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LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock

61.82 CAD
-0.35 (-0.56%)
Last: 12/8/2025, 7:00:00 PM
Fundamental Rating

5

L gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Consumer Staples Distribution & Retail industry. L has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, L is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
L had positive earnings in each of the past 5 years.
L had a positive operating cash flow in each of the past 5 years.
L.CA Yearly Net Income VS EBIT VS OCF VS FCFL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

The Return On Assets of L (6.05%) is better than 83.33% of its industry peers.
L's Return On Equity of 22.30% is fine compared to the rest of the industry. L outperforms 72.22% of its industry peers.
L has a Return On Invested Capital of 10.91%. This is amongst the best in 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 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 RankSector 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%
L.CA Yearly ROA, ROE, ROICL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

L has a Profit Margin of 3.92%. This is amongst the best in the industry. L outperforms 88.89% of its industry peers.
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's Gross Margin of 32.37% is in line compared to the rest of the industry. L outperforms 44.44% of its industry peers.
L's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
L.CA Yearly Profit, Operating, Gross MarginsL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

2. Health

2.1 Basic Checks

L has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, L has less shares outstanding
L has less shares outstanding than it did 5 years ago.
The debt/assets ratio for L is higher compared to a year ago.
L.CA Yearly Shares OutstandingL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
L.CA Yearly Total Debt VS Total AssetsL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

An Altman-Z score of 3.61 indicates that L is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.61, L is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.20, L is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.52
Debt/FCF 5.2
Altman-Z 3.61
ROIC/WACC1.59
WACC6.88%
L.CA Yearly LT Debt VS Equity VS FCFL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
L's Current ratio of 1.24 is in line compared to the rest of the industry. L outperforms 44.44% of its industry peers.
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.
With a Quick ratio value of 0.70, L is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.7
L.CA Yearly Current Assets VS Current LiabilitesL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.39% over the past year.
L shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.72% yearly.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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

The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.98% on average over the next years.
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

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 stable: in the next years the growth will be about the same than in the last years.
L.CA Yearly Revenue VS EstimatesL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
L.CA Yearly EPS VS EstimatesL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.76 indicates a quite expensive valuation of L.
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.
L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.28 indicates a rather expensive valuation of L.
Compared to the rest of the industry, the Price/Forward Earnings ratio of L indicates a slightly more expensive valuation: L is more expensive than 61.11% of the companies listed in the same industry.
L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
Industry RankSector Rank
PE 26.76
Fwd PE 23.28
L.CA Price Earnings VS Forward Price EarningsL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, L is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L indicates a slightly more expensive valuation: L is more expensive than 61.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.84
EV/EBITDA 12.36
L.CA Per share dataL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The 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)1.79
PEG (5Y)1.7
EPS Next 2Y11.33%
EPS Next 3Y10.63%

4

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.
Compared to an average S&P500 Dividend Yield of 2.31, L's dividend is way lower than the S&P500 average.
Industry RankSector 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
L.CA Yearly Dividends per shareL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
DP26.12%
EPS Next 2Y11.33%
EPS Next 3Y10.63%
L.CA Yearly Income VS Free CF VS DividendL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
L.CA Dividend Payout.L.CA Dividend Payout, showing the Payout Ratio.L.CA Dividend Payout.PayoutRetained Earnings

LOBLAW COMPANIES LTD

TSX:L (12/8/2025, 7:00:00 PM)

61.82

-0.35 (-0.56%)

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 Owners19.77%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.11B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target66.71 (7.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-Date12-15 2025-12-15 (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)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 RankSector Rank
PE 26.76
Fwd PE 23.28
P/S 1.16
P/FCF 19.84
P/OCF 12.93
P/B 6.59
P/tB 57.43
EV/EBITDA 12.36
EPS(TTM)2.31
EY3.74%
EPS(NY)2.66
Fwd EY4.3%
FCF(TTM)3.12
FCFY5.04%
OCF(TTM)4.78
OCFY7.73%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.79
PEG (5Y)1.7
Graham Number22.08
Profitability
Industry RankSector 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 RankSector 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
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%.