Loblaw Writting Sample
Loblaw Companies Limited (L C$33.33, TSX) 12th April 2012
Industry: Food Retail Prepared by:
Recommendation: Hold
Recommendation: Hold Market Data | Current Price | CAD 33.33 | 52-week Range | 42.27-32.61 | Market Cap (millions) | 9378.5 | No: of Shares (millions) | 281.37 | Dividend Yield | 2.18% | Beta | 0.27 | Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada’s largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. The company had revenues of over $31 Billion in 2011. Loblaw operates in two segments: Retail and Financial Services. The Retail segment consists primarily of food and also includes drugstore, apparel and other general merchandise. The Financial Services segment includes core banking, credit card and auto & home insurance services. Loblaw’s Brands are: * Presidents Choice * No Name * Joe Fresh * PC Financial Investment Case | 2011 Q4 | 2010 Q4 | Growth(YOY) | Revenue | 7373 | 7119 | 3.56% | EBITDA | 485 | 471 | 2.97% | Net Earnings | 174 | 165 | 5.45% | Basic EPS per share | 0.62 | 0.59 | 5.08% | Same store sales growth | 2.5% | (1.6%) | | Financial highlights of 2011 Q4 Results
Financial highlights of 2011 Q4 Results
We maintain our hold rating on the stock with a target price of $38 based on our intrinsic valuation calculation using discounted cash flow. We arrive at our number assuming flat growth rate in top-line and believe that the scope of earning growth from margin improvement and
Industry: Food Retail Prepared by:
Recommendation: Hold
Recommendation: Hold Market Data | Current Price | CAD 33.33 | 52-week Range | 42.27-32.61 | Market Cap (millions) | 9378.5 | No: of Shares (millions) | 281.37 | Dividend Yield | 2.18% | Beta | 0.27 | Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada’s largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. The company had revenues of over $31 Billion in 2011. Loblaw operates in two segments: Retail and Financial Services. The Retail segment consists primarily of food and also includes drugstore, apparel and other general merchandise. The Financial Services segment includes core banking, credit card and auto & home insurance services. Loblaw’s Brands are: * Presidents Choice * No Name * Joe Fresh * PC Financial Investment Case | 2011 Q4 | 2010 Q4 | Growth(YOY) | Revenue | 7373 | 7119 | 3.56% | EBITDA | 485 | 471 | 2.97% | Net Earnings | 174 | 165 | 5.45% | Basic EPS per share | 0.62 | 0.59 | 5.08% | Same store sales growth | 2.5% | (1.6%) | | Financial highlights of 2011 Q4 Results
Financial highlights of 2011 Q4 Results
We maintain our hold rating on the stock with a target price of $38 based on our intrinsic valuation calculation using discounted cash flow. We arrive at our number assuming flat growth rate in top-line and believe that the scope of earning growth from margin improvement and