Daily Stock Analysis: Leon's Furniture (LEFUF)

Leon's Furniture Ltd, ticker symbol LEFUF, is a small cap member of the consumer cyclical sector as a specialty retail firm. This is my first report on Leon's Furniture Ltd for this Vista folio or any of my other five folios for that matter.

Leon's Furniture  is a Canada-based retailer that operates in two main segments, both involved in the sale of home furnishing, mattresses, appliances, and electronics. The Leon's segment includes the 86 physical stores nationwide and the leons.ca website. The Brick segment includes The Brick, The Brick Mattress, and the Brick Outlet stores, as well as the website thebrick.com. It operates 304 retail stores.

The company also provides after-sales service for appliances through its TransGlobal Services subsidiary. TGS offers installment and repair services to both Leon's and The Brick customers. The firm is also the country's commercial retailer of appliances to builders, developers, hotels, and property management companies.

Leon's Furniture Limited was founded in 1909 and is headquartered in Toronto, Canada.

Three key data points gauge dividend equities or funds like LEFUF:(1) Price (2) Dividends (3) Returns. Those three basic keys best tell whether a company has made, is making, and will make money. 

LEFUF Price

Leon's price per share closed at $17.33 yesterday. One year ago its price was $7.55.  Thus, price per share has grown 129.5% as it  recovered from last-year's Covid market slump. 

Should Leon's Furniture Ltd stock trade in the range of $10 to $20.00 this next year, its recent $17.33 price might rise by $1.17 to reach $18.50 by May 13, 2022. My estimate is based on the LEFUF average annual price increase over the past five years.

LEFUF Dividends

Leon's most recent quarterly dividend of $0.1262 was paid April 8th and equates to $0.50 annually and yields 2.91% at yesterday's $17.33 closing price.  Leon's Furniture Ltd has paid variable quarterly dividends (generally increasing annually) for 18 years. 

LEFUF Returns

Adding the $0.50 annual Leon's Furniture Ltd forward looking dividend to my $1.17 price upside estimate shows a $1.67 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little over $1,000.00 today in Leon's Furniture Ltd at $17.33 per share, we'd buy 58 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $1.67 gross gain per share results in a net gain of $1.50 X 58 shares = $87.00. for an 8.7% net gain on a $1,005.14 investment.

So it is that Leon's Furniture Ltd shows a possible 8.7% net gain including a 2.91% forward looking dividend yield. 

Over the next year at this time a $1000 investment in LEFUF could generate $29.10 in cash dividends. And a single share bought at yesterday's closing price was about $17.33! So, if LEFUF is your kind of specialty retail investment, Leon's Furniture Ltd is showing share price 40% below the expected annual dividend income from $1,000 invested. This suggests now is a good time to add Leon's Furniture Ltd to your holdings. 

All of the estimates above are speculation based on the past history of Leon's Furniture Ltd (LEFUF).  Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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