LEON'S FURNITURE LTD (LNF.CA) Stock Fundamental Analysis
Canada - TSX:LNF - CA5266821092 - Common Stock
28.87 CAD
+0.12 (+0.42%)
Taking everything into account, LNF scores 6 out of 10 in our fundamental rating. LNF was compared to 16 industry peers in the Specialty Retail industry. LNF gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
LNF had positive earnings in each of the past 5 years.
LNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNF has a Return On Assets of 6.99%. This is amongst the best in the industry. LNF outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 13.68%, LNF belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.75%, LNF belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
LNF had an Average Return On Invested Capital over the past 3 years of 9.82%. This is in line with the industry average of 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 13.68% | ||
| ROIC | 9.75% |
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.
The Operating Margin of LNF (8.32%) is better than 62.50% of its industry peers.
LNF's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 44.82%, LNF is in the better half of the industry, outperforming 68.75% 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 | 8.32% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.82% |
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.
The number of shares outstanding for LNF has been increased compared to 1 year ago.
The number of shares outstanding for LNF has been reduced compared to 5 years ago.
Compared to 1 year ago, LNF has an improved debt to assets ratio.
2.2 Solvency
LNF has an Altman-Z score of 3.22. This indicates that LNF is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.22, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
LNF has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.70, LNF belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that LNF is not too dependend on debt financing.
LNF has a better Debt to Equity ratio (0.23) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.1
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LNF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, LNF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that LNF may have some problems paying its short term obligations.
LNF's Quick ratio of 0.71 is in line compared to the rest of the industry. LNF outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.93% over the past year.
LNF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.92% yearly.
Looking at the last year, LNF shows a small growth in Revenue. The Revenue has grown by 0.57% in the last 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)11.93%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.55%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.28%
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.
LNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.96% yearly.
EPS Next Y4.17%
EPS Next 2Y4.19%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
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.
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 11.83, the valuation of LNF can be described as reasonable.
93.75% 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 (27.41), we can say LNF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.93, the valuation of LNF can be described as reasonable.
Based on the Price/Forward Earnings ratio, LNF is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.88. LNF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNF indicates a rather cheap valuation: LNF is cheaper than 81.25% of the companies listed 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 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LNF may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.19
EPS Next 2Y4.19%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
LNF has a Yearly Dividend Yield of 3.35%.
LNF's Dividend Yield is rather good when compared to the industry average which is at 4.45. LNF pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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 33.17% 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.
DP33.17%
EPS Next 2Y4.19%
EPS Next 3Y4.99%
TSX:LNF (9/18/2025, 7:00:00 PM)
28.87
+0.12 (+0.42%)
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 Cap1.97B
Analysts74.55
Price Target34.21 (18.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend0.74
Dividend Growth(5Y)5.74%
DP33.17%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.93%
Min EPS beat(2)22.69%
Max EPS beat(2)55.17%
EPS beat(4)3
Avg EPS beat(4)27.46%
Min EPS beat(4)-2.79%
Max EPS beat(4)55.17%
EPS beat(8)6
Avg EPS beat(8)19.7%
EPS beat(12)8
Avg EPS beat(12)9.94%
EPS beat(16)10
Avg EPS beat(16)10.68%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.6%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.5%
Revenue beat(8)4
Avg Revenue beat(8)-0.45%
Revenue beat(12)4
Avg Revenue beat(12)-1.28%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)15.19%
EPS NY rev (3m)15.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.93 | ||
| P/S | 0.78 | ||
| P/FCF | 7.78 | ||
| P/OCF | 6.68 | ||
| P/B | 1.68 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)2.44
EY8.45%
EPS(NY)2.42
Fwd EY8.38%
FCF(TTM)3.71
FCFY12.86%
OCF(TTM)4.32
OCFY14.96%
SpS37.24
BVpS17.17
TBVpS7.49
PEG (NY)2.84
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 13.68% | ||
| ROCE | 12.89% | ||
| ROIC | 9.75% | ||
| ROICexc | 11.64% | ||
| ROICexgc | 22.42% | ||
| OM | 8.32% | ||
| PM (TTM) | 6.31% | ||
| GM | 44.82% | ||
| FCFM | 9.97% |
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-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 38.6% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 9.85 | ||
| Cash Conversion | 92.47% | ||
| Profit Quality | 158.09% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.22 |
F-Score6
WACC8.87%
ROIC/WACC1.1
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)11.93%
EPS 3Y-4.99%
EPS 5Y9.92%
EPS Q2Q%29.55%
EPS Next Y4.17%
EPS Next 2Y4.19%
EPS Next 3Y4.99%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-0.19%
Revenue growth 5Y1.82%
Sales Q2Q%4.28%
Revenue Next Year3.12%
Revenue Next 2Y2.84%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
EBIT growth 1Y10.74%
EBIT growth 3Y-12.8%
EBIT growth 5Y2.87%
EBIT Next Year59.42%
EBIT Next 3Y19.34%
EBIT Next 5Y13.53%
FCF growth 1Y48.22%
FCF growth 3Y-1.39%
FCF growth 5Y7.31%
OCF growth 1Y43.36%
OCF growth 3Y3.21%
OCF growth 5Y8.02%