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Loblaw Companies

DB:L8G
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
L8G
DB
CA$24B
Market Cap
  1. Home
  2. DE
  3. Consumer Retailing
Company description

Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada. The last earnings update was 63 days ago. More info.


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L8G Share Price and Events
7 Day Returns
1.3%
DB:L8G
-0.8%
Europe Consumer Retailing
0.8%
DE Market
1 Year Returns
4.2%
DB:L8G
0.7%
Europe Consumer Retailing
-4.5%
DE Market
L8G Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Loblaw Companies (L8G) 1.3% 0.3% 4.8% 4.2% -10.3% 41.6%
Europe Consumer Retailing -0.8% -0.2% 0.1% 0.7% -2.7% -9.5%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • L8G outperformed the Consumer Retailing industry which returned 0.7% over the past year.
  • L8G outperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
L8G
Industry
5yr Volatility vs Market

L8G Value

 Is Loblaw Companies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Loblaw Companies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Loblaw Companies.

DB:L8G Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:L8G
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.46
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.464 (1 + (1- 26.5%) (37.55%))
0.727
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:L8G using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Loblaw Companies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:L8G DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5%)
2019 1,899.93 Analyst x3 1,809.53
2020 1,844.70 Analyst x3 1,673.32
2021 1,807.95 Est @ -1.99% 1,561.95
2022 1,783.97 Est @ -1.33% 1,467.90
2023 1,768.63 Est @ -0.86% 1,386.03
2024 1,759.19 Est @ -0.53% 1,313.04
2025 1,753.82 Est @ -0.31% 1,246.74
2026 1,751.28 Est @ -0.15% 1,185.70
2027 1,750.70 Est @ -0.03% 1,128.90
2028 1,751.49 Est @ 0.05% 1,075.67
Present value of next 10 years cash flows CA$13,848.78
DB:L8G DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$1,751.49 × (1 + 0.23%) ÷ (5% – 0.23%)
CA$36,817.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$36,817.96 ÷ (1 + 5%)10
CA$22,611.65
DB:L8G Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$13,848.78 + CA$22,611.65
CA$36,460.43
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$36,460.43 / 369.33
CA$98.72
DB:L8G Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:L8G represents 0.66937x of TSX:L
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.66937x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 98.72 x 0.66937
€66.08
Value per share (EUR) From above. €66.08
Current discount Discount to share price of €43.75
= -1 x (€43.75 - €66.08) / €66.08
33.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Loblaw Companies is available for.
Intrinsic value
34%
Share price is €43.75 vs Future cash flow value of €66.08
Current Discount Checks
For Loblaw Companies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Loblaw Companies's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Loblaw Companies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Loblaw Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Loblaw Companies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:L8G PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in CAD CA$1.88
TSX:L Share Price ** TSX (2019-04-25) in CAD CA$65.36
Europe Consumer Retailing Industry PE Ratio Median Figure of 32 Publicly-Listed Consumer Retailing Companies 19.44x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Loblaw Companies.

DB:L8G PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:L Share Price ÷ EPS (both in CAD)

= 65.36 ÷ 1.88

34.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Loblaw Companies is overvalued based on earnings compared to the Europe Consumer Retailing industry average.
  • Loblaw Companies is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Loblaw Companies's expected growth come at a high price?
Raw Data
DB:L8G PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
2.6%per year
Europe Consumer Retailing Industry PEG Ratio Median Figure of 24 Publicly-Listed Consumer Retailing Companies 1.52x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

DB:L8G PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.82x ÷ 2.6%

13.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Loblaw Companies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Loblaw Companies's assets?
Raw Data
DB:L8G PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in CAD CA$32.07
TSX:L Share Price * TSX (2019-04-25) in CAD CA$65.36
Europe Consumer Retailing Industry PB Ratio Median Figure of 41 Publicly-Listed Consumer Retailing Companies 1.55x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:L8G PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:L Share Price ÷ Book Value per Share (both in CAD)

= 65.36 ÷ 32.07

2.04x

* Primary Listing of Loblaw Companies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Loblaw Companies is overvalued based on assets compared to the Europe Consumer Retailing industry average.
X
Value checks
We assess Loblaw Companies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Loblaw Companies has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

