LANDS' END INC (LE) Stock Fundamental Analysis
USA - NASDAQ:LE - US51509F1057 - Common Stock
15.44 USD
+0.14 (+0.95%)
15.31 USD
-0.13 (-0.84%)
Taking everything into account, LE scores 4 out of 10 in our fundamental rating. LE was compared to 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 is not valued too expensively and it also shows a decent 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.
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's Return On Assets of 0.75% is in line compared to the rest of the industry. LE outperforms 52.07% of its industry peers.
LE has a Return On Equity (2.66%) which is comparable to the rest of the industry.
LE's Return On Invested Capital of 6.21% is fine compared to the rest of the industry. LE outperforms 63.64% of its industry peers.
LE had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 12.16%.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of LE has declined.
LE's Operating Margin of 4.37% is fine compared to the rest of the industry. LE outperforms 64.46% of its industry peers.
In the last couple of years the Operating Margin of LE has grown nicely.
LE has a Gross Margin of 48.54%. This is in the better half of the industry: LE outperforms 77.69% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LE is destroying value.
Compared to 1 year ago, LE has less shares outstanding
The number of shares outstanding for LE has been reduced compared to 5 years ago.
The debt/assets ratio for LE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.42 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LE has a Altman-Z score (2.42) 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.
With a Debt to FCF ratio value of 51.06, LE perfoms like the industry average, outperforming 47.93% 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.
With a Debt to Equity ratio value of 1.13, 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 | 1.13 | ||
| Debt/FCF | 51.06 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.59
WACC10.53%
2.3 Liquidity
LE has a Current Ratio of 1.62. 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 1.62, LE is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
A Quick Ratio of 0.41 indicates that LE may have some problems paying its short term obligations.
With a Quick ratio value of 0.41, LE is not doing good in the industry: 60.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 127.69% over the past year.
The earnings per share for LE have been decreasing by -19.46% on average. This is quite bad
The Revenue has decreased by -8.78% in the past year.
LE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.23% yearly.
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 102.98% on average per year.
LE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.56% yearly.
EPS Next Y263.08%
EPS Next 2Y102.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.2%
Revenue Next 2Y0.56%
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 85.78, 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.
When comparing the Price/Earnings ratio of LE to the average of the S&P500 Index (27.20), we can say LE is valued expensively.
LE is valuated rather expensively with a Price/Forward Earnings ratio of 18.74.
Based on the Price/Forward Earnings ratio, LE is valued a bit cheaper than the industry average as 64.46% of the companies are valued more expensively.
LE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.78 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
70.25% of the companies in the same industry are more expensive than LE, based on the Enterprise Value to EBITDA ratio.
LE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.93 | ||
| EV/EBITDA | 8.01 |
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.
LE's earnings are expected to grow with 102.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.44
+0.14 (+0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners26.08%
Inst Owner Change-18.01%
Ins Owners62.61%
Ins Owner Change0.14%
Market Cap471.23M
Analysts84.44
Price Target18.36 (18.91%)
Short Float %21.87%
Short Ratio5.34
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)12.5%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-200%
EPS NY rev (1m)0%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.78 | ||
| Fwd PE | 18.74 | ||
| P/S | 0.36 | ||
| P/FCF | 89.93 | ||
| P/OCF | 9.68 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.01 |
EPS(TTM)0.18
EY1.17%
EPS(NY)0.82
Fwd EY5.34%
FCF(TTM)0.17
FCFY1.11%
OCF(TTM)1.6
OCFY10.34%
SpS43.11
BVpS7.38
TBVpS-1.04
PEG (NY)0.33
PEG (5Y)N/A
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%
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-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 | 2.42 |
F-Score6
WACC10.53%
ROIC/WACC0.59
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 Y263.08%
EPS Next 2Y102.98%
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-1.2%
Revenue Next 2Y0.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y142.95%
EBIT growth 3Y-8.9%
EBIT growth 5Y5.85%
EBIT Next Year85.87%
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%