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Leon's Furniture

TSX:LNF
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LNF
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada. The last earnings update was 91 days ago. More info.


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LNF Share Price and Events
7 Day Returns
-2.6%
TSX:LNF
-0.7%
CA Specialty Retail
1.1%
CA Market
1 Year Returns
-11.1%
TSX:LNF
-20.7%
CA Specialty Retail
6.9%
CA Market
LNF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Leon's Furniture (LNF) -2.6% -3.9% -3% -11.1% -15.1% -2.3%
CA Specialty Retail -0.7% -2.9% -6.6% -20.7% -28.7% -39.4%
CA Market 1.1% 2.6% 4.6% 6.9% 8% 8.6%
1 Year Return vs Industry and Market
  • LNF outperformed the Specialty Retail industry which returned -20.7% over the past year.
  • LNF underperformed the Market in Canada which returned 6.9% over the past year.
Price Volatility
LNF
Industry
5yr Volatility vs Market

Value

 Is Leon's Furniture undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Leon's Furniture to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Leon's Furniture.

TSX:LNF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:LNF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.855 (1 + (1- 26.5%) (52.16%))
1.122
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.122 * 5.96%)
8.64%

Discounted Cash Flow Calculation for TSX:LNF using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Leon's Furniture is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:LNF DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.64%)
2020 168.25 Analyst x2 154.87
2021 174.73 Est @ 3.85% 148.05
2022 180.46 Est @ 3.28% 140.76
2023 185.66 Est @ 2.88% 133.30
2024 190.49 Est @ 2.6% 125.89
2025 195.07 Est @ 2.4% 118.67
2026 199.49 Est @ 2.27% 111.71
2027 203.82 Est @ 2.17% 105.06
2028 208.11 Est @ 2.1% 98.75
2029 212.39 Est @ 2.06% 92.77
Present value of next 10 years cash flows CA$1,229.00
TSX:LNF DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$212.39 × (1 + 1.95%) ÷ (8.64% – 1.95%)
CA$3,236.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$3,236.92 ÷ (1 + 8.64%)10
CA$1,413.78
TSX:LNF Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,229.00 + CA$1,413.78
CA$2,642.78
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,642.78 / 77.72
CA$34.01
TSX:LNF Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$34.01
Current discount Discount to share price of CA$14.85
= -1 x (CA$14.85 - CA$34.01) / CA$34.01
56.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Leon's Furniture is available for.
Intrinsic value
>50%
Share price is CA$14.85 vs Future cash flow value of CA$34.01
Current Discount Checks
For Leon's Furniture to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Leon's Furniture's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Leon's Furniture's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Leon's Furniture's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Leon's Furniture's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:LNF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$1.39
TSX:LNF Share Price ** TSX (2019-11-13) in CAD CA$14.85
Canada Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 12.94x
Canada Market PE Ratio Median Figure of 517 Publicly-Listed Companies 14.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Leon's Furniture.

TSX:LNF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:LNF Share Price ÷ EPS (both in CAD)

= 14.85 ÷ 1.39

10.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Leon's Furniture is good value based on earnings compared to the CA Specialty Retail industry average.
  • Leon's Furniture is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Leon's Furniture's expected growth come at a high price?
Raw Data
TSX:LNF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
7.7%per year
North America Specialty Retail Industry PEG Ratio Median Figure of 49 Publicly-Listed Specialty Retail Companies 2.17x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1.04x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Leon's Furniture, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Leon's Furniture's assets?
Raw Data
TSX:LNF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$11.28
TSX:LNF Share Price * TSX (2019-11-13) in CAD CA$14.85
Canada Specialty Retail Industry PB Ratio Median Figure of 13 Publicly-Listed Specialty Retail Companies 1.31x
Canada Market PB Ratio Median Figure of 2,288 Publicly-Listed Companies 1.28x
TSX:LNF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:LNF Share Price ÷ Book Value per Share (both in CAD)

