LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
62.05 CAD
+0.04 (+0.06%)
We assign a fundamental rating of 5 out of 10 to L. L was compared to 17 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.
L had positive earnings in each of the past 5 years.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.05%, L belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
L has a better Return On Equity (22.30%) than 70.59% of its industry peers.
The Return On Invested Capital of L (10.91%) is better than 94.12% of its industry peers.
L had an Average Return On Invested Capital over the past 3 years of 9.41%. This is in line with the industry average of 8.35%.
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 88.24% of its industry peers.
L's Profit Margin has improved in the last couple of years.
L has a Operating Margin (6.92%) which is in line with its industry peers.
L's Operating Margin has improved in the last couple of years.
L has a Gross Margin (32.37%) which is comparable to the rest of the industry.
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. 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.
Compared to 1 year ago, L has less shares outstanding
Compared to 5 years ago, L has less shares outstanding
The debt/assets ratio for L is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.62 indicates that L is not in any danger for bankruptcy at the moment.
L's Altman-Z score of 3.62 is fine compared to the rest of the industry. L outperforms 70.59% 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.
The Debt to FCF ratio of L (5.20) is better than 76.47% 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.
L has a Debt to Equity ratio (1.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.57
WACC6.93%
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 has a Current ratio of 1.24. This is comparable to the rest of the industry: L outperforms 41.18% of its industry peers.
A Quick Ratio of 0.70 indicates that L may have some problems paying its short term obligations.
The Quick ratio of L (0.70) is worse than 70.59% 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.
L shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.72% yearly.
The Revenue has been growing slightly by 4.21% in the past 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
Based on estimates for the next years, L will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.87% on average per year.
Based on estimates for the next years, L will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y14.97%
EPS Next 2Y11.35%
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.86, L can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of L indicates a slightly more expensive valuation: L is more expensive than 64.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, L is valued at the same level.
A Price/Forward Earnings ratio of 23.36 indicates a rather expensive valuation of L.
64.71% of the companies in the same industry are cheaper than L, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, L is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 23.36 |
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 76.47% of the companies 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 | 19.91 | ||
| EV/EBITDA | 12.39 |
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)1.79
PEG (5Y)1.71
EPS Next 2Y11.35%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
L has a yearly dividend return of 0.92%, which is pretty low.
L's Dividend Yield is comparable with the industry average which is at 2.30.
With a Dividend Yield of 0.92, L pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of L decreases each year by -14.66%.
L has been paying a dividend for at least 10 years, so it has 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 2Y11.35%
EPS Next 3Y10.63%
TSX:L (12/31/2025, 7:00:00 PM)
62.05
+0.04 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.77%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.38B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target66.91 (7.83%)
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)2.14%
PT rev (3m)7.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0.7%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 23.36 | ||
| P/S | 1.16 | ||
| P/FCF | 19.91 | ||
| P/OCF | 12.98 | ||
| P/B | 6.62 | ||
| P/tB | 57.65 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)2.31
EY3.72%
EPS(NY)2.66
Fwd EY4.28%
FCF(TTM)3.12
FCFY5.02%
OCF(TTM)4.78
OCFY7.7%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.79
PEG (5Y)1.71
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 | 3.62 |
F-Score5
WACC6.93%
ROIC/WACC1.57
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 5Y8.87%
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.
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 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%.