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Leon's Furniture

Market Cap

CA$1.8b

Last Updated

2021/04/16 22:12 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Leon's Furniture's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: LNF's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

LNF

3.3%

CA Specialty Retail

0.6%

CA Market


1 Year Return

64.9%

LNF

120.3%

CA Specialty Retail

38.5%

CA Market

Return vs Industry: LNF underperformed the Canadian Specialty Retail industry which returned 122.3% over the past year.

Return vs Market: LNF exceeded the Canadian Market which returned 42.1% over the past year.


Shareholder returns

LNFIndustryMarket
7 Day1.3%3.3%0.6%
30 Day1.9%7.1%1.3%
90 Day4.1%19.0%8.7%
1 Year72.9%64.9%124.7%120.3%43.3%38.5%
3 Year50.4%33.8%39.7%31.2%32.0%19.2%
5 Year75.4%48.1%53.6%35.0%57.5%33.4%

Long-Term Price Volatility Vs. Market

How volatile is Leon's Furniture's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNF (CA$21.85) is trading below our estimate of fair value (CA$33.5)

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 (10.7x) compared to the CA Specialty Retail industry average (12.2x).

PE vs Market: LNF is good value based on its PE Ratio (10.7x) compared to the Canadian market (16.9x).


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 (1.7x) 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?

5.3%

Forecasted annual revenue growth


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Leon's Furniture has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNF has high quality earnings.

Growing Profit Margin: LNF's current net profit margins (7.4%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: LNF's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: LNF's earnings growth over the past year (52.6%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: LNF earnings growth over the past year (52.6%) exceeded the Specialty Retail industry -11.9%.


Return on Equity

High ROE: LNF's Return on Equity (16.1%) 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$982.0M) exceed its short term liabilities (CA$820.7M).

Long Term Liabilities: LNF's short term assets (CA$982.0M) exceed its long term liabilities (CA$581.8M).


Debt to Equity History and Analysis

Debt Level: LNF's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: LNF's debt to equity ratio has reduced from 63.5% to 8.9% over the past 5 years.

Debt Coverage: LNF's debt is well covered by operating cash flow (565.4%).

Interest Coverage: LNF's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNF's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.48%).

High Dividend: LNF's dividend (4.03%) is low compared to the top 25% of dividend payers in the Canadian market (4.74%).


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 (43%), 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?

2.9yrs

Average management tenure


CEO

Edward Leon (63 yo)

2.5yrs

Tenure

CA$3,002,834

Compensation

Mr. Edward Florian Leon has been Chief Executive Officer at Leon's Furniture Ltd. since October 1, 2018. Mr. Leon had been President of Leon's Furniture Ltd. since June 17, 2015 until October 01, 2020 and ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD2.39M) is about average for companies of similar size in the Canadian market ($USD2.16M).

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


Leadership Team

Experienced Management: LNF's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: LNF's board of directors are seasoned and experienced ( 14.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LNF 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

Leon's Furniture Limited's company bio, 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$1.794b
  • Shares outstanding: 78.54m
  • Website: https://www.leons.ca

Number of Employees


Location

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

Listings


Biography

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 o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:12
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
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.