AUS
NZ
UK
CA
USA
IND
Summary
- Loblaw’s stock delivers positive return on equity of 12.07 per cent and offers its shareholders a quarterly cash dividend of C$ 0.335.
- Loblaw reported revenue of C$ 15.67 billion in the third quarter of 2020, a C$ 1 billion increase YoY.
- Goodfood Market’s stock has swelled over 175 per cent year-to-date.
- Goodfood’s active subscribers touched 280,000 mark as of August 31, 2020, a 40 per cent surge YoY.
The consumer sector has been one of the best performing segments this year amid the pandemic. That is largely because shoppers flocked to stockpile consumer goods as lockdowns were imposed countrywide. The results reflected in their earnings and stock growth, which clearly outperformed the markets. As we enter the holiday season 2020, more customers are expected to buy online amid the resurgence of COVID-19 cases. Doorstep delivery are also likely to see a surge.
In these evolving circumstances, let us look at two Toronto Stock Exchange-listed consumer stocks that have defied the coronavirus woes: Loblaw Companies Limited (TSX:L) and Goodfood Market Corp (TSX:FOOD). Both these consumer stocks operate in food, health, hygiene, and wellness categories.
Loblaw Companies Limited (TSX:L)
Ontario-based Loblaw is one of Canada's leading consumer companies with retail, grocery, pharmacy, and general merchandise chains. The company operates top brands include Loblaws, No Frills, and Maxi. Shoppers Drug Mart is its pharmaceutical operations wing.
Loblaw’s Stock Performance
Stocks of Loblaw have rebounded by 13.67 per cent since the pandemic-led crash on March 13. In the last six months, the stock has been trading flat.
The retailer’s current market capitalization stands at C$ 23.852 billion. Its price-to-book ratio is 2.201, and the price-to-cashflow ratio is 5.30. Its current debt-to-equity ratio is 1.57, as per data available on the TMX website.
The stock delivers a positive return on equity of 12.07 per cent, and a positive return on assets of 3.74%. Loblaw’s current price-to-earnings ratio is 18.70, and its price-to-cashflow ratio is 5. The current earnings per share stand at C$ 3.53.
The company pays its shareholders a quarterly dividend of C$ 0.335. It has a current dividend yield of 1.982 per cent. The consumer stock’s three-year dividend growth is 5.82 per cent and its five-year dividend growth is 5.03 per cent.
Loblaw’s Financials
In the third quarter of 2020, the company reported a revenue of C$ 15.67 billion, a C$ 1 billion increase from $14.66 billion in the third quarter of 2019.
Loblaw increased its quarterly dividend by two cents to 33.5 cents per share from 31.5 cents per share. The consumer giant posted a profit of C$ 342 million, up from C$ 331 million in Q3 2019.
The stock is currently trading at C$ 67.6.
Goodfood Market Corp. (TSX:FOOD)
Montreal-based Goodfood Market Corp delivers food kits with fresh ingredients that help its subscribers to prepare delightful meals at home. The customers can select their favourite recipes from its website i.e. makegoodfood.ca.
The company recently unveiled key customer-centric programs comprising same-day delivery operations Goodfood WOW and expanded Goodcourier to enhance last-mile delivery.
Goodfood’s active subscribers touched 280,000 mark as of August 31, 2020, an addition of new 80,000 users, or 40 per cent, compared to the last fiscal year.
Goodfood’s Stock Performance
Stocks of Goodfood have gained a nearly 348 per cent growth since the pandemic-led crash on March 14. The food stock has swelled over 175 per cent year-to-date. In the last six months, the consumer stock has surged by 92.53 per cent.
The ingredient retailer’s current market capitalization stands at C$ 571 million. Its price-to-book ratio is 32.73, and the price-to-cashflow ratio is 141.10. Its current debt-to-equity ratio is 4.03, as per data available on the TMX website.
Goodfood’s Financial Highlights
The food retailer reported a record-high adjusted EBITDA with an increase of 11.6 per cent YoY.
Goodfood posted revenues of C$ 285.4 million for the fiscal year, an annual surge of C$ 124.0 million, or 77 per cent growth year-over-year (YoY).
The company registered a gross profit of $86.4 million for fiscal 2020, an increase of 114 per cent YoY. It reported annual cash flows of C$ 8.6 million from its operating activities, a gain of C$ 7.7 million YoY, and Goodfood Market Corp ended the fiscal year with a cash balance of C$ 106.9 million as of August 31, 2020.
