LIFETIME BRANDS INC (LCUT) Stock Fundamental Analysis
NASDAQ:LCUT - Nasdaq - US53222Q1031 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LCUT. LCUT was compared to 66 industry peers in the Household Durables industry. Both the profitability and financial health of LCUT have multiple concerns. LCUT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LCUT was profitable.
LCUT had a positive operating cash flow in the past year.
LCUT had negative earnings in 4 of the past 5 years.
LCUT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LCUT's Return On Assets of -3.20% is on the low side compared to the rest of the industry. LCUT is outperformed by 69.70% of its industry peers.
The Return On Equity of LCUT (-9.68%) is worse than 69.70% of its industry peers.
With a Return On Invested Capital value of 4.33%, LCUT perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
LCUT had an Average Return On Invested Capital over the past 3 years of 5.86%. This is significantly below the industry average of 12.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -9.68% | ||
| ROIC | 4.33% |
ROA(3y)0.13%
ROA(5y)-1.15%
ROE(3y)0.64%
ROE(5y)-3.64%
ROIC(3y)5.86%
ROIC(5y)5.16%
1.3 Margins
LCUT has a Operating Margin (4.08%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LCUT has grown nicely.
LCUT has a Gross Margin of 37.77%. This is in the better half of the industry: LCUT outperforms 78.79% of its industry peers.
LCUT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 37.77% |
OM growth 3Y-6.65%
OM growth 5Y7.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LCUT is destroying value.
The number of shares outstanding for LCUT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LCUT has more shares outstanding
The debt/assets ratio for LCUT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that LCUT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, LCUT is doing worse than 72.73% of the companies in the same industry.
The Debt to FCF ratio of LCUT is 5.74, which is a neutral value as it means it would take LCUT, 5.74 years of fcf income to pay off all of its debts.
LCUT has a Debt to FCF ratio (5.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that LCUT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, LCUT is doing worse than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.46
WACC9.4%
2.3 Liquidity
LCUT has a Current Ratio of 2.36. This indicates that LCUT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LCUT (2.36) is comparable to the rest of the industry.
LCUT has a Quick Ratio of 2.36. This is a bad value and indicates that LCUT is not financially healthy enough and could expect problems in meeting its short term obligations.
LCUT's Quick ratio of 0.97 is in line compared to the rest of the industry. LCUT outperforms 46.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
LCUT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.
LCUT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.15% yearly.
The Revenue has decreased by -2.84% in the past year.
The Revenue has been decreasing by -0.51% on average over the past years.
EPS 1Y (TTM)-27.27%
EPS 3Y-18.15%
EPS 5YN/A
EPS Q2Q%-41.67%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.71%
Revenue growth 5Y-0.51%
Sales Q2Q%-4.09%
3.2 Future
The Earnings Per Share is expected to grow by 4.06% on average over the next years.
LCUT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y-2.67%
EPS Next 2Y4.56%
EPS Next 3Y12.66%
EPS Next 5Y4.06%
Revenue Next Year-1.26%
Revenue Next 2Y0.37%
Revenue Next 3Y1.42%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.19, the valuation of LCUT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LCUT is on the same level as its industry peers.
LCUT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
LCUT is valuated reasonably with a Price/Forward Earnings ratio of 9.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LCUT indicates a somewhat cheap valuation: LCUT is cheaper than 65.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, LCUT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LCUT indicates a somewhat cheap valuation: LCUT is cheaper than 74.24% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LCUT indicates a rather cheap valuation: LCUT is cheaper than 96.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
A more expensive valuation may be justified as LCUT's earnings are expected to grow with 12.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y12.66%
5. Dividend
5.1 Amount
LCUT has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
The stock price of LCUT dropped by -24.60% 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 3.15, LCUT pays a better dividend. On top of this LCUT pays more dividend than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, LCUT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of LCUT decreases each year by -1.35%.
LCUT has been paying a dividend for at least 10 years, so it has a reliable track record.
