LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
TSX:LNF - Toronto Stock Exchange - CA5266821092 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to LNF. LNF was compared to 15 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years LNF has been profitable.
LNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNF's Return On Assets of 6.57% is amongst the best of the industry. LNF outperforms 86.67% of its industry peers.
With an excellent Return On Equity value of 13.47%, LNF belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
LNF has a Return On Invested Capital of 8.58%. This is amongst the best in the industry. LNF outperforms 86.67% of its industry peers.
LNF had an Average Return On Invested Capital over the past 3 years of 9.82%. This is above the industry average of 6.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROIC | 8.58% |
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 (6.15%) is better than 73.33% 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 7.65%, LNF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LNF's Operating Margin has been stable in the last couple of years.
LNF's Gross Margin of 44.37% is fine compared to the rest of the industry. LNF outperforms 73.33% 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 | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.37% |
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.
Compared to 1 year ago, LNF has more shares outstanding
The number of shares outstanding for LNF has been reduced compared to 5 years ago.
LNF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.89 indicates that LNF is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNF has a Altman-Z score of 2.89. This is comparable to the rest of the industry: LNF outperforms 60.00% of its industry peers.
LNF has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
LNF's Debt to FCF ratio of 1.49 is amongst the best of the industry. LNF outperforms 93.33% of its industry peers.
LNF has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.30, LNF belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.02
WACC8.4%
2.3 Liquidity
LNF has a Current Ratio of 1.43. 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 better Current ratio (1.43) than 80.00% of its industry peers.
A Quick Ratio of 0.82 indicates that LNF may have some problems paying its short term obligations.
LNF has a Quick ratio of 0.82. This is in the better half of the industry: LNF outperforms 80.00% of its industry peers.
The current and quick ratio evaluation for LNF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
LNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.71%, which is quite good.
Measured over the past years, LNF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.00% on average per year.
Looking at the last year, LNF shows a small growth in Revenue. The Revenue has grown by 1.78% in the last year.
Measured over the past years, LNF shows a small growth in Revenue. The Revenue has been growing by 1.82% on average per year.
EPS 1Y (TTM)10.71%
EPS 3Y-5.11%
EPS 5Y12%
EPS Q2Q%46.81%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
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 6.60% on average per year.
The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y6.18%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y2.94%
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
With a Price/Earnings ratio of 10.90, the valuation of LNF can be described as very reasonable.
Based on the Price/Earnings ratio, LNF is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. LNF is valued rather cheaply when compared to this.
LNF is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNF indicates a somewhat cheap valuation: LNF is cheaper than 80.00% of the companies listed in the same industry.
LNF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNF is valued a bit cheaper than 80.00% 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 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.84 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
LNF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)0.91
EPS Next 2Y6.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.23, LNF pays a better dividend. On top of this LNF pays more dividend than 86.67% of the companies listed in the same industry.
LNF's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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
32.80% of the earnings are spent on dividend by LNF. This is a low number and sustainable payout ratio.
LNF's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.8%
EPS Next 2Y6.6%
EPS Next 3YN/A
TSX:LNF (3/7/2025, 7:00:00 PM)
24.42
+0.31 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners5.77%
Inst Owner ChangeN/A
Ins Owners4.42%
Ins Owner ChangeN/A
Market Cap1.67B
Analysts74.55
Price Target33.95 (39.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP32.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.68%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-4.49%
Revenue beat(4)1
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.67%
Revenue beat(8)2
Avg Revenue beat(8)-2.36%
Revenue beat(12)3
Avg Revenue beat(12)-0.29%
Revenue beat(16)5
Avg Revenue beat(16)-0.4%
PT rev (1m)-3.8%
PT rev (3m)-7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.45%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.67 | ||
| P/FCF | 5.84 | ||
| P/OCF | 4.83 | ||
| P/B | 1.46 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)2.24
EY9.17%
EPS(NY)2.08
Fwd EY8.53%
FCF(TTM)4.18
FCFY17.12%
OCF(TTM)5.06
OCFY20.71%
SpS36.64
BVpS16.73
TBVpS7.04
PEG (NY)1.76
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.47% | ||
| ROCE | 11.35% | ||
| ROIC | 8.58% | ||
| ROICexc | 10.64% | ||
| ROICexgc | 20.71% | ||
| OM | 7.65% | ||
| PM (TTM) | 6.15% | ||
| GM | 44.37% | ||
| FCFM | 11.41% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 56.08% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 8.4 | ||
| Cash Conversion | 115.83% | ||
| Profit Quality | 185.57% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.89 |
F-Score7
WACC8.4%
ROIC/WACC1.02
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)10.71%
EPS 3Y-5.11%
EPS 5Y12%
EPS Q2Q%46.81%
EPS Next Y6.18%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%-3.36%
Revenue Next Year0.39%
Revenue Next 2Y1.45%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
EBIT growth 1Y3.5%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year62.27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.65%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y36.18%
OCF growth 3Y3.21%
OCF growth 5Y8.02%