TSX:LNF

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Leon's Furniture

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 with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

LNF

-3.8%

CA Specialty Retail

-2.3%

CA Market


1 Year Return

13.7%

LNF

-2.0%

CA Specialty Retail

-8.6%

CA Market

Return vs Industry: LNF exceeded the Canadian Specialty Retail industry which returned -2% over the past year.

Return vs Market: LNF exceeded the Canadian Market which returned -8.6% over the past year.


Shareholder returns

LNFIndustryMarket
7 Day-3.1%-3.8%-2.3%
30 Day2.8%0.2%-4.5%
90 Day38.9%27.8%5.7%
1 Year17.7%13.7%0.7%-2.0%-5.5%-8.6%
3 Year13.3%2.5%-22.4%-28.6%5.8%-4.4%
5 Year62.5%39.5%6.9%-6.6%38.3%17.1%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNF (CA$18.49) is trading below our estimate of fair value (CA$22.49)

Significantly Below Fair Value: LNF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LNF is good value based on its PE Ratio (10.9x) compared to the XN Specialty Retail industry average (17.8x).

PE vs Market: LNF is good value based on its PE Ratio (10.9x) compared to the Canadian market (16.1x).


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's PB Ratio (1.5x) is in line with the CA Specialty Retail industry average.


Next Steps

Future Growth

How is Leon's Furniture forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.3%

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 (1.7%).

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 (5.3% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: LNF's revenue (5.3% 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 LNF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNF has high quality earnings.

Growing Profit Margin: LNF's current net profit margins (6.2%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: LNF's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: LNF's earnings growth over the past year (24.8%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: LNF earnings growth over the past year (24.8%) exceeded the Specialty Retail industry -4.8%.


Return on Equity

High ROE: LNF's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Leon's Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: LNF's short term assets (CA$742.1M) exceed its short term liabilities (CA$577.8M).

Long Term Liabilities: LNF's short term assets (CA$742.1M) exceed its long term liabilities (CA$585.5M).


Debt to Equity History and Analysis

Debt Level: LNF's debt to equity ratio (9.2%) is considered satisfactory.

Reducing Debt: LNF's debt to equity ratio has reduced from 81.4% to 9.2% over the past 5 years.

Debt Coverage: LNF's debt is well covered by operating cash flow (461.2%).

Interest Coverage: LNF's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNF's dividend (3.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.74%).

High Dividend: LNF's dividend (3.03%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).


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 (33.1%), 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

Edward Leon (63 yo)

1.92yrs

Tenure

CA$2,555,572

Compensation

Mr. Edward Florian Leon has been Chief Executive Officer at Leon's Furniture Ltd. since October 1, 2018. Mr. Leon has been President of Leon's Furniture Ltd. since June 17, 2015 and served as its Chief Ope ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD1.91M) is above average for companies of similar size in the Canadian market ($USD1.39M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Leon
CEO, President & Director1.92yrsCA$2.56m0.37%
CA$ 5.5m
Constantine Pefanis
Chief Financial Officer2.67yrsCA$857.85k0.15%
CA$ 2.3m
Michael Walsh
President of the Leon's Division5.08yrsCA$932.02k0.061%
CA$ 912.7k
Dave Freeman
President of the Brick Division3.83yrsCA$948.95k0.075%
CA$ 1.1m
Daniel Leon
Vice-President of Operations at The Brick Ltdno dataCA$506.09k0.23%
CA$ 3.4m
John Cooney
VP of Legal & Corporate Secretary5.08yrsno data0.072%
CA$ 1.1m

3.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Edward Leon
CEO, President & Director1.92yrsCA$2.56m0.37%
CA$ 5.5m
Alan Lenczner
Independent Director28.67yrsCA$74.00k0.0037%
CA$ 55.4k
Mark Leon
Chairman15.33yrsCA$80.00k0.78%
CA$ 11.6m
Terrence Leon
Vice Chairman1.92yrsCA$80.00k1.38%
CA$ 20.5m
Frank Gagliano
Independent Director12.67yrsCA$90.00k0.0056%
CA$ 83.2k
Mary Leon
Independent Director16.67yrsCA$90.00k0.010%
CA$ 152.9k
Joseph Leon
Independent Director6.75yrsCA$80.00kno data
Lisa Raitt
Director0.33yrno datano data

14.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: LNF's board of directors are seasoned and experienced ( 14 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 been diluted in the past year, with total shares outstanding growing by 3.5%.


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$1.486b
  • Shares outstanding: 80.34m
  • Website: https://www.leons.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1975
LEFU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975

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 Analysis2020/09/26 05:47
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.