LOBLAW COMPANIES LTD (L.CA) Fundamental Analysis & Valuation

TSX:L • CA5394811015

Current stock price

63.12 CAD
-0.66 (-1.03%)
Last:

This L.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. L.CA Profitability Analysis

1.1 Basic Checks

  • L had positive earnings in the past year.
  • In the past year L had a positive cash flow from operations.
  • Of the past 5 years L 4 years were profitable.
  • L had a positive operating cash flow in 4 of the past 5 years.
L.CA Yearly Net Income VS EBIT VS OCF VS FCFL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

  • With a decent Return On Assets value of 6.05%, L is doing good in the industry, outperforming 75.00% 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 62.50% of its industry peers.
  • L has a Return On Invested Capital of 10.91%. This is in the better half of the industry: L outperforms 62.50% 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 11.15%.
  • 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 RankSector 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%
L.CA Yearly ROA, ROE, ROICL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • L has a Profit Margin of 3.92%. This is amongst the best in the industry. L outperforms 81.25% of its industry peers.
  • L's Profit Margin has improved in the last couple of years.
  • The Operating Margin of L (6.92%) 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 (32.37%) 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 RankSector 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%
L.CA Yearly Profit, Operating, Gross MarginsL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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4

2. L.CA Health Analysis

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.
  • L has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
L.CA Yearly Shares OutstandingL.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
L.CA Yearly Total Debt VS Total AssetsL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

  • L has an Altman-Z score of 3.63. This indicates that L is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.63, L is doing good in the industry, outperforming 75.00% 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.
  • L's Debt to FCF ratio of 5.20 is in line compared to the rest of the industry. L outperforms 43.75% 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.
  • With a Debt to Equity ratio value of 1.52, L perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.52
Debt/FCF 5.2
Altman-Z 3.63
ROIC/WACC1.53
WACC7.11%
L.CA Yearly LT Debt VS Equity VS FCFL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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 in the better half of the industry, outperforming 62.50% 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's Quick ratio of 0.70 is fine compared to the rest of the industry. L outperforms 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.7
L.CA Yearly Current Assets VS Current LiabilitesL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. L.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.42% over the past year.
  • The Earnings Per Share has been growing by 17.88% on average over the past years. This is quite good.
EPS 1Y (TTM)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.59%

3.2 Future

  • L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
  • The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
L.CA Yearly Revenue VS EstimatesL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
L.CA Yearly EPS VS EstimatesL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3

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1

4. L.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • L is valuated quite expensively with a Price/Earnings ratio of 25.98.
  • Compared to the rest of the industry, the Price/Earnings ratio of L indicates a slightly more expensive valuation: L is more expensive than 75.00% of the companies listed in the same industry.
  • L is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.73, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 23.94, 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 68.75% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, L is valued at the same level.
Industry RankSector Rank
PE 25.98
Fwd PE 23.94
L.CA Price Earnings VS Forward Price EarningsL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of L indicates a rather expensive valuation: L more expensive than 81.25% of the companies listed 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 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.07
EV/EBITDA 12.48
L.CA Per share dataL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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)3.05
PEG (5Y)1.45
EPS Next 2Y8.99%
EPS Next 3Y7.99%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. L.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.91%, L is not a good candidate for dividend investing.
  • L's Dividend Yield is slightly below the industry average, which is at 2.40.
  • Compared to an average S&P500 Dividend Yield of 1.91, L's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • The dividend of L decreases each year by -14.66%.
  • 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)-14.66%
Div Incr Years13
Div Non Decr Years34
L.CA Yearly Dividends per shareL.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
DP26.12%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
L.CA Yearly Income VS Free CF VS DividendL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
L.CA Dividend Payout.L.CA Dividend Payout, showing the Payout Ratio.L.CA Dividend Payout.PayoutRetained Earnings

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L.CA Fundamentals: All Metrics, Ratios and Statistics

LOBLAW COMPANIES LTD

TSX:L (3/18/2026, 7:00:00 PM)

63.12

-0.66 (-1.03%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)02-25
Earnings (Next)04-28
Inst Owners19.73%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap73.97B
Revenue(TTM)N/A
Net Income(TTM)2.47B
Analysts80
Price Target70.38 (11.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend0.38
Dividend Growth(5Y)-14.66%
DP26.12%
Div Incr Years13
Div Non Decr Years34
Ex-Date03-13
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)3.45%
PT rev (3m)5.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE 25.98
Fwd PE 23.94
P/S 1.17
P/FCF 20.07
P/OCF 13.08
P/B 6.67
P/tB 58.11
EV/EBITDA 12.48
EPS(TTM)2.43
EY3.85%
EPS(NY)2.64
Fwd EY4.18%
FCF(TTM)3.15
FCFY4.98%
OCF(TTM)4.82
OCFY7.64%
SpS53.89
BVpS9.46
TBVpS1.09
PEG (NY)3.05
PEG (5Y)1.45
Graham Number22.75
Profitability
Industry RankSector 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 RankSector 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 3.63
F-Score5
WACC7.11%
ROIC/WACC1.53
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)13.42%
EPS 3Y12.54%
EPS 5Y17.88%
EPS Q2Q%21.82%
EPS Next Y8.51%
EPS Next 2Y8.99%
EPS Next 3Y7.99%
EPS Next 5Y6.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.59%
Revenue Next Year1.54%
Revenue Next 2Y2.59%
Revenue Next 3Y2.9%
Revenue Next 5Y3.02%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year68.86%
EBIT Next 3Y20.68%
EBIT Next 5Y8.74%
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 Fundamental Analysis FAQ

What is the fundamental rating for L stock?

ChartMill assigns a fundamental rating of 4 / 10 to L.CA.


Can you provide the valuation status for LOBLAW COMPANIES LTD?

ChartMill assigns a valuation rating of 1 / 10 to LOBLAW COMPANIES LTD (L.CA). This can be considered as Overvalued.


Can you provide the profitability details for LOBLAW COMPANIES LTD?

LOBLAW COMPANIES LTD (L.CA) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for L stock?

The Earnings per Share (EPS) of LOBLAW COMPANIES LTD (L.CA) is expected to grow by 8.51% in the next year.


How sustainable is the dividend of LOBLAW COMPANIES LTD (L.CA) stock?

The dividend rating of LOBLAW COMPANIES LTD (L.CA) is 4 / 10 and the dividend payout ratio is 26.12%.