LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to L. L was compared to 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. While showing a medium growth rate, L is valued expensive at the moment.
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.
Each year in the past 5 years L has been profitable.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of L (5.27%) is better than 77.78% of its industry peers.
The Return On Equity of L (19.43%) is better than 66.67% of its industry peers.
L has a Return On Invested Capital of 9.73%. This is amongst the best in the industry. L outperforms 83.33% 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 8.33%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(9.73%), indicating increased profibility in the last year.
| 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's Profit Margin of 3.53% is fine compared to the rest of the industry. L outperforms 77.78% 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 6.40%, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Operating Margin of L has grown nicely.
Looking at the Gross Margin, with a value of 32.33%, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
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
L has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, L has a worse debt to assets ratio.
2.2 Solvency
L has an Altman-Z score of 3.41. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
L's Altman-Z score of 3.41 is fine compared to the rest of the industry. L outperforms 72.22% 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.
Looking at the Debt to FCF ratio, with a value of 5.33, L is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
L has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
L has a Debt to Equity ratio (1.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.45
WACC6.73%
2.3 Liquidity
L has a Current Ratio of 1.24. 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 worse Current ratio (1.24) than 61.11% 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.
The Quick ratio of L (0.70) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.58%, which is quite good.
L shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.72% yearly.
L shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
Measured over the past years, L shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
EPS 1Y (TTM)10.58%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%2.87%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.49%
Revenue Next Year5.78%
Revenue Next 2Y3.93%
Revenue Next 3Y3.53%
Revenue Next 5Y3.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.26, the valuation of L can be described as expensive.
Based on the Price/Earnings ratio, L is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. L is around the same levels.
Based on the Price/Forward Earnings ratio of 23.43, 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 61.11% of the companies in the same industry.
L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 23.43 |
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 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
L has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.67
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.
Compared to an average industry Dividend Yield of 1.41, L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of L is nicely growing with an annual growth rate of 12.61%!
L has been paying a dividend for at least 10 years, so it has 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 (5/2/2025, 7:00:00 PM)
225.02
+1.17 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.71%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap67.28B
Analysts78.82
Price Target209.51 (-6.89%)
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)4%
PT rev (3m)2.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 23.43 | ||
| P/S | 1.1 | ||
| P/FCF | 18.68 | ||
| P/OCF | 11.6 | ||
| P/B | 6.07 | ||
| P/tB | 52.85 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)8.57
EY3.81%
EPS(NY)9.6
Fwd EY4.27%
FCF(TTM)12.05
FCFY5.35%
OCF(TTM)19.4
OCFY8.62%
SpS204.06
BVpS37.09
TBVpS4.26
PEG (NY)2.18
PEG (5Y)1.67
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 | 3.41 |
F-Score5
WACC6.73%
ROIC/WACC1.45
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)10.58%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10%
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.49%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%2.87%
Revenue Next Year5.78%
Revenue Next 2Y3.93%
Revenue Next 3Y3.53%
Revenue Next 5Y3.27%
EBIT growth 1Y5.35%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year64.94%
EBIT Next 3Y18.08%
EBIT Next 5Y7.99%
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%