LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
57.73 CAD
+1.37 (+2.43%)
We assign a fundamental rating of 5 out of 10 to L. L was compared to 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 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.
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
With an excellent Return On Assets value of 6.01%, L belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
L has a Return On Equity of 22.14%. This is amongst the best in the industry. L outperforms 100.00% of its industry peers.
L's Return On Invested Capital of 10.77% is amongst the best of the industry. L outperforms 94.12% 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 7.78%.
The last Return On Invested Capital (10.77%) for L is above the 3 year average (9.41%), which is a sign of increasing profitability.
| 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
L has a better Profit Margin (3.94%) than 88.24% of its industry peers.
L's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.93%, L is in line with its industry, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Operating Margin of L has grown nicely.
Looking at the Gross Margin, with a value of 32.29%, L is in line with its industry, outperforming 47.06% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L 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 3.49. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
L has a better Altman-Z score (3.49) than 76.47% of its industry peers.
The Debt to FCF ratio of L is 6.03, which is on the high side as it means it would take L, 6.03 years of fcf income to pay off all of its debts.
L's Debt to FCF ratio of 6.03 is fine compared to the rest of the industry. L outperforms 70.59% 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.
Looking at the Debt to Equity ratio, with a value of 1.52, L is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.56
WACC6.91%
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 Current ratio of 1.24. This is in the lower half of the industry: L underperforms 64.71% of its industry peers.
A Quick Ratio of 0.70 indicates that L may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, L is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
L shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.55%.
The Earnings Per Share has been decreasing by -3.63% on average over the past years.
The Revenue has been growing slightly by 3.26% in the past 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
Based on estimates for the next years, L will show a decrease in Earnings Per Share. The EPS will decrease by -0.73% on average per year.
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 25.66, L can be considered very expensive at the moment.
L's Price/Earnings ratio is in line with the industry average.
L's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.67.
Based on the Price/Forward Earnings ratio of 21.78, 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 70.59% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, L is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, L is valued expensively inside the industry as 82.35% of the companies are valued cheaper.
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 | 21.51 | ||
| EV/EBITDA | 12.9 |
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 -5.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.13%
EPS Next 3Y-5.62%
5. Dividend
5.1 Amount
L has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
L's Dividend Yield is comparable with the industry average which is at 3.61.
With a Dividend Yield of 1.02, L pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 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
19.22% of the earnings are spent on dividend by L. This is a low number and sustainable payout ratio.
L's earnings and Dividend Rate are 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 (11/5/2025, 7:00:00 PM)
57.73
+1.37 (+2.43%)
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 Cap68.42B
Revenue(TTM)62.29B
Net Income(TTM)2.46B
Analysts78.82
Price Target62.86 (8.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)0.78%
PT rev (3m)-74.01%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-74.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 21.78 | ||
| P/S | 1.1 | ||
| P/FCF | 21.51 | ||
| P/OCF | 13.94 | ||
| P/B | 6.17 | ||
| P/tB | 53.75 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)2.25
EY3.9%
EPS(NY)2.65
Fwd EY4.59%
FCF(TTM)2.68
FCFY4.65%
OCF(TTM)4.14
OCFY7.17%
SpS52.56
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.77
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%
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 Turnover1.52
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 | 3.49 |
F-Score5
WACC6.91%
ROIC/WACC1.56
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%
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 5 / 10 and the dividend payout ratio is 19.22%.