LOBLAW COMPANIES LTD (L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:L - CA5394811015 - Common Stock
61.7 CAD
-0.9 (-1.44%)
We assign a fundamental rating of 5 out of 10 to L. 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year L was profitable.
L had a positive operating cash flow in the past year.
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 82.35% of its industry peers.
With a decent Return On Equity value of 22.30%, L is doing good in the industry, outperforming 70.59% of the companies in the same industry.
L has a Return On Invested Capital of 10.91%. This is amongst the best in the industry. L outperforms 94.12% 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 8.34%.
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's Profit Margin of 3.92% is amongst the best of the industry. L outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of L has grown nicely.
With a Operating Margin value of 6.92%, L perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
L's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.37%, L perfoms like the industry average, outperforming 41.18% of the companies in the same 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so L is still 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.
The debt/assets ratio for L is higher compared to a year ago.
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 70.59% 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.
Looking at the Debt to FCF ratio, with a value of 5.20, L is in the better half of the industry, outperforming 76.47% 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.
The Debt to Equity ratio of L (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.63 |
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 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.
L has a Quick ratio of 0.70. This is in the lower half of the industry: L underperforms 70.59% 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 for L have decreased strongly by -52.69% in the last year.
L shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.63% yearly.
L shows a small growth in Revenue. In the last year, the Revenue has grown by 4.21%.
The Revenue has been growing slightly by 4.90% on average over the past years.
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
Based on estimates for the next years, L will show a decrease in Earnings Per Share. The EPS will decrease by -0.92% on average per year.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y-28.74%
EPS Next 2Y-12.18%
EPS Next 3Y-5.64%
EPS Next 5Y-0.92%
Revenue Next Year6.28%
Revenue Next 2Y4.34%
Revenue Next 3Y4.15%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.71, L can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of L is on the same level as its industry peers.
L's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.37.
With a Price/Forward Earnings ratio of 23.30, L is valued on the expensive side.
64.71% of the companies in the same industry are cheaper than L, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of L to the average of the S&P500 Index (36.20), we can say L is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.71 | ||
| Fwd PE | 23.3 |
4.2 Price Multiples
76.47% 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
L has an outstanding profitability rating, which 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 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 3.55, L has a dividend in line with its industry peers.
With a Dividend Yield of 0.90, L pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
L pays out 26.12% of its income as dividend. This is a sustainable payout ratio.
L's earnings and Dividend Rate are 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 (12/2/2025, 7:00:00 PM)
61.7
-0.9 (-1.44%)
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 Cap72.97B
Revenue(TTM)63.15B
Net Income(TTM)2.47B
Analysts78.82
Price Target65.51 (6.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)1.7%
EPS NQ rev (3m)1.42%
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 | 26.71 | ||
| Fwd PE | 23.3 | ||
| P/S | 1.16 | ||
| P/FCF | 19.8 | ||
| P/OCF | 12.91 | ||
| P/B | 6.58 | ||
| P/tB | 57.32 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)2.31
EY3.74%
EPS(NY)2.65
Fwd EY4.29%
FCF(TTM)3.12
FCFY5.05%
OCF(TTM)4.78
OCFY7.75%
SpS53.4
BVpS9.38
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
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 | 3.63 |
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)-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-0.92%
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 5Y3.98%
EBIT growth 1Y9.52%
EBIT growth 3Y10.23%
EBIT growth 5Y11.63%
EBIT Next Year65.68%
EBIT Next 3Y20.94%
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 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%.