# Loblaw Companies (L.TO)

Canonical: https://gigainvestors.com/s/L.TO

Analysis as of: 2026-10-16T07:33:52.247Z. Financial observations: FY1996–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 69.00 per share; close as of 2026-10-15.

Estimated value: low CAD 14.30 per share, central CAD 16.27 per share, high CAD 18.90 per share. Buy at or below the central value CAD 16.27 per share. Valuation as of 2026-10-16T07:33:52.247Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.07×

- LTM to Jun 2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.4%

- ROIC, second-lowest year: 7.5%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 30.9%

- Recent gross margin (lower of latest and 3-year median): 31.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.5%

- FY2017: 8.5%

- FY2018: 7.8%

- FY2019: 7.3%

- FY2020: 8.0%

- FY2021: 10.9%

- FY2022: 11.1%

- FY2023: 12.0%

- FY2024: 12.1%

- FY2025: 10.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.60×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 6.5B

- Net income, five-year total: CAD 11B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.2 pp

- Working capital / revenue, final three-year average: 5.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.85×

- FY2022: 0.69×

- FY2023: 0.50×

- FY2024: 0.41×

- FY2025: 0.60×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.8% vs 12.0%

- Per-share earnings: 0.61 to 1.78 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.2%

- Ordinary dilution, 5-year annual growth: -3.1%

- Market cap gain: CAD 45B

- Cumulative retained earnings: CAD -140M

- Diluted shares, 10-year annual growth: -3.2%

- Diluted shares, 5-year annual growth: -3.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.4%

- Per-share value change: CAD 1.17

- Per-share value, starting three-year median: CAD 0.61

- Per-share value, ending three-year median: CAD 1.78

- Buybacks concentrated in cheaper years (correlation): 0.31

- Average buyback yield: 3.8%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 477M

- Cumulative net income, 10 years: CAD 16B

- ROIC, first three-year median: 7.8%

- ROIC, last three-year median: 12.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 0.61

- FY2017: CAD 0.99

- FY2018: CAD 0.52

- FY2019: CAD 0.75

- FY2020: CAD 0.80

- FY2021: CAD 1.39

- FY2022: CAD 1.47

- FY2023: CAD 1.67

- FY2024: CAD 1.78

- FY2025: CAD 2.24

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 0.22×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.18×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.87×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.4%

- FY2017: -4.8%

- FY2018: -5.8%

- FY2019: -7.9%

- FY2020: -11.4%

- FY2021: -8.1%

- FY2022: -7.4%

- FY2023: -9.1%

- FY2024: -8.9%

- FY2025: -7.6%

## Holders

## Price story

Price needs cash profits to grow 19.3% a year for ten years · sales +1.1%

Story as of 2026-10-16T09:59:58.051Z; price observation 2026-10-15.

Price needs cash profits to grow 19.3% a year for ten years

- 2025-07-24: Canadians shunning products hit by retaliatory tariffs, Loblaw CEO says ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/loblaw-reports-revenue-surge-customer-131549925.html))

- 2025-09-12: Loblaw Companies (TSX:L) Faces $500 Million Settlement Over Packaged Bread Price Fixing ([finance.yahoo.com](https://finance.yahoo.com/news/loblaw-companies-tsx-l-faces-174659339.html))

### Sales · FY2025–2026

sales +1.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CAD 47B 

- FY2018: CAD 47B 

- FY2019: CAD 48B 

- FY2020: CAD 53B 

- FY2021: CAD 53B 

- FY2022: CAD 57B 

- FY2023: CAD 60B 

- FY2024: CAD 61B 

- FY2025: CAD 64B 

- FY2026: CAD 65B 

### Gross margin · FY2025

gross margin 31.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 28.4% 

- FY2017: 29.4% 

- FY2018: 30.4% 

- FY2019: 30.7% 

- FY2020: 30.3% 

- FY2021: 31.5% 

- FY2022: 31.8% 

- FY2023: 32.0% 

- FY2024: 32.3% 

- FY2025: 31.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in grocery stores; annual sales are CAD 63.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2025: revenue 63903000000; grossProfit 19883000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); L.TO: Loblaw Companies Limited, a food and pharmacy company, provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, financial services, and wireless mobile products and services in Canada and the United States. It operates through 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, health care services, other health and beauty product stores, apparel stores, and other general merchandise stores. Its Financial Services segment provides credit card and banking services, the PC Optimum loyalty program, insurance brokerage services, and telecommunication services. The company offers PC Health app, which provides healthcare resources and support services; and outpatient physiotherapy, massage and occupational therapy, chiropractic, mental health, and other rehabilitation services. It sells its products and services under the President's Choice, PC, Life Brand, no name, Farmer's Market, and Joe Fresh brands through its hard discount format stores under the No Frills and Maxi brands; supermarket format stores under the Loblaws, Zehrs, Your Independent Grocer, Real Canadian Superstore, Real Atlantic Superstore, Provigo, City Market, brands; and stand-alone drug stores under the Shoppers Drug Mart and Pharmaprix brands. The company also operates T&T Supermarket stores serving Asian grocery markets; provides online grocery ordering and pickup services through PC Express; and offers banking and financial services through PC Financial. The company was founded in 1919 and is headquartered in Brampton, Canada. Loblaw Companies Limited is a subsidiary of George Weston Limited.

