LIFETIME BRANDS INC (LCUT) Stock Fundamental Analysis
NASDAQ:LCUT - Nasdaq - US53222Q1031 - Common Stock - Currency: USD
Taking everything into account, LCUT scores 3 out of 10 in our fundamental rating. LCUT was compared to 67 industry peers in the Household Durables industry. LCUT has a bad profitability rating. Also its financial health evaluation is rather negative. LCUT has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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 70.77% of its industry peers.
LCUT has a Return On Equity of -9.68%. This is in the lower half of the industry: LCUT underperforms 72.31% of its industry peers.
LCUT has a worse Return On Invested Capital (4.33%) than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LCUT is significantly below the industry average of 12.07%.
| 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 of 4.08%. This is in the lower half of the industry: LCUT underperforms 60.00% of its industry peers.
LCUT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.77%, LCUT is in the better half of the industry, outperforming 78.46% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LCUT is destroying value.
Compared to 1 year ago, LCUT has about the same amount of shares outstanding.
The number of shares outstanding for LCUT has been increased compared to 5 years ago.
Compared to 1 year ago, LCUT has an improved debt to assets ratio.
2.2 Solvency
LCUT has an Altman-Z score of 1.62. This is a bad value and indicates that LCUT is not financially healthy and even has some risk of bankruptcy.
LCUT has a worse Altman-Z score (1.62) than 72.31% of its industry peers.
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 56.92% of the companies in the same industry.
LCUT has a Debt/Equity ratio of 0.88. This is a neutral value indicating LCUT is somewhat dependend on debt financing.
LCUT's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. LCUT is outperformed by 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.45
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.36 indicates that LCUT has no problem at all paying its short term obligations.
LCUT's Current ratio of 2.36 is in line compared to the rest of the industry. LCUT outperforms 50.77% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.97, LCUT is in line with its industry, outperforming 50.77% of the companies in the same industry.
| 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%.
Measured over the past years, LCUT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.15% on average per year.
The Revenue has decreased by -2.84% in the past year.
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 4.06% yearly.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y1.33%
EPS Next 2Y9.54%
EPS Next 3Y12.66%
EPS Next 5Y4.06%
Revenue Next Year-0.27%
Revenue Next 2Y1.09%
Revenue Next 3Y1.76%
Revenue Next 5Y2.04%
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.
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
With a Price/Earnings ratio of 16.72, LCUT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of LCUT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LCUT to the average of the S&P500 Index (28.12), we can say LCUT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 8.74, the valuation of LCUT can be described as reasonable.
Based on the Price/Forward Earnings ratio, LCUT is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 94.77. LCUT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 8.74 |
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 80.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LCUT is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.38 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LCUT does not grow enough to justify the current Price/Earnings ratio.
LCUT's earnings are expected to grow with 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.53
PEG (5Y)N/A
EPS Next 2Y9.54%
EPS Next 3Y12.66%
5. Dividend
5.1 Amount
LCUT has a Yearly Dividend Yield of 2.75%.
Compared to an average industry Dividend Yield of 2.94, LCUT pays a better dividend. On top of this LCUT pays more dividend than 89.23% of the companies listed in the same industry.
LCUT's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 2Y9.54%
EPS Next 3Y12.66%
LIFETIME BRANDS INC
NASDAQ:LCUT (2/7/2025, 8:00:02 PM)
After market: 5.35 0 (0%)5.35
+0.05 (+0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners40.68%
Inst Owner Change1.03%
Ins Owners14.76%
Ins Owner Change0%
Market Cap118.56M
Analysts82.5
Price Target10.71 (100.19%)
Short Float %2.42%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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)0%
PT rev (3m)-12.5%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)-6%
EPS NY rev (1m)-16.71%
EPS NY rev (3m)-28.57%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.18 | ||
| P/FCF | 3.38 | ||
| P/OCF | 3.14 | ||
| P/B | 0.54 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)0.32
EY5.98%
EPS(NY)0.61
Fwd EY11.44%
FCF(TTM)1.58
FCFY29.61%
OCF(TTM)1.7
OCFY31.83%
SpS30.27
BVpS9.97
TBVpS1.49
PEG (NY)12.53
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
WACC9.72%
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 Y1.33%
EPS Next 2Y9.54%
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-0.27%
Revenue Next 2Y1.09%
Revenue Next 3Y1.76%
Revenue Next 5Y2.04%
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%