LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD
Taking everything into account, L scores 5 out of 10 in our fundamental rating. L was compared to 19 industry peers in the Consumer Staples Distribution & Retail industry. While L has a great profitability rating, 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
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
Looking at the Return On Assets, with a value of 5.73%, L is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
With an excellent Return On Equity value of 19.49%, L belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
L has a Return On Invested Capital of 10.35%. This is amongst the best in the industry. L outperforms 84.21% of its industry peers.
L had an Average Return On Invested Capital over the past 3 years of 8.82%. This is in line with the industry average of 8.58%.
The last Return On Invested Capital (10.35%) for L is above the 3 year average (8.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 19.49% | ||
| ROIC | 10.35% |
ROA(3y)5.15%
ROA(5y)4.29%
ROE(3y)17.07%
ROE(5y)14.14%
ROIC(3y)8.82%
ROIC(5y)7.8%
1.3 Margins
Looking at the Profit Margin, with a value of 3.69%, L belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
L's Profit Margin has improved in the last couple of years.
L has a Operating Margin (6.59%) which is in line with its industry peers.
In the last couple of years the Operating Margin of L has grown nicely.
L has a Gross Margin of 32.38%. This is comparable to the rest of the industry: L outperforms 57.89% of its industry peers.
L's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.59% | ||
| PM (TTM) | 3.69% | ||
| GM | 32.38% |
OM growth 3Y11.85%
OM growth 5Y8.8%
PM growth 3Y19.04%
PM growth 5Y16.78%
GM growth 3Y1.78%
GM growth 5Y1.02%
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.
The number of shares outstanding for L has been reduced compared to 1 year ago.
L has less shares outstanding than it did 5 years ago.
L has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.31 indicates that L is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.31, L is doing good in the industry, outperforming 63.16% of the companies in the same industry.
L has a debt to FCF ratio of 5.33. This is a neutral value as L would need 5.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.33, L is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
L has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.35, L is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.55
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.25 indicates that L should not have too much problems paying its short term obligations.
L has a better Current ratio (1.25) than 73.68% of its industry peers.
A Quick Ratio of 0.72 indicates that L may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, L perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.45% 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 10.95% on average per year.
L shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.98% yearly.
EPS 1Y (TTM)11.45%
EPS 3Y21.98%
EPS 5Y10.95%
EPS Q2Q%10.62%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.14%
Revenue growth 5Y4.98%
Sales Q2Q%1.49%
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 8.01% on average per year.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y12.94%
EPS Next 2Y12.05%
EPS Next 3Y11.48%
EPS Next 5Y8.01%
Revenue Next Year2.51%
Revenue Next 2Y3.62%
Revenue Next 3Y3.34%
Revenue Next 5Y3.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 21.01, L is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of L is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, L is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.08 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 63.16% of the companies are valued more cheaply.
L's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of L indicates a slightly more expensive valuation: L is more expensive than 73.68% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as L.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
L has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)1.92
EPS Next 2Y12.05%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
L has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
L's Dividend Yield is comparable with the industry average which is at 1.55.
Compared to an average S&P500 Dividend Yield of 2.27, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of L is nicely growing with an annual growth rate of 11.92%!
L has been paying a dividend for at least 10 years, so it has 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)11.92%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 26.90% of its income as dividend. This is a sustainable payout ratio.
L's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.9%
EPS Next 2Y12.05%
EPS Next 3Y11.48%
TSX:L (2/21/2025, 7:00:00 PM)
175.89
+1.14 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.71%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap53.06B
Analysts77.65
Price Target205.02 (16.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.78
Dividend Growth(5Y)11.92%
DP26.9%
Div Incr Years13
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.71%
Min EPS beat(2)-1.58%
Max EPS beat(2)0.16%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-1.58%
Max EPS beat(4)3.43%
EPS beat(8)3
Avg EPS beat(8)-0.08%
EPS beat(12)7
Avg EPS beat(12)1.16%
EPS beat(16)10
Avg EPS beat(16)3.49%
Revenue beat(2)0
Avg Revenue beat(2)-3.02%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.37%
PT rev (1m)0%
PT rev (3m)2.73%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.08 | ||
| P/S | 0.88 | ||
| P/FCF | 15.57 | ||
| P/OCF | 9.44 | ||
| P/B | 4.63 | ||
| P/tB | 47.34 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)8.37
EY4.76%
EPS(NY)9.73
Fwd EY5.53%
FCF(TTM)11.3
FCFY6.42%
OCF(TTM)18.63
OCFY10.59%
SpS200.86
BVpS38
TBVpS3.72
PEG (NY)1.62
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 19.49% | ||
| ROCE | 14.19% | ||
| ROIC | 10.35% | ||
| ROICexc | 11.1% | ||
| ROICexgc | 17.98% | ||
| OM | 6.59% | ||
| PM (TTM) | 3.69% | ||
| GM | 32.38% | ||
| FCFM | 5.63% |
ROA(3y)5.15%
ROA(5y)4.29%
ROE(3y)17.07%
ROE(5y)14.14%
ROIC(3y)8.82%
ROIC(5y)7.8%
ROICexc(3y)9.52%
ROICexc(5y)8.37%
ROICexgc(3y)15.79%
ROICexgc(5y)14.06%
ROCE(3y)12.03%
ROCE(5y)10.64%
ROICexcg growth 3Y12.42%
ROICexcg growth 5Y2.07%
ROICexc growth 3Y14.71%
ROICexc growth 5Y8.85%
OM growth 3Y11.85%
OM growth 5Y8.8%
PM growth 3Y19.04%
PM growth 5Y16.78%
GM growth 3Y1.78%
GM growth 5Y1.02%
F-Score8
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 74.9% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 4.71 | ||
| Cash Conversion | 80.92% | ||
| Profit Quality | 152.6% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.31 |
F-Score8
WACC6.67%
ROIC/WACC1.55
Cap/Depr(3y)57.29%
Cap/Depr(5y)52.75%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.63%
Profit Quality(3y)178%
Profit Quality(5y)232.16%
High Growth Momentum
Growth
EPS 1Y (TTM)11.45%
EPS 3Y21.98%
EPS 5Y10.95%
EPS Q2Q%10.62%
EPS Next Y12.94%
EPS Next 2Y12.05%
EPS Next 3Y11.48%
EPS Next 5Y8.01%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.14%
Revenue growth 5Y4.98%
Sales Q2Q%1.49%
Revenue Next Year2.51%
Revenue Next 2Y3.62%
Revenue Next 3Y3.34%
Revenue Next 5Y3.35%
EBIT growth 1Y9.94%
EBIT growth 3Y16.47%
EBIT growth 5Y14.21%
EBIT Next Year72.53%
EBIT Next 3Y22.77%
EBIT Next 5Y10.38%
FCF growth 1Y2.71%
FCF growth 3Y-3.88%
FCF growth 5Y25.14%
OCF growth 1Y21.36%
OCF growth 3Y2.89%
OCF growth 5Y17.72%