Loblaw Companies Ltd
TSX:L
Intrinsic Value
Loblaw Cos. Ltd. engages in the provision of grocery, pharmacy, general merchandise, and financial products and services. [ Read More ]
The intrinsic value of one L stock under the Base Case scenario is 166.79 CAD. Compared to the current market price of 149.84 CAD, Loblaw Companies Ltd is Undervalued by 10%.
Valuation Backtest
Loblaw Companies Ltd
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Fundamental Analysis
Solid Performance and Growth Outlook
2023-Q4 Earnings Call
Loblaw Companies Limited reported a successful fiscal year, with nearly $60 billion in revenue and over $2 billion in earnings. The company experienced positive growth, with consolidated revenue rising 3.7% and EBITDA increasing by 9.4%. Both drug and food retail segments showed strong sales and same-store sales growth, while online sales surged 14.6%. The company also strengthened its balance sheet, demonstrating robust free cash flow and share repurchases. Looking to 2024, Loblaw plans to open and convert more stores, expecting earnings growth to outpace sales and forecasting high single-digit EPS growth.
Balance Sheet Decomposition
Loblaw Companies Ltd
Current Assets | 13.6B |
Cash & Short-Term Investments | 2B |
Receivables | 5.4B |
Other Current Assets | 6.2B |
Non-Current Assets | 25.4B |
Long-Term Investments | 449m |
PP&E | 14B |
Intangibles | 10.3B |
Other Non-Current Assets | 601m |
Current Liabilities | 10.8B |
Accounts Payable | 6.3B |
Accrued Liabilities | 370m |
Short-Term Debt | 863m |
Other Current Liabilities | 3.3B |
Non-Current Liabilities | 16.7B |
Long-Term Debt | 14.7B |
Other Non-Current Liabilities | 2B |
Earnings Waterfall
Loblaw Companies Ltd
Revenue
|
59.5B
CAD
|
Cost of Revenue
|
-40.5B
CAD
|
Gross Profit
|
19B
CAD
|
Operating Expenses
|
-15.3B
CAD
|
Operating Income
|
3.7B
CAD
|
Other Expenses
|
-1.6B
CAD
|
Net Income
|
2.1B
CAD
|
Free Cash Flow Analysis
Loblaw Companies Ltd
What is Free Cash Flow?
L Profitability Score
Profitability Due Diligence
Loblaw Companies Ltd's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
Score
Loblaw Companies Ltd's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
L Solvency Score
Solvency Due Diligence
Loblaw Companies Ltd's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Score
Loblaw Companies Ltd's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
L Price Targets Summary
Loblaw Companies Ltd
According to Wall Street analysts, the average 1-year price target for L is 157.99 CAD with a low forecast of 146.45 CAD and a high forecast of 180.6 CAD.
Shareholder Return
L Price
Loblaw Companies Ltd
Average Annual Return | 20.98% |
Standard Deviation of Annual Returns | 30.01% |
Max Drawdown | -21% |
Market Capitalization | 47.7B CAD |
Shares Outstanding | 309 256 992 |
Percentage of Shares Shorted | 3.28% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Loblaw Cos. Ltd. engages in the provision of grocery, pharmacy, general merchandise, and financial products and services. The company is headquartered in Brampton, Ontario and currently employs 215,000 full-time employees. The firm operates through two segments: Retail and Financial Services. The Retail segment consists primarily of corporate and franchise-owned retail food and Associate-owned drug stores. This segment also includes in-store pharmacies and other health and beauty products, apparel and other general merchandise. The Financial Services segment provides credit card services, insurance brokerage services, guaranteed investment certificates and wireless mobile products and services, and operates the PC Optimum loyalty program. Through the PC Optimum loyalty program, the Company rewards Canadian consumers for shopping at its stores. Its brands include the President’s Choice, PC Organics, T&T, Everyday Essentials, Life Brand, no name, Farmer’s Market and Joe Fresh brands. The firm's subsidiaries include Loblaws Inc., Shoppers Drug Mart Inc., and President’s Choice Bank.
Contact
IPO
Employees
Officers
The intrinsic value of one L stock under the Base Case scenario is 166.79 CAD.
Compared to the current market price of 149.84 CAD, Loblaw Companies Ltd is Undervalued by 10%.