Leon's Furniture (LNF) AI Stock Analysis

• Market Cap: C$1.87B
• Dividend Yield: 2.89%
• Average Volume (3M): 9.34K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.48
• Revenue Growth: 0.47%
• EPS Growth: 9.41%
• Country: CA
• Employees: 8,381
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Specialty Retail
• EPS (TTM): 0.35
• Shares Outstanding: 68,271,720
• 10 Day Avg. Volume: 9,094
• 30 Day Avg. Volume: 9,339
• PEG Ratio: 3.82
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.69
• 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: 8.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: C$32.00 ▲(16.53%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

Financial Performance

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.

Trade Policy

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, appliances, and electronics across its extensive network of retail locations and online platform. The company's revenue streams are diversified across its corporate-owned stores, franchise operations, and e-commerce sales. Leon's benefits from economies of scale due to its large market presence, allowing it to negotiate favorable terms with suppliers and offer competitive pricing to customers. Additionally, Leon's has developed strong relationships with various vendors and manufacturers, enhancing its product offerings and inventory management. The company also leverages financing options and promotional events to drive sales, further contributing to its revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.45B	2.52B	2.51B	2.22B
Gross Profit	1.11B	1.08B	1.11B	1.11B	983.92M
EBITDA	334.36M	318.45M	372.20M	409.14M	344.19M
Net Income	153.67M	138.85M	179.43M	207.16M	163.25M
Balance Sheet
Total Assets	2.34B	2.22B	2.19B	2.45B	2.42B
Cash, Cash Equivalents and Short-Term Investments	325.41M	187.15M	225.96M	489.95M	490.83M
Total Debt	425.55M	453.93M	557.23M	456.25M	491.14M
Total Liabilities	1.20B	1.19B	1.26B	1.66B	1.40B
Stockholders Equity	1.14B	1.03B	928.88M	791.19M	1.02B
Cash Flow
Free Cash Flow	285.16M	208.69M	-13.54M	297.36M	466.94M
Operating Cash Flow	344.97M	253.31M	14.30M	313.75M	511.42M
Investing Cash Flow	-67.88M	-5.45M	-36.70M	16.21M	-43.07M
Financing Cash Flow	-168.60M	-280.25M	-244.60M	-316.46M	-188.75M

Leon's Furniture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 27.46 is below the 20-day moving average (MA) of 27.51, above the 50-day MA of 27.34, and above the 200-day MA of 25.55, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 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
GBT	74 Outperform	C$447.18M	15.19	5.95%	2.60%	5.97%	174.18%
LNF	73 Outperform	C$1.87B	11.79	14.49%	2.89%	0.47%	9.41%
Sector *	62 Neutral	AU$2.94B	27.57	4.69%	4.92%	2.31%	-33.21%
CDNTF	―	$7.73B	17.17	14.70%	0.02%	―	―

Leon's Furniture Corporate Events

Leon’s Furniture to Announce Q2 2025 Financial Results

Leon’s Furniture Limited announced it will release its financial results for the second quarter of 2025 on August 7, 2025. This announcement underscores the company’s ongoing transparency and commitment to keeping stakeholders informed about its financial performance, which is crucial for maintaining its industry-leading position in the Canadian retail market.

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 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.