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LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis

TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD

179.93  -0.68 (-0.38%)

Fundamental Rating

5

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. While showing a medium growth rate, L is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

L had positive earnings in the past year.
In the past year L had a positive cash flow from operations.
L had positive earnings in each of the past 5 years.
Each year in the past 5 years L had a positive operating cash flow.
L.CA Yearly Net Income VS EBIT VS OCF VS FCFL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

1.2 Ratios

L has a Return On Assets of 5.73%. This is amongst the best in the industry. L outperforms 81.25% of its industry peers.
L has a Return On Equity of 19.49%. This is amongst the best in the industry. L outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.35%, L belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for L is in line with the industry average of 8.25%.
The last Return On Invested Capital (10.35%) for L is above the 3 year average (8.82%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.73%
ROE 19.49%
ROIC 10.35%
ROA(3y)5.15%
ROA(5y)4.29%
ROE(3y)17.07%
ROE(5y)14.14%
ROIC(3y)8.82%
ROIC(5y)7.8%
L.CA Yearly ROA, ROE, ROICL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

The Profit Margin of L (3.69%) is better than 81.25% of its industry peers.
L's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.59%, L is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of L has grown nicely.
The Gross Margin of L (32.38%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of L has remained more or less at the same level.
Industry RankSector Rank
OM 6.59%
PM (TTM) 3.69%
GM 32.38%
OM growth 3Y11.85%
OM growth 5Y8.8%
PM growth 3Y19.04%
PM growth 5Y16.78%
GM growth 3Y1.78%
GM growth 5Y1.02%
L.CA Yearly Profit, Operating, Gross MarginsL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

5

2. Health

2.1 Basic Checks

L has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
L has a worse debt/assets ratio than last year.
L.CA Yearly Shares OutstandingL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
L.CA Yearly Total Debt VS Total AssetsL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

An Altman-Z score of 3.34 indicates that L is not in any danger for bankruptcy at the moment.
L has a better Altman-Z score (3.34) than 81.25% of its industry peers.
The Debt to FCF ratio of L is 5.33, which is a neutral value as it means it would take L, 5.33 years of fcf income to pay off all of its debts.
L's Debt to FCF ratio of 5.33 is fine compared to the rest of the industry. L outperforms 68.75% of its industry peers.
A Debt/Equity ratio of 1.35 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 1.35, L is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 5.33
Altman-Z 3.34
ROIC/WACC1.55
WACC6.69%
L.CA Yearly LT Debt VS Equity VS FCFL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.3 Liquidity

L has a Current Ratio of 1.25. This is a normal value and indicates that L is financially healthy and should not expect problems in meeting its short term obligations.
L has a better Current ratio (1.25) than 75.00% of its industry peers.
L has a Quick Ratio of 1.25. 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 (0.72) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.72
L.CA Yearly Current Assets VS Current LiabilitesL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.45% over the past year.
Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.95% on average per year.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 2.70% in the last year.
Measured over the past years, L shows a small growth in Revenue. The Revenue has been growing by 4.98% on average per year.
EPS 1Y (TTM)11.45%
EPS 3Y21.98%
EPS 5Y10.95%
EPS Q2Q%10.62%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.14%
Revenue growth 5Y4.98%
Sales Q2Q%1.49%

3.2 Future

The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y12.94%
EPS Next 2Y11.99%
EPS Next 3Y11.48%
EPS Next 5Y8.01%
Revenue Next Year2.53%
Revenue Next 2Y3.47%
Revenue Next 3Y3.31%
Revenue Next 5Y3.35%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
L.CA Yearly Revenue VS EstimatesL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
L.CA Yearly EPS VS EstimatesL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.50, L is valued on the expensive side.
Based on the Price/Earnings ratio, L is valued a bit more expensive than 62.50% of the companies in the same industry.
L's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.35.
Based on the Price/Forward Earnings ratio of 18.51, the valuation of L can be described as rather expensive.
L's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.00, L is valued rather cheaply.
Industry RankSector Rank
PE 21.5
Fwd PE 18.51
L.CA Price Earnings VS Forward Price EarningsL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

81.25% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, L is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 15.98
EV/EBITDA 9.99
L.CA Per share dataL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

L's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of L may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)1.96
EPS Next 2Y11.99%
EPS Next 3Y11.48%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.12%, L has a reasonable but not impressive dividend return.
L's Dividend Yield is comparable with the industry average which is at 1.63.
With a Dividend Yield of 1.12, L pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.12%

