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

TSX:LNF • CA5266821092

27.95 CAD
-0.54 (-1.9%)
Last: Feb 26, 2026, 07:00 PM
Fundamental Rating

6

Overall LNF gets a fundamental rating of 6 out of 10. We evaluated LNF against 19 industry peers in the Specialty Retail industry. Both the profitability and the financial health of LNF get a neutral evaluation. Nothing too spectacular is happening here. LNF has a decent growth rate and is not valued too expensively.


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.
  • In the past 5 years LNF always reported a positive cash flow from operatings.
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 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.
  • LNF has a better Return On Equity (14.25%) than 68.42% of its industry peers.
  • LNF has a better Return On Invested Capital (9.15%) than 68.42% 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 11.30%.
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 57.89% 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 has a better Gross Margin (45.03%) than 68.42% 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

6

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.
  • LNF has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for LNF has been reduced compared to a year ago.
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 3.08. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
  • LNF has a Altman-Z score of 3.08. This is in the better half of the industry: LNF outperforms 68.42% of its industry peers.
  • 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.
  • 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.
  • With a decent Debt to Equity ratio value of 0.32, LNF is doing good in the industry, outperforming 78.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.88
Altman-Z 3.08
ROIC/WACC1.05
WACC8.69%
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.
  • The Current ratio of LNF (1.57) is better than 78.95% 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.
  • LNF has a Quick ratio of 0.90. This is in the better half of the industry: LNF outperforms 73.68% 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

  • LNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.50%, which is quite impressive.
  • 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

  • LNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.99% yearly.
  • LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
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 3Y2.58%
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.
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

  • The Price/Earnings ratio is 10.63, which indicates a very decent valuation of LNF.
  • LNF's Price/Earnings ratio is rather cheap when compared to the industry. LNF is cheaper than 84.21% of the companies in the same industry.
  • LNF is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
  • LNF is valuated reasonably with a Price/Forward Earnings ratio of 11.55.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 78.95% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of LNF to the average of the S&P500 Index (28.13), we can say LNF is valued rather cheaply.
Industry RankSector Rank
PE 10.63
Fwd PE 11.55
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 the industry average as 63.16% of the companies are valued more expensively.
  • 63.16% of the companies in the same industry are more expensive than LNF, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.52
EV/EBITDA 5.84
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 LNF does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)1.07
EPS Next 2Y4.15%
EPS Next 3Y4.99%

6

5. Dividend

5.1 Amount

  • LNF has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.59, LNF pays a better dividend. On top of this LNF pays more dividend than 84.21% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, 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.
  • LNF has decreased its dividend 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

  • 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%
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 (2/26/2026, 7:00:00 PM)

27.95

-0.54 (-1.9%)

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 Cap1.92B
Revenue(TTM)2.57B
Net Income(TTM)173.99M
Analysts74.55
Price Target34.64 (23.94%)
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 10.63
Fwd PE 11.55
P/S 0.75
P/FCF 7.52
P/OCF 6.53
P/B 1.57
P/tB 3.43
EV/EBITDA 5.84
EPS(TTM)2.63
EY9.41%
EPS(NY)2.42
Fwd EY8.65%
FCF(TTM)3.71
FCFY13.29%
OCF(TTM)4.28
OCFY15.31%
SpS37.34
BVpS17.75
TBVpS8.15
PEG (NY)2.23
PEG (5Y)1.07
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 3.08
F-Score6
WACC8.69%
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 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 3Y2.58%
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 10.63 and the Price/Book (PB) ratio is 1.57.


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%.