LANDS' END INC (LE) Stock Fundamental Analysis
NASDAQ:LE - Nasdaq - US51509F1057 - Common Stock - Currency: USD
LE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. LE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LE 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 LE has reported negative net income.
In the past year LE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LE reported negative net income in multiple years.
Of the past 5 years LE 4 years had a positive operating cash flow.
1.2 Ratios
LE has a Return On Assets of -2.48%. This is in the lower half of the industry: LE underperforms 62.39% of its industry peers.
LE has a Return On Equity of -9.35%. This is comparable to the rest of the industry: LE outperforms 42.73% of its industry peers.
LE has a Return On Invested Capital of 4.11%. This is comparable to the rest of the industry: LE outperforms 51.28% of its industry peers.
LE had an Average Return On Invested Capital over the past 3 years of 5.12%. This is significantly below the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.48% | ||
| ROE | -9.35% | ||
| ROIC | 4.11% |
ROA(3y)-4.68%
ROA(5y)-2.25%
ROE(3y)-16.39%
ROE(5y)-8.14%
ROIC(3y)5.12%
ROIC(5y)4.97%
1.3 Margins
The Operating Margin of LE (2.12%) is comparable to the rest of the industry.
LE's Operating Margin has declined in the last couple of years.
LE has a Gross Margin of 45.08%. This is in the better half of the industry: LE outperforms 70.09% of its industry peers.
LE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 45.08% |
OM growth 3Y-16.1%
OM growth 5Y-7.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.03%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LE is destroying value.
The number of shares outstanding for LE has been reduced compared to 1 year ago.
Compared to 5 years ago, LE has less shares outstanding
LE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.25, LE is in line with its industry, outperforming 47.86% of the companies in the same industry.
The Debt to FCF ratio of LE is 5.65, which is a neutral value as it means it would take LE, 5.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LE (5.65) is better than 60.68% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that LE has dependencies on debt financing.
The Debt to Equity ratio of LE (1.29) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.65 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.3
WACC13.6%
2.3 Liquidity
LE has a Current Ratio of 1.74. This is a normal value and indicates that LE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.74, LE is in the better half of the industry, outperforming 75.21% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that LE may have some problems paying its short term obligations.
LE's Quick ratio of 0.45 is in line compared to the rest of the industry. LE outperforms 45.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for LE have decreased strongly by -113.04% in the last year.
The Revenue has decreased by -3.44% in the past year.
LE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.29% yearly.
EPS 1Y (TTM)-113.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.89%
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y1.04%
Revenue growth 5Y0.29%
Sales Q2Q%-1.88%
3.2 Future
The Earnings Per Share is expected to grow by 71.33% on average over the next years. This is a very strong growth
LE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.85% yearly.
EPS Next Y141.73%
EPS Next 2Y71.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.52%
Revenue Next 2Y-1.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for LE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 20.83, the valuation of LE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LE is on the same level as its industry peers.
LE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.83 |
4.2 Price Multiples
60.68% of the companies in the same industry are more expensive than LE, based on the Enterprise Value to EBITDA ratio.
94.02% of the companies in the same industry are more expensive than LE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
LE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LE's earnings are expected to grow with 71.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.3
-0.25 (-2.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.01%
Inst Owner Change0.82%
Ins Owners62.52%
Ins Owner Change0%
Market Cap349.51M
Analysts84
Price Target19.38 (71.5%)
Short Float %7.62%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-118.98%
Min EPS beat(2)-183.23%
Max EPS beat(2)-54.73%
EPS beat(4)1
Avg EPS beat(4)-89.1%
Min EPS beat(4)-183.23%
Max EPS beat(4)26.73%
EPS beat(8)3
Avg EPS beat(8)-12.88%
EPS beat(12)5
Avg EPS beat(12)-29.75%
EPS beat(16)8
Avg EPS beat(16)-13.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)0.17%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)2.72%
Revenue beat(8)2
Avg Revenue beat(8)-2.13%
Revenue beat(12)2
Avg Revenue beat(12)-3.24%
Revenue beat(16)3
Avg Revenue beat(16)-2.49%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)4.46%
EPS NQ rev (3m)9.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.55%
Revenue NQ rev (1m)-5.31%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.83 | ||
| P/S | 0.24 | ||
| P/FCF | 6.57 | ||
| P/OCF | 4.28 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.47 |
EPS(TTM)-0.49
EYN/A
EPS(NY)0.54
Fwd EY4.8%
FCF(TTM)1.72
FCFY15.21%
OCF(TTM)2.64
OCFY23.37%
SpS46.43
BVpS7.23
TBVpS-1.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.48% | ||
| ROE | -9.35% | ||
| ROCE | 5.21% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 8.11% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 45.08% | ||
| FCFM | 3.7% |
ROA(3y)-4.68%
ROA(5y)-2.25%
ROE(3y)-16.39%
ROE(5y)-8.14%
ROIC(3y)5.12%
ROIC(5y)4.97%
ROICexc(3y)5.38%
ROICexc(5y)5.26%
ROICexgc(3y)10.98%
ROICexgc(5y)10.72%
ROCE(3y)6.48%
ROCE(5y)6.29%
ROICexcg growth 3Y-9%
ROICexcg growth 5Y-4.68%
ROICexc growth 3Y-6.91%
ROICexc growth 5Y-2.52%
OM growth 3Y-16.1%
OM growth 5Y-7.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.03%
GM growth 5Y0.02%
F-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.65 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 79.5% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | 123.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.25 |
F-Score7
WACC13.6%
ROIC/WACC0.3
Cap/Depr(3y)79.08%
Cap/Depr(5y)88.6%
Cap/Sales(3y)1.99%
Cap/Sales(5y)2.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-113.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.89%
EPS Next Y141.73%
EPS Next 2Y71.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.44%
Revenue growth 3Y1.04%
Revenue growth 5Y0.29%
Sales Q2Q%-1.88%
Revenue Next Year-5.52%
Revenue Next 2Y-1.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.56%
EBIT growth 3Y-15.22%
EBIT growth 5Y-7.28%
EBIT Next Year119.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y169.95%
FCF growth 3Y15.86%
FCF growth 5Y96.08%
OCF growth 1Y266.71%
OCF growth 3Y12.54%
OCF growth 5Y22.06%