Comparison
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 3.53% over the last 5 years
4
Flat results in Jun 25
- INTEREST(Q) At CAD 3.15 MM has Grown at 19.08%
5
With ROE of 13.69%, it has a fair valuation with a 1.67 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 -3.53%, its profits have risen by 9.3% ; the PEG ratio of the company is 1.4
6
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.53% returns
How much should you buy?
- Overall Portfolio exposure to Leon's Furniture Ltd. should be less than 10%
- 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.
7.6%
4.84
27.78%
S&P/TSX 60
19.1%
1.54
14.62%
Quality key factors
Factor
Value
Sales Growth (5y)
3.53%
EBIT Growth (5y)
4.90%
EBIT to Interest (avg)
11.66
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.98
Tax Ratio
24.98%
Dividend Payout Ratio
33.70%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
23.97%
ROE (avg)
17.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.65
EV to EBIT
8.69
EV to EBITDA
5.76
EV to Capital Employed
1.71
EV to Sales
0.72
PEG Ratio
1.34
Dividend Yield
NA
ROCE (Latest)
19.71%
ROE (Latest)
13.69%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 281.9 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 42.87%
RAW MATERIAL COST(Y)
Fallen by -2.57% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 14.87%
DIVIDEND PER SHARE(HY)
Highest at CAD 14.87
-2What is not working for the Company
INTEREST(Q)
At CAD 3.15 MM has Grown at 19.08%
Here's what is working for Leon's Furniture Ltd.
Operating Cash Flow
Highest at CAD 281.9 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Debtors Turnover Ratio
Highest at 14.87%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at CAD 14.87
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Dividend Payout Ratio
Highest at 42.87%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -2.57% (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
Depreciation
Highest at CAD 27.29 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Leon's Furniture Ltd.
Interest
At CAD 3.15 MM has Grown at 19.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)






