LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
62 CAD
-0.7 (-1.12%)
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. L has an excellent profitability rating, but there are some minor concerns on its financial health. L does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years L has been profitable.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, L belongs to the top of the industry, outperforming 82.35% 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 70.59% of its industry peers.
The Return On Invested Capital of L (10.91%) is better than 94.12% 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 8.34%.
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
Looking at the Profit Margin, with a value of 3.92%, L belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of L has grown nicely.
With a Operating Margin value of 6.92%, L perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
L's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.37%, L is in line with its industry, outperforming 41.18% of the companies in the same 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.
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.
L has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.62 indicates that L is not in any danger for bankruptcy at the moment.
The Altman-Z score of L (3.62) is better than 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.
L has a better Debt to FCF ratio (5.20) 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 of 1.52. This is comparable to the rest of the industry: L outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.58
WACC6.89%
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.
Looking at the Current ratio, with a value of 1.24, L is doing worse than 70.59% of the companies in the same 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.
L has a worse Quick ratio (0.70) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
L shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.69%.
The Earnings Per Share has been decreasing by -3.63% on average over the past years.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
Measured over the past years, L shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
EPS 1Y (TTM)-52.69%
EPS 3Y-15%
EPS 5Y-3.63%
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 decrease in Earnings Per Share. The EPS will decrease by -0.92% on average per year.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.92%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.84, the valuation of L can be described as expensive.
L's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, L is valued at the same level.
The Price/Forward Earnings ratio is 23.42, which indicates a rather expensive current valuation of L.
Based on the Price/Forward Earnings ratio, L is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
L is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
76.47% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
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 | 19.89 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
L has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as L's earnings are expected to decrease with -5.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, L is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.55, L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
26.12% of the earnings are spent on dividend by L. This is a low number and sustainable payout ratio.
L's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP26.12%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
TSX:L (11/28/2025, 7:00:00 PM)
62
-0.7 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners19.95%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.33B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target65.51 (5.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-Date
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)4.39%
PT rev (3m)4.94%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.42 | ||
| P/S | 1.16 | ||
| P/FCF | 19.89 | ||
| P/OCF | 12.97 | ||
| P/B | 6.61 | ||
| P/tB | 57.6 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)2.31
EY3.73%
EPS(NY)2.65
Fwd EY4.27%
FCF(TTM)3.12
FCFY5.03%
OCF(TTM)4.78
OCFY7.71%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
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
WACC6.89%
ROIC/WACC1.58
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)-52.69%
EPS 3Y-15%
EPS 5Y-3.63%
EPS Q2Q%10.4%
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.92%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.62%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.98%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
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 4 / 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%.