LEON'S FURNITURE LTD (LNF.CA) Fundamental Analysis & Valuation
TSX:LNF • CA5266821092
27.38 CAD
-0.22 (-0.8%)
Last: Mar 4, 2026, 07:00 PM
This LNF.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall LNF gets a fundamental rating of 6 out of 10. We evaluated LNF against 18 industry peers in the Specialty Retail industry. LNF has an excellent financial health rating, but there are some minor concerns on its profitability. LNF has a decent growth rate and is not valued too expensively.
1. LNF.CA Profitability Analysis
1.1 Basic Checks
- LNF had positive earnings in the past year.
- In the past year LNF had a positive cash flow from operations.
- LNF had positive earnings in each of the past 5 years.
- Each year in the past 5 years LNF had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 7.15%, LNF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.25%, LNF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- The Return On Invested Capital of LNF (9.15%) is better than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LNF is in line with the industry average of 11.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 14.25% | ||
| ROIC | 9.15% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.43%
ROE(5y)17.71%
ROIC(3y)9.82%
ROIC(5y)11.29%
1.3 Margins
- LNF has a Profit Margin of 6.77%. This is comparable to the rest of the industry: LNF outperforms 55.56% of its industry peers.
- LNF's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 8.58%, LNF perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- In the last couple of years the Operating Margin of LNF has remained more or less at the same level.
- LNF's Gross Margin of 45.03% is fine compared to the rest of the industry. LNF outperforms 72.22% of its industry peers.
- LNF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.58% | ||
| PM (TTM) | 6.77% | ||
| GM | 45.03% |
OM growth 3Y-12.63%
OM growth 5Y1.03%
PM growth 3Y-9.31%
PM growth 5Y5.61%
GM growth 3Y0.22%
GM growth 5Y0.33%
2. LNF.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNF is creating some value.
- Compared to 1 year ago, LNF has more shares outstanding
- LNF has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LNF has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.05 indicates that LNF is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LNF (3.05) is better than 66.67% of its industry peers.
- The Debt to FCF ratio of LNF is 1.88, which is an excellent value as it means it would take LNF, only 1.88 years of fcf income to pay off all of its debts.
- LNF's Debt to FCF ratio of 1.88 is amongst the best of the industry. LNF outperforms 83.33% of its industry peers.
- LNF has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- LNF has a Debt to Equity ratio of 0.32. This is amongst the best in the industry. LNF outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.06
WACC8.62%
2.3 Liquidity
- LNF has a Current Ratio of 1.57. This is a normal value and indicates that LNF is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.57, LNF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- LNF has a Quick Ratio of 1.57. This is a bad value and indicates that LNF is not financially healthy enough and could expect problems in meeting its short term obligations.
- LNF has a better Quick ratio (0.90) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 |
3. LNF.CA Growth Analysis
3.1 Past
- LNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.50%, which is quite impressive.
- LNF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.92% yearly.
- LNF shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
- The Revenue has been growing slightly by 1.82% on average over the past years.
EPS 1Y (TTM)33.5%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%35.19%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.1%
3.2 Future
- LNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.99% yearly.
- LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
EPS Next Y4.77%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue Next Year3.15%
Revenue Next 2Y2.63%
Revenue Next 3Y2.58%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. LNF.CA Valuation Analysis
4.1 Price/Earnings Ratio
- LNF is valuated reasonably with a Price/Earnings ratio of 10.41.
- LNF's Price/Earnings ratio is rather cheap when compared to the industry. LNF is cheaper than 83.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.03. LNF is valued rather cheaply when compared to this.
- LNF is valuated reasonably with a Price/Forward Earnings ratio of 11.32.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 77.78% of the companies listed in the same industry.
- LNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- 72.22% of the companies in the same industry are more expensive than LNF, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- LNF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.05
EPS Next 2Y4.15%
EPS Next 3Y4.99%
5. LNF.CA Dividend Analysis
5.1 Amount
- LNF has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.51, LNF pays a better dividend. On top of this LNF pays more dividend than 88.89% of the companies listed in the same industry.
- LNF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
- The dividend of LNF has a limited annual growth rate of 5.74%.
- LNF has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of LNF decreased in the last 3 years.
