Overall LE gets a fundamental rating of 4 out of 10. We evaluated LE against 121 industry peers in the Specialty Retail industry. LE has a medium profitability rating, but doesn't score so well on its financial health evaluation. LE has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year LE was profitable.
LE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LE reported negative net income in multiple years.
LE had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of LE (1.38%) is comparable to the rest of the industry.
LE has a Return On Equity of 5.09%. This is comparable to the rest of the industry: LE outperforms 59.50% of its industry peers.
With a decent Return On Invested Capital value of 6.43%, LE is doing good in the industry, outperforming 61.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LE is significantly below the industry average of 12.11%.
The 3 year average ROIC (3.89%) for LE is below the current ROIC(6.43%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	1.38%
ROE	5.09%
ROIC	6.43%

ROA(3y)-5.48%

ROA(5y)-2.44%

ROE(3y)-18.26%

ROE(5y)-8.73%

ROIC(3y)3.89%

ROIC(5y)4.42%

1.3 Margins

LE has a Profit Margin (0.89%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LE has declined.
The Operating Margin of LE (4.86%) is better than 65.29% of its industry peers.
LE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 48.84%, LE is doing good in the industry, outperforming 75.21% of the companies in the same industry.
In the last couple of years the Gross Margin of LE has grown nicely.

		Industry Rank	Sector Rank
OM	4.86%
PM (TTM)	0.89%
GM	48.84%

OM growth 3Y-3.17%

OM growth 5Y7.17%

PM growth 3Y-39.26%

PM growth 5Y-19.24%

GM growth 3Y4.3%

GM growth 5Y2.25%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LE is destroying value.
Compared to 1 year ago, LE has less shares outstanding
LE has less shares outstanding than it did 5 years ago.
LE has a worse debt/assets ratio than last year.

2.2 Solvency

LE has an Altman-Z score of 2.43. This is not the best score and indicates that LE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.43, LE is in line with its industry, outperforming 52.07% of the companies in the same industry.
LE has a debt to FCF ratio of 28.76. This is a negative value and a sign of low solvency as LE would need 28.76 years to pay back of all of its debts.
LE has a Debt to FCF ratio (28.76) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that LE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.26, LE is not doing good in the industry: 60.33% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.26
Debt/FCF	28.76
Altman-Z	2.43

ROIC/WACC0.61

WACC10.54%

2.3 Liquidity

A Current Ratio of 1.76 indicates that LE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, LE is in the better half of the industry, outperforming 75.21% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that LE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, LE is in line with its industry, outperforming 44.63% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.76
Quick Ratio	0.43

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

LE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 175.51%, which is quite impressive.
Measured over the past years, LE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.46% on average per year.
The Revenue has decreased by -8.47% in the past year.
The Revenue has been decreasing by -1.23% on average over the past years.

EPS 1Y (TTM)175.51%

EPS 3Y-41.32%

EPS 5Y-19.46%

EPS Q2Q%950%

Revenue 1Y (TTM)-8.47%

Revenue growth 3Y-5.92%

Revenue growth 5Y-1.23%

Sales Q2Q%-0.36%

3.2 Future

The Earnings Per Share is expected to grow by 122.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, LE will show a decrease in Revenue. The Revenue will decrease by -0.14% on average per year.

EPS Next Y317.15%

EPS Next 2Y122.35%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-2.6%

Revenue Next 2Y-0.14%

Revenue Next 3YN/A

Revenue Next 5YN/A

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 48.68, which means the current valuation is very expensive for LE.
The rest of the industry has a similar Price/Earnings ratio as LE.
The average S&P500 Price/Earnings ratio is at 28.41. LE is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 18.21, which indicates a rather expensive current valuation of LE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LE indicates a somewhat cheap valuation: LE is cheaper than 65.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LE to the average of the S&P500 Index (25.64), we can say LE is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	48.68
Fwd PE	18.21

4.2 Price Multiples

65.29% of the companies in the same industry are more expensive than LE, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LE.

		Industry Rank	Sector Rank
P/FCF	51.86
EV/EBITDA	8.52

4.3 Compensation for Growth

The 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 122.35% in the coming years.