LOBLAW COMPANIES LTD (L.CA) Fundamental Analysis & Valuation
TSX:L • CA5394811015
63.24 CAD
-0.55 (-0.86%)
Last: Mar 3, 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.
L gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 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 has a expensive valuation and it also scores bad on growth.
1. L.CA Profitability Analysis
1.1 Basic Checks
- In the past year L was profitable.
- L had a positive operating cash flow in the past year.
- L had positive earnings in 4 of the past 5 years.
- Of the past 5 years L 4 years had a positive operating cash flow.
1.2 Ratios
- L's Return On Assets of 6.05% is amongst the best of the industry. L outperforms 81.25% of its industry peers.
- L has a better Return On Equity (22.30%) than 68.75% of its industry peers.
- L has a Return On Invested Capital of 10.91%. This is amongst the best in the industry. L outperforms 93.75% 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 8.50%.
- 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
- The Profit Margin of L (3.92%) is better 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.
- In the last couple of years the Operating Margin of L has grown nicely.
- L's Gross Margin of 32.37% is in line compared to the rest of the industry. L outperforms 43.75% of its industry peers.
- 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. 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 3.64 indicates that L is not in any danger for bankruptcy at the moment.
- L's Altman-Z score of 3.64 is fine compared to the rest of the industry. L outperforms 75.00% 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 75.00% 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.
- The Debt to Equity ratio of L (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.53
WACC7.11%
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 worse Current ratio (1.24) than 68.75% of its industry peers.
- A Quick Ratio of 0.70 indicates that L may have some problems paying its short term obligations.
- L has a Quick ratio of 0.70. This is in the lower half of the industry: L underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. L.CA Growth Analysis
3.1 Past
- L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.93%, which is quite good.
- Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.36% on average per year.
EPS 1Y (TTM)10.93%
EPS 3Y11.71%
EPS 5Y17.36%
EPS Q2Q%12.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.75%
3.2 Future
- L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
- The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y11.77%
EPS Next 2Y10.48%
EPS Next 3Y9.29%
EPS Next 5Y7.26%
Revenue Next Year2.28%
Revenue Next 2Y3.04%
Revenue Next 3Y3.42%
Revenue Next 5Y2.86%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. L.CA Valuation Analysis
4.1 Price/Earnings Ratio
- L is valuated quite expensively with a Price/Earnings ratio of 26.57.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, L is valued at the same level.
- A Price/Forward Earnings ratio of 23.81 indicates a rather expensive valuation of L.
- Based on the Price/Forward Earnings ratio, L is valued a bit more expensive than 68.75% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.95. L is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of L indicates a rather expensive valuation: L more expensive than 81.25% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, L is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.16 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- L has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)1.53
EPS Next 2Y10.48%
EPS Next 3Y9.29%
5. L.CA Dividend Analysis
5.1 Amount
- L has a yearly dividend return of 0.88%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.37, 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 | 0.88% |
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
- L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
DP26.12%
EPS Next 2Y10.48%
EPS Next 3Y9.29%
L.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:L (3/3/2026, 7:00:00 PM)
63.24
-0.55 (-0.86%)
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 Owners19.5%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap74.31B
Revenue(TTM)N/A
Net Income(TTM)2.47B
Analysts80
Price Target70.38 (11.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)5.18%
PT rev (3m)7.43%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.81 | ||
| P/S | 1.18 | ||
| P/FCF | 20.16 | ||
| P/OCF | 13.14 | ||
| P/B | 6.7 | ||
| P/tB | 58.38 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)2.38
EY3.76%
EPS(NY)2.66
Fwd EY4.2%
FCF(TTM)3.14
FCFY4.96%
OCF(TTM)4.81
OCFY7.61%
SpS53.74
BVpS9.44
TBVpS1.08
PEG (NY)2.26
PEG (5Y)1.53
Graham Number22.48
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
WACC7.11%
ROIC/WACC1.53
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)10.93%
EPS 3Y11.71%
EPS 5Y17.36%
EPS Q2Q%12.14%
EPS Next Y11.77%
EPS Next 2Y10.48%
EPS Next 3Y9.29%
EPS Next 5Y7.26%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.75%
Revenue Next Year2.28%
Revenue Next 2Y3.04%
Revenue Next 3Y3.42%
Revenue Next 5Y2.86%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.86%
EBIT Next 3Y22.91%
EBIT Next 5Y8.06%
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 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 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 11.77% 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%.