Dividend Growth(5Y)5.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- LNF pays out 31.00% of its income as dividend. This is a sustainable payout ratio.
- The dividend of LNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
LNF.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:LNF (3/4/2026, 7:00:00 PM)
27.38
-0.22 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25 2026-02-25
Earnings (Next)05-06 2026-05-06
Inst Owners6.1%
Inst Owner ChangeN/A
Ins Owners3.37%
Ins Owner ChangeN/A
Market Cap1.88B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.79 (27.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP31%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.27%
Min EPS beat(2)17.84%
Max EPS beat(2)22.69%
EPS beat(4)4
Avg EPS beat(4)32.62%
Min EPS beat(4)17.84%
Max EPS beat(4)55.17%
EPS beat(8)7
Avg EPS beat(8)22.53%
EPS beat(12)8
Avg EPS beat(12)9.79%
EPS beat(16)10
Avg EPS beat(16)11.52%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.6%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)4
Avg Revenue beat(12)-1.11%
Revenue beat(16)5
Avg Revenue beat(16)-0.37%
PT rev (1m)0.42%
PT rev (3m)0.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.73 | ||
| P/FCF | 7.37 | ||
| P/OCF | 6.4 | ||
| P/B | 1.54 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)2.63
EY9.61%
EPS(NY)2.42
Fwd EY8.83%
FCF(TTM)3.71
FCFY13.57%
OCF(TTM)4.28
OCFY15.63%
SpS37.34
BVpS17.75
TBVpS8.15
PEG (NY)2.18
PEG (5Y)1.05
Graham Number32.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 14.25% | ||
| ROCE | 12.11% | ||
| ROIC | 9.15% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 20.86% | ||
| OM | 8.58% | ||
| PM (TTM) | 6.77% | ||
| GM | 45.03% | ||
| FCFM | 9.95% |
ROA(3y)7%
ROA(5y)7.24%
ROE(3y)15.43%
ROE(5y)17.71%
ROIC(3y)9.82%
ROIC(5y)11.29%
ROICexc(3y)11.56%
ROICexc(5y)15.42%
ROICexgc(3y)22.28%
ROICexgc(5y)62.58%
ROCE(3y)12.98%
ROCE(5y)14.93%
ROICexgc growth 3Y-53.9%
ROICexgc growth 5Y2.49%
ROICexc growth 3Y-28.04%
ROICexc growth 5Y2.69%
OM growth 3Y-12.63%
OM growth 5Y1.03%
PM growth 3Y-9.31%
PM growth 5Y5.61%
GM growth 3Y0.22%
GM growth 5Y0.33%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 35.8% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 9.57 | ||
| Cash Conversion | 89.45% | ||
| Profit Quality | 146.89% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.05 |
F-Score6
WACC8.62%
ROIC/WACC1.06
Cap/Depr(3y)40.93%
Cap/Depr(5y)35.48%
Cap/Sales(3y)1.77%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.5%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%35.19%
EPS Next Y4.77%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.1%
Revenue Next Year3.15%
Revenue Next 2Y2.63%
Revenue Next 3Y2.58%
Revenue Next 5YN/A
EBIT growth 1Y15.8%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year68.33%
EBIT Next 3Y21.06%
EBIT Next 5Y12.37%
FCF growth 1Y16.61%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y11.55%
OCF growth 3Y3.21%
OCF growth 5Y8.02%
LEON'S FURNITURE LTD / LNF.CA FAQ
What is the ChartMill fundamental rating of LEON'S FURNITURE LTD (LNF.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to LNF.CA.
Can you provide the valuation status for LEON'S FURNITURE LTD?
ChartMill assigns a valuation rating of 6 / 10 to LEON'S FURNITURE LTD (LNF.CA). This can be considered as Fairly Valued.
How profitable is LEON'S FURNITURE LTD (LNF.CA) stock?
LEON'S FURNITURE LTD (LNF.CA) has a profitability rating of 6 / 10.
What is the valuation of LEON'S FURNITURE LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEON'S FURNITURE LTD (LNF.CA) is 10.41 and the Price/Book (PB) ratio is 1.54.
Can you provide the dividend sustainability for LNF stock?
The dividend rating of LEON'S FURNITURE LTD (LNF.CA) is 6 / 10 and the dividend payout ratio is 31%.