Leon's Furniture Ltd. (LNF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Leon's Furniture Ltd.

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Indigo Books & Music, Inc.

MedMen Enterprises, Inc.

Why is Leon's Furniture Ltd. ?

High Management Efficiency with a high ROCE of 23.97%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.66

Poor long term growth as Net Sales has grown by an annual rate of 3.53% over the last 5 years

Flat results in Jun 25

INTEREST(Q) At CAD 3.15 MM has Grown at 19.08%

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

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

Real-Time Research Report

Verdict Report

How much should you hold?

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.

11.49%

4.84

27.78%

S&P/TSX 60

26.52%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.00%

EBIT Growth (5y)

1.79%

EBIT to Interest (avg)

11.66

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.95

Tax Ratio

24.98%

Dividend Payout Ratio

38.33%

Pledged Shares

Institutional Holding

ROCE (avg)

23.97%

ROE (avg)

17.01%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.39

EV to EBIT

6.72

EV to EBITDA

4.47

EV to Capital Employed

1.50

EV to Sales

0.57

PEG Ratio

5.59

Dividend Yield

ROCE (Latest)

22.26%

ROE (Latest)

12.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 281.1 MM

ROCE(HY)

Highest at 15.07%

DEBT-EQUITY RATIO (HY)

Lowest at 9.7 %

RAW MATERIAL COST(Y)

Fallen by -1.78% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.85 times

DIVIDEND PER SHARE(HY)

Highest at CAD 14.62

NET SALES(Q)

Highest at CAD 678.63 MM

-2What is not working for the Company

INTEREST(Q)

At CAD 3.79 MM has Grown at 20.11%

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

Operating Cash Flow

Highest at CAD 281.1 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 9.7 % 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

Net Sales

Highest at CAD 678.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 3.85 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 14.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -1.78% (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 27.88 MM

in the last five periods

MOJO 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 3.79 MM has Grown at 20.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)