L8G Future Performance

 How is Loblaw Companies expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Loblaw Companies expected to grow at an attractive rate?
  • Loblaw Companies's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Loblaw Companies's earnings growth is positive but not above the Germany market average.
  • Loblaw Companies's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:L8G Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:L8G Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 2.6%
DB:L8G Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.7%
Europe Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 12%
Europe Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:L8G Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:L8G Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 49,804 1
2020-12-31 49,471 3,828 752 10
2019-12-31 47,996 4,866 1,118 11
2018-12-31 46,931 3,661 1,171 11
DB:L8G Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-29 46,693 2,501 707
2018-10-06 46,769 3,273 549
2018-06-16 46,508 2,983 1,326
2018-03-24 46,665 3,264 1,635
2017-12-30 46,587 3,209 1,274
2017-10-07 46,806 2,984 1,675
2017-06-17 46,757 3,224 1,211
2017-03-25 46,408 3,085 1,010
2016-12-31 46,385 3,519 971
2016-10-08 46,120 3,222 864
2016-06-18 45,923 3,178 611
2016-03-26 45,727 3,375 638
2016-01-02 45,394 3,079 591

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Loblaw Companies's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • Loblaw Companies's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:L8G Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Loblaw Companies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:L8G Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 2.18 2.18 2.18 1.00
2019-12-31 3.09 3.09 3.09 1.00
2018-12-31 3.09 3.09 3.09 1.00
DB:L8G Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-29 1.88
2018-10-06 1.44
2018-06-16 3.45
2018-03-24 4.20
2017-12-30 3.24
2017-10-07 4.22
2017-06-17 3.03
2017-03-25 2.51
2016-12-31 2.40
2016-10-08 2.12
2016-06-18 1.49
2016-03-26 1.55
2016-01-02 1.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Loblaw Companies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Loblaw Companies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Loblaw Companies has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

L8G Past Performance

  How has Loblaw Companies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Loblaw Companies's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Loblaw Companies has delivered over 20% year on year earnings growth in the past 5 years.
  • Loblaw Companies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Loblaw Companies's 1-year earnings growth is negative, it can't be compared to the Europe Consumer Retailing industry average.
Earnings and Revenue History
Loblaw Companies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Loblaw Companies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:L8G Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 46,693.00 707.00 12,161.00
2018-10-06 46,769.00 549.00 12,039.00
2018-06-16 46,508.00 1,326.00 11,943.00
2018-03-24 46,665.00 1,635.00 11,690.00
2017-12-30 46,587.00 1,274.00 12,060.00
2017-10-07 46,806.00 1,675.00 11,159.00
2017-06-17 46,757.00 1,211.00 11,035.00
2017-03-25 46,408.00 1,010.00 10,937.00
2016-12-31 46,385.00 971.00 10,921.00
2016-10-08 46,120.00 864.00 10,951.00
2016-06-18 45,923.00 611.00 10,876.00
2016-03-26 45,727.00 638.00 10,866.00
2016-01-02 45,394.00 591.00 10,727.00
2015-10-10 45,942.00 744.00 10,758.00
2015-06-20 45,595.00 720.00 10,811.00
2015-03-28 45,367.00 79.00 10,749.00
2015-01-03 42,611.00 53.00 9,838.00
2014-10-04 38,838.00 -80.00 8,693.00
2014-06-14 35,248.00 -72.00 7,415.00
2014-03-22 32,461.00 561.00 6,426.00
2013-12-28 32,371.00 627.00 6,341.00
2013-10-05 32,196.00 652.00 6,315.00
2013-06-15 32,014.00 719.00 6,247.00
2013-03-23 31,869.00 698.00 6,251.00
2012-12-29 31,604.00 634.00 6,252.00
2012-10-06 31,512.00 669.00 6,170.00
2012-06-16 31,412.00 688.00 6,090.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Loblaw Companies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Loblaw Companies used its assets less efficiently than the Europe Consumer Retailing industry average last year based on Return on Assets.
  • Loblaw Companies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Loblaw Companies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Loblaw Companies has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

L8G Health

 How is Loblaw Companies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Loblaw Companies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Loblaw Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Loblaw Companies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Loblaw Companies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Loblaw Companies Company Filings, last reported 3 months ago.

