LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LNF - CA5266821092 - Common Stock
28.45 CAD
-0.01 (-0.04%)
Taking everything into account, LNF scores 6 out of 10 in our fundamental rating. LNF was compared to 19 industry peers in the Specialty Retail industry. LNF has an average financial health and profitability rating. LNF is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years LNF always reported a positive cash flow from operatings.
1.2 Ratios
- LNF has a Return On Assets of 7.15%. This is in the better half of the industry: LNF outperforms 68.42% of its industry peers.
- The Return On Equity of LNF (14.25%) is better than 68.42% of its industry peers.
- LNF has a better Return On Invested Capital (9.15%) than 73.68% 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 11.04%.
| 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's Profit Margin of 6.77% is in line compared to the rest of the industry. LNF outperforms 57.89% of its industry peers.
- 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 57.89% of the companies in the same industry.
- LNF's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 45.03%, LNF is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- 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
- 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 3.08. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
- LNF's Altman-Z score of 3.08 is fine compared to the rest of the industry. LNF outperforms 68.42% 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.
- With a decent Debt to FCF ratio value of 1.88, LNF is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.32 indicates that LNF is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.32, LNF is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.05
WACC8.74%
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 is in the better half of the industry, outperforming 78.95% 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.
- The Quick ratio of LNF (0.90) is better than 73.68% 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.
- 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
- 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 Y5.53%
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 10.82, the valuation of LNF can be described as reasonable.
- Based on the Price/Earnings ratio, LNF is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- LNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 11.76, which indicates a very decent valuation of LNF.
- 78.95% of the companies in the same industry are more expensive than LNF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of LNF to the average of the S&P500 Index (24.29), we can say LNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
- LNF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNF is cheaper than 63.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LNF is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 5.79 |
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)1.96
PEG (5Y)1.09
EPS Next 2Y4.15%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.37%, 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 2.33. LNF pays more dividend than 84.21% of the companies in the same industry.
- LNF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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.
- 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%
TSX:LNF (1/16/2026, 7:00:00 PM)
28.45
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-23 2026-02-23
Inst Owners6.1%
Inst Owner ChangeN/A
Ins Owners3.37%
Ins Owner ChangeN/A
Market Cap1.94B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (21.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)2.08%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.76 | ||
| P/FCF | 7.6 | ||
| P/OCF | 6.6 | ||
| P/B | 1.59 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)2.63
EY9.24%
EPS(NY)2.42
Fwd EY8.5%
FCF(TTM)3.74
FCFY13.16%
OCF(TTM)4.31
OCFY15.16%
SpS37.63
BVpS17.89
TBVpS8.21
PEG (NY)1.96
PEG (5Y)1.09
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 | 3.08 |
F-Score6
WACC8.74%
ROIC/WACC1.05
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 Y5.53%
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 5Y12.71%
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 10.82 and the Price/Book (PB) ratio is 1.59.
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%.