y4.17%
Revenue Next 3Y3.66%
Revenue Next 5Y3.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.49 indicates a quite expensive valuation of L.
L's Price/Earnings ratio is in line with the industry average.
L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.47, L is valued on the expensive side.
L's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 70.59% of the companies in the same industry.
L is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
L's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. L is more expensive than 76.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates L does not grow enough to justify the current Price/Earnings ratio.
L has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)1.62
EPS Next 2Y9.97%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, L has a reasonable but not impressive dividend return.
L's Dividend Yield is comparable with the industry average which is at 3.57.
With a Dividend Yield of 1.01, L pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
On average, the dividend of L grows each year by 12.61%, which is quite nice.
L has paid a dividend for at least 10 years, which is a reliable track record.
L has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.61%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 21.30% of its income as dividend. This is a sustainable payout ratio.
L's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.3%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
TSX:L (6/19/2025, 7:00:00 PM)
222.52
-0.17 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.33%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap66.53B
Analysts78.82
Price Target241.74 (8.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.5
Dividend Growth(5Y)12.61%
DP21.3%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.21%
Min EPS beat(2)-2.57%
Max EPS beat(2)0.16%
EPS beat(4)1
Avg EPS beat(4)-1.2%
Min EPS beat(4)-2.57%
Max EPS beat(4)0.16%
EPS beat(8)2
Avg EPS beat(8)-0.49%
EPS beat(12)6
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.51%
PT rev (1m)0%
PT rev (3m)20.3%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.47 | ||
| P/S | 1.09 | ||
| P/FCF | 18.47 | ||
| P/OCF | 11.47 | ||
| P/B | 6 | ||
| P/tB | 52.27 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)8.73
EY3.92%
EPS(NY)10.36
Fwd EY4.66%
FCF(TTM)12.05
FCFY5.41%
OCF(TTM)19.4
OCFY8.72%
SpS204.06
BVpS37.09
TBVpS4.26
PEG (NY)2.12
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROCE | 13.4% | ||
| ROIC | 9.73% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 16.19% | ||
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% | ||
| FCFM | 5.9% |
ROA(3y)5.21%
ROA(5y)4.76%
ROE(3y)18.18%
ROE(5y)16.12%
ROIC(3y)9.41%
ROIC(5y)8.49%
ROICexc(3y)10.1%
ROICexc(5y)9.15%
ROICexgc(3y)16.28%
ROICexgc(5y)15.02%
ROCE(3y)12.97%
ROCE(5y)11.67%
ROICexcg growth 3Y4.06%
ROICexcg growth 5Y8.17%
ROICexc growth 3Y7.07%
ROICexc growth 5Y10.67%
OM growth 3Y5.29%
OM growth 5Y6.41%
PM growth 3Y0.27%
PM growth 5Y9.68%
GM growth 3Y0.9%
GM growth 5Y1.03%
F-Score5
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 74.17% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 84.48% | ||
| Profit Quality | 167.15% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.39 |
F-Score5
WACC6.8%
ROIC/WACC1.43
Cap/Depr(3y)67.23%
Cap/Depr(5y)58.13%
Cap/Sales(3y)3.29%
Cap/Sales(5y)2.86%
Profit Quality(3y)168.5%
Profit Quality(5y)213.82%
High Growth Momentum
Growth
EPS 1Y (TTM)10.23%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%9.3%
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.89%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.08%
Revenue Next Year6.25%
Revenue Next 2Y4.17%
Revenue Next 3Y3.66%
Revenue Next 5Y3.66%
EBIT growth 1Y5.35%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.46%
EBIT Next 3Y22.01%
EBIT Next 5Y8.4%
FCF growth 1Y0.56%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y2.62%
OCF growth 3Y6.32%
OCF growth 5Y7.94%