Loblaw Companies
Market Cap
CA$25.4b
Last Updated
2019/11/19 23:39 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.
Snowflake
Fundamentals
Solid track record with adequate balance sheet.
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
-0.07%
L
2.0%
CA Consumer Retailing
0.5%
CA Market
1 Year Return
20.0%
L
23.8%
CA Consumer Retailing
7.9%
CA Market
Return vs Industry: L underperformed the Canadian Consumer Retailing industry which returned 23.8% over the past year.
Return vs Market: L exceeded the Canadian Market which returned 7.9% over the past year.
Shareholder returns
| L | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.07% | 2.0% | 0.5% |
| 30 Day | -1.3% | 1.9% | 3.2% |
| 90 Day | -2.7% | -0.2% | 3.9% |
| 1 Year | 22.2%20.0% | 25.5%23.8% | 11.5%7.9% |
| 3 Year | 33.1%1.7% | 32.2%20.5% | 17.1%6.6% |
| 5 Year | 58.4%17.4% | 71.4%51.0% | 27.7%9.0% |
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
4 days ago | Simply Wall St
Loblaw Companies Limited Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models5 days ago | Simply Wall St
Is Loblaw Companies Limited (TSE:L) A Smart Pick For Income Investors?2 weeks ago | Simply Wall St
Is Loblaw Companies (TSE:L) Using Too Much Debt?Valuation
Is Loblaw Companies undervalued compared to its fair value and its price relative to the market?
18.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: L (CA$70.26) is trading below our estimate of fair value (CA$85.69)
Significantly Below Fair Value: L is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: L is poor value based on its PE Ratio (24.8x) compared to the Consumer Retailing industry average (20.8x).
PE vs Market: L is poor value based on its PE Ratio (24.8x) compared to the Canadian market (14.5x).
Price to Earnings Growth Ratio
PEG Ratio: L is poor value based on its PEG Ratio (120.3x)
Price to Book Ratio
PB vs Industry: L is good value based on its PB Ratio (2.3x) compared to the CA Consumer Retailing industry average (2.3x).
Next Steps
Future Growth
How is Loblaw Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
0.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: L's forecast earnings growth (0.2% per year) is below the savings rate (1.9%).
Earnings vs Market: L's earnings (0.2% per year) are forecast to grow slower than the Canadian market (9.8% 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 (4.7% 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: Insufficient data to determine if L's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Loblaw Companies performed over the past 5 years?
18.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: L has high quality earnings.
Growing Profit Margin: L's current net profit margins (2.2%) are higher than last year (0.6%).
Past Earnings Growth Analysis
Earnings Trend: L has become profitable over the past 5 years, growing earnings by 18.9% per year.
Accelerating Growth: L's earnings growth over the past year (263.3%) exceeds its 5-year average (18.9% per year).
Earnings vs Industry: L earnings growth over the past year (263.3%) exceeded the Consumer Retailing industry 14.7%.
Return on Equity
High ROE: L's Return on Equity (9.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Loblaw Companies's financial position?
Financial Position Analysis
Short Term Liabilities: L's short term assets (CA$10.5B) exceeds its short term liabilities (CA$8.2B)
Long Term Liabilities: L's short term assets (CA$10.5B) do not cover its long term liabilities (16.0B)
Debt to Equity History and Analysis
Debt Level: L's debt to equity ratio (69%) is considered high.
Reducing Debt: L's debt to equity ratio has reduced from 106.9% to 69% over the past 5 years.
Debt Coverage: L's debt is well covered by operating cash flow (42.1%).
Interest Coverage: L's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Inventory Level: L has a high level of physical assets or inventory.
Debt Coverage by Assets: L's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Loblaw Companies's current dividend yield, its reliability and sustainability?
1.79%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Loblaw Companies before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: L's dividend (1.79%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: L's dividend (1.79%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).
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 (43.1%), L's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of Loblaw Companies's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Galen Weston (46yo)
2.8yrs
Tenure
CA$4,086,971
Compensation
Mr. Galen G. Weston, B.A., M.B.A., has been Chief Executive Officer of George Weston Limited since January 18, 2017 and has been the Chairman since September 2016. He served as a Non-Independent Director o ...
CEO Compensation Analysis
Compensation vs Market: Galen's total compensation ($USD3.09M) is below average for companies of similar size in the Canadian market ($USD6.87M).
Compensation vs Earnings: Galen's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.8yrs
Average Tenure
51yo
Average Age
Experienced Management: L's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
5.7yrs
Average Tenure
65.5yo
Average Age
Experienced Board: L's board of directors are considered experienced (5.7 years average tenure).
Insider Trading
Insider Buying: L insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,900 |
| Max Price | CA$69.58 |
| Entity | Individual |
| Shares | 4,979,189 |
| Max Price | CA$74.22 |
| Entity | Individual |
| Shares | 2,322,547 |
| Max Price | CA$74.22 |
| Entity | Company |
| Shares | 2,656,642 |
| Max Price | CA$74.22 |
| Entity | Individual |
| Role | Member of Management Board Chief Customer Officer & Member of Management Board |
| Shares | 1,785 |
| Max Price | CA$72.00 |
| Entity | Individual |
| Shares | 14,102 |
| Max Price | CA$65.15 |
| Entity | Individual |
| Role | Lead Director Independent Lead Director |
| Shares | 6,000 |
| Max Price | CA$60.85 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Galen Weston (46yo)
Executive Chairman
- Tenure: 2.8yrs
- Compensation: CA$4.09m
Jocyanne Bourdeau (51yo)
President of Discount Division & Member of Management Board
- Tenure: 2.8yrs
Gordon Andrew Currie (60yo)
Executive VP
- Tenure: 0yrs
Mark Wilson (48yo)
Executive VP
- Tenure: 0yrs
Barry Columb (54yo)
President of President's Choice Financial & Member of Management Board
- Tenure: 0yrs
Darren Myers (45yo)
CFO & Member of Management Board
- Tenure: 1.8yrs
- Compensation: CA$4.52m
Sarah Davis (51yo)
President & Member of Management Board
- Tenure: 2.8yrs
- Compensation: CA$6.11m
Garry Senecal
Chief Customer Officer & Member of Management Board
- Tenure: 0yrs
- Compensation: CA$3.54m
Ian Freedman
President of Joe Fresh & Member of Management Board
- Tenure: 3.2yrs
Jeff Leger
President of Shoppers Drug Mart & Member of Management Board
- Tenure: 1.8yrs
Board Members
Paul Beeston (73yo)
Independent Director
- Tenure: 14.1yrs
- Compensation: CA$234.50k
Bill Downe (66yo)
Independent Lead Director
- Tenure: 0.5yrs
- Compensation: CA$128.15k
Warren Bryant (73yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: CA$197.50k
Sarah Raiss (62yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: CA$194.76k
Beth Pritchard (72yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: CA$187.26k
Marianne Harris (61yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: CA$199.53k
Pavi Binning (58yo)
Non-Independent Director
- Tenure: 0.5yrs
- Compensation: CA$32.63k
Chris Clark (65yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: CA$321.87k
Galen Weston (46yo)
Executive Chairman
- Tenure: 2.8yrs
- Compensation: CA$4.09m
Claudia Kotchka (68yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: CA$187.26k
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$25.393b
- Shares outstanding: 361.78m
- 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 | 2019/11/19 23:39 |
| End of Day Share Price | 2019/11/19 00:00 |
| Earnings | 2019/10/05 |
| Annual Earnings | 2018/12/29 |
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.