LOBLAW COMPANIES LTD (L.CA) Fundamental Analysis & Valuation

TSX:L • CA5394811015

Current stock price

63.09 CAD
+0.86 (+1.38%)
Last:

This L.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. L.CA Profitability Analysis

1.1 Basic Checks

  • L had positive earnings in the past year.
  • L had a positive operating cash flow in the past year.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • L has a better Return On Assets (6.41%) than 81.25% of its industry peers.
  • Looking at the Return On Equity, with a value of 24.18%, L is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
  • L's Return On Invested Capital of 11.54% is fine compared to the rest of the industry. L outperforms 62.50% 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 11.21%.
  • The 3 year average ROIC (10.16%) for L is below the current ROIC(11.54%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.41%
ROE 24.18%
ROIC 11.54%
ROA(3y)5.68%
ROA(5y)5.43%
ROE(3y)20.61%
ROE(5y)18.96%
ROIC(3y)10.16%
ROIC(5y)9.32%
L.CA Yearly ROA, ROE, ROICL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • L's Profit Margin of 4.17% is amongst the best of the industry. L outperforms 81.25% 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 6.92%, L is in line with its industry, outperforming 56.25% of the companies in the same industry.
  • In the last couple of years the Operating Margin of L has grown nicely.
  • L has a Gross Margin (31.35%) which 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 6.92%
PM (TTM) 4.17%
GM 31.35%
OM growth 3Y5.21%
OM growth 5Y9.29%
PM growth 3Y7.3%
PM growth 5Y14.95%
GM growth 3Y-0.49%
GM growth 5Y0.66%
L.CA Yearly Profit, Operating, Gross MarginsL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. L.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is creating some value.
  • The number of shares outstanding for L has been reduced compared to 1 year ago.
  • L has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, L has an improved debt to assets ratio.
L.CA Yearly Shares OutstandingL.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
L.CA Yearly Total Debt VS Total AssetsL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • L has an Altman-Z score of 3.53. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.53, L is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • L has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as L would need 3.97 years to pay back of all of its debts.
  • L has a Debt to FCF ratio of 3.97. This is amongst the best in the industry. L outperforms 87.50% of its industry peers.
  • L has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
  • L's Debt to Equity ratio of 1.33 is in line compared to the rest of the industry. L outperforms 56.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF 3.97
Altman-Z 3.53
ROIC/WACC1.63
WACC7.09%
L.CA Yearly LT Debt VS Equity VS FCFL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.08 indicates that L should not have too much problems paying its short term obligations.
  • L's Current ratio of 1.08 is on the low side compared to the rest of the industry. L is outperformed by 75.00% of its industry peers.
  • L has a Quick Ratio of 1.08. This is a bad value and indicates that L is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.61, L is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.61
L.CA Yearly Current Assets VS Current LiabilitesL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. L.CA Growth Analysis

3.1 Past

  • L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.42%, 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 17.88% yearly.
  • The Revenue has been growing slightly by 4.73% in the past year.
  • The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
Revenue 1Y (TTM)4.73%
Revenue growth 3Y4.19%
Revenue growth 5Y3.92%
Sales Q2Q%9.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.96% on average over the next years.
  • The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
L.CA Yearly Revenue VS EstimatesL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
L.CA Yearly EPS VS EstimatesL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3

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2

4. L.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.96, which means the current valuation is very expensive for L.
  • Based on the Price/Earnings ratio, L is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
  • L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 23.93, L is valued on the expensive side.
  • 68.75% of the companies in the same industry are cheaper than L, based on the Price/Forward Earnings ratio.
  • L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 25.96
Fwd PE 23.93
L.CA Price Earnings VS Forward Price EarningsL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 87.50% 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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 17.56
EV/EBITDA 12.49
L.CA Per share dataL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
  • The decent profitability rating of L may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)1.45
EPS Next 2Y8.99%
EPS Next 3Y7.99%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. L.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.91%, L is not a good candidate for dividend investing.
  • L's Dividend Yield is slightly below the industry average, which is at 2.39.
  • Compared to an average S&P500 Dividend Yield of 1.89, L's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • The dividend of L decreases each year by -14.66%.
  • 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)-14.66%
Div Incr Years13
Div Non Decr Years34
L.CA Yearly Dividends per shareL.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • L pays out 30.45% of its income as dividend. This is a sustainable payout ratio.
DP30.45%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
L.CA Yearly Income VS Free CF VS DividendL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
L.CA Dividend Payout.L.CA Dividend Payout, showing the Payout Ratio.L.CA Dividend Payout.PayoutRetained Earnings

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L.CA Fundamentals: All Metrics, Ratios and Statistics

