Leon's Furniture (TSE:LNF)
TSX:LNF
Top Page
Leon's Furniture
(TSX:LNF)
Select Model
Select Model
Rating:67Neutral
Price Target:
C$30.00
â–˛(16.50% Upside)
Action:DowngradedDate:02/27/26
The score is driven primarily by solid but mixed financial performance: good revenue momentum and stable profitability, offset by higher 2025 leverage and uneven/declining recent free cash flow. Valuation is supportive with a modest P/E and a ~3.1% dividend yield. Technical signals are neutral, and earnings-call commentary is constructive but balanced by near-term demand and mix risks plus higher planned maintenance CapEx.
Positive Factors
Revenue Growth
Sustained revenue expansion into 2025 indicates improving demand and scale. Durable top-line momentum supports absorption of fixed costs, funds reinvestment in stores and digital, and underpins longer-term margin recovery and rollout of strategic initiatives over the next several quarters.
Negative Factors
Rising Leverage
A marked step-up in leverage reduces financial flexibility and raises interest and covenant sensitivity. Over the medium term this constrains capital allocation choices (buybacks, M&A, or discretionary spend) and increases vulnerability to revenue or margin shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue expansion into 2025 indicates improving demand and scale. Durable top-line momentum supports absorption of fixed costs, funds reinvestment in stores and digital, and underpins longer-term margin recovery and rollout of strategic initiatives over the next several quarters.
Read all positive factors
Leon's Furniture (LNF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.77B
Dividend Yield3.11%
Average Volume (3M)30.50K
Price to Earnings (P/E)12.2
Beta (1Y)0.80
Revenue Growth1.99%
EPS Growth31.36%
CountryCA
Employees8,381
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.74
Shares Outstanding68,877,370
10 Day Avg. Volume22,793
30 Day Avg. Volume30,505
Financial Highlights & Ratios
PEG Ratio6.89
Price to Book (P/B)1.52
Price to Sales (P/S)0.74
P/FCF Ratio8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$32.80Price Target Upside27.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.31
Revenue Forecast (FY)C$2.61B
Leon's Furniture Business Overview & Revenue Model
Company 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, reno...
How the Company Makes Money
Leon's Furniture generates revenue primarily through the sale of furniture, appliances, and electronics. The company employs a multi-channel retail strategy, combining brick-and-mortar stores with an e-commerce platform to reach a wider audience. ...
Leon's Furniture Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized solid operational execution and financial strength: revenue growth, gross margin expansion, double-digit adjusted EPS growth, a healthier inventory position, strong liquidity and increased shareholder returns (regular dividend increase plus a $0.50 special dividend). Management acknowledged near-term headwinds — Canada Post disruptions, adverse weather, a cautious consumer and a moderating lower-margin commercial channel — and flagged tougher year-over-year comps in early 2026. Overall, the company appears well-capitalized and strategically positioned to manage near-term variability while pursuing measured growth and margin improvement.Positive Updates
Revenue Growth and Scale
Full-year revenue of $2.57 billion, up 3.0% year-over-year; fourth quarter revenue of $671.4 million, up 0.7% with same-store sales up 0.6%. System-wide sales growth of 2.8% noted for 2025.
Negative Updates
Consumer Caution and Promotional Pressure
Consumers remained value-focused and cautious across 2025; increased promotional intensity in the competitive set led to pressure on discretionary and larger-ticket purchases, with evidence of trade-down behavior.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Scale
Full-year revenue of $2.57 billion, up 3.0% year-over-year; fourth quarter revenue of $671.4 million, up 0.7% with same-store sales up 0.6%. System-wide sales growth of 2.8% noted for 2025.
