LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
TSX:LNF - Toronto Stock Exchange - CA5266821092 - Common Stock - Currency: CAD
Taking everything into account, LNF scores 7 out of 10 in our fundamental rating. LNF was compared to 16 industry peers in the Specialty Retail industry. LNF gets an excellent profitability rating and is at the same time showing great financial health properties. LNF is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make LNF a good candidate for value 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.
LNF had positive earnings in each of the past 5 years.
LNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNF's Return On Assets of 6.57% is amongst the best of the industry. LNF outperforms 87.50% of its industry peers.
LNF has a better Return On Equity (13.47%) than 87.50% of its industry peers.
The Return On Invested Capital of LNF (8.58%) is better than 87.50% of its industry peers.
LNF had an Average Return On Invested Capital over the past 3 years of 9.82%. This is above the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROIC | 8.58% |
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 (6.15%) than 75.00% of its industry peers.
LNF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.65%, LNF is in the better half of the industry, outperforming 68.75% 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 44.36% is fine compared to the rest of the industry. LNF outperforms 75.00% of its industry peers.
LNF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.36% |
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
LNF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LNF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LNF has been reduced compared to 5 years ago.
The debt/assets ratio for LNF has been reduced compared to a year ago.
2.2 Solvency
LNF has an Altman-Z score of 2.82. This is not the best score and indicates that LNF is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.82, LNF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LNF has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.49, LNF belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
LNF has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
LNF has a better Debt to Equity ratio (0.30) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.09
WACC7.86%
2.3 Liquidity
A Current Ratio of 1.43 indicates that LNF should not have too much problems paying its short term obligations.
The Current ratio of LNF (1.43) is better than 68.75% of its industry peers.
A Quick Ratio of 0.82 indicates that LNF may have some problems paying its short term obligations.
LNF has a Quick ratio of 0.82. This is in the better half of the industry: LNF outperforms 68.75% of its industry peers.
The current and quick ratio evaluation for LNF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
LNF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.73%.
The Earnings Per Share has been growing by 9.92% on average over the past years. This is quite good.
LNF shows a small growth in Revenue. In the last year, the Revenue has grown by 1.78%.
The Revenue has been growing slightly by 1.82% on average over the past years.
EPS 1Y (TTM)7.73%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%36.11%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
3.2 Future
LNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.52% yearly.
LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.88% yearly.
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y1.88%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 10.06, the valuation of LNF can be described as very reasonable.
Based on the Price/Earnings ratio, LNF is valued cheaper than 81.25% of the companies in the same industry.
LNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
The Price/Forward Earnings ratio is 11.13, which indicates a very decent valuation of LNF.
Based on the Price/Forward Earnings ratio, LNF is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, LNF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 11.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNF indicates a rather cheap valuation: LNF is cheaper 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 LNF indicates a somewhat cheap valuation: LNF is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.37 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
LNF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.54%. 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 5.17. 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 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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
32.80% of the earnings are spent on dividend by LNF. This is a low number and sustainable payout ratio.
The dividend of LNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.8%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
TSX:LNF (4/28/2025, 7:00:00 PM)
22.44
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.77%
Inst Owner ChangeN/A
Ins Owners4.42%
Ins Owner ChangeN/A
Market Cap1.53B
Analysts74.55
Price Target33.95 (51.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP32.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.99%
Min EPS beat(2)-2.79%
Max EPS beat(2)34.76%
EPS beat(4)3
Avg EPS beat(4)14.3%
Min EPS beat(4)-2.79%
Max EPS beat(4)34.76%
EPS beat(8)4
Avg EPS beat(8)1.85%
EPS beat(12)7
Avg EPS beat(12)8.27%
EPS beat(16)10
Avg EPS beat(16)20.85%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-2.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.67%
Revenue beat(8)2
Avg Revenue beat(8)-2.17%
Revenue beat(12)3
Avg Revenue beat(12)-0.16%
Revenue beat(16)5
Avg Revenue beat(16)-0.3%
PT rev (1m)0%
PT rev (3m)-3.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 11.13 | ||
| P/S | 0.61 | ||
| P/FCF | 5.37 | ||
| P/OCF | 4.44 | ||
| P/B | 1.34 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 5.03 |
EPS(TTM)2.23
EY9.94%
EPS(NY)2.02
Fwd EY8.99%
FCF(TTM)4.18
FCFY18.63%
OCF(TTM)5.06
OCFY22.54%
SpS36.64
BVpS16.73
TBVpS7.04
PEG (NY)N/A
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROCE | 11.34% | ||
| ROIC | 8.58% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 20.7% | ||
| OM | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.36% | ||
| FCFM | 11.41% |
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%
ROICexcg growth 3Y-53.9%
ROICexcg 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-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 56.08% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 8.39 | ||
| Cash Conversion | 115.88% | ||
| Profit Quality | 185.57% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.82 |
F-Score7
WACC7.86%
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)7.73%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%36.11%
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y1.88%
Revenue Next 5YN/A
EBIT growth 1Y3.43%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year53.9%
EBIT Next 3Y18.8%
EBIT Next 5YN/A
FCF growth 1Y36.65%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y36.18%
OCF growth 3Y3.21%
OCF growth 5Y8.02%