LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD
Overall L gets a fundamental rating of 5 out of 10. We evaluated L against 18 industry peers in the Consumer Staples Distribution & Retail industry. L scores excellent on profitability, but there are some minor concerns on its financial health. L is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
L had positive earnings in the past year.
In the past year L had a positive cash flow from operations.
L had positive earnings in each of the past 5 years.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of L (5.27%) is better than 77.78% of its industry peers.
L has a Return On Equity of 19.43%. This is in the better half of the industry: L outperforms 66.67% of its industry peers.
L has a Return On Invested Capital of 9.73%. This is amongst the best in the industry. L outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for L is in line with the industry average of 7.60%.
The last Return On Invested Capital (9.73%) for L is above the 3 year average (9.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROIC | 9.73% |
ROA(3y)5.21%
ROA(5y)4.76%
ROE(3y)18.18%
ROE(5y)16.12%
ROIC(3y)9.41%
ROIC(5y)8.49%
1.3 Margins
L has a Profit Margin of 3.53%. This is in the better half of the industry: L outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
L has a Operating Margin of 6.40%. This is comparable to the rest of the industry: L outperforms 55.56% of its industry peers.
In the last couple of years the Operating Margin of L has grown nicely.
Looking at the Gross Margin, with a value of 32.33%, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Gross Margin of L has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% |
OM growth 3Y5.29%
OM growth 5Y6.41%
PM growth 3Y0.27%
PM growth 5Y9.68%
GM growth 3Y0.9%
GM growth 5Y1.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is creating some value.
L has less shares outstanding than it did 1 year ago.
L has less shares outstanding than it did 5 years ago.
L has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.35 indicates that L is not in any danger for bankruptcy at the moment.
L's Altman-Z score of 3.35 is fine compared to the rest of the industry. L outperforms 72.22% of its industry peers.
The Debt to FCF ratio of L is 5.33, which is a neutral value as it means it would take L, 5.33 years of fcf income to pay off all of its debts.
L's Debt to FCF ratio of 5.33 is fine compared to the rest of the industry. L outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
The Debt to Equity ratio of L (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.45
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
L's Current ratio of 1.24 is on the low side compared to the rest of the industry. L is outperformed by 61.11% of its industry peers.
A Quick Ratio of 0.70 indicates that L may have some problems paying its short term obligations.
L's Quick ratio of 0.70 is on the low side compared to the rest of the industry. L is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.58% over the past year.
L shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.72% yearly.
L shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
EPS 1Y (TTM)10.58%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%2.87%
3.2 Future
Based on estimates for the next years, L will show a small growth in Earnings Per Share. The EPS will grow by 6.49% on average per year.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.49%
Revenue Next Year5.87%
Revenue Next 2Y3.89%
Revenue Next 3Y3.04%
Revenue Next 5Y3.27%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.25, which means the current valuation is very expensive for L.
L's Price/Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 66.67% of the companies in the same industry.
L's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.79.
Based on the Price/Forward Earnings ratio of 22.54, the valuation of L can be described as rather expensive.
61.11% of the companies in the same industry are cheaper than L, based on the Price/Forward Earnings ratio.
L is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 22.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, L is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.05 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates L does not grow enough to justify the current Price/Earnings ratio.
L has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)1.61
EPS Next 2Y9.97%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, L is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.44, L has a dividend in line with its industry peers.
With a Dividend Yield of 0.95, L pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of L grows each year by 12.61%, which is quite nice.
L has paid a dividend for at least 10 years, which is a reliable track record.
L has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.61%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
21.30% of the earnings are spent on dividend by L. This is a low number and sustainable payout ratio.
L's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.3%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
TSX:L (4/25/2025, 7:00:00 PM)
216.42
+1.11 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.71%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap64.80B
Analysts77.65
Price Target209.51 (-3.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.5
Dividend Growth(5Y)12.61%
DP21.3%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.21%
Min EPS beat(2)-2.57%
Max EPS beat(2)0.16%
EPS beat(4)1
Avg EPS beat(4)-1.2%
Min EPS beat(4)-2.57%
Max EPS beat(4)0.16%
EPS beat(8)2
Avg EPS beat(8)-0.49%
EPS beat(12)6
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.51%
PT rev (1m)0.25%
PT rev (3m)-1.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 22.54 | ||
| P/S | 1.07 | ||
| P/FCF | 18.05 | ||
| P/OCF | 11.2 | ||
| P/B | 5.86 | ||
| P/tB | 51.07 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)8.57
EY3.96%
EPS(NY)9.6
Fwd EY4.44%
FCF(TTM)11.99
FCFY5.54%
OCF(TTM)19.31
OCFY8.92%
SpS203.12
BVpS36.92
TBVpS4.24
PEG (NY)2.1
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROCE | 13.4% | ||
| ROIC | 9.73% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 16.19% | ||
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% | ||
| FCFM | 5.9% |
ROA(3y)5.21%
ROA(5y)4.76%
ROE(3y)18.18%
ROE(5y)16.12%
ROIC(3y)9.41%
ROIC(5y)8.49%
ROICexc(3y)10.1%
ROICexc(5y)9.15%
ROICexgc(3y)16.28%
ROICexgc(5y)15.02%
ROCE(3y)12.97%
ROCE(5y)11.67%
ROICexcg growth 3Y4.06%
ROICexcg growth 5Y8.17%
ROICexc growth 3Y7.07%
ROICexc growth 5Y10.67%
OM growth 3Y5.29%
OM growth 5Y6.41%
PM growth 3Y0.27%
PM growth 5Y9.68%
GM growth 3Y0.9%
GM growth 5Y1.03%
F-Score5
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 74.17% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 84.48% | ||
| Profit Quality | 167.15% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.35 |
F-Score5
WACC6.71%
ROIC/WACC1.45
Cap/Depr(3y)67.23%
Cap/Depr(5y)58.13%
Cap/Sales(3y)3.29%
Cap/Sales(5y)2.86%
Profit Quality(3y)168.5%
Profit Quality(5y)213.82%
High Growth Momentum
Growth
EPS 1Y (TTM)10.58%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10%
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.49%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%2.87%
Revenue Next Year5.87%
Revenue Next 2Y3.89%
Revenue Next 3Y3.04%
Revenue Next 5Y3.27%
EBIT growth 1Y5.35%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year64.94%
EBIT Next 3Y18.08%
EBIT Next 5Y7.99%
FCF growth 1Y0.56%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y2.62%
OCF growth 3Y6.32%
OCF growth 5Y7.94%