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LNF

Leon's FurnitureTSX:LNF Stock Report

Market Cap

CA$1.9b

7D

1.0%

1Y

36.8%

Updated

21 Oct, 2021

Data

Company Financials +
LNF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

LNF Overview

Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada.

Leon's Furniture Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Leon's Furniture
Historical stock prices
Current Share PriceCA$25.25
52 Week HighCA$17.75
52 Week LowCA$26.78
Beta0.55
1 Month Change5.65%
3 Month Change13.48%
1 Year Change36.78%
3 Year Change43.47%
5 Year Change54.06%
Change since IPO1,293.10%

Recent News & Updates

Oct 12
Leon's Furniture (TSE:LNF) Has A Rock Solid Balance Sheet

Leon's Furniture (TSE:LNF) Has A Rock Solid Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

LNFCA Specialty RetailCA Market
7D1.0%3.4%1.4%
1Y36.8%78.4%33.2%

Return vs Industry: LNF underperformed the Canadian Specialty Retail industry which returned 76.3% over the past year.

Return vs Market: LNF exceeded the Canadian Market which returned 33.5% over the past year.

Price Volatility

Is LNF's price volatile compared to industry and market?
LNF volatility
LNF Beta0.55
Industry Beta1.63
Market Beta1

Stable Share Price: LNF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LNF's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19098,599Mike Walshhttps://www.leons.ca

Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada. The company also operates as a commercial retailer of appliances to builders, developers, hotels, and property management companies. In addition, it offers household furniture, electronics, and appliance repair services; and credit insurance products.

Leon's Furniture Fundamentals Summary

How do Leon's Furniture's earnings and revenue compare to its market cap?
LNF fundamental statistics
Market CapCA$1.95b
Earnings (TTM)CA$189.22m
Revenue (TTM)CA$2.47b

10.3x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNF income statement (TTM)
RevenueCA$2.47b
Cost of RevenueCA$1.37b
Gross ProfitCA$1.10b
ExpensesCA$907.91m
EarningsCA$189.22m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.45
Gross Margin44.50%
Net Profit Margin7.67%
Debt/Equity Ratio8.7%

How did LNF perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Leon's Furniture undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNF (CA$25.25) is trading below our estimate of fair value (CA$41)

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


Price To Earnings Ratio

PE vs Industry: LNF is good value based on its PE Ratio (10.3x) compared to the Canadian Specialty Retail industry average (10.5x).

PE vs Market: LNF is good value based on its PE Ratio (10.3x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LNF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LNF is good value based on its PB Ratio (1.9x) compared to the CA Specialty Retail industry average (2.5x).


Future Growth

How is Leon's Furniture forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LNF's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if LNF's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNF's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: LNF's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LNF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Leon's Furniture performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNF has high quality earnings.

Growing Profit Margin: LNF's current net profit margins (7.7%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: LNF's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: LNF's earnings growth over the past year (41.8%) exceeds its 5-year average (16% per year).

Earnings vs Industry: LNF earnings growth over the past year (41.8%) underperformed the Specialty Retail industry 158.2%.


Return on Equity

High ROE: LNF's Return on Equity (18.3%) is considered low.


Financial Health

How is Leon's Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: LNF's short term assets (CA$925.8M) exceed its short term liabilities (CA$819.3M).

Long Term Liabilities: LNF's short term assets (CA$925.8M) exceed its long term liabilities (CA$475.1M).


Debt to Equity History and Analysis

Debt Level: LNF's debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: LNF's debt to equity ratio has reduced from 65.1% to 8.7% over the past 5 years.

Debt Coverage: LNF's debt is well covered by operating cash flow (325.4%).

Interest Coverage: LNF's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet


Dividend

What is Leon's Furniture current dividend yield, its reliability and sustainability?

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNF's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: LNF's dividend (2.53%) is low compared to the top 25% of dividend payers in the Canadian market (4.5%).


Stability and Growth of Payments

Stable Dividend: LNF's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), LNF'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

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

3.8yrs

Average management tenure


CEO

Mike Walsh

0.25

Tenure

CA$1,322,094

Compensation

Mr. Michael J. Walsh, also known as Mike, serves as the Chief Executive Officer at Leon's Furniture Limited since July 01, 2021. He serves as the President and the Chief Operating Officer at Leon's Furnitu...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.07M) is below average for companies of similar size in the Canadian market ($USD1.97M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LNF's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: LNF's board of directors are seasoned and experienced ( 15.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LNF insiders have sold more shares than they have bought 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

Leon's Furniture Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Leon's Furniture Limited
  • Ticker: LNF
  • Exchange: TSX
  • Founded: 1909
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: CA$1.948b
  • Shares outstanding: 77.16m
  • Website: https://www.leons.ca

Number of Employees


Location

  • Leon's Furniture Limited
  • 45 Gordon Mackay Road
  • Toronto
  • Ontario
  • M9N 3X3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 22:56
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.