Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada.
Undervalued with excellent balance sheet.
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: LEFU.F has not had significant price volatility in the past 3 months.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: LEFU.F underperformed the US Specialty Retail industry which returned 18.8% over the past year.
Return vs Market: LEFU.F underperformed the US Market which returned 19.3% over the past year.
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
No news available
Is Leon's Furniture undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEFU.F ($12.25) is trading below our estimate of fair value ($39.12)
Significantly Below Fair Value: LEFU.F is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LEFU.F is good value based on its PE Ratio (11.9x) compared to the Specialty Retail industry average (16.2x).
PE vs Market: LEFU.F is good value based on its PE Ratio (11.9x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LEFU.F's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LEFU.F is good value based on its PB Ratio (1.4x) compared to the US Specialty Retail industry average (1.5x).
How is Leon's Furniture forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if LEFU.F's forecast earnings growth is above the savings rate (1.7%).
Earnings vs Market: Insufficient data to determine if LEFU.F's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LEFU.F's revenue (2.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: LEFU.F's revenue (2.1% 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 LEFU.F's Return on Equity is forecast to be high in 3 years time
How has Leon's Furniture performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LEFU.F has high quality earnings.
Growing Profit Margin: LEFU.F's current net profit margins (4.7%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: LEFU.F's earnings have grown by 9.9% per year over the past 5 years.
Accelerating Growth: LEFU.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LEFU.F had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (6.4%).
Return on Equity
High ROE: LEFU.F's Return on Equity (11.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Leon's Furniture's financial position?
Financial Position Analysis
Short Term Liabilities: LEFU.F's short term assets (CA$631.6M) exceed its short term liabilities (CA$509.4M).
Long Term Liabilities: LEFU.F's short term assets (CA$631.6M) do not cover its long term liabilities (CA$671.9M).
Debt to Equity History and Analysis
Debt Level: LEFU.F's debt to equity ratio (18.2%) is considered satisfactory.
Reducing Debt: LEFU.F's debt to equity ratio has reduced from 81.2% to 18.2% over the past 5 years.
Debt Coverage: LEFU.F's debt is well covered by operating cash flow (123.2%).
Interest Coverage: LEFU.F's interest payments on its debt are well covered by EBIT (7.9x coverage).
Inventory Level: LEFU.F has a high level of physical assets or inventory.
Debt Coverage by Assets: LEFU.F's debt is covered by short term assets (assets are 3.9x debt).
What is Leon's Furniture's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LEFU.F's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: LEFU.F's dividend (3.43%) is low compared to the top 25% of dividend payers in the US market (3.71%).
Stability and Growth of Payments
Stable Dividend: LEFU.F's dividend payments have been volatile in the past 10 years.
Growing Dividend: LEFU.F's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.7%), LEFU.F's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Edward Leon (62yo)
Mr. Edward Florian Leon has been Chief Executive Officer at Leon's Furniture Ltd. since October 1, 2018. Mr. Leon has been President of Leon's Furniture Ltd. since June 17, 2015 and served as its Chief Ope ...
CEO Compensation Analysis
Compensation vs Market: Edward's total compensation ($USD1.68M) is below average for companies of similar size in the US market ($USD2.48M).
Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.
|CEO, President & Director||1.3yrs||CA$2.23m||0.38% CA$3.7m|
|Chief Financial Officer||2.1yrs||CA$720.76k||0.16% CA$1.5m|
|President of the Leon's Division||4.5yrs||CA$854.15k||0.064% CA$606.7k|
|President of the Brick Division||3.3yrs||CA$934.18k||0.078% CA$743.1k|
|VP of Legal & Corporate Secretary||4.5yrs||no data||0.075% CA$709.2k|
Experienced Management: LEFU.F's management team is considered experienced (3.3 years average tenure).
|CEO, President & Director||1.3yrs||CA$2.23m||0.38% CA$3.7m|
|Independent Director||43.1yrs||CA$90.00k||0.014% CA$132.7k|
|Independent Director||28.1yrs||CA$84.50k||0.0039% CA$36.8k|
|Vice Chairman||1.3yrs||CA$2.01m||1.41% CA$13.4m|
|Independent Director||12.1yrs||CA$90.00k||0.0058% CA$55.3k|
|Independent Director||16.1yrs||CA$90.00k||0.011% CA$101.7k|
|Independent Director||6.2yrs||CA$80.00k||no data|
Experienced Board: LEFU.F's board of directors are seasoned and experienced ( 15.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LEFU.F insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Leon's Furniture Limited's company bio, employee growth, exchange listings and data sources
- Name: Leon's Furniture Limited
- Ticker: LEFU.F
- Exchange: OTCPK
- Founded: 1909
- Industry: Homefurnishing Retail
- Sector: Retail
- Market Cap: CA$1.259b
- Listing Market Cap: CA$949.380m
- Shares outstanding: 77.24m
- Website: https://www.leons.ca
Number of Employees
- Leon's Furniture Limited
- 45 Gordon Mackay Road
- M9N 3X3
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LNF||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Jan 1975|
|LEFU.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Jan 1975|
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, hotels, and property management companies. It also offers household furniture, electronics, and appliance repair services; and insurance products. The company sells its products through a network of retail stores under the Leon’s, The Brick, The Brick Mattress Store, and The Brick Outlet banners, as well as through Websites comprising leons.ca, thebrick.com, and furniture.ca. As of September 26, 2019, it had 304 retail stores. Leon's Furniture Limited was founded in 1909 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/21 01:09|
|End of Day Share Price||2020/02/18 00:00|
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.