TSX:LNF

Stock Analysis Report

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.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Risks

  • Leon's Furniture is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-1.2%

TSX:LNF

0.6%

CA Specialty Retail

1.4%

CA Market


1 Year Return

-15.8%

TSX:LNF

-29.8%

CA Specialty Retail

-4.1%

CA Market

LNF outperformed the Specialty Retail industry which returned -30.3% over the past year.

LNF underperformed the Market in Canada which returned -4.9% over the past year.


Share holder returns

LNFIndustryMarket
7 Day-1.2%0.6%1.4%
30 Day1.3%2.6%-2.2%
90 Day-2.2%-5.3%-1.1%
1 Year-12.8%-15.8%-27.8%-29.8%-0.7%-4.1%
3 Year2.2%-6.5%-19.8%-25.3%15.1%4.8%
5 Year16.4%1.1%-31.8%-39.6%12.8%-3.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Leon's Furniture's share price is below the future cash flow value, and at a moderate discount (> 20%).

Leon's Furniture's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Leon's Furniture is good value based on earnings compared to the CA Specialty Retail industry average.

Leon's Furniture is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Leon's Furniture, we can't assess if its growth is good value.


Price Based on Value of Assets

Leon's Furniture is good value based on assets compared to the CA Specialty Retail industry average.


Next Steps

Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Leon's Furniture's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Leon's Furniture's earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Leon's Furniture's revenue growth is positive but not above the Canada market average.

Leon's Furniture's earnings growth is positive but not above the Canada market average.

Leon's Furniture's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Leon's Furniture will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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


Past Earnings Growth Analysis

Leon's Furniture's year on year earnings growth rate has been positive over the past 5 years.

Leon's Furniture's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Leon's Furniture's 1-year earnings growth is negative, it can't be compared to the CA Specialty Retail industry average.


Return on Equity

Leon's Furniture has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Leon's Furniture used its assets less efficiently than the CA Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Leon's Furniture's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Leon's Furniture's financial position?


Financial Position Analysis

Leon's Furniture is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Leon's Furniture's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Leon's Furniture's level of debt (20.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (96.1% vs 20.4% today).

Debt is well covered by operating cash flow (95.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.5x debt.


Next Steps

Dividend

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

3.69%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Leon's Furniture before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Leon's Furniture's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).

Leon's Furniture's dividend is below the markets top 25% of dividend payers in Canada (6%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Leon's Furniture's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Edward Leon (62yo)

0.8yrs

Tenure

CA$2,232,752

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

Edward's remuneration is about average for companies of similar size in Canada.

Edward's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

The tenure for the Leon's Furniture management team is about average.


Board Age and Tenure

14.9yrs

Average Tenure

67.5yo

Average Age

The average tenure for the Leon's Furniture board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Leon's Furniture individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellCA$15,15012 Jun 19
Graeme Leon
EntityIndividual
Shares1,000
Max PriceCA$15.15
SellCA$15,68731 May 19
Graeme Leon
EntityIndividual
Shares1,000
Max PriceCA$15.70
SellCA$15,80021 May 19
Graeme Leon
EntityIndividual
Shares1,000
Max PriceCA$15.80
SellCA$99,38715 Mar 19
Terrence Leon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares6,900
Max PriceCA$14.40
BuyCA$148,07007 Mar 19
Mark Leon
EntityIndividual
Role
Chairman of the Board
Chairman
Shares10,000
Max PriceCA$14.81
BuyCA$14,76006 Mar 19
Terrence Leon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares1,000
Max PriceCA$14.76
BuyCA$75,47423 Nov 18
Terrence Leon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceCA$15.33
BuyCA$22,65023 Nov 18
Edward Leon
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,500
Max PriceCA$15.10
BuyCA$42,48821 Nov 18
Terrence Leon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares2,700
Max PriceCA$15.74
BuyCA$142,41519 Nov 18
Terrence Leon
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares9,200
Max PriceCA$15.54
BuyCA$31,10019 Nov 18
Edward Leon
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,000
Max PriceCA$15.55
SellCA$5,37027 Sep 18
Graeme Leon
EntityIndividual
Shares300
Max PriceCA$17.90
SellCA$12,53025 Sep 18
Graeme Leon
EntityIndividual
Shares700
Max PriceCA$17.90

Ownership Breakdown


Management Team

  • Edward Leon (62yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: CA$2.23m
  • Dave Freeman

    President of the Brick Division

    • Tenure: 2.8yrs
    • Compensation: CA$934.18k
  • John Cooney

    VP of Legal & Corporate Secretary

    • Tenure: 4.0yrs
  • Mike Walsh

    President of the Leon's Division

    • Tenure: 4.0yrs
    • Compensation: CA$854.15k
  • Constantine Pefanis

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: CA$720.76k

Board Members

  • Peter B. Eby (80yo)

    Director

    • Tenure: 42.6yrs
    • Compensation: CA$90.00k
  • Edward Leon (62yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: CA$2.23m
  • Alan Lenczner (76yo)

    Director

    • Tenure: 27.6yrs
    • Compensation: CA$84.50k
  • Mark Leon (67yo)

    Chairman

    • Tenure: 14.3yrs
    • Compensation: CA$80.00k
  • Terry Leon (68yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CA$2.01m
  • Frank Gagliano (70yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: CA$90.00k
  • Mary Leon (64yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: CA$90.00k
  • Joseph Leon (59yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: CA$80.00k

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$1.177b
  • Shares outstanding: 77.65m
  • 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 Analysis2019/08/21 23:40
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.