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L

Loblaw CompaniesTSX:L Stock Report

Last Price

CA$99.06

Market Cap

CA$33.0b

7D

-2.5%

1Y

55.3%

Updated

18 Jan, 2022

Data

Company Financials +
L fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends4/6

L Stock Overview

Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada.

Loblaw Companies Competitors

Walmart

NYSE:WMT

US$402.4b

Dollar General

NYSE:DG

US$50.3b

Atacadão

BOVESPA:CRFB3

R$28.8b

Metro

XTRA:B4B

€3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Loblaw Companies
Historical stock prices
Current Share PriceCA$99.06
52 Week HighCA$105.15
52 Week LowCA$60.86
Beta-0.029
1 Month Change-4.33%
3 Month Change7.63%
1 Year Change55.27%
3 Year Change55.51%
5 Year Change41.96%
Change since IPO1,914.78%

Recent News & Updates

Jan 12
Does Loblaw Companies (TSE:L) Deserve A Spot On Your Watchlist?

Does Loblaw Companies (TSE:L) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Dec 28
Returns Are Gaining Momentum At Loblaw Companies (TSE:L)

Returns Are Gaining Momentum At Loblaw Companies (TSE:L)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

Dec 13
Loblaw Companies' (TSE:L) Dividend Will Be Increased To CA$0.36

Loblaw Companies' (TSE:L) Dividend Will Be Increased To CA$0.36

The board of Loblaw Companies Limited ( TSE:L ) has announced that it will be increasing its dividend on the 30th of...

Shareholder Returns

LCA Consumer RetailingCA Market
7D-2.5%-0.4%2.4%
1Y55.3%33.2%19.9%

Return vs Industry: L exceeded the Canadian Consumer Retailing industry which returned 33.7% over the past year.

Return vs Market: L exceeded the Canadian Market which returned 19.1% over the past year.

Price Volatility

Is L's price volatile compared to industry and market?
L volatility
L Average Weekly Movement2.2%
Consumer Retailing Industry Average Movement4.9%
Market Average Movement9.7%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market3.7%

Stable Share Price: L is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: L's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1919190,000Galen Westonhttps://www.loblaw.ca

Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada. It operates in two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores.

Loblaw Companies Fundamentals Summary

How do Loblaw Companies's earnings and revenue compare to its market cap?
L fundamental statistics
Market CapCA$33.01b
Earnings (TTM)CA$1.46b
Revenue (TTM)CA$53.70b

22.5x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
L income statement (TTM)
RevenueCA$53.70b
Cost of RevenueCA$37.01b
Gross ProfitCA$16.69b
ExpensesCA$15.23b
EarningsCA$1.46b

Last Reported Earnings

Oct 09, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.39
Gross Margin31.08%
Net Profit Margin2.73%
Debt/Equity Ratio67.6%

How did L perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Loblaw Companies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: L (CA$99.06) is trading below our estimate of fair value (CA$224.39)

Significantly Below Fair Value: L is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: L is poor value based on its PE Ratio (22.5x) compared to the Canadian Consumer Retailing industry average (18x).

PE vs Market: L is poor value based on its PE Ratio (22.5x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: L is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: L is overvalued based on its PB Ratio (3x) compared to the CA Consumer Retailing industry average (2.1x).


Future Growth

How is Loblaw Companies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: L's forecast earnings growth (4.1% per year) is above the savings rate (1.6%).

Earnings vs Market: L's earnings (4.1% per year) are forecast to grow slower than the Canadian market (11% per year).

High Growth Earnings: L's earnings are forecast to grow, but not significantly.

Revenue vs Market: L's revenue (2.5% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: L's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: L's Return on Equity is forecast to be low in 3 years time (15.5%).


Past Performance

How has Loblaw Companies performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L has high quality earnings.

Growing Profit Margin: L's current net profit margins (2.7%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: L's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: L's earnings growth over the past year (44.8%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: L earnings growth over the past year (44.8%) exceeded the Consumer Retailing industry 6.4%.


Return on Equity

High ROE: L's Return on Equity (14.6%) is considered low.


Financial Health

How is Loblaw Companies's financial position?


Financial Position Analysis

Short Term Liabilities: L's short term assets (CA$12.0B) exceed its short term liabilities (CA$9.0B).

Long Term Liabilities: L's short term assets (CA$12.0B) do not cover its long term liabilities (CA$15.7B).


Debt to Equity History and Analysis

Debt Level: L's net debt to equity ratio (46.6%) is considered high.

Reducing Debt: L's debt to equity ratio has reduced from 83.3% to 67.6% over the past 5 years.

Debt Coverage: L's debt is well covered by operating cash flow (67.9%).

Interest Coverage: L's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Loblaw Companies's current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: L's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: L's dividend (1.47%) is low compared to the top 25% of dividend payers in the Canadian market (4.6%).


Stability and Growth of Payments

Stable Dividend: L's dividends per share have been stable in the past 10 years.

Growing Dividend: L's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), L's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: L's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Galen Weston (48 yo)

5yrs

Tenure

CA$3,549,591

Compensation

Mr. Galen G. Weston, B.A., M.B.A., has been Chief Executive Officer of George Weston Limited since January 18, 2017 and has been the Chairman since September 2016. He served as a Non-Independent Director o...


CEO Compensation Analysis

Compensation vs Market: Galen's total compensation ($USD2.84M) is below average for companies of similar size in the Canadian market ($USD5.90M).

Compensation vs Earnings: Galen's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: L's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: L's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Loblaw Companies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Loblaw Companies Limited
  • Ticker: L
  • Exchange: TSX
  • Founded: 1919
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Implied Market Cap: CA$33.010b
  • Shares outstanding: 333.23m
  • Website: https://www.loblaw.ca

Number of Employees


Location

  • Loblaw Companies Limited
  • 1 President's Choice Circle
  • Brampton
  • Ontario
  • L6Y 5S5
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 01:08
End of Day Share Price2022/01/17 00:00
Earnings2021/10/09
Annual Earnings2021/01/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.