LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
62 CAD
-0.7 (-1.12%)
L gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 17 industry peers in the Consumer Staples Distribution & Retail industry. While L belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. L is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year L was profitable.
L had a positive operating cash flow in the past year.
L had positive earnings in each of the past 5 years.
Each year in the past 5 years L had a positive operating cash flow.
1.2 Ratios
L's Return On Assets of 6.05% is amongst the best of the industry. L outperforms 82.35% of its industry peers.
L has a Return On Equity of 22.30%. This is in the better half of the industry: L outperforms 70.59% of its industry peers.
With an excellent Return On Invested Capital value of 10.91%, L belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for L is in line with the industry average of 8.15%.
The last Return On Invested Capital (10.91%) for L is above the 3 year average (9.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 22.3% | ||
| ROIC | 10.91% |
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
With an excellent Profit Margin value of 3.92%, L belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
L's Profit Margin has improved in the last couple of years.
The Operating Margin of L (6.92%) is comparable to the rest of the industry.
L's Operating Margin has improved in the last couple of years.
L has a Gross Margin (32.37%) which is in line with its industry peers.
L's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 3.92% | ||
| GM | 32.37% |
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
L 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 L has been reduced compared to 1 year ago.
The number of shares outstanding for L has been reduced compared to 5 years ago.
L has a worse debt/assets ratio than last year.
2.2 Solvency
L has an Altman-Z score of 3.62. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.62, L is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
L has a debt to FCF ratio of 5.20. This is a neutral value as L would need 5.20 years to pay back of all of its debts.
L's Debt to FCF ratio of 5.20 is fine compared to the rest of the industry. L outperforms 76.47% of its industry peers.
L has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.52, L perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.58
WACC6.89%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
The Current ratio of L (1.24) is worse than 70.59% of its industry peers.
A Quick Ratio of 0.70 indicates that L may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, L is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for L have decreased strongly by -52.69% in the last year.
The Earnings Per Share has been decreasing by -3.63% on average over the past years.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
EPS 1Y (TTM)-52.69%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%10.4%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
3.2 Future
Based on estimates for the next years, L will show a decrease in Earnings Per Share. The EPS will decrease by -0.92% on average per year.
Based on estimates for the next years, L will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.92%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.84 indicates a quite expensive valuation of L.
Compared to the rest of the industry, the Price/Earnings ratio of L is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.31. L is around the same levels.
Based on the Price/Forward Earnings ratio of 23.42, the valuation of L can be described as rather expensive.
Based on the Price/Forward Earnings ratio, L is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
L is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
L's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. L is more expensive than 76.47% of the companies in the same industry.
L's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.89 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
L has an outstanding profitability rating, which may justify a higher PE ratio.
L's earnings are expected to decrease with -5.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, L is not a good candidate for dividend investing.
L's Dividend Yield is comparable with the industry average which is at 3.55.
Compared to an average S&P500 Dividend Yield of 2.34, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of L decreases each year by -14.66%.
L has been paying a dividend for at least 10 years, so it has a reliable track record.
L has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.66%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
L's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP26.12%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
TSX:L (11/28/2025, 7:00:00 PM)
62
-0.7 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.95%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.33B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target65.51 (5.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-0.52%
Max EPS beat(2)1.15%
EPS beat(4)1
Avg EPS beat(4)-0.78%
Min EPS beat(4)-2.57%
Max EPS beat(4)1.15%
EPS beat(8)3
Avg EPS beat(8)-0.24%
EPS beat(12)4
Avg EPS beat(12)-0.31%
EPS beat(16)8
Avg EPS beat(16)0.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-1.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)0
Avg Revenue beat(12)-1.91%
Revenue beat(16)1
Avg Revenue beat(16)-1.78%
PT rev (1m)4.39%
PT rev (3m)4.94%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.42 | ||
| P/S | 1.16 | ||
| P/FCF | 19.89 | ||
| P/OCF | 12.97 | ||
| P/B | 6.61 | ||
| P/tB | 57.6 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)2.31
EY3.73%
EPS(NY)2.65
Fwd EY4.27%
FCF(TTM)3.12
FCFY5.03%
OCF(TTM)4.78
OCFY7.71%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 22.3% | ||
| ROCE | 15.02% | ||
| ROIC | 10.91% | ||
| ROICexc | 11.74% | ||
| ROICexgc | 18.14% | ||
| OM | 6.92% | ||
| PM (TTM) | 3.92% | ||
| GM | 32.37% | ||
| FCFM | 5.84% |
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%
ROICexgc growth 3Y4.06%
ROICexgc 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 Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 70.06% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 78.72% | ||
| Profit Quality | 149.05% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.62 |
F-Score5
WACC6.89%
ROIC/WACC1.58
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)-52.69%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%10.4%
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.92%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.98%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y8.9%
FCF growth 1Y11.26%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y4.76%
OCF growth 3Y6.32%
OCF growth 5Y7.94%
LOBLAW COMPANIES LTD / L.CA FAQ
What is the fundamental rating for L stock?
ChartMill assigns a fundamental rating of 5 / 10 to L.CA.
What is the valuation status for L stock?
ChartMill assigns a valuation rating of 2 / 10 to LOBLAW COMPANIES LTD (L.CA). This can be considered as Overvalued.
What is the profitability of L stock?
LOBLAW COMPANIES LTD (L.CA) has a profitability rating of 8 / 10.
How financially healthy is LOBLAW COMPANIES LTD?
The financial health rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10.
Is the dividend of LOBLAW COMPANIES LTD sustainable?
The dividend rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10 and the dividend payout ratio is 26.12%.