# Loblaw Companies Limited (L.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Defensive / Food & Staples Retailing. Price C$63.31, market value C$73.2 billion.

## Valuation
- **P/E (trailing): 28.0×** (5-yr avg 9.8×, 3-yr avg 13.1×). Loblaw Companies Limited trades at 28.0× trailing earnings, well above its own five-year average of 9.8×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 21.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.1×**. Each dollar of revenue is priced at 1.1×.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.5×**. Enterprise value is 13.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.6%** (5-yr avg 28.7%). Free cash flow equals 6.6% of the market value, below its five-year average of 28.7%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 3.6%**. The inverse of the P/E: 3.6% of the price is earned each year.

## Profitability
- **Gross margin: 30.8%**. Loblaw Companies Limited keeps 30.8% of revenue after the direct cost of what it sells.
- **Operating margin: 7.0%**. 7.0% of revenue is left after running the business.
- **Net margin: 4.2%**. 4.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 24.2%**. 24.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 9.1%**. Return on all capital, debt included, is 9.1%.
- **Return on assets: 6.7%**. Each dollar of assets produces 6.7% of profit.

## Growth
- **Revenue growth (1 yr): 4.7%** (3-yr 4.2%/yr, 5-yr 3.9%/yr). Revenue grew 4.7% over the last year, against 3.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -68.2%** (3-yr -27.2%/yr, 5-yr -6.2%/yr). Earnings per share fell 68.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 8.8%/yr**. Free cash flow has compounded at 8.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.28**. Debt is 2.28 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 3.4×**. It would take 3.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 6.3×**. Operating profit covers interest 6.3× over, a safe margin.
- **Current ratio: 1.08** (quick 0.61). Current assets cover the next year's liabilities 1.08 times.
- **Altman Z-score: 3.74**. A Z-score of 3.74 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.98%** (C$0.58 per share, trailing). Loblaw Companies Limited yields 0.98%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 30%** (14% of free cash flow). 30% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 11.5%/yr** (1-yr 11.1%). The dividend has compounded at 11.5% a year over five years, doubling roughly every 6 years at that pace.
- **Shareholder yield: 4.0%**. Dividends plus net buybacks return 4.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): 12.6%** (YTD 2.5%, 3-mo -3.2%). The shares are up 12.6% over twelve months including dividends.
- **From 52-week high: -9.0%** (19.6% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): -0.10** (volatility 21%). Beta of -0.10 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=L.TO · Page: https://foliofundamentals.com/stocks/l.to

Not investment advice.