LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
TSX:LNF - Toronto Stock Exchange - CA5266821092 - Common Stock - Currency: CAD
Overall LNF gets a fundamental rating of 7 out of 10. We evaluated LNF against 17 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LNF was profitable.
LNF had a positive operating cash flow in the past year.
In the past 5 years LNF has always been profitable.
In the past 5 years LNF always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.96%, LNF belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
LNF has a Return On Equity of 13.77%. This is amongst the best in the industry. LNF outperforms 82.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.95%, LNF belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LNF is above the industry average of 7.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 13.77% | ||
| ROIC | 8.95% |
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 better Profit Margin (6.31%) than 70.59% of its industry peers.
LNF's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.92%, LNF is doing good in the industry, outperforming 64.71% of the companies in the same industry.
LNF's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 44.55%, LNF is doing good in the industry, outperforming 64.71% of the companies in the same industry.
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 | 7.92% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.55% |
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.
Compared to 1 year ago, LNF has more shares outstanding
The number of shares outstanding for LNF has been reduced compared to 5 years ago.
LNF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.16 indicates that LNF is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, LNF is doing good in the industry, outperforming 64.71% of the companies in the same industry.
LNF has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
LNF's Debt to FCF ratio of 1.46 is amongst the best of the industry. LNF outperforms 94.12% of its industry peers.
LNF has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LNF (0.29) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.08
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.49 indicates that LNF should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.49, LNF is doing good in the industry, outperforming 64.71% of the companies in the same industry.
LNF has a Quick Ratio of 1.49. This is a bad value and indicates that LNF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LNF (0.77) is comparable to the rest of the industry.
The current and quick ratio evaluation for LNF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.44% over the past year.
The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
LNF shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
LNF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.82% yearly.
EPS 1Y (TTM)7.44%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.63%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%3.07%
3.2 Future
Based on estimates for the next years, LNF will show a small growth in Earnings Per Share. The EPS will grow by 1.52% on average per year.
The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year0.35%
Revenue Next 2Y1.43%
Revenue Next 3Y1.77%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
LNF is valuated correctly with a Price/Earnings ratio of 12.11.
Compared to the rest of the industry, the Price/Earnings ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 94.12% 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 27.28.
Based on the Price/Forward Earnings ratio of 12.63, the valuation of LNF can be described as correct.
Based on the Price/Forward Earnings ratio, LNF is valued cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LNF to the average of the S&P500 Index (21.76), we can say LNF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than 70.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.7 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
The excellent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, LNF has a reasonable but not impressive dividend return.
LNF's Dividend Yield is rather good when compared to the industry average which is at 6.16. LNF pays more dividend than 82.35% of the companies in the same industry.
LNF's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
32.64% of the earnings are spent on dividend by LNF. This is a low number and sustainable payout ratio.
The dividend of LNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.64%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
TSX:LNF (7/2/2025, 7:00:00 PM)
27.97
-0.06 (-0.21%)
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 Cap1.91B
Analysts74.55
Price Target34.53 (23.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP32.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.97%
Min EPS beat(2)34.76%
Max EPS beat(2)55.17%
EPS beat(4)3
Avg EPS beat(4)22.72%
Min EPS beat(4)-2.79%
Max EPS beat(4)55.17%
EPS beat(8)5
Avg EPS beat(8)14.72%
EPS beat(12)8
Avg EPS beat(12)14.53%
EPS beat(16)10
Avg EPS beat(16)11.98%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)3.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)4
Avg Revenue beat(12)0.89%
Revenue beat(16)5
Avg Revenue beat(16)-0.49%
PT rev (1m)1.72%
PT rev (3m)1.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 12.63 | ||
| P/S | 0.76 | ||
| P/FCF | 6.7 | ||
| P/OCF | 5.53 | ||
| P/B | 1.66 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 6.2 |
EPS(TTM)2.31
EY8.26%
EPS(NY)2.22
Fwd EY7.92%
FCF(TTM)4.17
FCFY14.92%
OCF(TTM)5.06
OCFY18.07%
SpS36.89
BVpS16.9
TBVpS7.21
PEG (NY)N/A
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 13.77% | ||
| ROCE | 11.83% | ||
| ROIC | 8.95% | ||
| ROICexc | 10.75% | ||
| ROICexgc | 20.32% | ||
| OM | 7.92% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.55% | ||
| FCFM | 11.31% |
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-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 56.48% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 9.26 | ||
| Cash Conversion | 112.69% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.16 |
F-Score7
WACC8.3%
ROIC/WACC1.08
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)7.44%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.63%
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%3.07%
Revenue Next Year0.35%
Revenue Next 2Y1.43%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y5.35%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year59.42%
EBIT Next 3Y19.34%
EBIT Next 5YN/A
FCF growth 1Y163.26%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y150.23%
OCF growth 3Y3.21%
OCF growth 5Y8.02%