LOBLAW COMPANIES LTD

TSX:L (3/27/2026, 7:00:00 PM)

63.09

+0.86 (+1.38%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-25
Earnings (Next)04-28
Inst Owners19.73%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.78B
Revenue(TTM)63.90B
Net Income(TTM)2.67B
Analysts80
Price Target72.11 (14.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP30.45%
Div Incr Years13
Div Non Decr Years34
Ex-Date03-13
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.52%
Min EPS beat(2)-0.52%
Max EPS beat(2)-0.52%
EPS beat(4)1
Avg EPS beat(4)-0.27%
Min EPS beat(4)-1.17%
Max EPS beat(4)1.15%
EPS beat(8)2
Avg EPS beat(8)-0.73%
EPS beat(12)3
Avg EPS beat(12)-0.42%
EPS beat(16)7
Avg EPS beat(16)0.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.12%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)0
Avg Revenue beat(12)-2.26%
Revenue beat(16)1
Avg Revenue beat(16)-1.98%
PT rev (1m)2.46%
PT rev (3m)7.77%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 25.96
Fwd PE 23.93
P/S 1.15
P/FCF 17.56
P/OCF 11.78
P/B 6.69
P/tB 51.42
EV/EBITDA 12.49
EPS(TTM)2.43
EY3.85%
EPS(NY)2.64
Fwd EY4.18%
FCF(TTM)3.59
FCFY5.7%
OCF(TTM)5.36
OCFY8.49%
SpS54.64
BVpS9.43
TBVpS1.23
PEG (NY)3.05
PEG (5Y)1.45
Graham Number22.71
Profitability
Industry RankSector Rank
ROA 6.41%
ROE 24.18%
ROCE 15.97%
ROIC 11.54%
ROICexc 11.99%
ROICexgc 18.72%
OM 6.92%
PM (TTM) 4.17%
GM 31.35%
FCFM 6.58%
ROA(3y)5.68%
ROA(5y)5.43%
ROE(3y)20.61%
ROE(5y)18.96%
ROIC(3y)10.16%
ROIC(5y)9.32%
ROICexc(3y)10.77%
ROICexc(5y)9.96%
ROICexgc(3y)16.96%
ROICexgc(5y)16.05%
ROCE(3y)14.31%
ROCE(5y)13.15%
ROICexgc growth 3Y7.26%
ROICexgc growth 5Y10.7%
ROICexc growth 3Y9.83%
ROICexc growth 5Y12.86%
OM growth 3Y5.21%
OM growth 5Y9.29%
PM growth 3Y7.3%
PM growth 5Y14.95%
GM growth 3Y-0.49%
GM growth 5Y0.66%
F-Score7
Asset Turnover1.54
Health
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF 3.97
Debt/EBITDA 2.06
Cap/Depr 75.42%
Cap/Sales 3.23%
Interest Coverage 4.87
Cash Conversion 87.51%
Profit Quality 157.56%
Current Ratio 1.08
Quick Ratio 0.61
Altman-Z 3.53
F-Score7
WACC7.09%
ROIC/WACC1.63
Cap/Depr(3y)73.63%
Cap/Depr(5y)64.29%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.06%
Profit Quality(3y)165.42%
Profit Quality(5y)171.74%
High Growth Momentum
Growth
EPS 1Y (TTM)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue 1Y (TTM)4.73%
Revenue growth 3Y4.19%
Revenue growth 5Y3.92%
Sales Q2Q%9.59%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%
EBIT growth 1Y13.38%
EBIT growth 3Y9.61%
EBIT growth 5Y13.58%
EBIT Next Year51.68%
EBIT Next 3Y16.4%
EBIT Next 5Y6.92%
FCF growth 1Y16.66%
FCF growth 3Y9.69%
FCF growth 5Y0.82%
OCF growth 1Y7.96%
OCF growth 3Y9.62%
OCF growth 5Y3.83%

LOBLAW COMPANIES LTD / L.CA Fundamental Analysis FAQ

What is the fundamental rating for L stock?

ChartMill assigns a fundamental rating of 5 / 10 to L.CA.


Can you provide the valuation status for LOBLAW COMPANIES LTD?

ChartMill assigns a valuation rating of 2 / 10 to LOBLAW COMPANIES LTD (L.CA). This can be considered as Overvalued.


Can you provide the profitability details for LOBLAW COMPANIES LTD?

LOBLAW COMPANIES LTD (L.CA) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for L stock?

The Earnings per Share (EPS) of LOBLAW COMPANIES LTD (L.CA) is expected to grow by 8.51% in the next year.


How sustainable is the dividend of LOBLAW COMPANIES LTD (L.CA) stock?

The dividend rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10 and the dividend payout ratio is 30.45%.