LAKELAND INDUSTRIES INC (LAKE) Stock Fundamental Analysis
NASDAQ:LAKE - Nasdaq - US5117951062 - Common Stock - Currency: USD
Taking everything into account, LAKE scores 4 out of 10 in our fundamental rating. LAKE was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. LAKE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LAKE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LAKE has reported negative net income.
In the past year LAKE has reported a negative cash flow from operations.
LAKE had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LAKE reported negative operating cash flow in multiple years.
1.2 Ratios
LAKE has a worse Return On Assets (-10.84%) than 77.08% of its industry peers.
Looking at the Return On Equity, with a value of -16.49%, LAKE is doing worse than 72.92% of the companies in the same industry.
The Return On Invested Capital of LAKE (5.87%) is comparable to the rest of the industry.
LAKE had an Average Return On Invested Capital over the past 3 years of 5.64%. This is significantly below the industry average of 11.45%.
The last Return On Invested Capital (5.87%) for LAKE is above the 3 year average (5.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.84% | ||
| ROE | -16.49% | ||
| ROIC | 5.87% |
ROA(3y)-1.21%
ROA(5y)5.94%
ROE(3y)-2.12%
ROE(5y)6.3%
ROIC(3y)5.64%
ROIC(5y)10.92%
1.3 Margins
LAKE has a Operating Margin of 7.68%. This is comparable to the rest of the industry: LAKE outperforms 52.08% of its industry peers.
In the last couple of years the Operating Margin of LAKE has grown nicely.
Looking at the Gross Margin, with a value of 38.35%, LAKE is doing worse than 77.08% of the companies in the same industry.
In the last couple of years the Gross Margin of LAKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | N/A | ||
| GM | 38.35% |
OM growth 3Y-5.33%
OM growth 5Y15.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.51%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAKE is destroying value.
Compared to 1 year ago, LAKE has more shares outstanding
Compared to 5 years ago, LAKE has more shares outstanding
LAKE has a worse debt/assets ratio than last year.
2.2 Solvency
LAKE has an Altman-Z score of 2.95. This is not the best score and indicates that LAKE is in the grey zone with still only limited risk for bankruptcy at the moment.
LAKE has a Altman-Z score of 2.95. This is comparable to the rest of the industry: LAKE outperforms 52.08% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that LAKE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, LAKE is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.95 |
ROIC/WACC0.55
WACC10.73%
2.3 Liquidity
LAKE has a Current Ratio of 3.88. This indicates that LAKE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LAKE (3.88) is better than 93.75% of its industry peers.
LAKE has a Quick Ratio of 1.51. This is a normal value and indicates that LAKE is financially healthy and should not expect problems in meeting its short term obligations.
LAKE has a better Quick ratio (1.51) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for LAKE have decreased strongly by -156.36% in the last year.
The earnings per share for LAKE have been decreasing by -52.18% on average. This is quite bad
Looking at the last year, LAKE shows a very strong growth in Revenue. The Revenue has grown by 34.28%.
The Revenue has been growing by 9.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-156.36%
EPS 3Y-80.74%
EPS 5Y-52.18%
EPS Q2Q%-286.36%
Revenue 1Y (TTM)34.28%
Revenue growth 3Y12.19%
Revenue growth 5Y9.18%
Sales Q2Q%28.74%
3.2 Future
The Earnings Per Share is expected to grow by 1159.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, LAKE will show a quite strong growth in Revenue. The Revenue will grow by 16.88% on average per year.
EPS Next Y4388%
EPS Next 2Y1159.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year30.48%
Revenue Next 2Y16.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for LAKE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 8.75, the valuation of LAKE can be described as reasonable.
85.42% of the companies in the same industry are more expensive than LAKE, based on the Price/Forward Earnings ratio.
LAKE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAKE is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
LAKE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LAKE's earnings are expected to grow with 1159.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1159.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LAKE has a yearly dividend return of 0.86%, which is pretty low.
The stock price of LAKE dropped by -22.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.64, LAKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LAKE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
LAKE has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of LAKE are negative and hence is the payout ratio. LAKE will probably not be able to sustain this dividend level.
DP-4.02%
EPS Next 2Y1159.4%
EPS Next 3YN/A
13.88
+0.23 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners77.73%
Inst Owner Change33.7%
Ins Owners2.6%
Ins Owner Change13.67%
Market Cap132.00M
Analysts82
Price Target25.5 (83.72%)
Short Float %5.97%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-4.02%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-209.62%
Min EPS beat(2)-311.56%
Max EPS beat(2)-107.69%
EPS beat(4)0
Avg EPS beat(4)-167.28%
Min EPS beat(4)-311.56%
Max EPS beat(4)-97.42%
EPS beat(8)2
Avg EPS beat(8)-83.1%
EPS beat(12)3
Avg EPS beat(12)-67.09%
EPS beat(16)4
Avg EPS beat(16)-57.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-6.18%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)1.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)4
Avg Revenue beat(16)-3.64%
PT rev (1m)-5.66%
PT rev (3m)-12.79%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-36.41%
EPS NY rev (1m)-63.18%
EPS NY rev (3m)-72.5%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)6.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.75 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.92 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)-0.62
EYN/A
EPS(NY)1.59
Fwd EY11.43%
FCF(TTM)-2.45
FCFYN/A
OCF(TTM)-2.21
OCFYN/A
SpS18.68
BVpS15.08
TBVpS10.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.84% | ||
| ROE | -16.49% | ||
| ROCE | 7.5% | ||
| ROIC | 5.87% | ||
| ROICexc | 6.53% | ||
| ROICexgc | 8.86% | ||
| OM | 7.68% | ||
| PM (TTM) | N/A | ||
| GM | 38.35% | ||
| FCFM | N/A |
ROA(3y)-1.21%
ROA(5y)5.94%
ROE(3y)-2.12%
ROE(5y)6.3%
ROIC(3y)5.64%
ROIC(5y)10.92%
ROICexc(3y)6.61%
ROICexc(5y)16.93%
ROICexgc(3y)8.41%
ROICexgc(5y)18.14%
ROCE(3y)7.16%
ROCE(5y)13.84%
ROICexcg growth 3Y-8.58%
ROICexcg growth 5Y14.09%
ROICexc growth 3Y-17.28%
ROICexc growth 5Y7.72%
OM growth 3Y-5.33%
OM growth 5Y15.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.51%
GM growth 5Y3.16%
F-Score2
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 59.97% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.95 |
F-Score2
WACC10.73%
ROIC/WACC0.55
Cap/Depr(3y)92.08%
Cap/Depr(5y)80.66%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-156.36%
EPS 3Y-80.74%
EPS 5Y-52.18%
EPS Q2Q%-286.36%
EPS Next Y4388%
EPS Next 2Y1159.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.28%
Revenue growth 3Y12.19%
Revenue growth 5Y9.18%
Sales Q2Q%28.74%
Revenue Next Year30.48%
Revenue Next 2Y16.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.18%
EBIT growth 3Y6.22%
EBIT growth 5Y26.58%
EBIT Next Year320.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-294.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-469.51%
OCF growth 3YN/A
OCF growth 5YN/A