LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
TSX:L - Toronto Stock Exchange - CA5394811015 - Common Stock - Currency: CAD
Overall L gets a fundamental rating of 5 out of 10. We evaluated L against 16 industry peers in the Consumer Staples Distribution & Retail industry. While L belongs to the best of the industry regarding profitability, 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
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.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
L has a better Return On Assets (5.27%) than 75.00% of its industry peers.
L has a better Return On Equity (19.43%) than 62.50% of its industry peers.
L has a better Return On Invested Capital (9.73%) than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for L is in line with the industry average of 8.31%.
The last Return On Invested Capital (9.73%) for L is above the 3 year average (9.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROIC | 9.73% |
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 (3.53%) is better than 75.00% 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 6.40%, L is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of L has grown nicely.
L has a Gross Margin of 32.33%. This is comparable to the rest of the industry: L outperforms 50.00% of its industry peers.
L's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is 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
L has an Altman-Z score of 3.40. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.40, L is doing good in the industry, outperforming 68.75% of the companies in the same industry.
L has a debt to FCF ratio of 5.33. This is a neutral value as L would need 5.33 years to pay back of all of its debts.
The Debt to FCF ratio of L (5.33) is better than 68.75% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt 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 | 5.33 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.41
WACC6.89%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
The Current ratio of L (1.24) is worse than 62.50% 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.
Looking at the Quick ratio, with a value of 0.70, L is doing worse than 68.75% of the companies in the same industry.
| 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 10.23% over the past year.
Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.72% on average per year.
The Revenue has been growing slightly by 2.42% in the past year.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)10.23%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%9.3%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.08%
3.2 Future
L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.89%
Revenue Next Year6.25%
Revenue Next 2Y4.17%
Revenue Next 3Y3.66%
Revenue Next 5Y3.65%
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 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 25.57, which means the current valuation is very expensive for L.
Based on the Price/Earnings ratio, L is valued a bit more expensive than 62.50% of the companies in the same industry.
L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.54, which indicates a rather expensive current valuation of L.
L's Price/Forward Earnings 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.
The average S&P500 Price/Forward Earnings ratio is at 21.76. L is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
62.50% of the companies in the same industry are cheaper than L, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.53 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates L does not grow enough to justify the current Price/Earnings ratio.
L has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)1.63
EPS Next 2Y9.97%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, L has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.51, L has a dividend in line with its industry peers.
With a Dividend Yield of 1.01, L pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
On average, the dividend of L grows each year by 12.61%, which is quite nice.
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)12.61%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
L pays out 21.30% of its income as dividend. This is a sustainable payout ratio.
The dividend of L is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.3%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
TSX:L (7/10/2025, 7:00:00 PM)
223.23
-2.43 (-1.08%)
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 Cap66.75B
Analysts78.82
Price Target241.74 (8.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.5
Dividend Growth(5Y)12.61%
DP21.3%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.21%
Min EPS beat(2)-2.57%
Max EPS beat(2)0.16%
EPS beat(4)1
Avg EPS beat(4)-1.2%
Min EPS beat(4)-2.57%
Max EPS beat(4)0.16%
EPS beat(8)2
Avg EPS beat(8)-0.49%
EPS beat(12)6
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.51%
PT rev (1m)0%
PT rev (3m)20%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 21.54 | ||
| P/S | 1.09 | ||
| P/FCF | 18.53 | ||
| P/OCF | 11.5 | ||
| P/B | 6.02 | ||
| P/tB | 52.43 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)8.73
EY3.91%
EPS(NY)10.36
Fwd EY4.64%
FCF(TTM)12.05
FCFY5.4%
OCF(TTM)19.4
OCFY8.69%
SpS204.06
BVpS37.09
TBVpS4.26
PEG (NY)2.12
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 19.43% | ||
| ROCE | 13.4% | ||
| ROIC | 9.73% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 16.19% | ||
| OM | 6.4% | ||
| PM (TTM) | 3.53% | ||
| GM | 32.33% | ||
| FCFM | 5.9% |
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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 74.17% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 4.55 | ||
| Cash Conversion | 84.48% | ||
| Profit Quality | 167.15% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.4 |
F-Score5
WACC6.89%
ROIC/WACC1.41
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)10.23%
EPS 3Y15.31%
EPS 5Y15.72%
EPS Q2Q%9.3%
EPS Next Y12.04%
EPS Next 2Y9.97%
EPS Next 3Y9.26%
EPS Next 5Y6.89%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y4.69%
Revenue growth 5Y4.9%
Sales Q2Q%4.08%
Revenue Next Year6.25%
Revenue Next 2Y4.17%
Revenue Next 3Y3.66%
Revenue Next 5Y3.65%
EBIT growth 1Y5.35%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.46%
EBIT Next 3Y22.01%
EBIT Next 5Y8.39%
FCF growth 1Y0.56%
FCF growth 3Y-0.39%
FCF growth 5Y5.42%
OCF growth 1Y2.62%
OCF growth 3Y6.32%
OCF growth 5Y7.94%