LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - TSX:LNF - CA5266821092 - Common Stock
28.1 CAD
+0.24 (+0.86%)
We assign a fundamental rating of 6 out of 10 to LNF. LNF was compared to 15 industry peers in the Specialty Retail industry. LNF has an excellent financial health rating, but there are some minor concerns on its profitability. LNF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LNF had positive earnings in the past year.
In the past year LNF had a positive cash flow from operations.
Each year in the past 5 years LNF has been profitable.
LNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNF has a better Return On Assets (7.02%) than 73.33% of its industry peers.
Looking at the Return On Equity, with a value of 13.74%, LNF is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
LNF has a better Return On Invested Capital (9.71%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNF is in line with the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 13.74% | ||
| ROIC | 9.71% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.44%
ROE(5y)17.72%
ROIC(3y)9.78%
ROIC(5y)11.26%
1.3 Margins
LNF has a Profit Margin (6.33%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LNF has grown nicely.
Looking at the Operating Margin, with a value of 8.30%, LNF is in line with its industry, outperforming 60.00% of the companies in the same industry.
LNF's Operating Margin has been stable in the last couple of years.
LNF has a better Gross Margin (44.82%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of LNF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.3% | ||
| PM (TTM) | 6.33% | ||
| GM | 44.82% |
OM growth 3Y-12.68%
OM growth 5Y1%
PM growth 3Y-9.24%
PM growth 5Y5.65%
GM growth 3Y0.22%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNF is creating some value.
Compared to 1 year ago, LNF has about the same amount of shares outstanding.
LNF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.16 indicates that LNF is not in any danger for bankruptcy at the moment.
LNF has a better Altman-Z score (3.16) than 66.67% of its industry peers.
The Debt to FCF ratio of LNF is 1.70, which is an excellent value as it means it would take LNF, only 1.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LNF (1.70) is better than 86.67% of its industry peers.
LNF has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.23, LNF belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.18
WACC8.25%
2.3 Liquidity
LNF has a Current Ratio of 1.35. This is a normal value and indicates that LNF is financially healthy and should not expect problems in meeting its short term obligations.
LNF's Current ratio of 1.35 is in line compared to the rest of the industry. LNF outperforms 60.00% of its industry peers.
A Quick Ratio of 0.71 indicates that LNF may have some problems paying its short term obligations.
LNF has a Quick ratio of 0.71. This is comparable to the rest of the industry: LNF outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.93% over the past year.
LNF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.92% yearly.
LNF shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
The Revenue has been growing slightly by 1.82% on average over the past years.
EPS 1Y (TTM)11.93%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.55%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.28%
3.2 Future
LNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.99% yearly.
LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.96% yearly.
EPS Next Y4.17%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.52, the valuation of LNF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 93.33% of the companies listed in the same industry.
LNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 11.55 indicates a reasonable valuation of LNF.
Based on the Price/Forward Earnings ratio, LNF is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
LNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 73.33% of the companies listed in the same industry.
LNF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LNF is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LNF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)1.16
EPS Next 2Y4.44%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, LNF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.53, LNF pays a better dividend. On top of this LNF pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of LNF has a limited annual growth rate of 5.61%.
LNF has paid a dividend for at least 10 years, which is a reliable track record.
LNF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LNF pays out 32.92% of its income as dividend. This is a sustainable payout ratio.
LNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.92%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
TSX:LNF (11/14/2025, 7:00:00 PM)
28.1
+0.24 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.73%
Inst Owner ChangeN/A
Ins Owners3.25%
Ins Owner ChangeN/A
Market Cap1.92B
Revenue(TTM)2.54B
Net Income(TTM)161.00M
Analysts74.55
Price Target34.21 (21.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend0.74
Dividend Growth(5Y)5.61%
DP32.92%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.93%
Min EPS beat(2)22.69%
Max EPS beat(2)55.17%
EPS beat(4)3
Avg EPS beat(4)27.46%
Min EPS beat(4)-2.79%
Max EPS beat(4)55.17%
EPS beat(8)6
Avg EPS beat(8)19.7%
EPS beat(12)8
Avg EPS beat(12)9.94%
EPS beat(16)10
Avg EPS beat(16)10.68%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.6%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)-0.45%
Revenue beat(12)4
Avg Revenue beat(12)-1.28%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)0%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)15.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 11.55 | ||
| P/S | 0.75 | ||
| P/FCF | 7.58 | ||
| P/OCF | 6.5 | ||
| P/B | 1.64 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)2.44
EY8.68%
EPS(NY)2.43
Fwd EY8.66%
FCF(TTM)3.71
FCFY13.19%
OCF(TTM)4.32
OCFY15.38%
SpS37.24
BVpS17.17
TBVpS7.5
PEG (NY)2.76
PEG (5Y)1.16
Graham Number30.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 13.74% | ||
| ROCE | 12.86% | ||
| ROIC | 9.71% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 22.31% | ||
| OM | 8.3% | ||
| PM (TTM) | 6.33% | ||
| GM | 44.82% | ||
| FCFM | 9.95% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.44%
ROE(5y)17.72%
ROIC(3y)9.78%
ROIC(5y)11.26%
ROICexc(3y)11.52%
ROICexc(5y)15.38%
ROICexgc(3y)22.21%
ROICexgc(5y)62.45%
ROCE(3y)12.96%
ROCE(5y)14.92%
ROICexgc growth 3Y-53.91%
ROICexgc growth 5Y2.47%
ROICexc growth 3Y-28.08%
ROICexc growth 5Y2.66%
OM growth 3Y-12.68%
OM growth 5Y1%
PM growth 3Y-9.24%
PM growth 5Y5.65%
GM growth 3Y0.22%
GM growth 5Y0.33%
F-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 39.22% | ||
| Cap/Sales | 1.65% | ||
| Interest Coverage | 10.05 | ||
| Cash Conversion | 92.72% | ||
| Profit Quality | 157.14% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.16 |
F-Score6
WACC8.25%
ROIC/WACC1.18
Cap/Depr(3y)41.15%
Cap/Depr(5y)35.62%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.93%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.55%
EPS Next Y4.17%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.28%
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
EBIT growth 1Y10.54%
EBIT growth 3Y-12.84%
EBIT growth 5Y2.84%
EBIT Next Year66.63%
EBIT Next 3Y21.02%
EBIT Next 5Y13.53%
FCF growth 1Y47.94%
FCF growth 3Y-1.4%
FCF growth 5Y7.3%
OCF growth 1Y43.4%
OCF growth 3Y3.22%
OCF growth 5Y8.02%
LEON'S FURNITURE LTD / LNF.CA FAQ
What is the ChartMill fundamental rating of LEON'S FURNITURE LTD (LNF.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to LNF.CA.
What is the valuation status for LNF stock?
ChartMill assigns a valuation rating of 6 / 10 to LEON'S FURNITURE LTD (LNF.CA). This can be considered as Fairly Valued.
How profitable is LEON'S FURNITURE LTD (LNF.CA) stock?
LEON'S FURNITURE LTD (LNF.CA) has a profitability rating of 6 / 10.
What is the financial health of LEON'S FURNITURE LTD (LNF.CA) stock?
The financial health rating of LEON'S FURNITURE LTD (LNF.CA) is 7 / 10.
What is the earnings growth outlook for LEON'S FURNITURE LTD?
The Earnings per Share (EPS) of LEON'S FURNITURE LTD (LNF.CA) is expected to grow by 4.17% in the next year.