= 14.85 ÷ 11.28

1.32x

* Primary Listing of Leon's Furniture.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Leon's Furniture is overvalued based on assets compared to the CA Specialty Retail industry average.
X
Value checks
We assess Leon's Furniture's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Leon's Furniture has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Leon's Furniture expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • No analysts cover Leon's Furniture, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Leon's Furniture expected to grow at an attractive rate?
  • Leon's Furniture's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Leon's Furniture's earnings growth is positive but not above the Canada market average.
  • Leon's Furniture's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:LNF Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:LNF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 7.7%
TSX:LNF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2.6%
Canada Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 27.8%
Canada Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:LNF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:LNF Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,346 226 2
2019-12-31 2,289 228 2
2019-11-13
TSX:LNF Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 2,255 170 107
2019-03-31 2,240 129 106
2018-12-31 2,241 182 111
2018-09-30 2,237 145 107
2018-06-30 2,240 185 108
2018-03-31 2,232 171 103
2017-12-31 2,215 157 97
2017-09-30 2,207 160 99
2017-06-30 2,187 165 99
2017-03-31 2,164 179 97
2016-12-31 2,144 165 84
2016-09-30 2,116 129 77

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Leon's Furniture's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Leon's Furniture's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:LNF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Leon's Furniture Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LNF Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
2019-11-13
TSX:LNF Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 1.39
2019-03-31 1.38
2018-12-31 1.45
2018-09-30 1.41
2018-06-30 1.43
2018-03-31 1.39
2017-12-31 1.32
2017-09-30 1.37
2017-06-30 1.37
2017-03-31 1.35
2016-12-31 1.17
2016-09-30 1.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Leon's Furniture will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Leon's Furniture's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Leon's Furniture has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Leon's Furniture performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Leon's Furniture's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Leon's Furniture's year on year earnings growth rate has been positive over the past 5 years.
  • Leon's Furniture's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Leon's Furniture's 1-year earnings growth is negative, it can't be compared to the CA Specialty Retail industry average.
Earnings and Revenue History
Leon's Furniture's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Leon's Furniture Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LNF Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,254.60 106.91 819.43
2019-03-31 2,240.46 105.84 818.06
2018-12-31 2,241.44 111.03 818.75
2018-09-30 2,236.63 107.02 816.48
2018-06-30 2,239.74 107.62 810.25
2018-03-31 2,231.91 102.51 811.05
2017-12-31 2,215.38 96.59 802.70
2017-09-30 2,206.91 99.05 794.18
2017-06-30 2,187.19 98.82 784.33
2017-03-31 2,164.48 96.92 768.65
2016-12-31 2,143.74 83.59 777.44
2016-09-30 2,115.58 76.55 780.95
2016-06-30 2,088.72 69.77 785.13
2016-03-31 2,065.48 67.81 785.06
2015-12-31 2,031.72 76.63 762.92
2015-09-30 2,047.76 76.36 777.97
2015-06-30 2,030.58 76.30 772.23
2015-03-31 2,012.16 78.29 756.13
2014-12-31 2,008.48 75.52 749.65
2014-09-30 1,955.24 71.95 711.83
2014-06-30 1,952.15 66.85 708.64
2014-03-31 1,958.19 64.30 714.80
2013-12-31 1,694.64 68.39 602.87
2013-09-30 1,360.08 58.18 483.88
2013-06-30 1,005.65 49.05 347.07
2013-03-31 687.19 43.61 221.91
2012-12-31 682.16 46.78 217.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Leon's Furniture has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Leon's Furniture used its assets less efficiently than the CA Specialty Retail industry average last year based on Return on Assets.
  • Leon's Furniture's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Leon's Furniture's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Leon's Furniture has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Leon's Furniture's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Leon's Furniture's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Leon's Furniture is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Leon's Furniture's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Leon's Furniture's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Leon's Furniture Company Filings, last reported 4 months ago.

