Leon's Furniture (LNF) AI Stock Analysis

• Market Cap: C$1.92B
• Dividend Yield: 2.78%
• Average Volume (3M): 17.86K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.62
• Revenue Growth: 0.47%
• EPS Growth: 9.41%
• Country: CA
• Employees: 8,381
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): 0.35
• Shares Outstanding: 68,229,324
• 10 Day Avg. Volume: 20,067
• 30 Day Avg. Volume: 17,860
• PEG Ratio: 3.90
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.82
• 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$29.75
• Price Target Upside: 5.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: C$32.00 ▲(13.96%Upside)

Leon's Furniture displays a robust financial performance, complemented by strategic corporate events that enhance shareholder value. However, technical analysis suggests caution due to overbought conditions, slightly tempering the overall score.

Positive Factors

Earnings

Q1/25 results were above expectations with stronger sales and margins contributing to an increase in adjusted EBITDA.

Financial Strategy

Leon's strong financial position with net cash and available liquidity provides optionality for dividend increases, share buybacks, and M&A.

Market Position

Leon's is well-positioned to manage near-term headwinds and gain share with its strong brand equity and value proposition.

Negative Factors

Consumer Spending

Tariff uncertainties present 2025E risk, introducing downside risk to consumer spending.

Tariff Impact

Tariff uncertainties introduce risk to 2025 expectations.

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, renovators, hotels, and property management companies. In addition, it offers household furniture, electronics, and appliance repair services; and credit insurance products. The company sells its products through a network of retail stores under the Leon's, The Brick, The Brick Outlet, and The Brick Mattress Store banners; and the Brick's Midnorthern Appliance and Appliance Canada banners, as well as through Websites, including appliancecanada.com, leons.ca, thebrick.com, and furniture.ca. As of December 31, 2021, the company operated 67 Brick franchise stores. Leon's Furniture Limited was founded in 1909 and is headquartered in Toronto, Canada.

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 has shown stable revenue growth, strong profitability, and prudent financial management across its income, balance sheet, and cash flow statements. EBIT margins have slightly decreased, but overall financial health remains robust.

Income Statement

Leon's Furniture has demonstrated stable revenue growth with a TTM revenue increase of 0.7% compared to the previous year. The gross profit margin stands strong at 43.5% for TTM, indicating effective cost management. Despite a slight decrease in EBIT margin to 7.9% from 8.0%, the net profit margin remains stable at 6.3%. Overall, the company maintains solid profitability levels.

Balance Sheet

The company shows a healthy financial position with a debt-to-equity ratio of 0.36, reflecting a moderate leverage level. The equity ratio is strong at 50.6%, indicating a stable capital structure. Return on equity is robust at 13.8%, highlighting effective use of shareholders' equity. The balance sheet remains resilient and well-managed.

Cash Flow

Leon's Furniture has achieved a positive free cash flow growth rate of 4.1% for TTM, supported by strong operating cash flows. The operating cash flow to net income ratio is 2.1, and the free cash flow to net income ratio is 1.8, indicating efficient cash generation capabilities. The company exhibits a solid cash flow performance.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.52B	2.50B	2.45B	2.52B	2.51B	2.22B
	Gross Profit
1.09B	1.11B	1.08B	1.11B	1.11B	983.92M
	EBIT
199.20M	191.84M	293.26M	254.74M	289.13M	232.97M
	EBITDA
328.73M	334.36M	318.45M	372.20M	409.14M	344.19M
	Net Income Common Stockholders
158.67M	153.67M	138.85M	179.43M	207.16M	163.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
281.93M	325.41M	187.15M	225.96M	489.95M	490.83M
	Total Assets
2.28B	2.34B	2.22B	2.19B	2.45B	2.42B
	Total Debt
415.54M	425.55M	453.93M	557.23M	456.25M	491.14M
	Net Debt
276.48M	234.31M	371.18M	442.10M	74.12M	122.51M
	Total Liabilities
1.13B	1.20B	1.19B	1.26B	1.66B	1.40B
	Stockholders Equity
1.15B	1.14B	1.03B	928.88M	791.19M	1.02B
Cash Flow		Free Cash Flow
280.75M	285.16M	208.69M	-13.54M	297.36M	466.94M
	Operating Cash Flow
341.01M	344.97M	253.31M	14.30M	313.75M	511.42M
	Investing Cash Flow
-69.69M	-67.88M	-5.45M	-36.70M	16.21M	-43.07M
	Financing Cash Flow
-180.08M	-168.60M	-280.25M	-244.60M	-316.46M	-188.75M

Leon's Furniture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 28.08 is above the 20-day moving average (MA) of 26.95, above the 50-day MA of 24.53, and above the 200-day MA of 25.92, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 63.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTC	76 Outperform	$9.96B	16.07	14.70%	2.70%	-1.12%	201.58%
LNF	73 Outperform	C$1.92B	12.06	14.49%	2.78%	0.47%	9.41%
GBT	65 Neutral	C$416.94M	14.16	5.95%	2.79%	5.97%	174.18%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%

Leon's Furniture Corporate Events

Leon’s Furniture Limited Announces Election of Directors

Leon’s Furniture Limited announced the election of its directors during the Annual Meeting of Common Shareholders held on May 8, 2025. All nominee directors listed in the Management Information Circular were elected, indicating strong shareholder support and continuity in leadership, which could positively impact the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (TSE:LNF) stock is a Hold with a C$30.00 price target. To see the full list of analyst forecasts on Leon’s Furniture stock, see the TSE:LNF Stock Forecast page.

Leon’s Furniture Achieves Record Q1 Revenue Amid Strong Furniture Sales

Leon’s Furniture Limited reported record Q1 revenue of $579.5 million, a 3.1% increase driven by strong performance in the furniture category and commercial appliance business. The company achieved a 47% increase in adjusted net income, reflecting its commitment to cost control and operational efficiencies. Despite macroeconomic challenges, LFL is well-positioned with $469.7 million in unrestricted liquidity to navigate market headwinds and continue delivering reliable returns to shareholders.

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.

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.