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
164.52
CAD.
Compared to the current market price of 148.21 CAD,
Loblaw Companies Ltd
is
Undervalued by 10%.
L could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Loblaw Companies Ltd's market capitalization is 47.2B CAD.
L stock price is 148.21 CAD.
L stock price (148.21 CAD) is 10% less than its Intrinsic Value (164.52 CAD).
L stock price (148.21 CAD) is 16% less than its Relative Value (175.91 CAD). Open Relative Valuation
L's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 9%.
L's Revenue has grown by 5% over the past 12 months.
L's Revenue is forecast to grow at a rate of 4% per year over the next 3 years.
L's ROIC (Return on Invested Capital) has increased in the last 3 years from 6% to 9%.
L's Revenue has been growing by 4% per year for the last 3 years.
L has positive three-year average ROIC (Return on Invested Capital): 8%. The company is efficient at using invested capital to generate operating income.
L's short-term assets (14B CAD) exceed its short-term liabilties (11B CAD).
L has positive Operating Income for the last twelve months.
L's ROE (Return on Equity) for the past 12 months is positive and is equal to 18%.
L's ROE (Return on Equity) has increased in the last 3 years from 11% to 18%.
L's D/E (Debt to Equity) is equal to 1.35.
L's long-term assets (39B CAD) exceed its long-term liabilties (28B CAD).
L has positive Free Cash Flow for the last twelve months.
L has positive Net Income for the last twelve months.
L has positive three-year average ROE (Return on Equity): 16%. The company is efficient at transforming stockholders' equity into net income.
L has positive Gross Profit for the last twelve months.
L's Altman Z-Score is equal to 2.96.
L has positive Net Debt. This means that the company has more debt (16B CAD) than cash and short-term investments (2B CAD).
L generates enough operating income (4B CAD) to cover interest payments on its debt (791m CAD).
Valuation Backtest
Loblaw Companies Ltd
Run backtest to discover the historical profit from buying and selling
L
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Loblaw Companies Ltd
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 53/100. The higher the profitability score, the more profitable the company is.
Score
Loblaw Companies Ltd's profitability score is 53/100. 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 157.34 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 | 20.5% |
| Standard Deviation of Annual Returns | 30.39% |
| Max Drawdown | -21% |
| Market Capitalization | 47.4B CAD |
| Shares Outstanding | 310 028 000 |
| Percentage of Shares Shorted | 3.28% |
Company Profile
Loblaw Companies Ltd
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
164.52
CAD.
Compared to the current market price of 148.21 CAD,
Loblaw Companies Ltd
is
Undervalued by 10%.
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