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LNF

Leon's Furniture TSX:LNF Stock Report

Last Price

CA$16.17

Market Cap

CA$1.1b

7D

-2.0%

1Y

-31.3%

Updated

27 Sep, 2022

Data

Company Financials +
LNF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends4/6

LNF Stock 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$16.17
52 Week HighCA$26.78
52 Week LowCA$14.61
Beta0.67
1 Month Change-8.02%
3 Month Change-2.94%
1 Year Change-31.25%
3 Year Change-0.49%
5 Year Change-10.17%
Change since IPO792.14%

Recent News & Updates

Sep 09
Leon's Furniture (TSE:LNF) Is Looking To Continue Growing Its Returns On Capital

Leon's Furniture (TSE:LNF) Is Looking To Continue Growing Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Jun 24
Is Leon's Furniture (TSE:LNF) A Risky Investment?

Is Leon's Furniture (TSE:LNF) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

LNFCA Specialty RetailCA Market
7D-2.0%-1.7%-5.5%
1Y-31.3%-15.5%-7.3%

Return vs Industry: LNF underperformed the Canadian Specialty Retail industry which returned -18.6% over the past year.

Return vs Market: LNF underperformed the Canadian Market which returned -8.4% over the past year.

Price Volatility

Is LNF's price volatile compared to industry and market?
LNF volatility
LNF Average Weekly Movement6.5%
Specialty Retail Industry Average Movement6.6%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

Stable Share Price: LNF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LNF's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19098,434Mike 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, renovators, 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$1.08b
Earnings (TTM)CA$195.16m
Revenue (TTM)CA$2.55b

5.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNF income statement (TTM)
RevenueCA$2.55b
Cost of RevenueCA$1.43b
Gross ProfitCA$1.12b
Other ExpensesCA$920.57m
EarningsCA$195.16m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.91
Gross Margin43.80%
Net Profit Margin7.66%
Debt/Equity Ratio28.6%

How did LNF perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LNF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNF?

Other financial metrics that can be useful for relative valuation.

LNF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA5.7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LNF's PE Ratio compare to its peers?

LNF PE Ratio vs Peers
The above table shows the PE ratio for LNF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.3x
ZZZ Sleep Country Canada Holdings
8.4x8.6%CA$881.5m
GBT BMTC Group
8.1xn/aCA$466.8m
ACQ AutoCanada
4.2x33.8%CA$625.3m
PET Pet Valu Holdings
24.5x17.6%CA$2.4b
LNF Leon's Furniture
5.5xn/aCA$1.1b

Price-To-Earnings vs Peers: LNF is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (11.3x).


Price to Earnings Ratio vs Industry

How does LNF's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Earnings vs Industry: LNF is good value based on its Price-To-Earnings Ratio (5.5x) compared to the North American Specialty Retail industry average (6.1x)


Price to Earnings Ratio vs Fair Ratio

What is LNF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LNF's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LNF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNF (CA$16.17) is trading below our estimate of fair value (CA$103.52)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.0%

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 LNF's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNF's revenue (2% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: LNF's revenue (2% 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


Discover growth companies

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.7%

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 lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: LNF's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: LNF's earnings growth over the past year (3.1%) is below its 5-year average (17.7% per year).

Earnings vs Industry: LNF earnings growth over the past year (3.1%) underperformed the Specialty Retail industry 23.5%.


Return on Equity

High ROE: LNF's Return on Equity (23.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Leon's Furniture's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LNF's short term assets (CA$874.3M) exceed its short term liabilities (CA$716.2M).

Long Term Liabilities: LNF's short term assets (CA$874.3M) exceed its long term liabilities (CA$673.0M).


Debt to Equity History and Analysis

Debt Level: LNF's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: LNF's debt to equity ratio has reduced from 51% to 28.6% over the past 5 years.

Debt Coverage: LNF's debt is well covered by operating cash flow (79.5%).

Interest Coverage: LNF's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.96%

Current Dividend Yield

Dividend Yield vs Market

Leon's Furniture Dividend Yield vs Market
How does Leon's Furniture dividend yield compare to the market?
SegmentDividend Yield
Company (Leon's Furniture)4.0%
Market Bottom 25% (CA)2.1%
Market Top 25% (CA)6.1%
Industry Average (Specialty Retail)4.1%
Analyst forecast in 3 Years (Leon's Furniture)4.2%

Notable Dividend: LNF's dividend (3.96%) is higher than the bottom 25% of dividend payers in the Canadian market (2.07%).

