LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
60.71 CAD
-0.61 (-0.99%)
Taking everything into account, L scores 5 out of 10 in our fundamental rating. L was compared to 18 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year L was profitable.
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
L's Return On Assets of 6.05% is amongst the best of the industry. L outperforms 83.33% of its industry peers.
L's Return On Equity of 22.30% is amongst the best of the industry. L outperforms 100.00% of its industry peers.
The Return On Invested Capital of L (10.91%) is better than 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for L is in line with the industry average of 7.81%.
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
L's Profit Margin of 3.92% is amongst the best of the industry. L outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
The Operating Margin of L (6.92%) is better than 61.11% of its industry peers.
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
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.
L has less shares outstanding than it did 5 years ago.
The debt/assets ratio for L is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.59 indicates that L is not in any danger for bankruptcy at the moment.
L has a Altman-Z score of 3.59. This is in the better half of the industry: L outperforms 72.22% of its industry peers.
The Debt to FCF ratio of L is 5.20, which is a neutral value as it means it would take L, 5.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.20, L is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.57
WACC6.95%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
L has a worse Current ratio (1.24) than 66.67% 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 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 for L have decreased strongly by -55.71% in the last year.
Measured over the past years, L shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.63% on average per year.
The Revenue has been growing slightly by 4.21% in the past 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)-55.71%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%5.43%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to decrease by -0.59% on average over the next years.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.59%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.33%
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.
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
The Price/Earnings ratio is 17.70, which indicates a rather expensive current valuation of L.
Based on the Price/Earnings ratio, L is valued a bit cheaper than 66.67% of the companies in the same industry.
L's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 22.93, which indicates a rather expensive current valuation of L.
Based on the Price/Forward Earnings ratio, L is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of L to the average of the S&P500 Index (34.98), we can say L is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.7 | ||
| Fwd PE | 22.93 |
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 72.22% of the companies in the same industry.
66.67% of the companies in the same industry are cheaper than L, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.52 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
The excellent profitability rating of L may justify a higher PE ratio.
A cheap valuation may be justified as L's earnings are expected to decrease with -5.64% in the coming years.
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 0.95%, L is not a good candidate for dividend investing.
L's Dividend Yield is comparable with the industry average which is at 3.59.
Compared to an average S&P500 Dividend Yield of 2.44, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of L decreases each year by -14.66%.
L has paid a dividend for at least 10 years, which is a reliable track record.
L has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-14.66%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
26.12% of the earnings are spent on dividend by L. This is a low number and 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.
DP26.12%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
TSX:L (11/18/2025, 7:00:00 PM)
60.71
-0.61 (-0.99%)
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 Cap71.95B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target62.86 (3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.73%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-2%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.01%
Revenue beat(12)0
Avg Revenue beat(12)-1.9%
Revenue beat(16)1
Avg Revenue beat(16)-1.78%
PT rev (1m)0.16%
PT rev (3m)-74.72%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-75.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.7 | ||
| Fwd PE | 22.93 | ||
| P/S | 1.14 | ||
| P/FCF | 19.52 | ||
| P/OCF | 12.73 | ||
| P/B | 6.49 | ||
| P/tB | 56.52 | ||
| EV/EBITDA | 12.19 |
EPS(TTM)3.43
EY5.65%
EPS(NY)2.65
Fwd EY4.36%
FCF(TTM)3.11
FCFY5.12%
OCF(TTM)4.77
OCFY7.86%
SpS53.28
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number26.87
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 | 3.59 |
F-Score5
WACC6.95%
ROIC/WACC1.57
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)-55.71%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%5.43%
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.59%
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 5Y4.33%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y9.27%
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%.