5.2 History

On average, the dividend of L grows each year by 11.92%, which is quite nice.
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)11.92%
Div Incr Years13
Div Non Decr Years34
L.CA Yearly Dividends per shareL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

26.90% of the earnings are spent on dividend by L. This is a low number and sustainable payout ratio.
The dividend of L is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.9%
EPS Next 2Y11.99%
EPS Next 3Y11.48%
L.CA Yearly Income VS Free CF VS DividendL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
L.CA Dividend Payout.L.CA Dividend Payout, showing the Payout Ratio.L.CA Dividend Payout.PayoutRetained Earnings

LOBLAW COMPANIES LTD

TSX:L (2/5/2025, 7:00:00 PM)

179.93

-0.68 (-0.38%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-13 2024-11-13/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners20.78%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap54.49B
Analysts78.82
Price Target205.02 (13.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.12%
Yearly Dividend1.78
Dividend Growth(5Y)11.92%
DP26.9%
Div Incr Years13
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.71%
Min EPS beat(2)-1.58%
Max EPS beat(2)0.16%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-1.58%
Max EPS beat(4)3.43%
EPS beat(8)3
Avg EPS beat(8)-0.08%
EPS beat(12)7
Avg EPS beat(12)1.16%
EPS beat(16)10
Avg EPS beat(16)3.49%
Revenue beat(2)0
Avg Revenue beat(2)-3.02%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.37%
PT rev (1m)0%
PT rev (3m)9.31%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
Industry RankSector Rank
PE 21.5
Fwd PE 18.51
P/S 0.9
P/FCF 15.98
P/OCF 9.7
P/B 4.75
P/tB 48.61
EV/EBITDA 9.99
EPS(TTM)8.37
EY4.65%
EPS(NY)9.72
Fwd EY5.4%
FCF(TTM)11.26
FCFY6.26%
OCF(TTM)18.56
OCFY10.31%
SpS200.1
BVpS37.86
TBVpS3.7
PEG (NY)1.66
PEG (5Y)1.96
Profitability
Industry RankSector Rank
ROA 5.73%
ROE 19.49%
ROCE 14.19%
ROIC 10.35%
ROICexc 11.1%
ROICexgc 17.98%
OM 6.59%
PM (TTM) 3.69%
GM 32.38%
FCFM 5.63%
ROA(3y)5.15%
ROA(5y)4.29%
ROE(3y)17.07%
ROE(5y)14.14%
ROIC(3y)8.82%
ROIC(5y)7.8%
ROICexc(3y)9.52%
ROICexc(5y)8.37%
ROICexgc(3y)15.79%
ROICexgc(5y)14.06%
ROCE(3y)12.03%
ROCE(5y)10.64%
ROICexcg growth 3Y12.42%
ROICexcg growth 5Y2.07%
ROICexc growth 3Y14.71%
ROICexc growth 5Y8.85%
OM growth 3Y11.85%
OM growth 5Y8.8%
PM growth 3Y19.04%
PM growth 5Y16.78%
GM growth 3Y1.78%
GM growth 5Y1.02%
F-Score8
Asset Turnover1.55
Health
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 5.33
Debt/EBITDA 2.24
Cap/Depr 74.9%
Cap/Sales 3.65%
Interest Coverage 4.71
Cash Conversion 80.92%
Profit Quality 152.6%
Current Ratio 1.25
Quick Ratio 0.72
Altman-Z 3.34
F-Score8
WACC6.69%
ROIC/WACC1.55
Cap/Depr(3y)57.29%
Cap/Depr(5y)52.75%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.63%
Profit Quality(3y)178%
Profit Quality(5y)232.16%
High Growth Momentum
Growth
EPS 1Y (TTM)11.45%
EPS 3Y21.98%
EPS 5Y10.95%
EPS Q2Q%10.62%
EPS Next Y12.94%
EPS Next 2Y11.99%
EPS Next 3Y11.48%
EPS Next 5Y8.01%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.14%
Revenue growth 5Y4.98%
Sales Q2Q%1.49%
Revenue Next Year2.53%
Revenue Next 2Y3.47%
Revenue Next 3Y3.31%
Revenue Next 5Y3.35%
EBIT growth 1Y9.94%
EBIT growth 3Y16.47%
EBIT growth 5Y14.21%
EBIT Next Year72.53%
EBIT Next 3Y22.77%
EBIT Next 5Y10.38%
FCF growth 1Y2.71%
FCF growth 3Y-3.88%
FCF growth 5Y25.14%
OCF growth 1Y21.36%
OCF growth 3Y2.89%
OCF growth 5Y17.72%