LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - TSX:LNF - CA5266821092 - Common Stock
28.67 CAD
+0.4 (+1.41%)
Overall LNF gets a fundamental rating of 6 out of 10. We evaluated LNF against 15 industry peers in the Specialty Retail industry. While LNF has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years LNF has been profitable.
In the past 5 years LNF always reported a positive cash flow from operatings.
1.2 Ratios
LNF's Return On Assets of 6.99% is fine compared to the rest of the industry. LNF outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.68%, LNF is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
LNF has a Return On Invested Capital of 9.75%. This is in the better half of the industry: LNF outperforms 80.00% 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 9.13%.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of LNF has grown nicely.
LNF's Operating Margin of 8.32% is in line compared to the rest of the industry. LNF outperforms 60.00% of its industry peers.
LNF's Operating Margin has been stable in the last couple of years.
LNF has a Gross Margin of 44.82%. This is in the better half of the industry: LNF outperforms 66.67% 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.
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.
Compared to 1 year ago, LNF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that LNF is not in any danger for bankruptcy at the moment.
LNF has a Altman-Z score of 3.18. This is in the better half of the industry: LNF outperforms 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.
Looking at the Debt to FCF ratio, with a value of 1.70, LNF belongs to the top of the industry, outperforming 86.67% 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.
The Debt to Equity ratio of LNF (0.23) is better than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.13
WACC8.66%
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 66.67% 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.
Looking at the Quick ratio, with a value of 0.71, LNF is in line with its industry, outperforming 53.33% 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.
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.
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
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
A Price/Earnings ratio of 11.75 indicates a reasonable valuation of LNF.
LNF's Price/Earnings ratio is rather cheap when compared to the industry. LNF is cheaper than 93.33% of the companies in the same industry.
LNF is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.79, 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 86.67% of the companies listed in the same industry.
LNF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
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 | 7.72 | ||
| EV/EBITDA | 6.19 |
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.
LNF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)1.19
EPS Next 2Y4.44%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.64, LNF pays a better dividend. On top of this LNF pays more dividend than 86.67% of the companies listed in the same industry.
LNF's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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.
LNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.17%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
TSX:LNF (10/17/2025, 7:00:00 PM)
28.67
+0.4 (+1.41%)
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 Cap1.96B
Analysts74.55
Price Target34.21 (19.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)15.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.77 | ||
| P/FCF | 7.72 | ||
| P/OCF | 6.64 | ||
| P/B | 1.67 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 6.19 |
EPS(TTM)2.44
EY8.51%
EPS(NY)2.43
Fwd EY8.48%
FCF(TTM)3.71
FCFY12.95%
OCF(TTM)4.32
OCFY15.07%
SpS37.24
BVpS17.17
TBVpS7.49
PEG (NY)2.82
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 | 3.18 |
F-Score6
WACC8.66%
ROIC/WACC1.13
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 2Y4.44%
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 1Y10.74%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year66.63%
EBIT Next 3Y21.02%
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%