DB:L8G Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 12,178.00 8,997.00 1,159.00
2018-10-06 12,598.00 15,620.00 1,426.00
2018-06-16 12,502.00 15,464.00 1,556.00
2018-03-24 12,757.00 13,213.00 1,719.00
2017-12-30 13,134.00 11,927.00 2,344.00
2017-10-07 13,244.00 11,751.00 1,841.00
2017-06-17 12,908.00 11,799.00 1,673.00
2017-03-25 12,908.00 11,660.00 1,392.00
2016-12-31 13,028.00 11,650.00 1,555.00
2016-10-08 13,014.00 11,446.00 1,468.00
2016-06-18 12,801.00 11,466.00 1,234.00
2016-03-26 12,883.00 11,720.00 1,313.00
2016-01-02 13,124.00 11,704.00 1,082.00
2015-10-10 13,274.00 11,927.00 1,321.00
2015-06-20 13,103.00 12,251.00 1,337.00
2015-03-28 12,811.00 12,583.00 1,057.00
2015-01-03 12,787.00 12,454.00 1,020.00
2014-10-04 12,575.00 13,469.00 1,029.00
2014-06-14 12,603.00 13,035.00 1,226.00
2014-03-22 7,004.00 8,886.00 2,576.00
2013-12-28 7,000.00 8,509.00 2,550.00
2013-10-05 6,907.00 8,758.00 2,321.00
2013-06-15 6,691.00 6,641.00 1,618.00
2013-03-23 6,542.00 6,806.00 1,543.00
2012-12-29 6,419.00 6,802.00 1,795.00
2012-10-06 6,312.00 6,719.00 1,585.00
2012-06-16 6,115.00 6,722.00 1,641.00
  • Loblaw Companies's level of debt (73.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (121.7% vs 73.9% today).
  • Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess Loblaw Companies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Loblaw Companies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

L8G Dividends

 What is Loblaw Companies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.81%
Current annual income from Loblaw Companies dividends. Estimated to be 1.99% next year.
If you bought €2,000 of Loblaw Companies shares you are expected to receive €36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Loblaw Companies's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Loblaw Companies's dividend is below the markets top 25% of dividend payers in Germany (3.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:L8G Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:L8G Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.39 1.00
2020-12-31 1.29 4.00
2019-12-31 1.28 4.00
2018-12-31 1.18 4.00
DB:L8G Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-11-14 1.180 1.852
2018-07-25 1.180 1.803
2018-02-22 1.080 1.635
2017-11-15 1.080 1.600
2017-07-26 1.080 1.597
2017-05-03 1.080 1.455
2017-02-23 1.040 1.445
2016-07-27 1.040 1.505
2016-05-04 1.040 1.481
2016-02-25 1.000 1.413
2015-11-18 1.000 1.522
2015-07-23 1.000 1.436
2015-02-26 0.980 1.538
2014-11-12 0.980 1.598
2014-07-24 0.980 1.776
2014-04-30 0.980 2.059
2014-02-20 0.960 2.078
2013-11-13 0.960 2.232
2013-07-24 0.960 2.064
2013-05-01 0.960 2.003
2013-02-21 0.880 2.124
2012-11-14 0.880 2.276
2012-07-25 0.840 2.469
2012-05-02 0.840 2.592
2012-02-23 0.840 2.493
2011-11-16 0.840 2.269
2011-07-21 0.840 2.258
2011-05-03 0.840 2.107
2011-02-23 0.840 2.156
2010-11-17 0.840 2.094
2010-07-22 0.840 1.982
2010-05-03 0.840 2.151
2010-02-17 0.840 2.238
2009-11-16 0.840 2.465
2009-05-04 0.840 2.530

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Loblaw Companies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Loblaw Companies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Loblaw Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Loblaw Companies has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

L8G Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Galen Weston
COMPENSATION CA$4,086,971
AGE 45
TENURE AS CEO 2.3 years
CEO Bio

Mr. Galen G. Weston, B.A., M.B.A., has been Chief Executive Officer of George Weston Limited since January 18, 2017 and has been the Chairman since September 2016. He served as a Non-Independent Director of George Weston Ltd. from 2003 to September 19, 2006. Mr. Weston served as Non-Executive Deputy Chairman at George Weston Limited since March 2016 until September 2016 and has been its Non-Independent Director since March 02, 2016. He serves as Chief Executive Officer at Loblaw Companies Limited since January 18, 2017 and serves its Member of Management Board. He served as President at Loblaw Companies Limited since July 17, 2014. He served as a Senior Vice President of Corporate Development at the firm. He served as a Vice President of No Frills division at Loblaw Companies Limited and also its Senior Director of e-Commerce Development. He has been the Executive Chairman of Loblaw Companies Limited since September 19, 2006 and has been its Director since 2006. He is Founder of Selfridges Group Limited and serves as its Chairman. Mr. Weston serves as Chairman of President’s Choice Bank. Mr. Weston served as a Non-Executive Chairman of Choice Properties Real Estate Investment Trust since 2013 until April 25, 2017. He serves as a Director for Wittington Investments Limited and Oxford Acquisitions Limited. He serves as Trustee of The W. Garfield Weston Foundation and Rita Lila Howard Foundation and Governor of Shaw Festival. Mr. Weston holds M.B.A. from Columbia University and a B.A. from Harvard University.

