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Leon's Furniture (TSE:LNF)
:LNF
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Leon's Furniture (LNF) AI Stock Analysis

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TSE:LNF

Leon's Furniture

(TSX:LNF)

Rating:73Outperform
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 (LNF) vs. iShares MSCI Canada ETF (EWC)

Leon's Furniture Business Overview & Revenue Model

Company DescriptionLeon'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 MoneyLeon'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
78
Positive
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
75
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.50B2.45B2.52B2.51B2.22B
Gross Profit1.11B1.08B1.11B1.11B983.92M
EBITDA334.36M318.45M372.20M409.14M344.19M
Net Income153.67M138.85M179.43M207.16M163.25M
Balance Sheet
Total Assets2.34B2.22B2.19B2.45B2.42B
Cash, Cash Equivalents and Short-Term Investments325.41M187.15M225.96M489.95M490.83M
Total Debt425.55M453.93M557.23M456.25M491.14M
Total Liabilities1.20B1.19B1.26B1.66B1.40B
Stockholders Equity1.14B1.03B928.88M791.19M1.02B
Cash Flow
Free Cash Flow285.16M208.69M-13.54M297.36M466.94M
Operating Cash Flow344.97M253.31M14.30M313.75M511.42M
Investing Cash Flow-67.88M-5.45M-36.70M16.21M-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 Price27.46
Price Trends
50DMA
27.34
Positive
100DMA
25.22
Positive
200DMA
25.55
Positive
Market Momentum
MACD
0.09
Positive
RSI
50.47
Neutral
STOCH
42.06
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$447.18M15.195.95%2.60%5.97%174.18%
73
Outperform
C$1.87B11.7914.49%2.89%0.47%9.41%
62
Neutral
AU$2.94B27.574.69%4.92%2.31%-33.21%
$7.73B17.1714.70%0.02%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LNF
Leon's Furniture
27.68
3.56
14.76%
TSE:GBT
BMTC Group Inc.
13.84
0.93
7.20%
CDNTF
Canadian Tire
191.26
38.61
25.29%

Leon's Furniture Corporate Events

Financial Disclosures
Leon’s Furniture to Announce Q2 2025 Financial Results
Neutral
Jul 7, 2025

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.

Executive/Board ChangesShareholder Meetings
Leon’s Furniture Limited Announces Election of Directors
Positive
May 14, 2025

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.

Business Operations and StrategyFinancial Disclosures
Leon’s Furniture Achieves Record Q1 Revenue Amid Strong Furniture Sales
Positive
May 8, 2025

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.

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.Date of analysis: Jun 05, 2025