LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis

TSX:LNF • CA5266821092

29.01 CAD
+0.15 (+0.52%)
Last: Feb 20, 2026, 07:00 PM
Fundamental Rating

6

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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • LNF had positive earnings in the past year.
  • In the past year LNF had a positive cash flow from operations.
  • In the past 5 years LNF has always been profitable.
  • LNF had a positive operating cash flow in each of the past 5 years.
LNF.CA Yearly Net Income VS EBIT VS OCF VS FCFLNF.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

  • LNF's Return On Assets of 7.15% is fine compared to the rest of the industry. LNF outperforms 66.67% 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 66.67% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 9.15%, LNF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LNF is in line with the industry average of 11.30%.
Industry RankSector 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%
LNF.CA Yearly ROA, ROE, ROICLNF.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • LNF has a Profit Margin (6.77%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of LNF has grown nicely.
  • Looking at the Operating Margin, with a value of 8.58%, LNF is in line with its industry, 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.
  • The Gross Margin of LNF (45.03%) is better than 72.22% of its industry peers.
  • LNF's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LNF.CA Yearly Profit, Operating, Gross MarginsLNF.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

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.
  • The number of shares outstanding for LNF has been increased compared to 1 year ago.
  • Compared to 5 years ago, LNF has less shares outstanding
  • LNF has a better debt/assets ratio than last year.
LNF.CA Yearly Shares OutstandingLNF.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LNF.CA Yearly Total Debt VS Total AssetsLNF.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • LNF has an Altman-Z score of 3.10. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.10, LNF is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
  • 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 has a better Debt to FCF ratio (1.88) than 83.33% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that LNF is not too dependend on debt financing.
  • LNF's Debt to Equity ratio of 0.32 is amongst the best of the industry. LNF outperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.88
Altman-Z 3.1
ROIC/WACC1.03
WACC8.86%
LNF.CA Yearly LT Debt VS Equity VS FCFLNF.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

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 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's Quick ratio of 0.90 is fine compared to the rest of the industry. LNF outperforms 77.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 0.9
LNF.CA Yearly Current Assets VS Current LiabilitesLNF.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

5

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.
  • LNF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.82% yearly.
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

  • The Earnings Per Share is expected to grow by 4.99% on average over the next years.
  • The Revenue is expected to grow by 2.50% on average over the next years.
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 3Y2.5%
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.
LNF.CA Yearly Revenue VS EstimatesLNF.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
LNF.CA Yearly EPS VS EstimatesLNF.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.03 indicates a reasonable valuation of LNF.
  • 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.
  • LNF is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 11.99, the valuation of LNF can be described as reasonable.
  • LNF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LNF is cheaper than 77.78% of the companies in the same industry.
  • LNF is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.03
Fwd PE 11.99
LNF.CA Price Earnings VS Forward Price EarningsLNF.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than 61.11% of the companies 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 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.81
EV/EBITDA 5.92
LNF.CA Per share dataLNF.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)1.11
EPS Next 2Y4.15%
EPS Next 3Y4.99%

6

5. Dividend

5.1 Amount

  • LNF has a Yearly Dividend Yield of 3.33%.
  • Compared to an average industry Dividend Yield of 1.58, LNF pays a better dividend. On top of this LNF pays more dividend than 88.89% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, LNF pays a better dividend.
Industry RankSector 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
LNF.CA Yearly Dividends per shareLNF.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 31.00% of the earnings are spent on dividend by LNF. This is a low number and sustainable payout ratio.
  • LNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
LNF.CA Yearly Income VS Free CF VS DividendLNF.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M
LNF.CA Dividend Payout.LNF.CA Dividend Payout, showing the Payout Ratio.LNF.CA Dividend Payout.PayoutRetained Earnings

LEON'S FURNITURE LTD

TSX:LNF (2/20/2026, 7:00:00 PM)

29.01

+0.15 (+0.52%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-06
Earnings (Next)02-25
Inst Owners6.1%
Inst Owner ChangeN/A
Ins Owners3.37%
Ins Owner ChangeN/A
Market Cap2.00B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (19.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.33%
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%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-2%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 11.03
Fwd PE 11.99
P/S 0.78
P/FCF 7.81
P/OCF 6.78
P/B 1.63
P/tB 3.56
EV/EBITDA 5.92
EPS(TTM)2.63
EY9.07%
EPS(NY)2.42
Fwd EY8.34%
FCF(TTM)3.71
FCFY12.81%
OCF(TTM)4.28
OCFY14.76%
SpS37.34
BVpS17.75
TBVpS8.15
PEG (NY)2.31
PEG (5Y)1.11
Graham Number32.41
Profitability
Industry RankSector 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 RankSector 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 3.1
F-Score6
WACC8.86%
ROIC/WACC1.03
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 3Y2.5%
Revenue Next 5YN/A
EBIT growth 1Y15.8%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year68.3%
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 11.03 and the Price/Book (PB) ratio is 1.63.


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%.