LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
59.18 CAD
+1.1 (+1.89%)
Taking everything into account, L scores 5 out of 10 in our fundamental rating. L was compared to 17 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 has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years L has been profitable.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.01%, L belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
With an excellent Return On Equity value of 22.14%, L belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.77%, 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 7.74%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(10.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROIC | 10.77% |
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
The Profit Margin of L (3.94%) is better than 88.24% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
L has a Operating Margin of 6.93%. This is comparable to the rest of the industry: L outperforms 58.82% of its industry peers.
In the last couple of years the Operating Margin of L has grown nicely.
L has a Gross Margin (32.29%) 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 | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so L is still creating some value.
L has less shares outstanding than it did 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
An Altman-Z score of 3.50 indicates that L is not in any danger for bankruptcy at the moment.
L has a better Altman-Z score (3.50) than 76.47% of its industry peers.
L has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as L would need 6.03 years to pay back of all of its debts.
The Debt to FCF ratio of L (6.03) is better than 70.59% 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 | 6.03 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.52
WACC7.09%
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 70.59% of its industry peers.
L has a Quick Ratio of 1.24. This is a bad value and indicates that L is not financially healthy enough and could expect problems in meeting its short term obligations.
L has a worse Quick ratio (0.70) than 70.59% 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 for L have decreased strongly by -65.55% 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 3.26% in the last year.
Measured over the past years, L shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
EPS 1Y (TTM)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
3.2 Future
L is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.73% yearly.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y-28.74%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
EPS Next 5Y-0.73%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.18%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.30, L can be considered very expensive at the moment.
L's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of L to the average of the S&P500 Index (27.40), we can say L is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.33, L is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of L indicates a slightly more expensive valuation: L is more expensive than 70.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of L to the average of the S&P500 Index (22.94), we can say L is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
L's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. L is more expensive than 82.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L indicates a slightly more expensive valuation: L is more expensive than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 12.96 |
4.3 Compensation for Growth
The excellent profitability rating of L may justify a higher PE ratio.
L's earnings are expected to decrease with -5.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, L is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.59, L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 19.22% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of L has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP19.22%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
TSX:L (10/17/2025, 7:00:00 PM)
59.18
+1.1 (+1.89%)
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 Cap70.14B
Analysts78.82
Price Target62.76 (6.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP19.22%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-1.17%
Max EPS beat(2)1.15%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-2.57%
Max EPS beat(4)1.15%
EPS beat(8)3
Avg EPS beat(8)-0.22%
EPS beat(12)5
Avg EPS beat(12)-0.2%
EPS beat(16)9
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)1
Avg Revenue beat(16)-1.72%
PT rev (1m)0.53%
PT rev (3m)-74.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75.09%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 22.33 | ||
| P/S | 1.13 | ||
| P/FCF | 22.05 | ||
| P/OCF | 14.29 | ||
| P/B | 6.32 | ||
| P/tB | 55.1 | ||
| EV/EBITDA | 12.96 |
EPS(TTM)2.25
EY3.8%
EPS(NY)2.65
Fwd EY4.48%
FCF(TTM)2.68
FCFY4.54%
OCF(TTM)4.14
OCFY7%
SpS52.56
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROCE | 14.83% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 17.91% | ||
| OM | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% | ||
| FCFM | 5.11% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 78.61% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 75.33% | ||
| Profit Quality | 129.52% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.5 |
F-Score5
WACC7.09%
ROIC/WACC1.52
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)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
EPS Next Y-28.74%
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
EPS Next 5Y-0.73%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.18%
EBIT growth 1Y15.55%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y9.12%
FCF growth 1Y4.98%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y1.18%
OCF growth 3Y6.32%
OCF growth 5Y7.94%