### Why customers stay

Margins ranged from 31.1% to 32.3% during 2023–25; it earns 9.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2023: grossProfit / revenue = 32%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2024: grossProfit / revenue = 32.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2025: grossProfit / revenue = 31.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); 10-year return on capital observations [[2016,0.07465374131462864],[2017,0.08514885720177011],[2018,0.07778642105918228],[2019,0.07313688696612461],[2020,0.08000351222195631],[2021,0.10932654984545684],[2022,0.11065815012934352],[2023,0.11965906806691438],[2024,0.12109543263531221],[2025,0.10274728072623729]]; median 0.0939480689640037. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 32% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); Gross margin observations: [[2021,0.31472634944517586],[2022,0.31813676907829536],[2023,0.3197937139881402]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 2.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2016: growth capex 0; upkeep 1224000000; owner earnings 1302000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2017: growth capex 0; upkeep 1259000000; owner earnings 1826000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2018: growth capex 0; upkeep 1334000000; owner earnings 1024000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2019: growth capex 0; upkeep 1193000000; owner earnings 590000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2020: growth capex 0; upkeep 1158000000; owner earnings 765800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2021: growth capex 0; upkeep 1182000000; owner earnings 1589200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2022: growth capex 0; upkeep 1571000000; owner earnings 1322000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2023: growth capex 0; upkeep 2072000000; owner earnings 1042400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2024: growth capex 0; upkeep 2200000000; owner earnings 900400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2025: growth capex 0; upkeep 1712000000; owner earnings 1606200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); Dividend observations: [[2016,425000000],[2017,327000000],[2018,440000000],[2019,460000000],[2020,580000000],[2021,484000000],[2022,529000000],[2023,562000000],[2024,459000000],[2025,812000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); FY2025: cash repurchases 2169000000 CAD.

### Are managers owners

Insiders own 53.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); L.TO SharesStats.PercentInsiders = 53.512 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.3% yearly over ten years; actual growth was 8.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:52.247Z); Ten-year compound average after fade. Initial solved rate 0.26755930713439724. Price 69; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5750121182743577 → FY2025 1.3520202020202021. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 16.53 per share

