LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
TSX:LNF - CA5266821092 - Common Stock
30.29 CAD
-0.17 (-0.56%)
We assign a fundamental rating of 6 out of 10 to LNF. LNF was compared to 17 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making LNF a very profitable company, without any liquidiy or solvency issues. LNF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LNF was profitable.
LNF had a positive operating cash flow in the past year.
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 (6.99%) than 82.35% of its industry peers.
LNF has a Return On Equity of 13.68%. This is amongst the best in the industry. LNF outperforms 82.35% of its industry peers.
LNF has a better Return On Invested Capital (9.75%) than 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNF 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
The Profit Margin of LNF (6.31%) is better than 64.71% of its industry peers.
LNF's Profit Margin has improved in the last couple of years.
LNF has a better Operating Margin (8.32%) than 64.71% of its industry peers.
LNF's Operating Margin has been stable in the last couple of years.
LNF has a better Gross Margin (44.82%) than 64.71% 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 | 8.32% | ||
| 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
LNF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LNF has been increased compared to 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 3.25. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
LNF has a Altman-Z score of 3.25. This is in the better half of the industry: LNF outperforms 70.59% of its industry peers.
LNF has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.70, LNF belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
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 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.14
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LNF should not have too much problems paying its short term obligations.
LNF has a Current ratio of 1.35. This is in the better half of the industry: LNF outperforms 70.59% 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.
With a Quick ratio value of 0.71, LNF perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
LNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.93%, which is quite good.
The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.57% in the past year.
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
The Earnings Per Share is expected to grow by 4.99% on average over the next years.
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 12.41, which indicates a correct valuation of LNF.
Based on the Price/Earnings ratio, LNF is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
LNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
LNF is valuated correctly with a Price/Forward Earnings ratio of 12.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 88.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LNF to the average of the S&P500 Index (22.67), we can say LNF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNF does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)1.25
EPS Next 2Y4.19%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.68, LNF pays a better dividend. On top of this LNF pays more dividend than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
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 (8/26/2025, 7:00:00 PM)
30.29
-0.17 (-0.56%)
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 Cap2.07B
Analysts74.55
Price Target34.21 (12.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)0.75%
EPS NQ rev (1m)4.31%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)15.19%
EPS NY rev (3m)15.19%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)2.75%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.81 | ||
| P/FCF | 8.16 | ||
| P/OCF | 7.01 | ||
| P/B | 1.76 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)2.44
EY8.06%
EPS(NY)2.42
Fwd EY7.99%
FCF(TTM)3.71
FCFY12.26%
OCF(TTM)4.32
OCFY14.26%
SpS37.24
BVpS17.17
TBVpS7.49
PEG (NY)2.98
PEG (5Y)1.25
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 | 3.25 |
F-Score6
WACC8.56%
ROIC/WACC1.14
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 5Y13.62%
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%