Loblaw Cos. Ltd. (L) 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

Metro, Inc.

Empire Co. Ltd.

Loblaw Cos. Ltd.

The Becker Milk Co. Ltd.

George Weston Ltd.

Nepra Foods, Inc.

Hill, Inc.

Colabor Group, Inc.

Sensible Meats, Inc.

Why is Loblaw Cos. Ltd. ?

High Management Efficiency with a high ROCE of 17.62%

Poor long term growth as Net Sales has grown by an annual rate of 4.49% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 5,412 MM
ROCE(HY) Highest at 22.15%
DIVIDEND PER SHARE(HY) Highest at CAD 11.88

With ROE of 23.69%, it has a expensive valuation with a 5.79 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 21.37%, its profits have risen by 20.8% ; the PEG ratio of the company is 1.1

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Loblaw Cos. 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 Loblaw Cos. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Loblaw Cos. Ltd.

16.63%

0.02

77.23%

S&P/TSX 60

28.37%

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)

3.92%

EBIT Growth (5y)

12.25%

EBIT to Interest (avg)

4.36

Debt to EBITDA (avg)

1.27

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

2.93

Tax Ratio

26.07%

Dividend Payout Ratio

24.57%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

17.62%

ROE (avg)

18.00%

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

6.76

EV to EBIT

18.17

EV to EBITDA

11.27

EV to Capital Employed

4.64

EV to Sales

1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

25.54%

ROE (Latest)

23.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 6,168 MM

ROCE(HY)

Highest at 23.91%

DIVIDEND PER SHARE(HY)

Highest at CAD 19.1

RAW MATERIAL COST(Y)

Fallen by -2.12% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 144.61 %

DEBTORS TURNOVER RATIO(HY)

Highest at 19.1 times

-4What is not working for the Company

INTEREST(Q)

At CAD 186 MM has Grown at 204.92%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 27.73%

CASH AND EQV(HY)

Lowest at CAD 2,001 MM

Here's what is working for Loblaw Cos. Ltd.

Operating Cash Flow

Highest at CAD 6,168 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)

Dividend per share

Highest at CAD 19.1 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Debt-Equity Ratio

Lowest at 144.61 %

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 19.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.12% (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 Loblaw Cos. Ltd.

Interest

At CAD 186 MM has Grown at 204.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Cash and Eqv

Lowest at CAD 2,001 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 27.73%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)