Loblaw (TSX:L) Moat Score: 7/10 (As of Jul. 01, 2026)


TSX:L Loblaw Companies Ltd TSX:L
92 GF Score
Price C$64.34
GF Value C$50.33
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Loblaw Moat Score?

Loblaw TSX:L -0.39% 92 Moat Score is 7 as of Jul. 01, 2026. GuruFocus rates TSX:L with a GF Score™ of 92/100 and a GF Value™ of C$50.33 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 315 Retail - Defensive companies, Loblaw ranks better than 99.05% on this metric.

Loblaw has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Loblaw has Wide Moat: Loblaw Companies Ltd benefits from strong brand strength, a superior distribution network, and significant economies of scale. Its market leadership in Canadian retail, coupled with customer loyalty and pricing power, supports a durable competitive advantage.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Loblaw might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Loblaw  (TSX:L) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Loblaw Moat Score Related Terms

TSX:L vs KR, SFM, ACI: Moat Score Comparison

For the Grocery Stores subindustry, Loblaw's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Loblaw Moat Score vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Loblaw's Moat Score distribution charts can be found below:

* The bar in red indicates where Loblaw's Moat Score falls into.


TSX:L
92GF Score
Loblaw Companies Ltd TSX:L
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Loblaw (TSX:L) has a Moat Score of 7 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Loblaw ranks #3 out of 315 companies in the Retail - Defensive industry, placing it in the top 1%.
Is Loblaw's Moat Score too high?
Loblaw's current Moat Score is 7. Based on the distribution chart, Loblaw ranks #3 out of 315 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Loblaw has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Loblaw's Moat Score compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Loblaw ranks #3 out of 315 companies for Moat Score. This places Loblaw in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Defensive company?
A good Moat Score depends on the Retail - Defensive industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Loblaw's current Moat Score is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loblaw stock overvalued right now?
Based on GuruFocus' analysis, Loblaw (TSX:L) is currently considered Modestly Overvalued. The stock's GF Value™ is C$50.33, compared to a current price of C$64.34 — trading 27.8% above its estimated fair value. The current Moat Score is 7. Loblaw's overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Loblaw (TSX:L), the current Moat Score is 7 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Loblaw (TSX:L) Overvalued in 2026?

Based on GuruFocus' analysis, Loblaw stock appears to be overvalued. The current stock price of C$64.34 is trading 27.8% above its estimated GF Value™ of C$50.33. GuruFocus considers Loblaw to be Modestly Overvalued.

Key valuation signals for TSX:L:

  • Moat Score: 7
  • GF Value™: C$50.33 vs. price of C$64.34 (27.8% above fair value)
  • GF Score™: 92/100 with 4 warning signs

No single metric tells the full story. See the TSX:L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Loblaw Business Description

Address 1 President’s Choice Circle, Brampton, ON, CAN, L6Y 5S5
Loblaw is Canada's largest retailer, operating approximately 2,500 food retail and pharmacy stores across the country. Its main grocery banners include Loblaw, No Frills, and Maxi, and its pharmacy stores are mostly under the Shoppers Drug Mart banner, which it acquired in 2014. In addition to brand-name offerings, Loblaw offers private-label products under the President's Choice and No Name brands. Beyond retail, Loblaw runs the PC Optimum loyalty program, but announced plans to sell its financial services arm including credit cards and insurance brokerage to EQB in December 2025. George Weston is Loblaw's controlling shareholder with a 53% stake.
92GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$64.34
Price
C$50.33
GF Value