LANDS' END INC (LE) Stock Fundamental Analysis
USA - NASDAQ:LE - US51509F1057 - Common Stock
15.95 USD
-0.14 (-0.87%)
15.95 USD
0 (0%)
LE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 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 correct valuation and a medium growth rate.
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.
Of the past 5 years LE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, LE is in line with its industry, outperforming 52.07% of the companies in the same industry.
The Return On Equity of LE (2.66%) is comparable to the rest of the industry.
The Return On Invested Capital of LE (6.21%) is better than 61.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LE is significantly below the industry average of 11.83%.
The last Return On Invested Capital (6.21%) for LE is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.66% | ||
| ROIC | 6.21% |
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 (0.46%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LE has declined.
LE has a better Operating Margin (4.37%) than 61.98% of its industry peers.
In the last couple of years the Operating Margin of LE has grown nicely.
With a decent Gross Margin value of 48.54%, LE is doing good in the industry, outperforming 77.69% 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 | 4.37% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.54% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LE is destroying value.
The number of shares outstanding for LE has been reduced compared to 1 year ago.
LE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.43 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LE has a Altman-Z score (2.43) which is in line with its industry peers.
LE has a debt to FCF ratio of 51.06. This is a negative value and a sign of low solvency as LE would need 51.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 51.06, LE is in line with its industry, outperforming 44.63% of the companies in the same industry.
LE has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
LE has a Debt to Equity ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 51.06 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.6
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.62 indicates that LE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.62, LE is doing good in the industry, outperforming 69.42% of the companies in the same industry.
LE has a Quick Ratio of 1.62. This is a bad value and indicates that LE is not financially healthy enough and could expect problems in meeting its short term obligations.
LE's Quick ratio of 0.41 is on the low side compared to the rest of the industry. LE is outperformed by 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
LE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.69%, which is quite impressive.
LE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.46% yearly.
Looking at the last year, LE shows a decrease in Revenue. The Revenue has decreased by -8.78% in the last year.
Measured over the past years, LE shows a decrease in Revenue. The Revenue has been decreasing by -1.23% on average per year.
EPS 1Y (TTM)127.69%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%29.41%
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-7.28%
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 117.67% on average per year.
LE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y324.88%
EPS Next 2Y117.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.97%
Revenue Next 2Y0.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 88.61, the valuation of LE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LE is on the same level as its industry peers.
LE is valuated expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.83, which indicates a correct valuation of LE.
Based on the Price/Forward Earnings ratio, LE is valued a bit cheaper than the industry average as 65.29% of the companies are valued more expensively.
LE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.61 | ||
| Fwd PE | 16.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LE is valued a bit cheaper than 66.12% of the companies in the same industry.
LE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.9 | ||
| EV/EBITDA | 8.19 |
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 117.67% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y117.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.95
-0.14 (-0.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners27.51%
Inst Owner Change-0.35%
Ins Owners62.53%
Ins Owner Change0.07%
Market Cap486.79M
Revenue(TTM)1.32B
Net Income(TTM)6.00M
Analysts84.44
Price Target18.36 (15.11%)
Short Float %18.45%
Short Ratio6.06
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)-165.02%
Min EPS beat(2)-288.35%
Max EPS beat(2)-41.7%
EPS beat(4)0
Avg EPS beat(4)-128.84%
Min EPS beat(4)-288.35%
Max EPS beat(4)-2.08%
EPS beat(8)1
Avg EPS beat(8)-86.41%
EPS beat(12)3
Avg EPS beat(12)-61.59%
EPS beat(16)5
Avg EPS beat(16)-43.11%
Revenue beat(2)0
Avg Revenue beat(2)-9.2%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-6.97%
Revenue beat(4)0
Avg Revenue beat(4)-6.7%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-1.86%
Revenue beat(8)2
Avg Revenue beat(8)-4.22%
Revenue beat(12)2
Avg Revenue beat(12)-4%
Revenue beat(16)2
Avg Revenue beat(16)-4.49%
PT rev (1m)0%
PT rev (3m)12.5%
EPS NQ rev (1m)65%
EPS NQ rev (3m)65%
EPS NY rev (1m)5.1%
EPS NY rev (3m)17.02%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.61 | ||
| Fwd PE | 16.83 | ||
| P/S | 0.37 | ||
| P/FCF | 92.9 | ||
| P/OCF | 10 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.19 |
EPS(TTM)0.18
EY1.13%
EPS(NY)0.95
Fwd EY5.94%
FCF(TTM)0.17
FCFY1.08%
OCF(TTM)1.6
OCFY10%
SpS43.11
BVpS7.38
TBVpS-1.04
PEG (NY)0.27
PEG (5Y)N/A
Graham Number5.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.66% | ||
| ROCE | 10.45% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 12.56% | ||
| OM | 4.37% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.54% | ||
| FCFM | 0.4% |
ROA(3y)-5.48%
ROA(5y)-2.44%
ROE(3y)-18.26%
ROE(5y)-8.73%
ROIC(3y)3.89%
ROIC(5y)4.42%
ROICexc(3y)4.04%
ROICexc(5y)4.61%
ROICexgc(3y)7.94%
ROICexgc(5y)9.37%
ROCE(3y)6.55%
ROCE(5y)7.44%
ROICexgc growth 3Y-2.23%
ROICexgc growth 5Y14.14%
ROICexc growth 3Y0.04%
ROICexc growth 5Y13.91%
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%
F-Score6
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 51.06 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 135.73% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | 54.4% | ||
| Profit Quality | 87.38% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 2.43 |
F-Score6
WACC10.39%
ROIC/WACC0.6
Cap/Depr(3y)94.93%
Cap/Depr(5y)85.95%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)127.69%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%29.41%
EPS Next Y324.88%
EPS Next 2Y117.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-7.28%
Revenue Next Year-1.97%
Revenue Next 2Y0.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y142.95%
EBIT growth 3Y-8.9%
EBIT growth 5Y5.85%
EBIT Next Year90.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-94.55%
FCF growth 3Y-30.3%
FCF growth 5YN/A
OCF growth 1Y-64.16%
OCF growth 3Y-9.03%
OCF growth 5Y14.25%
LANDS' END INC / LE FAQ
What is the fundamental rating for LE stock?
ChartMill assigns a fundamental rating of 4 / 10 to LE.
What is the valuation status of LANDS' END INC (LE) stock?
ChartMill assigns a valuation rating of 4 / 10 to LANDS' END INC (LE). This can be considered as Fairly Valued.
What is the profitability of LE stock?
LANDS' END INC (LE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for LE stock?
The Price/Earnings (PE) ratio for LANDS' END INC (LE) is 88.61 and the Price/Book (PB) ratio is 2.16.