LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
54.89 CAD
+0.07 (+0.13%)
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. L scores excellent on profitability, but there are some minor concerns on its financial health. L does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year L was profitable.
L had a positive operating cash flow in the past year.
In the past 5 years L has always been profitable.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.01%, L belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
L's Return On Equity of 22.14% is amongst the best of the industry. L outperforms 100.00% of its industry peers.
L has a better Return On Invested Capital (10.77%) than 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for L is in line with the industry average of 7.74%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(10.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROIC | 10.77% |
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's Profit Margin of 3.94% is amongst the best of the industry. L outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
Looking at the Operating Margin, with a value of 6.93%, L is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
L's Operating Margin has improved in the last couple of years.
L has a Gross Margin of 32.29%. This is comparable to the rest of the industry: L outperforms 44.44% 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 | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is creating some value.
L has less shares outstanding than it did 1 year ago.
The number of shares outstanding for L has been reduced compared to 5 years ago.
The debt/assets ratio for L is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that L is not in any danger for bankruptcy at the moment.
The Altman-Z score of L (3.43) is better than 72.22% of its industry peers.
L has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as L would need 6.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.03, L is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
The Debt to Equity ratio of L (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.53
WACC7.03%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
The Current ratio of L (1.24) is worse than 72.22% 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 of 0.70. This is in the lower half of the industry: L underperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for L have decreased strongly by -65.55% in the last year.
L shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.63% yearly.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
3.2 Future
Based on estimates for the next years, L will show a decrease in Earnings Per Share. The EPS will decrease by -0.73% on average per year.
Based on estimates for the next years, L will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y-28.74%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
EPS Next 5Y-0.73%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.40, which indicates a rather expensive current valuation of L.
L's Price/Earnings ratio is in line with the industry average.
L's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
L is valuated rather expensively with a Price/Forward Earnings ratio of 20.71.
Based on the Price/Forward Earnings ratio, L is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. L is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
L's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. L is more expensive than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.45 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
The excellent profitability rating of L may justify a higher PE ratio.
L's earnings are expected to decrease with -5.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, L has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of L decreases each year by -14.66%.
L has been paying a dividend for at least 10 years, so it has a reliable track record.
L has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-14.66%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 19.22% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of L has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP19.22%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
TSX:L (10/3/2025, 7:00:00 PM)
54.89
+0.07 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.95%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap65.06B
Analysts78.82
Price Target62.76 (14.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP19.22%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-1.17%
Max EPS beat(2)1.15%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-2.57%
Max EPS beat(4)1.15%
EPS beat(8)3
Avg EPS beat(8)-0.22%
EPS beat(12)5
Avg EPS beat(12)-0.2%
EPS beat(16)9
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)1
Avg Revenue beat(16)-1.72%
PT rev (1m)0.53%
PT rev (3m)-74.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75.09%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 20.71 | ||
| P/S | 1.04 | ||
| P/FCF | 20.45 | ||
| P/OCF | 13.26 | ||
| P/B | 5.87 | ||
| P/tB | 51.1 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)2.25
EY4.1%
EPS(NY)2.65
Fwd EY4.83%
FCF(TTM)2.68
FCFY4.89%
OCF(TTM)4.14
OCFY7.54%
SpS52.56
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROCE | 14.83% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 17.91% | ||
| OM | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% | ||
| FCFM | 5.11% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 78.61% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 75.33% | ||
| Profit Quality | 129.52% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.43 |
F-Score5
WACC7.03%
ROIC/WACC1.53
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)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
EPS Next Y-28.74%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
EPS Next 5Y-0.73%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.18%
EBIT growth 1Y15.55%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y9.12%
FCF growth 1Y4.98%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y1.18%
OCF growth 3Y6.32%
OCF growth 5Y7.94%