LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:LNF • CA5266821092
27.86 CAD
-0.04 (-0.14%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to LNF. LNF was compared to 19 industry peers in the Specialty Retail industry. LNF has only an average score on both its financial health and profitability. LNF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- LNF had positive earnings in the past year.
- 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
- LNF's Return On Assets of 7.15% is fine compared to the rest of the industry. LNF outperforms 68.42% of its industry peers.
- The Return On Equity of LNF (14.25%) is better than 68.42% of its industry peers.
- LNF has a better Return On Invested Capital (9.15%) than 73.68% 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 11.04%.
| 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 (6.77%) which is in line with 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 comparable to the rest of the industry.
- LNF's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 45.03%, LNF is doing good in the industry, outperforming 68.42% 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.
- 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 3.06 indicates that LNF is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.06, LNF is in the better half of the industry, outperforming 68.42% 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.
- Looking at the Debt to FCF ratio, with a value of 1.88, LNF is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.32 indicates that LNF is not too dependend on debt financing.
- LNF's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. LNF outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.05
WACC8.69%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that LNF should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.57, LNF is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- 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's Quick ratio of 0.90 is fine compared to the rest of the industry. LNF outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.50% 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 1.99%.
- The Revenue has been growing slightly by 1.82% on average over the past years.
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
- Based on estimates for the next years, LNF will show a small growth in Earnings Per Share. The EPS will grow by 4.99% on average per year.
- Based on estimates for the next years, LNF will show a small growth in Revenue. The Revenue will grow by 2.50% on average per year.
EPS Next Y4.77%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue Next Year3.15%
Revenue Next 2Y2.63%
Revenue Next 3Y2.5%
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.
- 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
- With a Price/Earnings ratio of 10.59, the valuation of LNF can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 84.21% 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 28.39.
- The Price/Forward Earnings ratio is 11.52, which indicates a very decent valuation of LNF.
- LNF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LNF is cheaper than 78.95% of the companies in the same industry.
- LNF is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
- 63.16% of the companies in the same industry are more expensive than LNF, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 5.67 |
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)2.22
PEG (5Y)1.07
EPS Next 2Y4.15%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
- LNF has a Yearly Dividend Yield of 3.40%.
- LNF's Dividend Yield is rather good when compared to the industry average which is at 2.62. LNF pays more dividend than 84.21% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LNF pays a better dividend.
| 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 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 31.00% 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.
DP31%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
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.
Can you provide the valuation status for LEON'S FURNITURE LTD?
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 6 / 10.
What is the valuation of LEON'S FURNITURE LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEON'S FURNITURE LTD (LNF.CA) is 10.59 and the Price/Book (PB) ratio is 1.56.
Can you provide the dividend sustainability for LNF stock?
The dividend rating of LEON'S FURNITURE LTD (LNF.CA) is 6 / 10 and the dividend payout ratio is 31%.