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 16 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes LNF very considerable for value investing!
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.
Each year in the past 5 years LNF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.57%, LNF belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
LNF has a Return On Equity of 13.47%. This is amongst the best in the industry. LNF outperforms 87.50% of its industry peers.
The Return On Invested Capital of LNF (8.58%) is better than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNF is above the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROIC | 8.58% |
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 of 6.15%. This is in the better half of the industry: LNF outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of LNF has grown nicely.
LNF has a Operating Margin of 7.65%. This is in the better half of the industry: LNF outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of LNF has remained more or less at the same level.
With a decent Gross Margin value of 44.36%, LNF is doing good in the industry, outperforming 75.00% 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 | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.36% |
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
Compared to 5 years ago, LNF has less shares outstanding
The debt/assets ratio for LNF has been reduced compared to a year ago.
2.2 Solvency
LNF has an Altman-Z score of 2.84. This is not the best score and indicates that LNF is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.84, LNF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of LNF is 1.49, which is an excellent value as it means it would take LNF, only 1.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.49, LNF belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
LNF has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
LNF has a Debt to Equity ratio of 0.30. This is amongst the best in the industry. LNF outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.09
WACC7.88%
2.3 Liquidity
LNF has a Current Ratio of 1.43. This is a normal value and indicates that LNF is financially healthy and should not expect problems in meeting its short term obligations.
LNF has a Current ratio of 1.43. This is in the better half of the industry: LNF outperforms 68.75% of its industry peers.
A Quick Ratio of 0.82 indicates that LNF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, LNF is in the better half of the industry, outperforming 68.75% of the companies in the same 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 | 1.43 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
LNF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.73%.
LNF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.92% yearly.
The Revenue has been growing slightly by 1.78% in the past year.
LNF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.82% yearly.
EPS 1Y (TTM)7.73%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%36.11%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
3.2 Future
LNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.52% yearly.
Based on estimates for the next years, LNF will show a small growth in Revenue. The Revenue will grow by 1.88% on average per year.
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y1.88%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.31, the valuation of LNF can be described as very reasonable.
Based on the Price/Earnings ratio, LNF is valued cheaper than 81.25% of the companies in the same industry.
LNF is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.41, which indicates a very decent valuation of LNF.
Based on the Price/Forward Earnings ratio, LNF is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.20. LNF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued cheaper than 81.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.5 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The excellent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
LNF's Dividend Yield is rather good when compared to the industry average which is at 5.17. LNF pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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
32.80% 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.
DP32.8%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
TSX:LNF (4/30/2025, 7:00:00 PM)
23
+0.55 (+2.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.77%
Inst Owner ChangeN/A
Ins Owners4.42%
Ins Owner ChangeN/A
Market Cap1.57B
Analysts74.55
Price Target33.95 (47.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP32.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.99%
Min EPS beat(2)-2.79%
Max EPS beat(2)34.76%
EPS beat(4)3
Avg EPS beat(4)14.3%
Min EPS beat(4)-2.79%
Max EPS beat(4)34.76%
EPS beat(8)4
Avg EPS beat(8)1.85%
EPS beat(12)7
Avg EPS beat(12)8.27%
EPS beat(16)10
Avg EPS beat(16)20.85%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-2.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.67%
Revenue beat(8)2
Avg Revenue beat(8)-2.17%
Revenue beat(12)3
Avg Revenue beat(12)-0.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.3%
PT rev (1m)0%
PT rev (3m)-3.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.63 | ||
| P/FCF | 5.5 | ||
| P/OCF | 4.55 | ||
| P/B | 1.37 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)2.23
EY9.7%
EPS(NY)2.02
Fwd EY8.77%
FCF(TTM)4.18
FCFY18.18%
OCF(TTM)5.06
OCFY21.99%
SpS36.64
BVpS16.73
TBVpS7.04
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROCE | 11.34% | ||
| ROIC | 8.58% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 20.7% | ||
| OM | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.36% | ||
| FCFM | 11.41% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 56.08% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 8.39 | ||
| Cash Conversion | 115.88% | ||
| Profit Quality | 185.57% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.84 |
F-Score7
WACC7.88%
ROIC/WACC1.09
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)7.73%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%36.11%
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y1.88%
Revenue Next 5YN/A
EBIT growth 1Y3.43%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year53.9%
EBIT Next 3Y18.8%
EBIT Next 5YN/A
FCF growth 1Y36.65%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y36.18%
OCF growth 3Y3.21%
OCF growth 5Y8.02%