LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
58.62 CAD
+2.08 (+3.68%)
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 does not seem to be growing, but still is valued expensively.
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.
In the past 5 years L has always 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 (6.01%) is better than 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 22.14%, L belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of L (10.77%) is better than 94.12% 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 7.78%.
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 has a Profit Margin of 3.94%. This is amongst the best in the industry. L outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
With a Operating Margin value of 6.93%, L perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
L's Operating Margin has improved in the last couple of years.
L's Gross Margin of 32.29% is in line compared to the rest of the industry. L outperforms 47.06% of its industry peers.
L's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so L is still creating some value.
The number of shares outstanding for L has been reduced compared to 1 year ago.
Compared to 5 years ago, L has less shares outstanding
Compared to 1 year ago, L has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that L is not in any danger for bankruptcy at the moment.
The Altman-Z score of L (3.47) is better than 76.47% of its industry peers.
The Debt to FCF ratio of L is 6.03, which is on the high side as it means it would take L, 6.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.03, L is doing good in the industry, outperforming 70.59% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.56
WACC6.9%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, L is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
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 64.71% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -65.55%.
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.
L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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
The Earnings Per Share is expected to decrease by -0.59% 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 4.33% on average per year.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.59%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.33%
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
Based on the Price/Earnings ratio of 26.05, the valuation of L can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as L.
L's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 22.14, the valuation of L can be described as rather expensive.
64.71% of the companies in the same industry are cheaper than L, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.43. L is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.14 |
4.2 Price Multiples
82.35% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L indicates a slightly more expensive valuation: L is more expensive than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
L has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as L's earnings are expected to decrease with -5.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, L is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.58, L has a dividend in line with its industry peers.
With a Dividend Yield of 0.99, L pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 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
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-12.18%
EPS Next 3Y-5.64%
TSX:L (11/12/2025, 7:00:00 PM)
58.62
+2.08 (+3.68%)
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 Cap69.48B
Revenue(TTM)62.29B
Net Income(TTM)2.46B
Analysts78.82
Price Target62.86 (7.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)0.16%
PT rev (3m)-74.72%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-74.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.14 | ||
| P/S | 1.12 | ||
| P/FCF | 21.84 | ||
| P/OCF | 14.16 | ||
| P/B | 6.26 | ||
| P/tB | 54.58 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)2.25
EY3.84%
EPS(NY)2.65
Fwd EY4.52%
FCF(TTM)2.68
FCFY4.58%
OCF(TTM)4.14
OCFY7.06%
SpS52.56
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.77
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%
ROICexgc growth 3Y4.06%
ROICexgc 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 | 3.47 |
F-Score5
WACC6.9%
ROIC/WACC1.56
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-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.59%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.33%
EBIT growth 1Y15.55%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y9.27%
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%
LOBLAW COMPANIES LTD / L.CA FAQ
What is the fundamental rating for L stock?
ChartMill assigns a fundamental rating of 5 / 10 to L.CA.
What is the valuation status for L stock?
ChartMill assigns a valuation rating of 2 / 10 to LOBLAW COMPANIES LTD (L.CA). This can be considered as Overvalued.
What is the profitability of L stock?
LOBLAW COMPANIES LTD (L.CA) has a profitability rating of 8 / 10.
How financially healthy is LOBLAW COMPANIES LTD?
The financial health rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10.
Is the dividend of LOBLAW COMPANIES LTD sustainable?
The dividend rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10 and the dividend payout ratio is 19.22%.