Leon's Furniture (TSE:LNF)
TSX:LNF
Want to see TSE:LNF full AI Analyst Report?
Top Page
Leon's Furniture
(TSX:LNF)
Select Model
Select Model
Rating:68Neutral
Price Target:
C$27.00
▲(1.66% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by a decent financial profile with strong cash generation, supported by attractive valuation (low P/E and solid yield). Offsetting factors are weak technicals (below key moving averages with negative MACD) and near-term operating headwinds discussed on the earnings call, including cautious demand, tougher comps, and mix/cost uncertainties.
Positive Factors
Strong cash generation and earnings quality
Consistent high cash conversion (FCF/NI ~0.85) indicates durable earnings quality and operational cash that can fund maintenance capex, selective store refreshes, dividends and strategic initiatives without immediate financing. This strengthens financial flexibility over the next several quarters.
Negative Factors
Sharp recent revenue weakness
A pronounced TTM revenue decline reduces operating leverage and limits the company’s ability to absorb fixed costs. Even with healthy margins, sustained top-line softness can compress absolute profits, constrain reinvestment capacity and raise execution risk across store refresh and expansion plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and earnings quality
Consistent high cash conversion (FCF/NI ~0.85) indicates durable earnings quality and operational cash that can fund maintenance capex, selective store refreshes, dividends and strategic initiatives without immediate financing. This strengthens financial flexibility over the next several quarters.
Read all positive factors
Leon's Furniture (LNF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.68B
Dividend Yield3.11%
Average Volume (3M)30.50K
Price to Earnings (P/E)20.8
Beta (1Y)0.76
Revenue Growth1.41%
EPS Growth-3.11%
CountryCA
Employees8,381
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.26
Shares Outstanding68,869,670
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$29.50Price Target Upside11.07% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.25
Revenue Forecast (FY)C$2.59B
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
LNF primarily makes money by retailing home goods—earning gross profit on the spread between the price it pays to source merchandise (e.g., furniture, mattresses, appliances, and electronics) and the price at which it sells those products to consu...
Leon's Furniture Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 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
67
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.55B | 2.57B | 2.50B | 2.45B | 2.52B | 2.51B |
| Gross Profit | 1.09B | 1.05B | 1.11B | 1.08B | 1.11B | 1.11B |
| EBITDA | 336.36M | 330.59M | 334.36M | 318.45M | 372.20M | 401.14M |
| Net Income | 154.65M | 157.05M | 153.67M | 138.85M | 179.43M | 207.16M |
Balance Sheet | ||||||
| Total Assets | 2.45B | 2.48B | 2.34B | 2.22B | 2.19B | 2.45B |
| Cash, Cash Equivalents and Short-Term Investments | 373.13M | 415.40M | 325.41M | 187.15M | 225.96M | 489.95M |
| Total Debt | 475.33M | 802.25M | 425.55M | 453.93M | 557.23M | 456.25M |
| Total Liabilities | 1.23B | 1.22B | 1.20B | 1.19B | 1.26B | 1.66B |
| Stockholders Equity | 1.23B | 1.26B | 1.14B | 1.03B | 928.88M | 791.19M |
Cash Flow | ||||||
| Free Cash Flow | 231.36M | 222.95M | 285.16M | 208.69M | -13.54M | 297.36M |
| Operating Cash Flow | 267.59M | 262.35M | 344.97M | 253.31M | 14.30M | 313.75M |
| Investing Cash Flow | -40.65M | -51.30M | -67.88M | -5.45M | -36.70M | 16.21M |
| Financing Cash Flow | -159.20M | -145.04M | -168.60M | -280.25M | -244.60M | -316.46M |
Leon's Furniture Technical Analysis
Positive
26.56
Price Trends
26.47
Positive
27.02
Negative
27.28
Negative
Market Momentum
0.09
Negative
53.23
Neutral
62.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNF, the sentiment is Positive. The current price of 26.56 is above the 20-day moving average (MA) of 26.05, above the 50-day MA of 26.47, and below the 200-day MA of 27.28, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | C$1.68B | 20.85 | 12.69% | 3.11% | 1.41% | -3.11% | |
63 Neutral | C$427.53M | 12.33 | 5.49% | 2.80% | 2.80% | -21.88% | |
63 Neutral | C$9.15B | 10.95 | 8.99% | 3.17% | 0.86% | -26.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:LNF
Leon's Furniture
24.39
0.31
1.30%
TSE:GBT
BMTC Group Inc.
13.44
1.08
8.74%
TSE:CTC
Canadian Tire
215.00
-11.21
-4.96%
Leon's Furniture Corporate Events
Business Operations and StrategyFinancial Disclosures
LFL Group Sets Date for Q1 2026 Results and Investor Call
Neutral
Apr 14, 2026
Leon’s Furniture Limited, which operates as LFL Group and is Canada’s largest retailer of furniture, appliances and electronics, reaches customers through 300 stores across the country under multiple retail banners and a network of six...
Business Operations and Strategy
Leon’s Furniture Steps Up Investor Outreach With CIBC and Stifel Conferences
Positive
Mar 19, 2026
Leon’s Furniture Limited, which operates 300 stores across Canada and multiple online platforms, is the country’s largest retailer of furniture, appliances and electronics, and a leading commercial supplier of appliances to institution...
Business Operations and StrategyStock Buyback
Leon’s Furniture Wins TSX Nod for New Share Buyback Program
Positive
Mar 19, 2026
Leon’s Furniture Limited has received Toronto Stock Exchange approval to launch a normal course issuer bid to repurchase up to 3,443,868 common shares, representing 5% of its outstanding stock, between March 23, 2026, and March 22, 2027. 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.