Leon's Furniture (LNF) AI Stock Analysis

• Market Cap: C$1.59B
• Dividend Yield: 3.35%
• Average Volume (3M): 20.02K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.59
• Revenue Growth: 1.78%
• EPS Growth: 10.47%
• Country: CA
• Employees: 8,381
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): 2.25
• Shares Outstanding: 68,204,510
• 10 Day Avg. Volume: 14,473
• 30 Day Avg. Volume: 20,017
• PEG Ratio: 0.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$28.75
• Price Target Upside: 23.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Leon's Furniture demonstrates a strong financial position with effective cost management and strong cash flow generation, contributing significantly to its overall stock score. The company's valuation is attractive with a low P/E ratio and a solid dividend yield, appealing to value and income investors. Technical analysis suggests some caution with limited bullish momentum. Positive corporate events, such as a share repurchase program, bolster investor confidence, contributing positively to the stock's outlook.

Leon's Furniture Business Overview & Revenue Model

Company Description

Leon's Furniture Limited (LNF) is one of Canada's largest home furnishing retailers, operating through a network of retail stores and e-commerce platforms. The company offers a diverse range of products, including furniture, mattresses, appliances, and home electronics. Established in 1909, Leon's has built a reputation for providing quality products at competitive prices, catering to a broad customer base across the country.

How the Company Makes Money

Leon's Furniture generates revenue primarily through the sale of home furnishings and related products via its retail and online channels. The company's key revenue streams include the sale of furniture, mattresses, appliances, and electronics, with a focus on leveraging its extensive retail network to reach customers. Leon's also benefits from strategic partnerships with leading brands and suppliers, which enhance its product offerings and competitive pricing. Additionally, the company may offer financing options to customers, adding another layer to its revenue model. Factors such as effective supply chain management, marketing strategies, and customer service play significant roles in driving sales and maintaining profitability.

Leon's Furniture Financial Statement Overview

Summary

Leon's Furniture presents a generally stable financial profile with strengths in cash flow generation and cost management, though there are potential risks in declining profit margins and limited equity growth. Continued focus on revenue growth and profitability will be critical to enhancing the company's financial health.

Income Statement

Leon's Furniture has demonstrated a stable revenue base with a slight decrease in revenue in the TTM compared to the previous year. The gross profit margin remains healthy above 40%, indicating strong cost management. However, there is a notable decrease in EBIT and net income, leading to lower EBIT and net profit margins, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating a reduction in leverage, while the equity ratio is strengthening, reflecting a solid asset base. However, stockholders' equity has shown limited growth, which could limit financial flexibility.

Cash Flow

Leon's Furniture exhibits strong cash flow generation, with a significant increase in free cash flow in the TTM period. The operating cash flow to net income ratio is robust, indicating efficient cash management. While free cash flow growth is positive, capital expenditure management will be key to sustaining this trend.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.45B	2.52B	2.51B	2.22B	2.28B
	Gross Profit
1.08B	1.11B	1.11B	983.92M	998.59M
	EBIT
293.26M	254.74M	289.13M	232.97M	168.09M
	EBITDA
318.45M	372.20M	409.14M	344.19M	294.43M
	Net Income Common Stockholders
138.85M	179.43M	207.16M	163.25M	106.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
187.15M	225.96M	489.95M	490.83M	197.18M
	Total Assets
2.22B	2.19B	2.45B	2.42B	2.13B
	Total Debt
453.93M	557.23M	456.25M	491.14M	556.48M
	Net Debt
371.18M	442.10M	74.12M	122.51M	467.45M
	Total Liabilities
1.19B	1.26B	1.66B	1.40B	1.21B
	Stockholders Equity
1.03B	928.88M	791.19M	1.02B	915.76M
Cash Flow		Free Cash Flow
208.69M	-13.54M	297.36M	466.94M	200.30M
	Operating Cash Flow
253.31M	14.30M	313.75M	511.42M	234.47M
	Investing Cash Flow
-5.45M	-36.70M	16.21M	-43.07M	-43.25M
	Financing Cash Flow
-280.25M	-244.60M	-316.46M	-188.75M	-192.46M

Leon's Furniture Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNF, the sentiment is Neutral. The current price of 23.25 is above the 20-day moving average (MA) of 22.45, below the 50-day MA of 23.30, and below the 200-day MA of 25.80, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LNF.

Leon's Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	76 Outperform	C$1.59B	10.31	14.17%	3.35%	1.78%	10.47%
CTC	73 Outperform	$8.55B	13.75	15.17%	3.19%	-1.79%	318.70%
GBT	64 Neutral	C$399.35M	9.15	8.73%	2.91%	-1.19%	-0.10%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%

Leon's Furniture Corporate Events

Leon’s Furniture to Announce Q1 2025 Financial Results

Leon’s Furniture Limited announced it will release its financial results for the first quarter of 2025 on May 8, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and market positioning, potentially impacting investor decisions and market perceptions.

Spark’s Take on TSE:LNF Stock

According to Spark, TipRanks’ AI Analyst, TSE:LNF is a Outperform.

Leon’s Furniture scores a 75.2, reflecting a strong financial performance with robust cash flows and a stable balance sheet. Despite technical indicators suggesting weak momentum, the company’s valuation appears attractive with a low P/E ratio and solid dividend yield. Positive corporate events, such as the share repurchase program and strategic expansions, further enhance its outlook, indicating confidence in long-term growth and shareholder value.

To see Spark’s full report on TSE:LNF stock, click here.

Leon’s Furniture Announces Share Repurchase Program

Leon’s Furniture Limited has announced the approval of a common share repurchase program on the Toronto Stock Exchange, allowing the company to repurchase up to 3,403,405 common shares, which represents 4.99% of its total issued and outstanding shares. The initiative, which includes an automatic share purchase plan with National Bank Financial Inc., is seen as a strategic move to capitalize on the attractive current share price, potentially enhancing shareholder value and reflecting confidence in the company’s financial position.

Leon’s Furniture to Engage at CIBC Retail Conference

Leon’s Furniture Limited announced its participation in the 28th Annual CIBC Retail and Consumer Conference on March 26, 2025, where it will engage in a fireside chat and one-on-one meetings. This involvement underscores the company’s active engagement with investors and stakeholders, potentially enhancing its industry positioning and investor relations.

Leon’s Furniture Reports Q4 2024 Financial Results Amid Sales Decline

Leon’s Furniture Limited reported its financial results for the fourth quarter of 2024, highlighting a 3.2% decrease in system-wide sales and a 2.9% drop in revenue due to overseas shipping delays affecting furniture inventory. Despite these challenges, the company achieved a 37.8% increase in adjusted net income, partly due to a one-time legal settlement gain, and maintained strong liquidity with $513.2 million available.