LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
62.88 CAD
+0.54 (+0.87%)
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. While showing a medium growth rate, L is valued expensive at the moment.
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.
- In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of L (6.05%) is better than 83.33% of its industry peers.
- With a decent Return On Equity value of 22.30%, L is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- L has a better Return On Invested Capital (10.91%) than 94.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for L is in line with the industry average of 8.07%.
- 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 88.89% of the companies in the same industry.
- L's Profit Margin has improved in the last couple of years.
- 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.
- L has a Gross Margin of 32.37%. This is comparable to the rest of the industry: L outperforms 44.44% of its industry peers.
- In the last couple of years the Gross Margin of L has remained more or less at the same level.
| 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.
- 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 3.64 indicates that L is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.64, L is doing good in the industry, outperforming 72.22% 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.
- 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.
- L has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
- L's Debt to Equity ratio of 1.52 is in line compared to the rest of the industry. L outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.55
WACC7.06%
2.3 Liquidity
- L has a Current Ratio of 1.24. This is a normal value and indicates that L is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.24, L is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
- 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. L is outperformed by 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 has grown by an nice 10.39% over the past year.
- Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.72% on average per year.
- Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% 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)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
- Based on estimates for the next years, L will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
- Based on estimates for the next years, L will show a small growth in Revenue. The Revenue will grow by 3.49% on average per year.
EPS Next Y14.97%
EPS Next 2Y11.35%
EPS Next 3Y10.63%
EPS Next 5Y8.36%
Revenue Next Year6.38%
Revenue Next 2Y4.31%
Revenue Next 3Y4.13%
Revenue Next 5Y3.49%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- L is valuated quite expensively with a Price/Earnings ratio of 27.22.
- Based on the Price/Earnings ratio, L is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.33. L is around the same levels.
- A Price/Forward Earnings ratio of 23.67 indicates a rather expensive 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, L is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 23.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, L is valued a bit more expensive than 77.78% of the companies in the same industry.
- 61.11% 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 | 20.18 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of L may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)1.73
EPS Next 2Y11.35%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.92%, L is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.13, L has a dividend in line with its industry peers.
- With a Dividend Yield of 0.92, L pays less dividend than the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 2Y11.35%
EPS Next 3Y10.63%
TSX:L (1/14/2026, 7:00:00 PM)
62.88
+0.54 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-12 2025-11-12/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners19.5%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap74.37B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts80
Price Target66.91 (6.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-DateN/A
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)0.31%
PT rev (3m)6.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 23.67 | ||
| P/S | 1.18 | ||
| P/FCF | 20.18 | ||
| P/OCF | 13.15 | ||
| P/B | 6.71 | ||
| P/tB | 58.42 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)2.31
EY3.67%
EPS(NY)2.66
Fwd EY4.22%
FCF(TTM)3.12
FCFY4.96%
OCF(TTM)4.78
OCFY7.6%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.82
PEG (5Y)1.73
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 | 3.64 |
F-Score5
WACC7.06%
ROIC/WACC1.55
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 2Y11.35%
EPS Next 3Y10.63%
EPS Next 5Y8.36%
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 5Y3.49%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.77%
EBIT Next 3Y22.87%
EBIT Next 5Y8.39%
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.
Can you provide the valuation status for LOBLAW COMPANIES LTD?
ChartMill assigns a valuation rating of 1 / 10 to LOBLAW COMPANIES LTD (L.CA). This can be considered as Overvalued.
Can you provide the profitability details for LOBLAW COMPANIES LTD?
LOBLAW COMPANIES LTD (L.CA) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for L stock?
The Earnings per Share (EPS) of LOBLAW COMPANIES LTD (L.CA) is expected to grow by 14.97% in the next year.
How sustainable is the dividend of LOBLAW COMPANIES LTD (L.CA) stock?
The dividend rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10 and the dividend payout ratio is 26.12%.