LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LNF - CA5266821092 - Common Stock
28.83 CAD
+0.03 (+0.1%)
Taking everything into account, LNF scores 6 out of 10 in our fundamental rating. LNF was compared to 16 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making LNF a very profitable company, without any liquidiy or solvency issues. LNF has a correct valuation and a medium growth rate. This makes LNF very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LNF was profitable.
LNF had a positive operating cash flow in the past year.
Each year in the past 5 years LNF has been profitable.
Each year in the past 5 years LNF had a positive operating cash flow.
1.2 Ratios
LNF has a Return On Assets of 7.15%. This is in the better half of the industry: LNF outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.25%, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LNF's Return On Invested Capital of 9.15% is amongst the best of the industry. LNF outperforms 81.25% 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 9.26%.
| 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 better Profit Margin (6.77%) than 62.50% of its industry peers.
LNF's Profit Margin has improved in the last couple of years.
LNF's Operating Margin of 8.58% is fine compared to the rest of the industry. LNF outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of LNF has remained more or less at the same level.
The Gross Margin of LNF (45.03%) is better than 68.75% 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. Health
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
The number of shares outstanding for LNF has been reduced compared to 5 years ago.
LNF has a better debt/assets ratio than last year.
2.2 Solvency
LNF has an Altman-Z score of 3.09. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
LNF has a better Altman-Z score (3.09) than 68.75% of its industry peers.
LNF has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
LNF has a better Debt to FCF ratio (1.88) than 87.50% 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.
The Debt to Equity ratio of LNF (0.32) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.09
WACC8.37%
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.
With an excellent Current ratio value of 1.57, LNF belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that LNF may have some problems paying its short term obligations.
LNF's Quick ratio of 0.90 is fine compared to the rest of the industry. LNF outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.50% over the past year.
Measured over the past years, LNF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.92% on average per year.
The Revenue has been growing slightly by 1.99% in the past year.
Measured over the past years, LNF shows a small growth in Revenue. The Revenue has been growing by 1.82% on average per year.
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
Based on estimates for the next years, LNF will show a small growth in Earnings Per Share. The EPS will grow by 4.99% on average per year.
Based on estimates for the next years, LNF will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y4.17%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.96, the valuation of LNF can be described as very reasonable.
Based on the Price/Earnings ratio, LNF is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LNF to the average of the S&P500 Index (26.31), we can say LNF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.85, the valuation of LNF can be described as reasonable.
Based on the Price/Forward Earnings ratio, LNF is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. LNF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than LNF, based on the Enterprise Value to EBITDA ratio.
LNF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LNF is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNF does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)1.11
EPS Next 2Y4.44%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
LNF's Dividend Yield is rather good when compared to the industry average which is at 4.70. LNF pays more dividend than 87.50% of the companies in the same industry.
LNF's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of LNF has a limited annual growth rate of 5.74%.
LNF has been paying a dividend for at least 10 years, so it has 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.
LNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31%
EPS Next 2Y4.44%
EPS Next 3Y4.99%
TSX:LNF (11/28/2025, 7:00:00 PM)
28.83
+0.03 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.73%
Inst Owner ChangeN/A
Ins Owners3.25%
Ins Owner ChangeN/A
Market Cap1.97B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (20.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP31%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)1.28%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.77 | ||
| P/FCF | 7.7 | ||
| P/OCF | 6.68 | ||
| P/B | 1.61 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)2.63
EY9.12%
EPS(NY)2.43
Fwd EY8.44%
FCF(TTM)3.74
FCFY12.99%
OCF(TTM)4.31
OCFY14.96%
SpS37.63
BVpS17.89
TBVpS8.21
PEG (NY)2.63
PEG (5Y)1.11
Graham Number32.53
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 | 3.09 |
F-Score6
WACC8.37%
ROIC/WACC1.09
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 Y4.17%
EPS Next 2Y4.44%
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 Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
EBIT growth 1Y15.8%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year66.63%
EBIT Next 3Y21.02%
EBIT Next 5Y13.53%
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.
What is the valuation status for LNF stock?
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 7 / 10.
What is the financial health of LEON'S FURNITURE LTD (LNF.CA) stock?
The financial health rating of LEON'S FURNITURE LTD (LNF.CA) is 7 / 10.
What is the earnings growth outlook for LEON'S FURNITURE LTD?
The Earnings per Share (EPS) of LEON'S FURNITURE LTD (LNF.CA) is expected to grow by 4.17% in the next year.