# Leon's Furniture Limited (LNF.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Specialty Retail. Price C$24.81, market value C$1.7 billion.

## Valuation
- **P/E (trailing): 10.8×** (5-yr avg 8.8×, 3-yr avg 10.2×). Leon's Furniture Limited trades at 10.8× trailing earnings, well above its own five-year average of 8.8×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 10.9×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 4.87**. A PEG of 4.87 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.3×**. Enterprise value is 5.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.2%** (5-yr avg 12.9%). Free cash flow equals 16.2% of the market value, above its five-year average of 12.9%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.3%**. The inverse of the P/E: 9.3% of the price is earned each year.

## Profitability
- **Gross margin: 42.8%**. Leon's Furniture Limited keeps 42.8% of revenue after the direct cost of what it sells.
- **Operating margin: 8.3%**. 8.3% of revenue is left after running the business.
- **Net margin: 6.1%**. 6.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.5%**. 12.5% on shareholders' equity is solid.
- **Return on invested capital: 12.1%**. Return on all capital, debt included, is 12.1%.
- **Return on assets: 6.4%**. Each dollar of assets produces 6.4% of profit.

## Growth
- **Revenue growth (1 yr): 3.0%** (3-yr 0.7%/yr, 5-yr 3.0%/yr). Revenue grew 3.0% over the last year, against 3.0% a year compounded over five years.
- **EPS growth (1 yr): 2.2%** (3-yr -4.5%/yr, 5-yr 2.8%/yr). Earnings per share rose 2.2%, roughly in step with revenue.

## Financial health
- **Debt to equity: 0.38**. Debt is 0.38 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.57** (quick 0.91). Current assets cover the next year's liabilities 1.57 times.
- **Altman Z-score: 3.05**. A Z-score of 3.05 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.87%** (C$1.46 per share, trailing). Leon's Furniture Limited yields 3.87%, an income-level yield.
- **Payout ratio: 36%** (35% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr -6.4%). The dividend has not grown over five years.
- **Shareholder yield: 4.1%**. Dividends plus net buybacks return 4.1% of the market value a year.

## Price and momentum
- **Total return (1 yr): -11.7%** (YTD -8.0%, 3-mo 1.8%). The shares are down 11.7% over twelve months including dividends.
- **From 52-week high: -17.9%** (6.8% above the low). Trading 18% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 0.33** (volatility 21%). Beta of 0.33 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.