LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - TSX:L - CA5394811015 - Common Stock
55.58 CAD
-0.65 (-1.16%)
We assign a fundamental rating of 5 out of 10 to L. L was compared to 16 industry peers in the Consumer Staples Distribution & Retail industry. L scores excellent on profitability, but there are some minor concerns on its financial health. L is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
L had positive earnings in the past year.
L had a positive operating cash flow in the past year.
In the past 5 years L has always been profitable.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
L has a better Return On Assets (6.01%) than 81.25% of its industry peers.
L's Return On Equity of 22.14% is amongst the best of the industry. L outperforms 100.00% of its industry peers.
The Return On Invested Capital of L (10.77%) is better than 87.50% 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 8.70%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(10.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROIC | 10.77% |
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 (3.94%) than 81.25% of its industry peers.
L's Profit Margin has improved in the last couple of years.
The Operating Margin of L (6.93%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of L has grown nicely.
L has a Gross Margin (32.29%) which is in line with its industry peers.
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 | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% |
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.
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.
Compared to 1 year ago, L has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that L is not in any danger for bankruptcy at the moment.
The Altman-Z score of L (3.45) is better than 75.00% of its industry peers.
The Debt to FCF ratio of L is 6.03, which is on the high side as it means it would take L, 6.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of L (6.03) is better than 62.50% 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's Debt to Equity ratio of 1.52 is in line compared to the rest of the industry. L outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.52
WACC7.08%
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 in the lower half of the industry: L underperforms 75.00% 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.
L's Quick ratio of 0.70 is on the low side compared to the rest of the industry. L is outperformed by 75.00% 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 for L have decreased strongly by -65.55% in the last year.
L shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.63% yearly.
The Revenue has been growing slightly by 3.26% 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)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
3.2 Future
The Earnings Per Share is expected to decrease by -1.05% on average over the next years.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y-28.75%
EPS Next 2Y-12.25%
EPS Next 3Y-5.58%
EPS Next 5Y-1.05%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.85%
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 accelerating.
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
The Price/Earnings ratio is 24.70, which indicates a rather expensive current valuation of L.
L's Price/Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of L to the average of the S&P500 Index (27.27), we can say L is valued inline with the index average.
A Price/Forward Earnings ratio of 21.03 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 75.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of L to the average of the S&P500 Index (22.77), we can say L is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 21.03 |
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 indicates a slightly more expensive valuation: L is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
The excellent profitability rating of L may justify a higher PE ratio.
L's earnings are expected to decrease with -5.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.25%
EPS Next 3Y-5.58%
5. Dividend
5.1 Amount
L has a Yearly Dividend Yield of 1.00%.
Compared to an average industry Dividend Yield of 1.54, L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-14.66%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 19.22% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of L has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP19.22%
EPS Next 2Y-12.25%
EPS Next 3Y-5.58%
TSX:L (9/12/2025, 7:00:00 PM)
55.58
-0.65 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners20.33%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap65.98B
Analysts78.82
Price Target62.37 (12.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP19.22%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-1.17%
Max EPS beat(2)1.15%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-2.57%
Max EPS beat(4)1.15%
EPS beat(8)3
Avg EPS beat(8)-0.22%
EPS beat(12)5
Avg EPS beat(12)-0.2%
EPS beat(16)9
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)1
Avg Revenue beat(16)-1.72%
PT rev (1m)-74.92%
PT rev (3m)-74.2%
EPS NQ rev (1m)-74.93%
EPS NQ rev (3m)-74.83%
EPS NY rev (1m)-74.53%
EPS NY rev (3m)-74.53%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 21.03 | ||
| P/S | 1.06 | ||
| P/FCF | 20.74 | ||
| P/OCF | 13.44 | ||
| P/B | 5.95 | ||
| P/tB | 51.83 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)2.25
EY4.05%
EPS(NY)2.64
Fwd EY4.76%
FCF(TTM)2.68
FCFY4.82%
OCF(TTM)4.13
OCFY7.44%
SpS52.47
BVpS9.34
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 22.14% | ||
| ROCE | 14.83% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.59% | ||
| ROICexgc | 17.91% | ||
| OM | 6.93% | ||
| PM (TTM) | 3.94% | ||
| GM | 32.29% | ||
| FCFM | 5.11% |
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%
ROICexcg growth 3Y4.06%
ROICexcg 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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 78.61% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 75.33% | ||
| Profit Quality | 129.52% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.45 |
F-Score5
WACC7.08%
ROIC/WACC1.52
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)-65.55%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%11.63%
EPS Next Y-28.75%
EPS Next 2Y-12.25%
EPS Next 3Y-5.58%
EPS Next 5Y-1.05%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%5.2%
Revenue Next Year6.3%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.85%
EBIT growth 1Y15.55%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.46%
EBIT Next 3Y22.01%
EBIT Next 5Y8.76%
FCF growth 1Y4.98%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y1.18%
OCF growth 3Y6.32%
OCF growth 5Y7.94%