Read all positive updates
Company Guidance
LFL guided that while some Q4 headwinds (Canada Post flyer disruptions, tougher weather comps and a cautious consumer) are likely to carry into early 2026 and Q1 comparables will be demanding, the company expects to continue growing sales and market share while protecting gross margins and maintaining cost discipline. Key quantifiable guidance and context: FY2025 revenue was $2.57B (+3%) with system‑wide sales +2.8%, furniture +6.3%, gross margin up 65 bps to 45.04% (Q4 46.08%), SG&A rate 36.48% (vs 36.72% in 2024), net income $157M ($2.29/sh), adjusted net income +$22.2M (+16.6%) and adjusted diluted EPS +16.5%; Q4 revenue was $671.4M (+0.7%) with same‑store sales +0.6% and normalized Q4 adjusted EPS $0.74 (up 1.3% y/y). For 2026 they expect maintenance CapEx of about $45–50M (vs a historical $35–40M), to open 2 corporate and up to 5 franchise stores (weighted to back half of year), to maintain strong liquidity (~$603M unrestricted) while returning capital (quarterly dividend +20% and a $0.50 special dividend approved), to be selective on buybacks/M&A, and to manage a moderation in developer/commercial appliance revenue while pursuing replacement, warranty/service growth and targeted store refreshes to drive free cash flow and long‑term returns.Leon's Furniture Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.57B | 2.50B | 2.45B | 2.52B | 2.51B |
| Gross Profit | 1.05B | 1.11B | 1.08B | 1.11B | 1.11B |
| EBITDA | 330.59M | 334.36M | 318.45M | 372.20M | 401.14M |
| Net Income | 157.05M | 153.67M | 138.85M | 179.43M | 207.16M |
Balance Sheet | |||||
| Total Assets | 2.48B | 2.34B | 2.22B | 2.19B | 2.45B |
| Cash, Cash Equivalents and Short-Term Investments | 415.40M | 325.41M | 187.15M | 225.96M | 489.95M |
| Total Debt | 802.25M | 425.55M | 453.93M | 557.23M | 456.25M |
| Total Liabilities | 1.22B | 1.20B | 1.19B | 1.26B | 1.66B |
| Stockholders Equity | 1.26B | 1.14B | 1.03B | 928.88M | 791.19M |
Cash Flow | |||||
| Free Cash Flow | 222.95M | 285.16M | 208.69M | -13.54M | 297.36M |
| Operating Cash Flow | 262.35M | 344.97M | 253.31M | 14.30M | 313.75M |
| Investing Cash Flow | -51.30M | -67.88M | -5.45M | -36.70M | 16.21M |
| Financing Cash Flow | -145.04M | -168.60M | -280.25M | -244.60M | -316.46M |
Leon's Furniture Technical Analysis
Negative
25.75
Price Trends
26.89
Negative
27.25
Negative
27.30
Negative
Market Momentum
-0.45
Negative
42.63
Neutral
29.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNF, the sentiment is Negative. The current price of 25.75 is below the 20-day moving average (MA) of 26.05, below the 50-day MA of 26.89, and below the 200-day MA of 27.30, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LNF.
Leon's Furniture Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$1.77B | 12.20 | 13.08% | 3.11% | 1.99% | 31.36% | |
66 Neutral | C$401.57M | 10.16 | 5.49% | 2.80% | 7.20% | -33.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | C$9.74B | 16.32 | 13.16% | 3.17% | -0.13% | 13.73% |
* Consumer Cyclical Sector Average
TSE:LNF
Leon's Furniture
25.75
3.43
15.36%
TSE:GBT
BMTC Group Inc.
12.61
0.81
6.86%
TSE:CTC
Canadian Tire
204.32
-1.95
-0.95%
Leon's Furniture Corporate Events
Financial Disclosures
Leon’s Furniture Sets Date for Q4 and Full-Year 2025 Results and Investor Call
Neutral
Feb 3, 2026
Leon’s Furniture Limited has scheduled the release of its fourth-quarter and full-year 2025 financial results for after the market close on February 25, 2026, and will follow with a conference call and webcast the next morning to discuss the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.