High Dividend: LNF's dividend (3.96%) is low compared to the top 25% of dividend payers in the Canadian market (6.12%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.7%), LNF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.2%), LNF's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.7yrs

Average management tenure


CEO

Mike Walsh

1.92yrs

Tenure

CA$2,430,661

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

Mike Walsh's Compensation vs Leon's Furniture Earnings
How has Mike Walsh's remuneration changed compared to Leon's Furniture's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

CA$195m

Mar 31 2022n/an/a

CA$191m

Dec 31 2021CA$2mCA$638k

CA$207m

Sep 30 2021n/an/a

CA$204m

Jun 30 2021n/an/a

CA$189m

Mar 31 2021n/an/a

CA$190m

Dec 31 2020CA$1mCA$526k

CA$163m

Sep 30 2020n/an/a

CA$149m

Jun 30 2020n/an/a

CA$133m

Mar 31 2020n/an/a

CA$111m

Dec 31 2019CA$932kCA$508k

CA$107m

Sep 30 2019n/an/a

CA$106m

Jun 30 2019n/an/a

CA$107m

Mar 31 2019n/an/a

CA$106m

Dec 31 2018CA$854kCA$495k

CA$111m

Sep 30 2018n/an/a

CA$107m

Jun 30 2018n/an/a

CA$108m

Mar 31 2018n/an/a

CA$103m

Dec 31 2017CA$862kCA$475k

CA$97m

Sep 30 2017n/an/a

CA$99m

Jun 30 2017n/an/a

CA$99m

Mar 31 2017n/an/a

CA$97m

Dec 31 2016CA$781kCA$462k

CA$84m

Sep 30 2016n/an/a

CA$77m

Jun 30 2016n/an/a

CA$70m

Mar 31 2016n/an/a

CA$68m

Dec 31 2015CA$443kCA$263k

CA$77m

Compensation vs Market: Mike's total compensation ($USD1.77M) is about average for companies of similar size in the Canadian market ($USD1.57M).

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 (4.7 years average tenure).


Board Members

Experienced Board: LNF's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LNF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSX:LNF Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22BuyCA$9,058Terrence LeonIndividual536CA$16.90
09 Jun 22BuyCA$1,211,240Mark LeonIndividual73,000CA$16.63
07 Jun 22BuyCA$160,000Terrence LeonIndividual10,000CA$16.00
25 May 22BuyCA$244,483Mark LeonIndividual15,000CA$16.36
25 May 22BuyCA$64,786Terrence LeonIndividual4,000CA$16.22
19 May 22BuyCA$66,039Terrence LeonIndividual4,000CA$16.53
19 May 22BuyCA$1,650,000Daniel LeonIndividual100,000CA$16.50
17 May 22BuyCA$330,000Edward LeonIndividual20,000CA$16.50
17 May 22BuyCA$16,250Darci WalkerIndividual1,000CA$16.25
16 May 22BuyCA$33,739Terrence LeonIndividual2,000CA$17.12
13 May 22BuyCA$34,235Constantine PefanisIndividual2,000CA$17.20
09 Mar 22BuyCA$42,500Terrence LeonIndividual2,000CA$21.25
08 Mar 22BuyCA$104,752Constantine PefanisIndividual5,000CA$21.27

Ownership Breakdown

What is the ownership structure of LNF?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders3,720,0425.6%
Institutions4,557,7686.8%
General Public14,067,76521.0%
Private Companies44,611,64766.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 78.54% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
18%
Midgemar Limited
12,052,521CA$194.9m0%no data
17.14%
Jomila Limited
11,478,400CA$185.6m0%no data
15.76%
Antomel Limited
10,552,972CA$170.6m0%no data
15.72%
Timmyal Limited
10,527,754CA$170.2m0%no data
2%
Terrence Leon
1,340,996CA$21.7m0.04%no data
1.2%
Industrial Alliance Investment Management Inc.
802,903CA$13.0m0%0.13%
1.16%
Mark Leon
779,860CA$12.6m12.72%no data
1.13%
RBC Global Asset Management Inc.
757,637CA$12.3m0%0.01%
0.9%
QV Investors Inc.
603,904CA$9.8m0%0.3%
0.88%
Dimensional Fund Advisors LP
590,827CA$9.6m0.01%no data
0.83%
Beutel Goodman & Company Ltd.
558,858CA$9.0m0.47%0.04%
0.81%
FMR LLC
545,630CA$8.8m-0.07%no data
0.53%
Edward Leon
357,323CA$5.8m0.11%no data
0.51%
Daniel Leon
341,660CA$5.5m0%no data
0.34%
Constantine Pefanis
225,055CA$3.6m0%no data
0.3%
Graeme Leon
197,593CA$3.2m0%no data
0.26%
North Growth Management Ltd.
173,000CA$2.8m18.49%0.45%
0.21%
John Cooney
137,456CA$2.2m0%no data
0.18%
Van Berkom and Associates Inc.
121,435CA$2.0m0%0.06%
0.17%
Michael Walsh
114,444CA$1.9m0%no data
0.13%
1832 Asset Management L.P.
84,500CA$1.4m0%no data
0.11%
IG Investment Management, Ltd.
71,894CA$1.2m0%no data
0.091%
CI Investment Consulting
60,820CA$983.5k0%0.21%
0.086%
Dave Freeman
57,851CA$935.5k0%no data
0.075%
Joseph Leon
50,000CA$808.5k0%no data

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
  • Implied Market Cap: CA$1.083b
  • Shares outstanding: 66.96m
  • 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
74WDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1975

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.