LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LNF - CA5266821092 - Common Stock
28.8 CAD
+0.41 (+1.44%)
We assign a fundamental rating of 6 out of 10 to LNF. LNF was compared to 16 industry peers in the Specialty Retail industry. LNF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LNF has a correct valuation and a medium growth rate. These ratings would make LNF suitable for quality investing!
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.
Each year in the past 5 years LNF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.15%, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of LNF (14.25%) is better than 75.00% of its industry peers.
LNF's Return On Invested Capital of 9.15% is amongst the best of the industry. LNF outperforms 81.25% 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 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 14.25% | ||
| ROIC | 9.15% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.43%
ROE(5y)17.71%
ROIC(3y)9.82%
ROIC(5y)11.29%
1.3 Margins
LNF has a Profit Margin of 6.77%. This is in the better half of the industry: LNF outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of LNF has grown nicely.
The Operating Margin of LNF (8.58%) is better than 62.50% of its industry peers.
LNF's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 45.03%, LNF is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
LNF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.58% | ||
| PM (TTM) | 6.77% | ||
| GM | 45.03% |
OM growth 3Y-12.63%
OM growth 5Y1.03%
PM growth 3Y-9.31%
PM growth 5Y5.61%
GM growth 3Y0.22%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
LNF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LNF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNF has less shares outstanding
LNF has a better debt/assets ratio than last year.
2.2 Solvency
LNF has an Altman-Z score of 3.09. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, LNF is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
LNF has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
LNF has a Debt to FCF ratio of 1.88. This is amongst the best in the industry. LNF outperforms 87.50% of its industry peers.
LNF has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
LNF has a Debt to Equity ratio of 0.32. This is amongst the best in the industry. LNF outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.09
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.57 indicates that LNF should not have too much problems paying its short term obligations.
LNF has a better Current ratio (1.57) than 81.25% of its industry peers.
LNF has a Quick Ratio of 1.57. This is a bad value and indicates that LNF is not financially healthy enough and could expect problems in meeting its short term obligations.
LNF has a Quick ratio of 0.90. This is in the better half of the industry: LNF outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
LNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.50%, which is quite impressive.
The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
Looking at the last year, LNF shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
LNF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.82% yearly.
EPS 1Y (TTM)33.5%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%35.19%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.1%
3.2 Future
The Earnings Per Share is expected to grow by 4.99% on average over the next years.
Based on estimates for the next years, LNF will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.95, the valuation of LNF can be described as reasonable.
Based on the Price/Earnings ratio, LNF is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. LNF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of LNF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. LNF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
68.75% of the companies in the same industry are more expensive than LNF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)1.1
EPS Next 2Y4.44%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, LNF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.70, LNF pays a better dividend. On top of this LNF pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of LNF has a limited annual growth rate of 5.74%.
LNF has been paying a dividend for at least 10 years, so it has a reliable track record.
LNF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.00% of the earnings are spent on dividend by LNF. This is a low number and sustainable payout ratio.
LNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
TSX:LNF (11/27/2025, 7:00:00 PM)
28.8
+0.41 (+1.44%)
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 Cap1.97B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (20.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP31%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.27%
Min EPS beat(2)17.84%
Max EPS beat(2)22.69%
EPS beat(4)4
Avg EPS beat(4)32.62%
Min EPS beat(4)17.84%
Max EPS beat(4)55.17%
EPS beat(8)7
Avg EPS beat(8)22.53%
EPS beat(12)8
Avg EPS beat(12)9.79%
EPS beat(16)10
Avg EPS beat(16)11.52%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.6%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)4
Avg Revenue beat(12)-1.11%
Revenue beat(16)5
Avg Revenue beat(16)-0.37%
PT rev (1m)1.28%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 11.84 | ||
| P/S | 0.77 | ||
| P/FCF | 7.69 | ||
| P/OCF | 6.68 | ||
| P/B | 1.61 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)2.63
EY9.13%
EPS(NY)2.43
Fwd EY8.45%
FCF(TTM)3.74
FCFY13%
OCF(TTM)4.31
OCFY14.98%
SpS37.63
BVpS17.89
TBVpS8.21
PEG (NY)2.63
PEG (5Y)1.1
Graham Number32.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 14.25% | ||
| ROCE | 12.11% | ||
| ROIC | 9.15% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 20.86% | ||
| OM | 8.58% | ||
| PM (TTM) | 6.77% | ||
| GM | 45.03% | ||
| FCFM | 9.95% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.43%
ROE(5y)17.71%
ROIC(3y)9.82%
ROIC(5y)11.29%
ROICexc(3y)11.56%
ROICexc(5y)15.42%
ROICexgc(3y)22.28%
ROICexgc(5y)62.58%
ROCE(3y)12.98%
ROCE(5y)14.93%
ROICexgc growth 3Y-53.9%
ROICexgc growth 5Y2.49%
ROICexc growth 3Y-28.04%
ROICexc growth 5Y2.69%
OM growth 3Y-12.63%
OM growth 5Y1.03%
PM growth 3Y-9.31%
PM growth 5Y5.61%
GM growth 3Y0.22%
GM growth 5Y0.33%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 35.8% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 9.57 | ||
| Cash Conversion | 89.45% | ||
| Profit Quality | 146.89% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.09 |
F-Score6
WACC8.37%
ROIC/WACC1.09
Cap/Depr(3y)40.93%
Cap/Depr(5y)35.48%
Cap/Sales(3y)1.77%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.5%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%35.19%
EPS Next Y4.17%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.1%
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
EBIT growth 1Y15.8%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year66.63%
EBIT Next 3Y21.02%
EBIT Next 5Y13.53%
FCF growth 1Y16.61%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y11.55%
OCF growth 3Y3.21%
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 7 / 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.