LIFETIME BRANDS INC (LCUT)
US53222Q1031 - Common Stock
LCUT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. LCUT may be in some trouble as it scores bad on both profitability and health. LCUT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LCUT had positive earnings in the past year.
In the past year LCUT had a positive cash flow from operations.
In the past 5 years LCUT reported 4 times negative net income.
Each year in the past 5 years LCUT had a positive operating cash flow.
1.2 Ratios
LCUT has a Return On Assets of -3.20%. This is in the lower half of the industry: LCUT underperforms 70.31% of its industry peers.
LCUT has a worse Return On Equity (-9.68%) than 73.44% of its industry peers.
With a Return On Invested Capital value of 4.33%, LCUT is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for LCUT is significantly below the industry average of 12.02%.
| 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
Looking at the Operating Margin, with a value of 4.08%, LCUT is doing worse than 60.94% of the companies in the same industry.
LCUT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.77%, LCUT is doing good in the industry, outperforming 78.13% of the companies in the same industry.
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
LCUT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LCUT remains at a similar level compared to 1 year ago.
LCUT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LCUT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, 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 1.64, LCUT is doing worse than 75.00% 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.
With a Debt to FCF ratio value of 5.74, LCUT perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that LCUT is somewhat dependend on debt financing.
LCUT has a worse Debt to Equity ratio (0.88) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.45
WACC9.6%
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.
Looking at the Current ratio, with a value of 2.36, LCUT is in line with its industry, outperforming 50.00% of the companies in the same 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 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for LCUT have decreased strongly by -27.27% in the last year.
The earnings per share for LCUT have been decreasing by -18.15% on average. This is quite bad
LCUT shows a decrease in Revenue. In the last year, the revenue decreased by -2.84%.
LCUT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
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
LCUT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y21.67%
EPS Next 2Y20.61%
EPS Next 3Y14.01%
EPS Next 5Y6.03%
Revenue Next Year-0.24%
Revenue Next 2Y1.16%
Revenue Next 3Y1.79%
Revenue Next 5Y2.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 18.16, the valuation of LCUT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as LCUT.
When comparing the Price/Earnings ratio of LCUT to the average of the S&P500 Index (27.41), we can say LCUT is valued slightly cheaper.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of LCUT.
Based on the Price/Forward Earnings ratio, LCUT is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
LCUT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
76.56% of the companies in the same industry are more expensive than LCUT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LCUT indicates a rather cheap valuation: LCUT is cheaper than 98.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.67 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
LCUT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LCUT's earnings are expected to grow with 14.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y20.61%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
LCUT has a Yearly Dividend Yield of 3.01%.
LCUT's Dividend Yield is rather good when compared to the industry average which is at 3.00. LCUT pays more dividend than 89.06% of the companies in the same industry.
LCUT's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
The dividend of LCUT decreases each year by -1.35%.
LCUT has paid a dividend for at least 10 years, which is 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 2Y20.61%
EPS Next 3Y14.01%
LIFETIME BRANDS INC
NASDAQ:LCUT (1/3/2025, 8:00:02 PM)
After market: 5.81 0 (0%)5.81
+0.16 (+2.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners40.68%
Inst Owner Change1.08%
Ins Owners14.76%
Ins Owner Change0%
Market Cap128.75M
Analysts82.5
Price Target10.71 (84.34%)
Short Float %2.57%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)-7.35%
PT rev (3m)-14.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 7.83 | ||
| P/S | 0.19 | ||
| P/FCF | 3.67 | ||
| P/OCF | 3.41 | ||
| P/B | 0.58 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 6.68 |
EPS(TTM)0.32
EY5.51%
EPS(NY)0.74
Fwd EY12.77%
FCF(TTM)1.58
FCFY27.26%
OCF(TTM)1.7
OCFY29.31%
SpS30.27
BVpS9.97
TBVpS1.49
PEG (NY)0.84
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 | 1.64 |
F-Score5
WACC9.6%
ROIC/WACC0.45
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 Y21.67%
EPS Next 2Y20.61%
EPS Next 3Y14.01%
EPS Next 5Y6.03%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y-3.71%
Revenue growth 5Y-0.51%
Sales Q2Q%-4.09%
Revenue Next Year-0.24%
Revenue Next 2Y1.16%
Revenue Next 3Y1.79%
Revenue Next 5Y2.25%
EBIT growth 1Y-12.62%
EBIT growth 3Y-10.12%
EBIT growth 5Y7.14%
EBIT Next Year24.68%
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%