LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - TSX:LNF - CA5266821092 - Common Stock
28.83 CAD
-0.04 (-0.14%)
Overall LNF gets a fundamental rating of 6 out of 10. We evaluated LNF against 16 industry peers in the Specialty Retail industry. LNF gets an excellent profitability rating and is at the same time showing great financial health properties. LNF has a correct valuation and a medium growth rate.
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.
In the past 5 years LNF has always been profitable.
Each year in the past 5 years LNF had a positive operating cash flow.
1.2 Ratios
LNF's Return On Assets of 6.99% is amongst the best of the industry. LNF outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 13.68%, LNF belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
LNF's Return On Invested Capital of 9.75% is amongst the best of the industry. LNF outperforms 81.25% of its industry peers.
LNF had an Average Return On Invested Capital over the past 3 years of 9.82%. This is in line with the industry average of 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 13.68% | ||
| ROIC | 9.75% |
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
Looking at the Profit Margin, with a value of 6.31%, LNF is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of LNF has grown nicely.
With a decent Operating Margin value of 8.32%, LNF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of LNF has remained more or less at the same level.
LNF has a Gross Margin of 44.82%. This is in the better half of the industry: LNF outperforms 68.75% of its industry peers.
LNF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.32% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.82% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNF is still creating some value.
LNF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LNF has been reduced compared to 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 3.19 indicates that LNF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
LNF's Debt to FCF ratio of 1.70 is amongst the best of the industry. LNF outperforms 81.25% 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.
LNF's Debt to Equity ratio of 0.23 is amongst the best of the industry. LNF outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.1
WACC8.88%
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.
The Current ratio of LNF (1.35) is better than 75.00% of its industry peers.
LNF has a Quick Ratio of 1.35. 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 (0.71) which is comparable to the rest of the industry.
| 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.
Looking at the last year, LNF shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
Measured over the past years, LNF shows a small growth in Revenue. The Revenue has been growing by 1.82% on average per year.
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.
The Revenue is expected to grow by 2.96% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y4.19%
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.
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
The Price/Earnings ratio is 11.82, which indicates a very decent valuation of LNF.
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 27.38. LNF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.91, the valuation of LNF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LNF is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, LNF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 6.23 |
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)2.83
PEG (5Y)1.19
EPS Next 2Y4.19%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, LNF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.45, 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 2.38, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of LNF has a limited annual growth rate of 5.74%.
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)5.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LNF pays out 33.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of LNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.17%
EPS Next 2Y4.19%
EPS Next 3Y4.99%
TSX:LNF (9/19/2025, 7:00:00 PM)
28.83
-0.04 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.65%
Inst Owner ChangeN/A
Ins Owners3.38%
Ins Owner ChangeN/A
Market Cap1.97B
Analysts74.55
Price Target34.21 (18.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP33.17%
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)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)15.19%
EPS NY rev (3m)15.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.77 | ||
| P/FCF | 7.76 | ||
| P/OCF | 6.67 | ||
| P/B | 1.68 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)2.44
EY8.46%
EPS(NY)2.42
Fwd EY8.4%
FCF(TTM)3.71
FCFY12.88%
OCF(TTM)4.32
OCFY14.98%
SpS37.24
BVpS17.17
TBVpS7.49
PEG (NY)2.83
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 13.68% | ||
| ROCE | 12.89% | ||
| ROIC | 9.75% | ||
| ROICexc | 11.64% | ||
| ROICexgc | 22.42% | ||
| OM | 8.32% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.82% | ||
| FCFM | 9.97% |
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%
ROICexcg growth 3Y-53.9%
ROICexcg 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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 38.6% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 9.85 | ||
| Cash Conversion | 92.47% | ||
| Profit Quality | 158.09% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.19 |
F-Score6
WACC8.88%
ROIC/WACC1.1
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)11.93%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.55%
EPS Next Y4.17%
EPS Next 2Y4.19%
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 1Y10.74%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year59.42%
EBIT Next 3Y19.34%
EBIT Next 5Y13.53%
FCF growth 1Y48.22%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y43.36%
OCF growth 3Y3.21%
OCF growth 5Y8.02%