LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
63.03 CAD
+0.86 (+1.38%)
Taking everything into account, L scores 5 out of 10 in our fundamental rating. L was compared to 17 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 does not seem to be growing, but still is valued expensively.
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.
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
L's Return On Assets of 6.05% is amongst the best of the industry. L outperforms 82.35% of its industry peers.
The Return On Equity of L (22.30%) is better than 100.00% of its industry peers.
L has a better Return On Invested Capital (10.91%) than 94.12% 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 8.15%.
The 3 year average ROIC (9.41%) for L is below the current ROIC(10.91%), indicating increased profibility in the last year.
| 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's Profit Margin of 3.92% is amongst the best of the industry. L outperforms 88.24% of its industry peers.
L's Profit Margin has improved in the last couple of years.
L has a Operating Margin (6.92%) which is comparable to the rest of the industry.
L's Operating Margin has improved in the last couple of years.
The Gross Margin of L (32.37%) is comparable to the rest of the 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
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.
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 3.65 indicates that L is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, L is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
L has a debt to FCF ratio of 5.20. This is a neutral value as L would need 5.20 years to pay back of 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 (1.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.58
WACC6.9%
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 of 1.24. This is in the lower half of the industry: L underperforms 70.59% 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.
The Quick ratio of L (0.70) is worse 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%.
L shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.63% yearly.
The Revenue has been growing slightly by 4.21% in the past 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)-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
The Earnings Per Share is expected to decrease by -0.59% on average over the next years.
L is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.59%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.29 indicates a quite expensive valuation of L.
Compared to the rest of the industry, the Price/Earnings ratio of L is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.47, L is valued at the same level.
A Price/Forward Earnings ratio of 23.81 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 64.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. L is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 23.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, L is valued a bit more expensive than the industry average as 76.47% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, L is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 12.58 |
4.3 Compensation for Growth
The excellent profitability rating of L 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
L has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 3.57, 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 2.41.
| Industry Rank | Sector 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
5.3 Sustainability
L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of L has been decling, while earnings will also be 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 (11/21/2025, 7:00:00 PM)
63.03
+0.86 (+1.38%)
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 Cap74.70B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target65.51 (3.93%)
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)4.39%
PT rev (3m)4.94%
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)-74.88%
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 | 27.29 | ||
| Fwd PE | 23.81 | ||
| P/S | 1.18 | ||
| P/FCF | 20.27 | ||
| P/OCF | 13.21 | ||
| P/B | 6.74 | ||
| P/tB | 58.68 | ||
| EV/EBITDA | 12.58 |
EPS(TTM)2.31
EY3.66%
EPS(NY)2.65
Fwd EY4.2%
FCF(TTM)3.11
FCFY4.93%
OCF(TTM)4.77
OCFY7.57%
SpS53.28
BVpS9.36
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.05
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 | 3.65 |
F-Score5
WACC6.9%
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-0.59%
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 5Y4.33%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
EBIT Next 5Y9.27%
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%.