CEO Compensation
  • Galen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Galen's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Loblaw Companies management team in years:

2.3
Average Tenure
50
Average Age
  • The tenure for the Loblaw Companies management team is about average.
Management Team

Galen Weston

TITLE
Executive Chairman
COMPENSATION
CA$4M
AGE
45
TENURE
2.3 yrs

Sarah Davis

TITLE
President & Member of Management Board
COMPENSATION
CA$6M
AGE
50
TENURE
2.3 yrs

Darren Myers

TITLE
CFO & Member of Management Board
COMPENSATION
CA$5M
AGE
44
TENURE
1.3 yrs

Garry Senecal

TITLE
Chief Customer Officer & Member of Management Board
COMPENSATION
CA$4M

Mike Motz

TITLE
COO & Member of Management Board
COMPENSATION
CA$5M

Jocyanne Bourdeau

TITLE
President of Discount Division & Member of Management Board
AGE
50
TENURE
2.2 yrs

Gordon Andrew Currie

TITLE
Executive VP
AGE
59

Barry Columb

TITLE
President of President's Choice Financial & Member of Management Board
AGE
53

Mark Wilson

TITLE
Executive VP of Human Resources & Labour Relations and Member of Management Board
AGE
47

Ian Freedman

TITLE
President of Joe Fresh & Member of Management Board
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Loblaw Companies board of directors in years:

5.9
Average Tenure
65.5
Average Age
  • The tenure for the Loblaw Companies board of directors is about average.
Board of Directors

Galen Weston

TITLE
Executive Chairman
COMPENSATION
CA$4M
AGE
45
TENURE
12.6 yrs

Tom O'Neill

TITLE
Lead Independent Director
COMPENSATION
CA$272K
AGE
73
TENURE
5.9 yrs

Chris Clark

TITLE
Director
COMPENSATION
CA$322K
AGE
64
TENURE
8.3 yrs

Warren Bryant

TITLE
Independent Director
COMPENSATION
CA$198K
AGE
72
TENURE
5.9 yrs

Sarah Raiss

TITLE
Independent Director
COMPENSATION
CA$195K
AGE
61
TENURE
5.1 yrs

Nancy H. Lockhart

TITLE
Independent Director
COMPENSATION
CA$193K
AGE
63
TENURE
14.3 yrs

Paul Beeston

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
72
TENURE
13.5 yrs

Beth Pritchard

TITLE
Independent Director
COMPENSATION
CA$187K
AGE
71
TENURE
5.1 yrs

Marianne Harris

TITLE
Director
COMPENSATION
CA$200K
AGE
60
TENURE
2.9 yrs

Claudia Kotchka

TITLE
Independent Director
COMPENSATION
CA$187K
AGE
67
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • Loblaw Companies insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
08. Mar 19 Sell Willard Weston Individual 04. Mar 19 04. Mar 19 -14,102 €43.17 €-608,837
30. Nov 18 Buy William Downe Individual 29. Nov 18 29. Nov 18 6,000 €40.25 €241,507
16. Sep 18 Sell Garry Senecal Individual 13. Sep 18 13. Sep 18 -765 €44.50 €-34,043
07. Sep 18 Buy Robert Sawyer Individual 06. Sep 18 06. Sep 18 2,000 €45.13 €90,263
20. Aug 18 Sell Garry Senecal Individual 15. Aug 18 16. Aug 18 -10,400 €46.22 €-473,543
X
Management checks
We assess Loblaw Companies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Loblaw Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

L8G News

Simply Wall St News

L8G Company Info

Description

Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada. It operates in two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores comprising in-store pharmacies, other health and beauty product stores, apparel stores, and other general merchandise stores, as well as supports the PC Optimum reward program. The Financial Services segment provides credit card services, the PC Optimum reward program, insurance brokerage services, deposit taking services, and telecommunication services. Loblaw Companies Limited provides its products and services under the President's Choice, Life Brand, and no name brands. The company was founded in 1919 and is headquartered in Brampton, Canada. Loblaw Companies Limited is a subsidiary of George Weston Limited.

Details
Name: Loblaw Companies Limited
L8G
Exchange: DB
Founded: 1919
CA$15,942,325,509
369,327,453
Website: http://www.loblaw.ca
Address: Loblaw Companies Limited
1 President's Choice Circle,
Brampton,
Ontario, L6Y 5S5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX L Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
OTCPK LBLC.F Common Shares Pink Sheets LLC US USD 13. Dec 1972
DB L8G Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
TSX L.PRB 2ND PFD SER B The Toronto Stock Exchange CA CAD 10. Jun 2015
Number of employees
Current staff
Staff numbers
197,000
Loblaw Companies employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 21:12
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/25
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.