LANDS' END INC (LE) Stock Fundamental Analysis
NASDAQ:LE - Nasdaq - US51509F1057 - Common Stock - Currency: USD
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 an average financial health and profitability rating. LE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LE had positive earnings in the past year.
LE had a positive operating cash flow in the past year.
In multiple years LE reported negative net income over the last 5 years.
LE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LE has a Return On Assets of 0.81%. This is comparable to the rest of the industry: LE outperforms 52.89% of its industry peers.
LE has a Return On Equity of 2.61%. This is comparable to the rest of the industry: LE outperforms 58.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.66%, LE is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
LE had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 13.57%.
The 3 year average ROIC (3.89%) for LE is below the current ROIC(6.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.61% | ||
| ROIC | 6.66% |
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 comparable to the rest of the industry.
LE's Profit Margin has declined in the last couple of years.
LE's Operating Margin of 4.43% is fine compared to the rest of the industry. LE outperforms 61.16% 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 47.94%, 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 | 4.43% | ||
| PM (TTM) | 0.46% | ||
| GM | 47.94% |
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
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.
LE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LE is higher compared to a year ago.
2.2 Solvency
LE has an Altman-Z score of 2.40. 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.
With a Altman-Z score value of 2.40, LE perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
LE has a debt to FCF ratio of 15.47. This is a negative value and a sign of low solvency as LE would need 15.47 years to pay back of all of its debts.
The Debt to FCF ratio of LE (15.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.94 indicates that LE is somewhat dependend on debt financing.
LE has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.47 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.63
WACC10.5%
2.3 Liquidity
A Current Ratio of 1.63 indicates that LE should not have too much problems paying its short term obligations.
LE has a Current ratio of 1.63. This is in the better half of the industry: LE outperforms 68.59% of its industry peers.
A Quick Ratio of 0.46 indicates that LE may have some problems paying its short term obligations.
The Quick ratio of LE (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
LE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 134.48%, which is quite impressive.
The earnings per share for LE have been decreasing by -19.46% on average. This is quite bad
The Revenue has decreased by -7.45% in the past 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)134.48%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%690%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-14.22%
3.2 Future
The Earnings Per Share is expected to grow by 109.63% on average over the next years. This is a very strong growth
LE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.33% yearly.
EPS Next Y251.49%
EPS Next 2Y109.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y1.33%
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 43.15, the valuation of LE can be described as expensive.
LE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.33, LE is valued quite expensively.
A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of LE.
69.42% of the companies in the same industry are more expensive than LE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, LE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.15 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LE is valued a bit cheaper than 77.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LE is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 5.24 |
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 109.63% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y109.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.63
-0.18 (-2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.08%
Inst Owner Change0.59%
Ins Owners61.43%
Ins Owner Change0.06%
Market Cap266.15M
Analysts84
Price Target18.7 (116.69%)
Short Float %6.5%
Short Ratio6.5
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)-92.66%
Min EPS beat(2)-183.23%
Max EPS beat(2)-2.08%
EPS beat(4)1
Avg EPS beat(4)-53.33%
Min EPS beat(4)-183.23%
Max EPS beat(4)26.73%
EPS beat(8)2
Avg EPS beat(8)-51.21%
EPS beat(12)5
Avg EPS beat(12)-27.13%
EPS beat(16)7
Avg EPS beat(16)-13.79%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-1.86%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)2.72%
Revenue beat(8)2
Avg Revenue beat(8)-2.49%
Revenue beat(12)2
Avg Revenue beat(12)-3.37%
Revenue beat(16)3
Avg Revenue beat(16)-2.8%
PT rev (1m)-3.51%
PT rev (3m)-3.51%
EPS NQ rev (1m)-26.67%
EPS NQ rev (3m)-26.67%
EPS NY rev (1m)29.59%
EPS NY rev (3m)26.39%
Revenue NQ rev (1m)-5.66%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.15 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.2 | ||
| P/FCF | 17.31 | ||
| P/OCF | 5.01 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.24 |
EPS(TTM)0.2
EY2.32%
EPS(NY)0.7
Fwd EY8.15%
FCF(TTM)0.5
FCFY5.78%
OCF(TTM)1.72
OCFY19.97%
SpS44.19
BVpS7.76
TBVpS-0.58
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.61% | ||
| ROCE | 11.22% | ||
| ROIC | 6.66% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 13.54% | ||
| OM | 4.43% | ||
| PM (TTM) | 0.46% | ||
| GM | 47.94% | ||
| FCFM | 1.13% |
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%
ROICexcg growth 3Y-2.23%
ROICexcg 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-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.47 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 111.84% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 56.47% | ||
| Profit Quality | 246.64% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 2.4 |
F-Score7
WACC10.5%
ROIC/WACC0.63
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)134.48%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%690%
EPS Next Y251.49%
EPS Next 2Y109.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-14.22%
Revenue Next Year0%
Revenue Next 2Y1.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.85%
EBIT growth 3Y-8.9%
EBIT growth 5Y5.85%
EBIT Next Year90.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.93%
FCF growth 3Y-30.3%
FCF growth 5YN/A
OCF growth 1Y-59.3%
OCF growth 3Y-9.03%
OCF growth 5Y14.25%