LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
61.27 CAD
-0.15 (-0.24%)
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. L is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years L has been profitable.
In the past 5 years L always reported a positive cash flow from operatings.
1.2 Ratios
L's Return On Assets of 6.05% is amongst the best of the industry. L outperforms 83.33% of its industry peers.
L has a Return On Equity of 22.30%. This is in the better half of the industry: L outperforms 72.22% of its industry peers.
With an excellent Return On Invested Capital value of 10.91%, L belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
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 8.02%.
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 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 Profit Margin of 3.92%. This is amongst the best in the industry. L outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
L's Operating Margin of 6.92% is fine compared to the rest of the industry. L outperforms 61.11% of its industry peers.
In the last couple of years the Operating Margin of L has grown nicely.
L has a Gross Margin (32.37%) 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 | 6.92% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), L is creating some value.
L has less shares outstanding than it did 1 year ago.
The number of shares outstanding for L has been reduced compared to 5 years ago.
L has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that L is not in any danger for bankruptcy at the moment.
L's Altman-Z score of 3.61 is fine compared to the rest of the industry. L outperforms 72.22% 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.
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.
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 | 3.61 |
ROIC/WACC1.59
WACC6.88%
2.3 Liquidity
A Current Ratio of 1.24 indicates that L should not have too much problems paying its short term obligations.
L has a Current ratio (1.24) which is in line with 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 has a worse Quick ratio (0.70) than 66.67% 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.
The Earnings Per Share has been growing by 15.72% on average over the past years. This is quite good.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
The Revenue has been growing slightly by 4.90% on average over the past years.
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.
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 2Y11.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.52, L can be considered very expensive at the moment.
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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 23.07, the valuation of L can be described as rather expensive.
L's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. L is more expensive than 61.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.80. L is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 23.07 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than L, based on the Enterprise Value to EBITDA ratio.
L's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. L is more expensive than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.66 | ||
| EV/EBITDA | 12.29 |
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)1.77
PEG (5Y)1.69
EPS Next 2Y11.33%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
L has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 3.56, L has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, L pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector 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 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.
DP26.12%
EPS Next 2Y11.33%
EPS Next 3Y10.63%
TSX:L (12/10/2025, 7:00:00 PM)
61.27
-0.15 (-0.24%)
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 Cap72.46B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target66.71 (8.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 23.07 | ||
| P/S | 1.15 | ||
| P/FCF | 19.66 | ||
| P/OCF | 12.82 | ||
| P/B | 6.53 | ||
| P/tB | 56.92 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)2.31
EY3.77%
EPS(NY)2.66
Fwd EY4.33%
FCF(TTM)3.12
FCFY5.09%
OCF(TTM)4.78
OCFY7.8%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.77
PEG (5Y)1.69
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 | 3.61 |
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%.