- 2016-11: CAD 17.44 per share

- 2016-12: CAD 17.70 per share

- 2017-01: CAD 17.09 per share

- 2017-02: CAD 17.30 per share

- 2017-03: CAD 18.03 per share

- 2017-04: CAD 19.14 per share

- 2017-05: CAD 19.08 per share

- 2017-06: CAD 18.02 per share

- 2017-07: CAD 16.96 per share

- 2017-08: CAD 16.92 per share

- 2017-09: CAD 17.01 per share

- 2017-10: CAD 16.63 per share

- 2017-11: CAD 16.97 per share

- 2017-12: CAD 17.04 per share

- 2018-01: CAD 16.65 per share

- 2018-02: CAD 16.47 per share

- 2018-03: CAD 16.26 per share

- 2018-04: CAD 16.31 per share

- 2018-05: CAD 16.75 per share

- 2018-06: CAD 16.89 per share

- 2018-07: CAD 17.18 per share

- 2018-08: CAD 16.86 per share

- 2018-09: CAD 16.58 per share

- 2018-10: CAD 16.45 per share

- 2018-11: CAD 15.32 per share

- 2018-12: CAD 15.28 per share

- 2019-01: CAD 15.91 per share

- 2019-02: CAD 16.39 per share

- 2019-03: CAD 16.48 per share

- 2019-04: CAD 16.41 per share

- 2019-05: CAD 17.34 per share

- 2019-06: CAD 16.76 per share

- 2019-07: CAD 17.12 per share

- 2019-08: CAD 18.22 per share

- 2019-09: CAD 18.87 per share

- 2019-10: CAD 17.56 per share

- 2019-11: CAD 17.90 per share

- 2019-12: CAD 16.75 per share

- 2020-01: CAD 17.31 per share

- 2020-02: CAD 16.63 per share

- 2020-03: CAD 18.14 per share

- 2020-04: CAD 17.13 per share

- 2020-05: CAD 17.04 per share

- 2020-06: CAD 16.53 per share

- 2020-07: CAD 17.37 per share

- 2020-08: CAD 16.85 per share

- 2020-09: CAD 17.43 per share

- 2020-10: CAD 16.58 per share

- 2020-11: CAD 16.05 per share

- 2020-12: CAD 15.70 per share

- 2021-01: CAD 15.44 per share

- 2021-02: CAD 15.33 per share

- 2021-03: CAD 17.55 per share

- 2021-04: CAD 17.06 per share

- 2021-05: CAD 18.44 per share

- 2021-06: CAD 19.07 per share

- 2021-07: CAD 21.10 per share

- 2021-08: CAD 22.22 per share

- 2021-09: CAD 21.73 per share

- 2021-10: CAD 23.27 per share

- 2021-11: CAD 24.08 per share

- 2021-12: CAD 25.91 per share

- 2022-01: CAD 24.52 per share

- 2022-02: CAD 24.72 per share

- 2022-03: CAD 28.05 per share

- 2022-04: CAD 29.38 per share

- 2022-05: CAD 29.17 per share

- 2022-06: CAD 29.02 per share

- 2022-07: CAD 29.14 per share

- 2022-08: CAD 29.02 per share

- 2022-09: CAD 27.35 per share

- 2022-10: CAD 27.91 per share

- 2022-11: CAD 30.35 per share

- 2022-12: CAD 29.93 per share

- 2023-01: CAD 29.80 per share

- 2023-02: CAD 29.15 per share

- 2023-03: CAD 30.79 per share

- 2023-04: CAD 31.86 per share

- 2023-05: CAD 29.67 per share

- 2023-06: CAD 30.32 per share

- 2023-07: CAD 29.25 per share

- 2023-08: CAD 29.33 per share

- 2023-09: CAD 28.85 per share

- 2023-10: CAD 28.36 per share

- 2023-11: CAD 29.25 per share

- 2023-12: CAD 32.07 per share

- 2024-01: CAD 33.59 per share

- 2024-02: CAD 36.16 per share

- 2024-03: CAD 37.53 per share

- 2024-04: CAD 37.74 per share

- 2024-05: CAD 39.58 per share

- 2024-06: CAD 39.68 per share

- 2024-07: CAD 42.56 per share

- 2024-08: CAD 43.97 per share

- 2024-09: CAD 45.02 per share

- 2024-10: CAD 44.01 per share

- 2024-11: CAD 45.43 per share

- 2024-12: CAD 47.29 per share

- 2025-01: CAD 45.50 per share

- 2025-02: CAD 47.36 per share

- 2025-03: CAD 50.42 per share

- 2025-04: CAD 55.95 per share

- 2025-05: CAD 57.88 per share

- 2025-06: CAD 56.31 per share

- 2025-07: CAD 56.02 per share

- 2025-08: CAD 56.09 per share

- 2025-09: CAD 53.83 per share

- 2025-10: CAD 55.74 per share

- 2025-11: CAD 62.00 per share

- 2025-12: CAD 62.05 per share

- 2026-01: CAD 61.27 per share

- 2026-02: CAD 63.22 per share

- 2026-03: CAD 63.42 per share

- 2026-04: CAD 62.62 per share

- 2026-05: CAD 61.67 per share

- 2026-06: CAD 64.34 per share

- 2026-07: CAD 65.81 per share

- 2026-08: CAD 60.64 per share

- 2026-09: CAD 62.20 per share

- 2026-10: CAD 63.93 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 6.55 per share, central CAD 7.48 per share, high CAD 8.63 per share

- FY2017: low CAD 7.94 per share, central CAD 9.03 per share, high CAD 10.35 per share

- FY2018: low CAD 7.81 per share, central CAD 9.02 per share, high CAD 10.46 per share

- FY2019: low CAD 8.38 per share, central CAD 9.83 per share, high CAD 11.41 per share

- FY2020: low CAD 9.71 per share, central CAD 10.96 per share, high CAD 12.62 per share

- FY2021: low CAD 10.49 per share, central CAD 11.79 per share, high CAD 13.53 per share

- FY2022: low CAD 10.96 per share, central CAD 12.38 per share, high CAD 14.28 per share

- FY2023: low CAD 9.66 per share, central CAD 10.91 per share, high CAD 12.57 per share

- FY2024: low CAD 10.32 per share, central CAD 11.64 per share, high CAD 13.40 per share

- FY2025: low CAD 13.76 per share, central CAD 15.65 per share, high CAD 18.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:38.978Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.