TSX:LNF Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 875.67 178.34 122.70
2019-03-31 860.74 188.31 101.33
2018-12-31 857.36 193.16 178.89
2018-09-30 818.68 213.38 129.32
2018-06-30 795.55 228.01 109.18
2018-03-31 779.59 237.89 102.02
2017-12-31 773.05 242.60 103.53
2017-09-30 701.11 302.50 76.58
2017-06-30 674.87 344.89 53.87
2017-03-31 663.05 340.19 53.09
2016-12-31 659.55 333.46 83.06
2016-09-30 629.33 347.45 53.85
2016-06-30 601.53 392.40 28.25
2016-03-31 590.14 395.81 16.90
2015-12-31 600.40 380.87 30.82
2015-09-30 575.38 405.95 22.33
2015-06-30 554.70 452.75 23.55
2015-03-31 546.76 429.78 24.76
2014-12-31 549.11 407.54 68.26
2014-09-30 526.04 427.42 32.83
2014-06-30 503.30 484.49 20.00
2014-03-31 491.34 493.66 17.67
2013-12-31 497.76 482.57 23.17
2013-09-30 477.43 490.77 75.48
2013-06-30 463.27 499.70 44.44
2013-03-31 458.93 517.96 48.11
2012-12-31 452.19 0.43 200.70
  • Leon's Furniture's level of debt (20.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (96.1% vs 20.4% today).
  • Debt is well covered by operating cash flow (95.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.9x coverage).
X
Financial health checks
We assess Leon's Furniture's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Leon's Furniture has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Leon's Furniture's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.77%
Current annual income from Leon's Furniture dividends. Estimated to be 3.77% next year.
If you bought CA$2,000 of Leon's Furniture shares you are expected to receive CA$75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Leon's Furniture's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Leon's Furniture's dividend is below the markets top 25% of dividend payers in Canada (5.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:LNF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Canada Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:LNF Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.56 1.00
2019-12-31 0.56 1.00
2019-11-13
TSX:LNF Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-08-14 0.560 3.574
2019-05-14 0.560 3.657
2018-11-14 0.560 3.771
2018-08-09 0.560 3.185
2018-02-22 0.480 2.721
2017-11-14 0.480 2.630
2017-08-10 0.480 2.646
2017-05-11 0.480 2.728
2017-03-28 0.480 2.854
2017-02-23 0.480 2.799
2016-11-10 0.400 2.227
2016-05-12 0.400 2.514
2016-02-25 0.400 2.696
2015-11-12 0.400 2.841
2015-08-14 0.400 2.898
2015-02-26 0.400 2.604
2014-11-13 0.400 2.338
2014-08-14 0.400 2.747
2014-05-13 0.400 2.744
2014-03-28 0.400 2.563
2014-02-27 0.400 2.565
2013-11-14 0.400 2.821
2013-05-14 0.400 3.115
2012-11-13 0.400 3.122
2012-08-13 0.400 3.474
2012-05-14 0.400 3.561
2012-02-23 0.400 3.321
2011-11-14 0.400 3.257
2011-05-19 0.360 2.960
2011-02-17 0.360 2.609
2010-11-10 0.360 2.479
2010-08-13 0.560 4.218
2010-05-12 0.480 3.994
2010-02-17 0.480 3.905
2009-08-11 0.280 2.698
2009-05-13 0.280 2.818
2009-02-19 0.280 3.136

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Leon's Furniture's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Leon's Furniture's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Leon's Furniture afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Leon's Furniture has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Leon's Furniture's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Edward Leon
COMPENSATION CA$2,232,752
AGE 62
TENURE AS CEO 1.1 years
CEO Bio

Mr. Edward Florian Leon has been Chief Executive Officer at Leon's Furniture Ltd. since October 1, 2018. Mr. Leon has been President of Leon's Furniture Ltd. since June 17, 2015 and served as its Chief Operating Officer since June 2015 until September 2018. Mr. Leon served as Vice President of Merchandising of Leon's Furniture from May 2002 to June 17, 2015. Mr. Leon served as Director of Merchandising at Leon's Furniture Ltd from May 1997 to May 2002. He has been a Director of Leon's Furniture Ltd. since 2001.

CEO Compensation
  • Edward's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Edward's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Leon's Furniture management team in years:

3
Average Tenure
  • The tenure for the Leon's Furniture management team is about average.
Management Team

Edward Leon

TITLE
CEO, President & Director
COMPENSATION
CA$2M
AGE
62
TENURE
1.1 yrs

Constantine Pefanis

TITLE
Chief Financial Officer
COMPENSATION
CA$721K
TENURE
1.8 yrs

Mike Walsh

TITLE
President of the Leon's Division
COMPENSATION
CA$854K
TENURE
4.3 yrs

Dave Freeman

TITLE
President of the Brick Division
COMPENSATION
CA$934K
TENURE
3 yrs

John Cooney

TITLE
VP of Legal & Corporate Secretary
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Leon's Furniture board of directors in years:

15.2
Average Tenure
67.5
Average Age
  • The average tenure for the Leon's Furniture board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mark Leon

TITLE
Chairman
COMPENSATION
CA$80K
AGE
67
TENURE
14.5 yrs

Edward Leon

TITLE
CEO, President & Director
COMPENSATION
CA$2M
AGE
62
TENURE
18.8 yrs

Terry Leon

TITLE
Vice Chairman
COMPENSATION
CA$2M
AGE
68
TENURE
1.1 yrs

Peter B. Eby

TITLE
Independent Director
COMPENSATION
CA$90K
AGE
80
TENURE
42.8 yrs

Alan Lenczner

TITLE
Independent Director
COMPENSATION
CA$85K
AGE
76
TENURE
27.8 yrs

Mary Leon

TITLE
Independent Director
COMPENSATION
CA$90K
AGE
64
TENURE
15.8 yrs

Frank Gagliano

TITLE
Independent Director
COMPENSATION
CA$90K
AGE
70
TENURE
11.8 yrs

Joseph Leon

TITLE
Independent Director
COMPENSATION
CA$80K
AGE
59
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • Leon's Furniture individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
30. Sep 19 Buy Constantine Pefanis Individual 25. Sep 19 25. Sep 19 5,000 CA$16.47 CA$82,145
30. Sep 19 Sell John Cooney Individual 26. Sep 19 30. Sep 19 -1,200 CA$16.36 CA$-19,524
16. Sep 19 Sell John Cooney Individual 11. Sep 19 12. Sep 19 -2,300 CA$15.78 CA$-36,213
16. Sep 19 Buy Timmyal Limited Company 13. Sep 19 13. Sep 19 350 CA$15.82 CA$5,537
12. Sep 19 Buy Antomel Limited Company 12. Sep 19 12. Sep 19 4,400 CA$17.25 CA$75,900
12. Sep 19 Sell Terrence Leon Individual 12. Sep 19 12. Sep 19 -4,400 CA$17.25 CA$-75,900
12. Sep 19 Sell Terrence Leon Individual 12. Sep 19 12. Sep 19 -5,700 CA$15.72 CA$-89,580
30. Aug 19 Sell John Cooney Individual 29. Aug 19 30. Aug 19 -1,600 CA$15.70 CA$-25,085
28. Aug 19 Buy Terrence Leon Individual 27. Aug 19 27. Aug 19 10,000 CA$15.25 CA$152,500
21. Aug 19 Sell Antomel Limited Company 21. Aug 19 21. Aug 19 -1,535,472 CA$15.25 CA$-23,415,949
12. Jun 19 Sell Graeme Leon Individual 11. Jun 19 11. Jun 19 -1,000 CA$15.15 CA$-15,150
31. May 19 Sell Graeme Leon Individual 29. May 19 30. May 19 -1,000 CA$15.70 CA$-15,687
21. May 19 Sell Graeme Leon Individual 17. May 19 17. May 19 -1,000 CA$15.80 CA$-15,800
15. Mar 19 Sell Terrence Leon Individual 14. Mar 19 14. Mar 19 -6,900 CA$14.40 CA$-99,387
07. Mar 19 Buy Mark Leon Individual 06. Mar 19 06. Mar 19 10,000 CA$14.81 CA$148,070
06. Mar 19 Buy Terrence Leon Individual 05. Mar 19 05. Mar 19 1,000 CA$14.76 CA$14,760
23. Nov 18 Buy Terrence Leon Individual 21. Nov 18 23. Nov 18 5,000 CA$15.33 CA$75,474
23. Nov 18 Buy Edward Leon Individual 22. Nov 18 22. Nov 18 1,500 CA$15.10 CA$22,650
21. Nov 18 Buy Terrence Leon Individual 19. Nov 18 19. Nov 18 2,700 CA$15.74 CA$42,488
19. Nov 18 Buy Terrence Leon Individual 16. Nov 18 16. Nov 18 9,200 CA$15.54 CA$142,415
19. Nov 18 Buy Edward Leon Individual 16. Nov 18 16. Nov 18 2,000 CA$15.55 CA$31,100
X
Management checks
We assess Leon's Furniture's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Leon's Furniture has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Insider Buying: The Leon's Furniture Limited (TSE:LNF) Vice Chairman Just Bought CA$153k Worth Of Shares

View our latest analysis for Leon's Furniture The Last 12 Months Of Insider Transactions At Leon's Furniture Notably, that recent purchase by Terrence Leon is the biggest insider purchase of Leon's Furniture shares that we've seen in the last year. … TSX:LNF Recent Insider Trading, September 1st 2019 Insider Ownership of Leon's Furniture Many investors like to check how much of a company is owned by insiders. … When combined with notable insider ownership, these factors suggest Leon's Furniture insiders are well aligned, and that they may think the share price is too low.