LCUT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.35%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
The earnings of LCUT are negative and hence is the payout ratio. LCUT will probably not be able to sustain this dividend level.
DP-17.76%
EPS Next 2Y4.56%
EPS Next 3Y12.66%
5.18
+0.06 (+1.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners42.1%
Inst Owner Change2.89%
Ins Owners14.75%
Ins Owner Change0%
Market Cap114.79M
Analysts80
Price Target9.1 (75.68%)
Short Float %3.19%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.17
Dividend Growth(5Y)-1.35%
DP-17.76%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.95%
Min EPS beat(2)-47.61%
Max EPS beat(2)-10.28%
EPS beat(4)0
Avg EPS beat(4)-18.8%
Min EPS beat(4)-47.61%
Max EPS beat(4)-2.6%
EPS beat(8)4
Avg EPS beat(8)17.74%
EPS beat(12)5
Avg EPS beat(12)-22.05%
EPS beat(16)9
Avg EPS beat(16)32.61%
Revenue beat(2)0
Avg Revenue beat(2)-6.03%
Min Revenue beat(2)-8.51%
Max Revenue beat(2)-3.55%
Revenue beat(4)1
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-8.51%
Max Revenue beat(4)0.66%
Revenue beat(8)4
Avg Revenue beat(8)-2.32%
Revenue beat(12)4
Avg Revenue beat(12)-4.72%
Revenue beat(16)7
Avg Revenue beat(16)-1.4%
PT rev (1m)-15.08%
PT rev (3m)-21.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)-3.95%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.19 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.17 | ||
| P/FCF | 3.27 | ||
| P/OCF | 3.04 | ||
| P/B | 0.52 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)0.32
EY6.18%
EPS(NY)0.56
Fwd EY10.76%
FCF(TTM)1.58
FCFY30.58%
OCF(TTM)1.7
OCFY32.87%
SpS30.27
BVpS9.97
TBVpS1.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -9.68% | ||
| ROCE | 5.48% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 7.08% | ||
| OM | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 37.77% | ||
| FCFM | 5.23% |
ROA(3y)0.13%
ROA(5y)-1.15%
ROE(3y)0.64%
ROE(5y)-3.64%
ROIC(3y)5.86%
ROIC(5y)5.16%
ROICexc(3y)6.1%
ROICexc(5y)5.38%
ROICexgc(3y)9.78%
ROICexgc(5y)8.82%
ROCE(3y)7.41%
ROCE(5y)6.53%
ROICexcg growth 3Y-5.6%
ROICexcg growth 5Y5.47%
ROICexc growth 3Y-4.88%
ROICexc growth 5Y11.76%
OM growth 3Y-6.65%
OM growth 5Y7.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.42%
F-Score5
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 12.43% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 1.5 | ||
| Cash Conversion | 77.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.62 |
F-Score5
WACC9.4%
ROIC/WACC0.46
Cap/Depr(3y)15.76%
Cap/Depr(5y)18.44%
Cap/Sales(3y)0.43%
Cap/Sales(5y)0.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.27%
EPS 3Y-18.15%
EPS 5YN/A
EPS Q2Q%-41.67%
EPS Next Y-2.67%
EPS Next 2Y4.56%
EPS Next 3Y12.66%
EPS Next 5Y4.06%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.71%
Revenue growth 5Y-0.51%
Sales Q2Q%-4.09%
Revenue Next Year-1.26%
Revenue Next 2Y0.37%
Revenue Next 3Y1.42%
Revenue Next 5Y2.04%
EBIT growth 1Y-12.62%
EBIT growth 3Y-10.12%
EBIT growth 5Y7.14%
EBIT Next Year20.59%
EBIT Next 3Y9.36%
EBIT Next 5YN/A
FCF growth 1Y11422.3%
FCF growth 3Y7.87%
FCF growth 5Y36.59%
OCF growth 1Y1540.61%
OCF growth 3Y7.99%
OCF growth 5Y24.09%