L Stock Analysis: Loblaw Companies | TO
Grocery Stores | TO, Canada | Market Cap: 79.644m CAD | 12M Return: 26.2% | CA5394811015 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 83.5M
EPS Trend: -50.4%
Qual. Beats: 1
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Loblaw Companies Limited is a Canadian food and pharmacy retailer with businesses in grocery, drugstores, healthcare, apparel, general merchandise and financial services. Its Retail segment includes corporate, franchise and associate-operated stores, while Financial Services offers banking, credit cards, insurance brokerage, loyalty and telecommunications services.
The company serves customers through banners such as No Frills, Loblaws, Real Canadian Superstore and Shoppers Drug Mart, as well as online grocery services and the PC Optimum loyalty program. Food retail is a consumer staples business, while Loblaw’s mix of grocery and pharmacy operations connects everyday shopping with health and wellness services.
- Grocery market-share gains support sales despite price-conscious consumers
- Shoppers Drug Mart growth faces pharmacy reimbursement and wage pressures
- Grocery competition rules and price scrutiny threaten margins
| Net Income: 2.79b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.86 > 1.0 |
| NWC/Revenue: 1.32% < 20% (prev 5.83%; Δ -4.51% < -1%) |
| CFO/TA 0.16 > 3% & CFO 6.53b > Net Income 2.79b |
| Net Debt (26.2b) to EBITDA (7.20b): 3.64 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.17b) vs 12m ago -2.83% < -2% |
| Gross Margin: 30.79% > 18% (prev 32.29%; Δ -1.50% > 0.5%) |
| Asset Turnover: 157.3% > 50% (prev 154.0%; Δ 3.31% > 0%) |
| Interest Coverage Ratio: 6.36 > 6 (EBIT TTM 4.52b / Interest Expense TTM 711.0m) |
| A: 0.02 (Total Current Assets 14.7b - Total Current Liabilities 13.9b) / Total Assets 41.7b |
| B: 0.11 (Retained Earnings 4.79b / Total Assets 41.7b) |
| C: 0.11 (EBIT TTM 4.52b / Avg Total Assets 41.1b) |
| D: 0.36 (Book Value of Equity 11.0b / Total Liabilities 30.6b) |
| Altman-Z'' = 1.62 = BB |
| DSRI: 0.27 (Receivables 1.49b/5.34b, Revenue 64.6b/62.3b) |
| GMI: 1.05 (GM 32.29% / 30.79%) |
| AQI: 0.96 (AQ_t 0.25 / AQ_t-1 0.26) |
| SGI: 1.04 (Revenue 64.6b / 62.3b) |
| TATA: -0.09 (NI 2.79b - CFO 6.53b) / TA 41.7b) |
| Beneish M = -3.59 (Cap -4..+1) = AAA |
As of November 03, 2026, the stock is trading at CAD 69.63 with a total of 724,699 shares traded. Over the past week, the price has changed by +1.03%, over one month by +12.02%, over three months by +6.88% and over the past year by +26.17%.
Current recommended Stop Loss: 66.10 (which is 5.1% or 2.6 ATR below the current price).
Loblaw Companies has no consensus analysts rating.
P/E Trailing = 31.045
P/E Forward = 25.3165
P/S = 1.2239
P/B = 7.2352
P/EG = 2.8795
Revenue TTM = 64.6b CAD
EBIT TTM = 4.52b CAD
EBITDA TTM = 7.20b CAD
Long Term Debt = 5.91b CAD (from longTermDebt, last quarter)
Short Term Debt = 1.62b CAD (from shortTermDebt, last quarter)
Debt = 27.2b CAD (from shortLongTermDebtTotal, last quarter) + Leases 10.7b
Net Debt = 26.2b CAD (calculated: Debt 27.2b - CCE 1.01b)
Enterprise Value = 106b CAD (79.6b + Debt 27.2b - CCE 1.01b)
Interest Coverage Ratio = 6.36 (Ebit TTM 4.52b / Interest Expense TTM 711.0m)
EV/FCF = 22.13x (Enterprise Value 106b / FCF TTM 4.78b)
FCF Yield = 4.52% (FCF TTM 4.78b / Enterprise Value 106b)
FCF Margin = 7.40% (FCF TTM 4.78b / Revenue TTM 64.6b)
Net Margin = 4.32% (Net Income TTM 2.79b / Revenue TTM 64.6b)
Gross Margin = 30.79% ((Revenue TTM 64.6b - Cost of Revenue TTM 44.7b) / Revenue TTM)
Gross Margin QoQ = 32.18% (prev 31.33%)
Tobins Q-Ratio = 2.54 (Enterprise Value 106b / Total Assets 41.7b)
Interest Expense / Debt = 2.61% (Interest Expense 711.0m / Debt 27.2b)
Taxrate = 29.09% (1.10b / 3.79b)
NOPAT = 3.21b (EBIT 4.52b * (1 - 29.09%))
Current Ratio = 1.06 (Total Current Assets 14.7b / Total Current Liabilities 13.9b)
Debt / Equity = 2.48 (Debt 27.2b / totalStockholderEquity, last quarter 11.0b)
Debt / EBITDA = 3.64 (Net Debt 26.2b / EBITDA 7.20b)
Debt / FCF = 5.48 (Net Debt 26.2b / FCF TTM 4.78b)
Total Stockholder Equity = 11.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.80% (Net Income 2.79b / Total Assets 41.7b)
RoE = 25.25% (Net Income TTM 2.79b / Total Stockholder Equity 11.1b)
RoCE = 26.63% (EBIT 4.52b / Capital Employed (Equity 11.1b + L.T.Debt 5.91b))
RoIC = 11.27% (NOPAT 3.21b / Invested Capital 28.4b)
WACC = 2.91% (E(79.6b)/V(107b) * Re(3.27%) + D(27.2b)/V(107b) * Rd(2.61%) * (1-Tc(0.29)))
Discount Rate = 3.27% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 3.54%
Shares (quarterly) Correlation: -98.19 | Cagr: -2.83%
[DCF] Terminal Value 77.97% ; FCFF base≈4.43b ; Y1≈5.07b ; Y5≈7.47b
[DCF] Fair Price = 74.53 (EV 112b - Net Debt 26.2b = Equity 86.1b / Shares 1.16b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -50.37 | EPS CAGR: -9.85% | SUE: 1.27 | # QB: 1
Revenue Correlation: 99.11 | Revenue CAGR: 3.47% | SUE: -0.10 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.74 | Chg30d=-0.70% | Revisions=-67% | Analysts=8
EPS current Year (2026-12-31): EPS=2.55 | Chg30d=-0.48% | Revisions=-50% | GrowthEPS=+5.0% | GrowthRev=+1.0%
EPS next Year (2027-12-31): EPS=2.89 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+11.6% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: -59% (up=2, down=12)