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Leon's Furniture Ltd.

  • Market Cap: Small Cap
  • Industry: Retailing
  • ISIN: CA5266821092
CAD
24.35
0.04 (0.16%)

Jun 19

TSE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
BMTC Group, Inc.
Sleep Country Canada Holdings, Inc.
Alimentation Couche-Tard, Inc.
The North West Co., Inc.
High Tide, Inc.
Leon's Furniture Ltd.
Canadian Tire Corp. Ltd.
Pet Valu Holdings Ltd.
AutoCanada, Inc.
Indigo Books & Music, Inc.
MedMen Enterprises, Inc.

Why is Leon's Furniture Ltd. ?

1
High Management Efficiency with a high ROCE of 23.97%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.66
3
Poor long term growth as Net Sales has grown by an annual rate of 2.15% over the last 5 years
4
The company has declared negative results in Mar'2026 after 3 consecutive positive quarters
  • INTEREST(HY) At CAD 6.35 MM has Grown at 14.44%
  • INTEREST COVERAGE RATIO(Q) Lowest at 1,882.55
  • INVENTORY TURNOVER RATIO(HY) Lowest at 3.56 times
5
With ROE of 12.62%, it has a fair valuation with a 1.38 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -9.07%, its profits have fallen by -2.6%
6
Below par performance in long term as well as near term
  • Along with generating -9.07% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Leon's Furniture Ltd. should be less than 10%
  2. Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Leon's Furniture Ltd. for you?

Medium Risk, High Return

Absolute
Risk Adjusted
Volatility
Leon's Furniture Ltd.
-9.07%
4.20
23.61%
S&P/TSX 60
29.6%
2.31
12.81%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.15%
EBIT Growth (5y)
-1.91%
EBIT to Interest (avg)
11.66
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.94
Tax Ratio
24.98%
Dividend Payout Ratio
38.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
23.97%
ROE (avg)
17.01%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.38
EV to EBIT
6.76
EV to EBITDA
4.47
EV to Capital Employed
1.46
EV to Sales
0.57
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
21.66%
ROE (Latest)
12.62%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
DEBT-EQUITY RATIO (HY)

Lowest at 8.34 %

RAW MATERIAL COST(Y)

Fallen by 0.26% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 17.53 times

DIVIDEND PER SHARE(HY)

Highest at CAD 17.53

-16What is not working for the Company
INTEREST(HY)

At CAD 6.35 MM has Grown at 14.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,882.55

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.56 times

NET SALES(Q)

Lowest at CAD 557.15 MM

OPERATING PROFIT(Q)

Lowest at CAD 57.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.3 %

PRE-TAX PROFIT(Q)

Lowest at CAD 28.31 MM

NET PROFIT(Q)

Lowest at CAD 21.48 MM

EPS(Q)

Lowest at CAD 0.31

Here's what is working for Leon's Furniture Ltd.

Debt-Equity Ratio
Lowest at 8.34 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio
Highest at 17.53 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share
Highest at CAD 17.53
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost
Fallen by 0.26% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Leon's Furniture Ltd.

Interest Coverage Ratio
Lowest at 1,882.55
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit
At CAD 28.31 MM has Fallen at -45.8%
over average net sales of the previous four periods of CAD 52.24 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit
At CAD 21.48 MM has Fallen at -45.27%
over average net sales of the previous four periods of CAD 39.25 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest
At CAD 6.35 MM has Grown at 14.44%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales
Lowest at CAD 557.15 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (CAD MM)

Net Sales
At CAD 557.15 MM has Fallen at -13.41%
over average net sales of the previous four periods of CAD 643.42 MM
MOJO Watch
Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit
Lowest at CAD 57.38 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin
Lowest at 10.3 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CAD 28.31 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit
Lowest at CAD 21.48 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS
Lowest at CAD 0.31
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio
Lowest at 3.56 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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