Overall LE gets a fundamental rating of 4 out of 10. We evaluated LE against 122 industry peers in the Specialty Retail industry. While LE is still in line with the averages on profitability rating, there are concerns on its financial health. 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

LE had positive earnings in the past year.
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.
LE had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.38%, LE is in line with its industry, outperforming 54.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.09%, LE is in line with its industry, outperforming 59.84% of the companies in the same industry.
LE has a better Return On Invested Capital (6.43%) than 61.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LE is significantly below the industry average of 12.24%.
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

The Profit Margin of LE (0.89%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LE has declined.
With a decent Operating Margin value of 4.86%, LE is doing good in the industry, outperforming 65.57% of the companies in the same industry.
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 75.41% 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.
LE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LE has less shares outstanding
The debt/assets ratio for LE is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.32 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LE (2.32) is comparable to the rest of the industry.
The Debt to FCF ratio of LE is 28.76, which is on the high side as it means it would take LE, 28.76 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 1.26, LE is doing worse than 60.66% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.26
Debt/FCF	28.76
Altman-Z	2.32

ROIC/WACC0.6

WACC10.63%

2.3 Liquidity

LE has a Current Ratio of 1.76. 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 1.76, LE is in the better half of the industry, outperforming 75.41% 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.
LE has a Quick ratio of 0.43. This is comparable to the rest of the industry: LE outperforms 44.26% of its industry peers.

		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.
LE shows a decrease in Revenue. In the last year, the revenue decreased by -8.47%.
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

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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 37.97, the valuation of LE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LE.
LE is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
LE is valuated correctly with a Price/Forward Earnings ratio of 14.21.
LE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LE is cheaper than 75.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LE to the average of the S&P500 Index (25.98), we can say LE is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	37.97
Fwd PE	14.21

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LE is valued a bit cheaper than 74.59% of the companies in the same industry.
LE's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	40.45
EV/EBITDA	7.33

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.
LE's earnings are expected to grow with 122.35% in the coming years. This may justify a more expensive valuation.