LOBLAW COMPANIES LTD (L.CA) Fundamental Analysis & Valuation
TSX:L • CA5394811015
62.29 CAD
+0.4 (+0.65%)
Last: Mar 6, 2026, 07:00 PM
This L.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to L. L was compared to 16 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 is valued expensive and it does not seem to be growing.
1. L.CA Profitability Analysis
1.1 Basic Checks
- L had positive earnings in the past year.
- In the past year L had a positive cash flow from operations.
- L had positive earnings in 4 of the past 5 years.
- L had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 6.05%, L belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- L has a Return On Equity of 22.30%. This is in the better half of the industry: L outperforms 68.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.91%, L belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for L is in line with the industry average of 9.39%.
- 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
- L has a better Profit Margin (3.92%) than 87.50% 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 6.92%, L is in line with its industry, outperforming 56.25% of the companies in the same industry.
- L's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 32.37%, L is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- 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. L.CA Health Analysis
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.61 indicates that L is not in any danger for bankruptcy at the moment.
- L's Altman-Z score of 3.61 is fine compared to the rest of the industry. L outperforms 68.75% 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 better Debt to FCF ratio (5.20) than 68.75% of its industry peers.
- A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
- L has a Debt to Equity ratio of 1.52. This is comparable 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 | 3.61 |
ROIC/WACC1.54
WACC7.1%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
- The Current ratio of L (1.24) 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.
- Looking at the Quick ratio, with a value of 0.70, L is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. L.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 13.42% over the past year.
- The Earnings Per Share has been growing by 17.88% on average over the past years. This is quite good.
EPS 1Y (TTM)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.59%
3.2 Future
- L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
- L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%
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.
4. L.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.63, which means the current valuation is very expensive for L.
- L's Price/Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 68.75% of the companies in the same industry.
- L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 23.62, 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 68.75% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of L to the average of the S&P500 Index (24.60), we can say L is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 23.62 |
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 75.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of L is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 12.34 |
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 decent profitability rating of L may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)1.43
EPS Next 2Y8.99%
EPS Next 3Y7.99%
5. L.CA Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.91%, L is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.38, L is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, L's dividend is way lower than the S&P500 average.
| 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 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
- 26.12% of the earnings are spent on dividend by L. This is a low number and sustainable payout ratio.
DP26.12%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
L.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:L (3/6/2026, 7:00:00 PM)
62.29
+0.4 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)04-28 2026-04-28
Inst Owners19.73%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.00B
Revenue(TTM)N/A
Net Income(TTM)2.47B
Analysts80
Price Target70.38 (12.99%)
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-Date03-13 2026-03-13 (0.141075)
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)3.45%
PT rev (3m)5.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 23.62 | ||
| P/S | 1.16 | ||
| P/FCF | 19.8 | ||
| P/OCF | 12.91 | ||
| P/B | 6.58 | ||
| P/tB | 57.34 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)2.43
EY3.9%
EPS(NY)2.64
Fwd EY4.23%
FCF(TTM)3.15
FCFY5.05%
OCF(TTM)4.82
OCFY7.75%
SpS53.89
BVpS9.46
TBVpS1.09
PEG (NY)3.01
PEG (5Y)1.43
Graham Number22.75
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 | 3.61 |
F-Score5
WACC7.1%
ROIC/WACC1.54
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)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.59%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.86%
EBIT Next 3Y20.68%
EBIT Next 5Y8.74%
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 4 / 10 to L.CA.
Can you provide the valuation status for LOBLAW COMPANIES LTD?
ChartMill assigns a valuation rating of 2 / 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 7 / 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 8.51% 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%.