Simply Wall St -

Leon's Furniture Limited (TSE:LNF) Passed Our Checks, And It's About To Pay A 0.9% Dividend

Final Takeaway Has Leon's Furniture got what it takes to maintain its dividend payments? … Earnings per share growth has been growing somewhat, and Leon's Furniture is paying out less than half its earnings and cash flow as dividends. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Leon's Furniture is halfway there.

Simply Wall St -

Leon's Furniture Limited's (TSE:LNF) 3.6% Dividend Yield Looks Pretty Interesting

Dividend paying stocks like Leon's Furniture Limited (TSE:LNF) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Leon's Furniture has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Leon's Furniture has grown its earnings per share at 7.5% per annum over the past five years. Earnings per share have been growing at a credible rate. What's more, the payout ratio is reasonable and provides some protection to the dividend, or even the potential to increase it. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Are Leon's Furniture Limited’s (TSE:LNF) Returns On Investment Worth Your While?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Leon's Furniture: 0.11 = CA$153m ÷ (CA$2.0b - CA$598m) (Based on the trailing twelve months to March 2019.) Therefore, Leon's Furniture has an ROCE of 11%. … Leon's Furniture's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Was Leon's Furniture Limited's (TSE:LNF) Earnings Growth Better Than The Industry's?

In this article, I will take a look at Leon's Furniture Limited's (TSE:LNF) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which LNF is growing has slowed down. … You should continue to research Leon's Furniture to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LNF’s future growth?

Simply Wall St -

Leon's Furniture Limited (TSE:LNF) Has A ROE Of 12%

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Leon's Furniture: 12% = CA$106m ÷ CA$861m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Leon's Furniture Have A Good Return On Equity? … Leon's Furniture's Debt And Its 12% ROE While Leon's Furniture does have some debt, with debt to equity of just 0.22, we wouldn't say debt is excessive.

Simply Wall St -

Leon's Furniture (TSE:LNF) Has A Pretty Healthy Balance Sheet

TSX:LNF Historical Debt, July 1st 2019 How Healthy Is Leon's Furniture's Balance Sheet? … Since Leon's Furniture does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … But it is future earnings, more than anything, that will determine Leon's Furniture's ability to maintain a healthy balance sheet going forward.

Simply Wall St -

Investors Who Bought Leon's Furniture (TSE:LNF) Shares A Year Ago Are Now Down 19%

Unfortunately the Leon's Furniture Limited (TSE:LNF) share price slid 19% over twelve months. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … We note that for Leon's Furniture the TSR over the last year was -16%, which is better than the share price return mentioned above.

Simply Wall St -

What You Should Know About Leon's Furniture Limited's (TSE:LNF) Financial Strength

On top of this, LNF has produced CA$129m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 21%, indicating that LNF’s current level of operating cash is high enough to cover debt. … Looking at LNF’s CA$598m in current liabilities, it seems that the business arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.99x. … Next Steps: LNF’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Leon's Furniture Limited's (TSE:LNF) 3.6% Dividend Yield Looks Pretty Interesting

In this case, Leon's Furniture likely looks attractive to investors, given its 3.6% dividend yield and a payment history of over ten years. … Leon's Furniture has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion To summarise, shareholders should always check that Leon's Furniture's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Company Info

Description

Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada. The company also operates as a commercial retailer of appliances to builders, developers, hotels, and property management companies. It also offers household furniture, electronics, and appliance repair services; and insurance products. The company sells its products through a network of retail stores under the Leon’s, The Brick, The Brick Mattress Store, and The Brick Outlet banners, as well as through Websites comprising leons.ca, thebrick.com, and furniture.ca. As of September 26, 2019, it had 304 retail stores. Leon's Furniture Limited was founded in 1909 and is headquartered in Toronto, Canada.

Details
Name: Leon's Furniture Limited
LNF
Exchange: TSX
Founded: 1909
CA$1,154,093,069
77,716,705
Website: http://www.leons.ca
Address: Leon's Furniture Limited
45 Gordon Mackay Road,
Toronto,
Ontario, M9N 3X3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX LNF Common Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK LEFU.F Common Shares Pink Sheets LLC US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
8,322
Leon's Furniture employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 23:35
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/08/21
Last earnings filing: 2019/08/14
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.