Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Leon's Furniture Limited (LNF.TO)

Company Dividend Discount ModelIndustry: Specialty RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$26.07 - $41.29$33.02
Multi-Stage$35.89 - $39.34$37.58
Blended Fair Value$35.30
Current Price$28.84
Upside22.39%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.08%5.93%0.730.630.652.480.650.630.560.480.420.41
YoY Growth--15.93%-2.67%-73.72%280.79%3.05%13.49%15.03%15.81%0.65%0.48%
Dividend Yield--3.10%2.82%3.76%11.10%2.83%4.68%3.84%2.88%2.49%2.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)173.81
(-) Cash Dividends Paid (M)54.57
(=) Cash Retained (M)119.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34.7621.7313.04
Cash Retained (M)119.24119.24119.24
(-) Cash Required (M)-34.76-21.73-13.04
(=) Excess Retained (M)84.4897.51106.20
(/) Shares Outstanding (M)68.6768.6768.67
(=) Excess Retained per Share1.231.421.55
LTM Dividend per Share0.790.790.79
(+) Excess Retained per Share1.231.421.55
(=) Adjusted Dividend2.022.212.34
WACC / Discount Rate8.66%8.66%8.66%
Growth Rate0.83%1.83%2.83%
Fair Value$26.07$33.02$41.29
Upside / Downside-9.60%14.48%43.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)173.81177.00180.24183.54186.90190.33196.04
Payout Ratio31.40%43.12%54.84%66.56%78.28%90.00%92.50%
Projected Dividends (M)54.5776.3298.84122.16146.31171.30181.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.66%8.66%8.66%
Growth Rate0.83%1.83%2.83%
Year 1 PV (M)69.5470.2370.92
Year 2 PV (M)82.0783.7185.36
Year 3 PV (M)92.4495.2198.05
Year 4 PV (M)100.88104.94109.12
Year 5 PV (M)107.62113.07118.73
PV of Terminal Value (M)2,011.742,113.502,219.33
Equity Value (M)2,464.292,580.662,701.51
Shares Outstanding (M)68.6768.6768.67
Fair Value$35.89$37.58$39.34
Upside / Downside24.43%30.31%36.41%

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