Loblaw Companies
Market Cap
CA$24.0b
Last Updated
2020/10/26 00:04 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has Loblaw Companies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: L has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.4%
L
-2.2%
CA Consumer Retailing
0.07%
CA Market
1 Year Return
-3.2%
L
3.9%
CA Consumer Retailing
-3.6%
CA Market
Return vs Industry: L underperformed the Canadian Consumer Retailing industry which returned 4% over the past year.
Return vs Market: L matched the Canadian Market which returned -4% over the past year.
Shareholder returns
| L | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -2.2% | 0.07% |
| 30 Day | -4.4% | -5.1% | 2.1% |
| 90 Day | -1.8% | -2.3% | 1.8% |
| 1 Year | -1.4%-3.2% | 5.4%3.9% | -0.09%-3.6% |
| 3 Year | 31.4%0.07% | 35.5%23.4% | 3.7%-6.1% |
| 5 Year | 33.7%-1.2% | 41.8%25.6% | 31.1%11.6% |
Price Volatility Vs. Market
How volatile is Loblaw Companies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Could The Loblaw Companies Limited (TSE:L) Ownership Structure Tell Us Something Useful?3 weeks ago | Simply Wall St
We Like These Underlying Trends At Loblaw Companies (TSE:L)1 month ago | Simply Wall St
How Much is Loblaw Companies' (TSE:L) CEO Getting Paid?Valuation
Is Loblaw Companies undervalued compared to its fair value and its price relative to the market?
49.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: L (CA$67.57) is trading below our estimate of fair value (CA$134.48)
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 (24.5x) compared to the CA Consumer Retailing industry average (16.8x).
PE vs Market: L is poor value based on its PE Ratio (24.5x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: L is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: L's PB Ratio (2.2x) is in line with the CA Consumer Retailing industry average.
Next Steps
Future Growth
How is Loblaw Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: L's forecast earnings growth (9.4% per year) is above the savings rate (1.7%).
Earnings vs Market: L's earnings (9.4% per year) are forecast to grow slower than the Canadian market (22.7% per year).
High Growth Earnings: L's earnings are forecast to grow, but not significantly.
Revenue vs Market: L's revenue (1% per year) is forecast to grow slower than the Canadian market (5.8% per year).
High Growth Revenue: L's revenue (1% 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 (17%).
Next Steps
Past Performance
How has Loblaw Companies performed over the past 5 years?
4.9%
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%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: L's earnings have grown by 4.9% per year over the past 5 years.
Accelerating Growth: L's earnings growth over the past year (44.9%) exceeds its 5-year average (4.9% per year).
Earnings vs Industry: L earnings growth over the past year (44.9%) exceeded the Consumer Retailing industry 35.3%.
Return on Equity
High ROE: L's Return on Equity (9.4%) is considered low.
Next Steps
Financial Health
How is Loblaw Companies's financial position?
Financial Position Analysis
Short Term Liabilities: L's short term assets (CA$11.6B) exceed its short term liabilities (CA$8.8B).
Long Term Liabilities: L's short term assets (CA$11.6B) do not cover its long term liabilities (CA$16.0B).
Debt to Equity History and Analysis
Debt Level: L's debt to equity ratio (73%) is considered high.
Reducing Debt: L's debt to equity ratio has reduced from 89.2% to 73% over the past 5 years.
Debt Coverage: L's debt is well covered by operating cash flow (58.2%).
Interest Coverage: L's interest payments on its debt are well covered by EBIT (3x coverage).
Balance Sheet
Next Steps
Dividend
What is Loblaw Companies's current dividend yield, its reliability and sustainability?
1.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: L's dividend (1.86%) is higher than the bottom 25% of dividend payers in the Canadian market (1.68%).
High Dividend: L's dividend (1.86%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).
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 (45.6%), 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?
2.8yrs
Average management tenure
CEO
Galen Weston (47 yo)
3.75yrs
Tenure
CA$3,670,718
Compensation
Mr. Galen G. Weston, B.A., M.B.A., has been Chief Executive Officer of George Weston Limited since January 18, 2017 and has been the Chairman since September 2016. He served as a Non-Independent Director o ...
CEO Compensation Analysis
Compensation vs Market: Galen's total compensation ($USD2.79M) is below average for companies of similar size in the Canadian market ($USD7.06M).
Compensation vs Earnings: Galen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 3.75yrs | CA$3.67m | 0.13% CA$ 31.6m | |
| President & Member of Management Board | 3.75yrs | CA$6.71m | 0.0033% CA$ 787.4k | |
| CFO & Member of Management Board | 2.75yrs | CA$4.54m | 0.010% CA$ 2.5m | |
| President of President's Choice Financial & Member of Management Board | no data | CA$2.58m | 0.0028% CA$ 679.4k | |
| President of Discount Division & Member of Management Board | 3.67yrs | no data | 0.00095% CA$ 228.1k | |
| Senior VP of Corporate Affairs & Communications and Member of Management Board | 1.75yrs | no data | no data | |
| Executive VP | no data | no data | no data | |
| President of Joe Fresh & Member of Management Board | 4.08yrs | no data | no data | |
| President of Shoppers Drug Mart & Member of Management Board | 2.75yrs | no data | no data | |
| Chief Administrative Officer & Member of Management Board | 2.75yrs | no data | no data | |
| President of Market Division & Member of Management Board | 2.75yrs | no data | no data | |
| Senior VP | no data | no data | no data |
2.8yrs
Average Tenure
50.5yo
Average Age
Experienced Management: L's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 3.75yrs | CA$3.67m | 0.13% CA$ 31.6m | |
| Independent Lead Director | 1.42yrs | CA$284.45k | 0.0045% CA$ 1.1m | |
| Independent Director | 7.42yrs | CA$262.50k | no data | |
| Independent Director | 6.58yrs | CA$247.50k | 0.00026% CA$ 62.4k | |
| Independent Director | 6.58yrs | CA$240.00k | no data | |
| Independent Director | 4yrs | CA$240.00k | no data | |
| Independent Director | 4.42yrs | CA$272.50k | 0.00066% CA$ 158.4k | |
| Non-Independent Director | 1.42yrs | CA$142.88k | 0.00050% CA$ 120.0k | |
| Independent Director | 9.75yrs | CA$270.00k | 0.0051% CA$ 1.2m | |
| Independent Director | 1.42yrs | CA$147.64k | 0.00082% CA$ 196.8k | |
| Independent Director | 4.42yrs | CA$240.00k | no data | |
| Corporate Director | 0.75yr | no data | no data |
4.4yrs
Average Tenure
66yo
Average Age
Experienced Board: L's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: L insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Loblaw Companies Limited's company bio, 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
- Market Cap: CA$24.006b
- Shares outstanding: 355.27m
- Website: https://www.loblaw.ca
Number of Employees
Location
- Loblaw Companies Limited
- 1 President's Choice Circle
- Brampton
- Ontario
- L6Y 5S5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| L | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| L8G | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
| LBLC.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 1972 |
| L.PRB | TSX (The Toronto Stock Exchange) | 2ND PFD SER B | CA | CAD | Jun 2015 |
Biography
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 busin ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/26 00:04 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/13 |
| Annual Earnings | 2019/12/28 |
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.