LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
61.82 CAD
-0.35 (-0.56%)
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. While showing a medium growth rate, L is valued expensive at the moment.
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.
L had positive earnings in each of the past 5 years.
L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of L (6.05%) is better than 83.33% of its industry peers.
L's Return On Equity of 22.30% is fine compared to the rest of the industry. L outperforms 72.22% of its industry peers.
L has a Return On Invested Capital of 10.91%. This is amongst the best in the industry. L outperforms 94.44% 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 8.02%.
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.
L's Profit Margin has improved in the last couple of years.
L's Operating Margin of 6.92% is fine compared to the rest of the industry. L outperforms 61.11% of its industry peers.
L's Operating Margin has improved in the last couple of years.
L's Gross Margin of 32.37% is in line compared to the rest of the industry. L outperforms 44.44% of its industry peers.
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
L has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, L has less shares outstanding
L has less shares outstanding than it did 5 years ago.
The debt/assets ratio for L is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.61 indicates that L is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.61, L is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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.
A Debt/Equity ratio of 1.52 is on the high side and indicates that L has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, L is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.59
WACC6.88%
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's Current ratio of 1.24 is in line compared to the rest of the industry. L outperforms 44.44% 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.
With a Quick ratio value of 0.70, L is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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.
Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 4.21% in the last 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
The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.98% on average over the next years.
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
A Price/Earnings ratio of 26.76 indicates a quite expensive valuation of L.
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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.28 indicates a rather expensive valuation of L.
Compared to the rest of the industry, the Price/Forward Earnings ratio of L indicates a slightly more expensive valuation: L is more expensive than 61.11% of the companies listed in the same industry.
L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, L is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
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 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.84 | ||
| EV/EBITDA | 12.36 |
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)1.79
PEG (5Y)1.7
EPS Next 2Y11.33%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, L is not a good candidate for dividend investing.
L's Dividend Yield is comparable with the industry average which is at 3.56.
Compared to an average S&P500 Dividend Yield of 2.31, L's dividend is way lower than the S&P500 average.
| 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 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 2Y11.33%
EPS Next 3Y10.63%
TSX:L (12/8/2025, 7:00:00 PM)
61.82
-0.35 (-0.56%)
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 Cap73.11B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target66.71 (7.91%)
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 | 26.76 | ||
| Fwd PE | 23.28 | ||
| P/S | 1.16 | ||
| P/FCF | 19.84 | ||
| P/OCF | 12.93 | ||
| P/B | 6.59 | ||
| P/tB | 57.43 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)2.31
EY3.74%
EPS(NY)2.66
Fwd EY4.3%
FCF(TTM)3.12
FCFY5.04%
OCF(TTM)4.78
OCFY7.73%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)1.79
PEG (5Y)1.7
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%.