Loblaw Companies Limited (L.TO) stock analysis

In our weekly check, Loblaw Companies Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Loblaw Companies Limited

Loblaw Companies Limited is a Consumer Defensive company (Grocery Stores) based in Canada, listed on TSX as L.TO.

What our checks show for L.TO

Red flags

• The net margin is only 4.3%: little room if costs rise.
• Recovering from its deepest fall took about 5.6 years.
• The share count grew by 275% in 2 years: each shareholder owns a smaller slice.

Warning signs

• Net debt is 2.2x a year of EBITDA (debt/equity 1.51). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 3.5% a year of growth in revenue.
• Revenue grew only 4.6% a year over the last 3 years.
• Earnings per share fell 25.7% a year over the last 3 years.
• The stock has fallen as much as 50% from a peak. Would you have held through that?

Strengths

• The net margin rose by 0.8 points over 5 years, to 4.3%.
• Operating cash flow is 2.34x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.1% a year over the next years.
• Net profit grew 13.3% a year over the last 3 years.
• The dividend takes 24% of profit: there is a cushion.
• A large company: market value $56.69 billion.

Next earnings report: 2026-11-19

Similar companies

WOW.AX · WN.TO · KR · DNP.WA · SHP.JO · TSCO.L

Questions

What grade does Loblaw Companies Limited (L.TO) have?

In our weekly check, Loblaw Companies Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of L.TO stock?

This week's biggest flags for Loblaw Companies Limited: Thin margins, Slow recovery after falls, Share dilution. In total 8 of 25 checks show a warning or a red flag.

What does Loblaw Companies Limited do?

Loblaw Companies Limited is a Consumer Defensive company (Grocery Stores) based in Canada, listed on TSX as L.TO.

When does Loblaw Companies Limited report earnings next?

The next earnings report is expected on 2026-11-19. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis