Leon's Furniture Ltd
TSX:LNF
Intrinsic Value
Leon's Furniture Ltd. engages in the retail of home furniture, appliances, electronics and mattresses. [ Read More ]
The intrinsic value of one
LNF
stock under the Base Case scenario is
29.09
CAD.
Compared to the current market price of 21.66 CAD,
Leon's Furniture Ltd
is
Undervalued by 26%.
LNF 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.
Leon's Furniture Ltd's market capitalization is 1.5B CAD.
LNF stock price is 21.66 CAD.
LNF stock price (21.66 CAD) is 26% less than its Intrinsic Value (29.09 CAD).
LNF has positive Operating Income for the last twelve months.
LNF's Altman Z-Score is equal to 2.5.
LNF has positive Net Debt. This means that the company has more debt (425m CAD) than cash and short-term investments (212m CAD).
LNF's Revenue has dropped by 3% over the past 12 months.
LNF has positive three-year average ROIC (Return on Invested Capital): 11%. The company is efficient at using invested capital to generate operating income.
LNF's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 8%.
LNF's Revenue has been growing by 3% per year for the last 3 years.
LNF's ROIC (Return on Invested Capital) has decreased in the last 3 years from 11% to 8%.
LNF's ROE (Return on Equity) for the past 12 months is positive and is equal to 14%.
LNF has positive Net Income for the last twelve months.
LNF's ROE (Return on Equity) has decreased in the last 3 years from 19% to 14%.
LNF's short-term assets (865m CAD) exceed its short-term liabilties (621m CAD).
LNF has positive Free Cash Flow for the last twelve months.
LNF has positive three-year average ROE (Return on Equity): 19%. The company is efficient at transforming stockholders' equity into net income.
LNF's long-term assets (2B CAD) exceed its long-term liabilties (1B CAD).
LNF has positive Gross Profit for the last twelve months.
LNF's D/E (Debt to Equity) is very low and is equal to 0.43.
LNF generates enough operating income (185m CAD) to cover interest payments on its debt (28m CAD).
Valuation Backtest
Leon's Furniture Ltd
Run backtest to discover the historical profit from buying and selling
LNF
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Leon's Furniture Ltd
Balance Sheet Decomposition
Leon's Furniture Ltd
| Current Assets | 865.2m |
| Cash & Short-Term Investments | 212.1m |
| Receivables | 188.6m |
| Other Current Assets | 464.5m |
| Non-Current Assets | 1.4B |
| Long-Term Investments | 14.2m |
| PP&E | 631.9m |
| Intangibles | 660.7m |
| Other Non-Current Assets | 59m |
| Current Liabilities | 621.5m |
| Accounts Payable | 296.6m |
| Other Current Liabilities | 324.8m |
| Non-Current Liabilities | 620m |
| Long-Term Debt | 425.3m |
| Other Non-Current Liabilities | 194.7m |
Earnings Waterfall
Leon's Furniture Ltd
|
Revenue
|
2.5B
CAD
|
|
Cost of Revenue
|
-1.4B
CAD
|
|
Gross Profit
|
1.1B
CAD
|
|
Operating Expenses
|
-897.3m
CAD
|
|
Operating Income
|
185.1m
CAD
|
|
Other Expenses
|
-46.3m
CAD
|
|
Net Income
|
138.9m
CAD
|
Free Cash Flow Analysis
Leon's Furniture Ltd
LNF Profitability Score
Profitability Due Diligence
Leon's Furniture Ltd's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
Score
Leon's Furniture Ltd's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
LNF Solvency Score
Solvency Due Diligence
Leon's Furniture Ltd's solvency score is 51/100. The higher the solvency score, the more solvent the company is.
Score
Leon's Furniture Ltd's solvency score is 51/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
LNF Price Targets Summary
Leon's Furniture Ltd
According to Wall Street analysts, the average 1-year price target for
LNF
is 23.46 CAD
with a low forecast of 23.23 CAD and a high forecast of 24.15 CAD.
Shareholder Return
LNF Price
Leon's Furniture Ltd
| Average Annual Return | 12.41% |
| Standard Deviation of Annual Returns | 27.81% |
| Max Drawdown | -42% |
| Market Capitalization | 1.5B CAD |
| Shares Outstanding | 68 032 000 |
| Percentage of Shares Shorted | 1.27% |
Company Profile
Leon's Furniture Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Leon's Furniture Ltd. engages in the retail of home furniture, appliances, electronics and mattresses. The company is headquartered in North York, Ontario. The firm's retail banners include Leon's, The Brick, The Brick Mattress Store, Brick Outlet, United Furniture Warehouse (UFW), The Brick's Midnorthern Appliance and Appliance Canada. The company is a commercial retailer of appliances to builders, developers, hotels and property management companies. The Company’s repair service division, Trans Global Services (TGS), provides household furniture, electronics and appliance repair services to its customers. Its TGS has contracts to support several manufacturer’s warranty service work, in addition to servicing a number of individual programs offered by other dealers. Company, through its subsidiaries, offers credit insurance coverage, which includes life, dismemberment, disability, critical illness, and involuntary unemployment. The company has approximately 304 retail stores from coast to coast in Canada under various banners.
Contact
IPO
Employees
Officers
The intrinsic value of one
LNF
stock under the Base Case scenario is
29.09
CAD.
Compared to the current market price of 21.66 CAD,
Leon's Furniture Ltd
is
Undervalued by 26%.
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