LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
61.42 CAD
0 (0%)
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. L scores excellent on profitability, but there are some minor concerns on its financial health. L is quite expensive at the moment. 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.
In the past 5 years L has always been profitable.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
L has a better Return On Assets (6.05%) than 83.33% of its industry peers.
L has a better Return On Equity (22.30%) than 72.22% of its industry peers.
L's Return On Invested Capital of 10.91% is amongst the best of the industry. L outperforms 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 8.02%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(10.91%), indicating increased profibility in the last year.
| 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 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of L has grown nicely.
L's Operating Margin of 6.92% is fine compared to the rest of the industry. L outperforms 61.11% of its industry peers.
L's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.37%, L perfoms like the industry average, outperforming 44.44% 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 | 6.92% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is creating some value.
Compared to 1 year ago, L has less shares outstanding
The number of shares outstanding for L has been reduced compared to 5 years ago.
Compared to 1 year ago, L has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that L is not in any danger for bankruptcy at the moment.
L has a Altman-Z score of 3.60. 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.
L has a Debt to FCF ratio of 5.20. This is in the better half of the industry: L outperforms 77.78% 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 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.59
WACC6.88%
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 (1.24) which is comparable to the rest of the industry.
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 Quick ratio of 0.70. This is in the lower half of the industry: L underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.39%, which is quite good.
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 4.21%.
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)10.39%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10.4%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
3.2 Future
L is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.87% yearly.
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 Y14.97%
EPS Next 2Y11.33%
EPS Next 3Y10.63%
EPS Next 5Y8.87%
Revenue Next Year6.38%
Revenue Next 2Y4.31%
Revenue Next 3Y4.13%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 26.59, L can be considered very expensive at the moment.
Based on the Price/Earnings ratio, L is valued a bit more expensive than 61.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of L to the average of the S&P500 Index (26.76), we can say L is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.13, L is valued on the expensive side.
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.
L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 23.13 |
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 77.78% 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 | 19.71 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
L's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of L may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.69
EPS Next 2Y11.33%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, L is not a good candidate for dividend investing.
L's Dividend Yield is comparable with the industry average which is at 3.56.
With a Dividend Yield of 0.91, L pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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.
DP26.12%
EPS Next 2Y11.33%
EPS Next 3Y10.63%
TSX:L (12/11/2025, 7:00:00 PM)
61.42
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.77%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap72.64B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target66.71 (8.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)6.13%
PT rev (3m)6.86%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0.7%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 23.13 | ||
| P/S | 1.15 | ||
| P/FCF | 19.71 | ||
| P/OCF | 12.85 | ||
| P/B | 6.55 | ||
| P/tB | 57.06 | ||
| EV/EBITDA | 12.27 |
EPS(TTM)2.31
EY3.76%
EPS(NY)2.66
Fwd EY4.32%
FCF(TTM)3.12
FCFY5.07%
OCF(TTM)4.78
OCFY7.78%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.78
PEG (5Y)1.69
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 | 3.6 |
F-Score5
WACC6.88%
ROIC/WACC1.59
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)10.39%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%10.4%
EPS Next Y14.97%
EPS Next 2Y11.33%
EPS Next 3Y10.63%
EPS Next 5Y8.87%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
Revenue Next Year6.38%
Revenue Next 2Y4.31%
Revenue Next 3Y4.13%
Revenue Next 5Y3.98%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.77%
EBIT Next 3Y22.87%
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 5 / 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%.