Loblaw Companies (L) AI Stock Analysis

• Market Cap: $64.43B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.43
• Revenue Growth: 3.26%
• EPS Growth: 22.10%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.60
• Shares Outstanding: 1,187,155,800
• 10 Day Avg. Volume: 1,196,640
• 30 Day Avg. Volume: 1,166,751
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 11.68
• 1Y Price Target: $61.13
• Price Target Upside: 10.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: C$63.00 ▲(13.57% Upside)

Loblaw Companies' strong financial performance and positive earnings call are the most significant factors driving the score. However, the high valuation and mixed technical indicators temper the overall outlook. Continued focus on operational efficiency and strategic growth initiatives will be crucial for sustaining momentum.

Positive Factors

Negative Factors

Loblaw Companies Business Overview & Revenue Model

Company Description

Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada. It operates in two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores. This segment also includes in-store pharmacies, other health and beauty product stores, apparel stores, and other general merchandise stores. The Financial Services segment provides credit card and banking services, the PC Optimum program, insurance brokerage services, and telecommunication services. It also offers PC Health app, a health and wellness app that provides Canadians with access to healthcare resources and support. Loblaw Companies Limited provides its products and services under various brands. The company was founded in 1919 and is headquartered in Brampton, Canada. Loblaw Companies Limited operates as a subsidiary of George Weston Limited.

How the Company Makes Money

Loblaw generates revenue primarily through the sale of food and pharmacy products across its extensive network of retail locations. The company operates a multi-channel revenue model, including brick-and-mortar stores and e-commerce platforms, which allows it to capture a broad customer base. Key revenue streams include the sale of grocery items, pharmacy prescriptions, and health and beauty products. Additionally, Loblaw benefits from its private label offerings, which typically have higher margins compared to national brands. The company also earns revenue from loyalty programs, such as PC Optimum, which drives customer engagement and repeat purchases. Strategic partnerships with suppliers and manufacturers further enhance its product offerings and pricing competitiveness, contributing to overall earnings.

Loblaw Companies Financial Statement Overview

Summary

Loblaw Companies demonstrates strong financial performance with consistent revenue growth, solid profitability, and efficient cash flow generation. The company maintains healthy margins and returns on equity, though moderate leverage requires careful management.

Income Statement

Loblaw Companies has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.18%. The company maintains strong profitability with a gross profit margin of 32.29% and a net profit margin of 3.96%. EBIT and EBITDA margins are also healthy at 6.97% and 11.63%, respectively, indicating efficient operations. The steady improvement in margins over the years reflects effective cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 1.77, indicating a moderate level of leverage. Return on equity is robust at 22.23%, showcasing effective utilization of shareholder funds to generate profits. The equity ratio is stable, reflecting a balanced capital structure. However, the increasing debt levels over the years could pose potential risks if not managed carefully.

Cash Flow

Loblaw Companies exhibits strong cash flow generation with a TTM free cash flow growth rate of 3.82%. The operating cash flow to net income ratio of 0.54 and free cash flow to net income ratio of 0.66 indicate solid cash conversion efficiency. The consistent growth in free cash flow over the years highlights the company's ability to generate cash to support operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.29B	61.01B	59.53B	56.50B	53.17B	52.71B
Gross Profit	20.11B	19.73B	19.04B	17.98B	16.73B	15.99B
EBITDA	7.25B	6.90B	6.64B	6.17B	5.79B	4.96B
Net Income	2.47B	2.17B	2.10B	1.92B	1.88B	1.11B
Balance Sheet
Total Assets	40.45B	40.88B	38.98B	38.15B	36.61B	35.87B
Cash, Cash Equivalents and Short-Term Investments	1.90B	2.11B	1.95B	1.93B	2.44B	1.94B
Total Debt	19.52B	19.18B	18.17B	17.61B	16.55B	16.61B
Total Liabilities	29.25B	29.61B	27.36B	26.69B	24.88B	24.75B
Stockholders Equity	11.03B	11.09B	11.46B	11.30B	11.57B	10.99B
Cash Flow
Free Cash Flow	3.89B	3.60B	3.58B	3.18B	3.65B	4.03B
Operating Cash Flow	5.86B	5.80B	5.65B	4.75B	4.83B	5.19B
Investing Cash Flow	-2.04B	-2.02B	-1.84B	-2.37B	-1.27B	-1.38B
Financing Cash Flow	-4.15B	-3.82B	-3.93B	-2.75B	-3.25B	-3.28B

Loblaw Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.47
• 50DMA: Negative
• 100DMA: Negative
• 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:L, the sentiment is Positive. The current price of 55.47 is below the 20-day moving average (MA) of 55.74, below the 50-day MA of 56.00, and above the 200-day MA of 51.61, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 45.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:L.

Loblaw Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
L	73 Outperform	$64.43B	26.62	21.77%	1.66%	3.26%	22.10%
MRU	69 Neutral	20.30B	20.19	13.23%	1.54%	2.26%	12.56%
EMP.A	69 Neutral	11.47B	16.36	12.94%	1.65%	1.96%	9.26%
NWC	64 Neutral	2.34B	16.85	17.84%	3.27%	3.04%	4.17%
SAP	63 Neutral	13.80B	-95.41	-2.30%	2.30%	7.58%	-155.93%
WN	63 Neutral	32.74B	32.22	19.06%	1.34%	3.21%	-12.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Loblaw Companies Corporate Events

Loblaw Completes Four-For-One Stock Split

Loblaw Companies Limited has completed a four-for-one stock split of its common shares, effective as of August 19, 2025. This move, executed through a stock dividend, is expected to enhance the liquidity of Loblaw’s shares and potentially broaden its investor base, reflecting the company’s strategic efforts to strengthen its market position.

The most recent analyst rating on (TSE:L) stock is a Buy with a C$261.00 price target. To see the full list of analyst forecasts on Loblaw Companies stock, see the TSE:L Stock Forecast page.