LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LNF - CA5266821092 - Common Stock
28.51 CAD
+0.04 (+0.14%)
LNF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 16 industry peers in the Specialty Retail industry. LNF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LNF is not valued too expensively and it also shows a decent growth rate. With these ratings, LNF could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
LNF had positive earnings in the past year.
LNF had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 7.15%, LNF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Equity value of 14.25%, LNF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of LNF (9.15%) is better than 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 8.76%.
| 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
The Profit Margin of LNF (6.77%) is better than 62.50% 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 8.58%, LNF is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
LNF's Operating Margin has been stable in the last couple of years.
LNF has a better Gross Margin (45.03%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNF is still 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.
2.2 Solvency
An Altman-Z score of 3.08 indicates that LNF is not in any danger for bankruptcy at the moment.
LNF has a Altman-Z score of 3.08. This is in the better half of the industry: LNF outperforms 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.
Looking at the Debt to FCF ratio, with a value of 1.88, LNF belongs to the top of the industry, outperforming 87.50% 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 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.06
WACC8.6%
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.
LNF has a Current ratio of 1.57. This is amongst the best in the industry. LNF outperforms 81.25% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.90, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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.
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 1.99%.
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
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 2.50% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.84, the valuation of LNF can be described as reasonable.
Based on the Price/Earnings ratio, LNF is valued cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, LNF is valued rather cheaply.
LNF is valuated reasonably with a Price/Forward Earnings ratio of 11.79.
LNF's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNF is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, LNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
LNF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNF is cheaper than 75.00% 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 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 5.8 |
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.
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 3.43%, 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 1.63. LNF pays more dividend than 87.50% of the companies in the same industry.
LNF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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.
LNF has decreased its dividend 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.
The dividend of LNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31%
EPS Next 2Y4.15%
EPS Next 3Y4.99%
TSX:LNF (1/8/2026, 7:00:00 PM)
28.51
+0.04 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners6.1%
Inst Owner ChangeN/A
Ins Owners3.37%
Ins Owner ChangeN/A
Market Cap1.95B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (21.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)-0.13%
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 | 10.84 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.76 | ||
| P/FCF | 7.62 | ||
| P/OCF | 6.61 | ||
| P/B | 1.59 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 5.8 |
EPS(TTM)2.63
EY9.22%
EPS(NY)2.42
Fwd EY8.48%
FCF(TTM)3.74
FCFY13.13%
OCF(TTM)4.31
OCFY15.13%
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
WACC8.6%
ROIC/WACC1.06
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 5Y13.25%
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 7 / 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 10.84 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%.