LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
TSX:LNF - Toronto Stock Exchange - CA5266821092 - Common Stock - Currency: CAD
Overall LNF gets a fundamental rating of 6 out of 10. We evaluated LNF against 16 industry peers in the Specialty Retail industry. LNF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LNF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LNF was profitable.
In the past year LNF had a positive cash flow from operations.
LNF had positive earnings in each of the past 5 years.
In the past 5 years LNF always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.96%, LNF belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
LNF has a Return On Equity of 13.77%. This is amongst the best in the industry. LNF outperforms 81.25% of its industry peers.
LNF has a Return On Invested Capital of 8.95%. This is amongst the best in the industry. LNF outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNF is in line with the industry average of 8.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 13.77% | ||
| ROIC | 8.95% |
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
With a decent Profit Margin value of 6.31%, LNF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
LNF's Profit Margin has improved in the last couple of years.
LNF's Operating Margin of 7.92% 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 (44.55%) is better than 68.75% of its industry peers.
In the last couple of years the Gross Margin of LNF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.55% |
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.
Compared to 5 years ago, LNF has less shares outstanding
LNF has a better debt/assets ratio than last year.
2.2 Solvency
LNF has an Altman-Z score of 3.16. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
LNF has a better Altman-Z score (3.16) than 75.00% of its industry peers.
LNF has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
LNF has a Debt to FCF ratio of 1.46. This is amongst the best in the industry. LNF outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that LNF is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, LNF belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.09
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.49 indicates that LNF should not have too much problems paying its short term obligations.
LNF has a better Current ratio (1.49) than 68.75% of its industry peers.
LNF has a Quick Ratio of 1.49. 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 0.77 is in line compared to the rest of the industry. LNF outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
LNF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.44%.
LNF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.92% yearly.
The Revenue has been growing slightly by 0.47% 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)7.44%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.63%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%3.07%
3.2 Future
The Earnings Per Share is expected to grow by 1.52% on average over the next years.
LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year0.35%
Revenue Next 2Y1.43%
Revenue Next 3Y1.77%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.08, the valuation of LNF can be described as correct.
87.50% of the companies in the same industry are more expensive than LNF, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LNF to the average of the S&P500 Index (27.30), we can say LNF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.59, the valuation of LNF can be described as correct.
Based on the Price/Forward Earnings ratio, LNF is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, LNF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 12.59 |
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.
Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.85%, LNF has a reasonable but not impressive dividend return.
LNF's Dividend Yield is rather good when compared to the industry average which is at 4.59. 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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
32.64% 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.
DP32.64%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
TSX:LNF (7/11/2025, 7:00:00 PM)
27.9
-0.2 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.65%
Inst Owner ChangeN/A
Ins Owners3.38%
Ins Owner ChangeN/A
Market Cap1.90B
Analysts74.55
Price Target34.53 (23.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP32.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.97%
Min EPS beat(2)34.76%
Max EPS beat(2)55.17%
EPS beat(4)3
Avg EPS beat(4)22.72%
Min EPS beat(4)-2.79%
Max EPS beat(4)55.17%
EPS beat(8)5
Avg EPS beat(8)14.72%
EPS beat(12)8
Avg EPS beat(12)14.53%
EPS beat(16)10
Avg EPS beat(16)11.98%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)3.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)4
Avg Revenue beat(12)0.89%
Revenue beat(16)5
Avg Revenue beat(16)-0.49%
PT rev (1m)0%
PT rev (3m)1.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 12.59 | ||
| P/S | 0.76 | ||
| P/FCF | 6.69 | ||
| P/OCF | 5.52 | ||
| P/B | 1.65 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 6.19 |
EPS(TTM)2.31
EY8.28%
EPS(NY)2.22
Fwd EY7.94%
FCF(TTM)4.17
FCFY14.95%
OCF(TTM)5.06
OCFY18.12%
SpS36.89
BVpS16.9
TBVpS7.21
PEG (NY)N/A
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 13.77% | ||
| ROCE | 11.83% | ||
| ROIC | 8.95% | ||
| ROICexc | 10.75% | ||
| ROICexgc | 20.32% | ||
| OM | 7.92% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.55% | ||
| FCFM | 11.31% |
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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 56.48% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 9.26 | ||
| Cash Conversion | 112.69% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.16 |
F-Score7
WACC8.24%
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)7.44%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.63%
EPS Next Y-9.57%
EPS Next 2Y-0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%3.07%
Revenue Next Year0.35%
Revenue Next 2Y1.43%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y5.35%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year59.42%
EBIT Next 3Y19.34%
EBIT Next 5YN/A
FCF growth 1Y163.26%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y150.23%
OCF growth 3Y3.21%
OCF growth 5Y8.02%