No-Moat Loblaw Digital and Data Initiatives Offset by Several Headwinds; Shares Slightly Overvalued
We don't expect a material change to our CAD 55 valuation, after no-moat Loblaw reported 1.8% sales growth (up 0.2% year to date) versus our 1% lift 2018 forecast. Loblaw continues to face several headwinds (wage inflation, transportation costs, drug price deflation, competition, and tariffs), offset by digital and data initiatives. We see shares as slightly overvalued, trading at 15-16 times our existing 2019 earnings per share estimate.Loblaw's top-line results in its food retail (73% of sale...
Loblaw is a Canadian food distributor and provider of general merchandise, drugstore and financial products and services. Traditional food offerings remain at the core of Co.'s business. Co. operates conventional, superstore, and hard discount stores. Co. offers products through control label program with famous brands including President's Choice, no name and Joe Fresh Style. Co. also offers President's Choice Financial services and offers the PC points loyalty program.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.