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. There are concerns on the financial health of LE while its profitability can be described as average. 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.
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
LE has a Return On Assets of 0.58%. This is comparable to the rest of the industry: LE outperforms 52.89% of its industry peers.
Looking at the Return On Equity, with a value of 1.92%, LE is in line with its industry, outperforming 59.50% of the companies in the same industry.
The Return On Invested Capital of LE (6.18%) is better than 61.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LE is significantly below the industry average of 13.07%.
The 3 year average ROIC (3.89%) for LE is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.92% | ||
| ROIC | 6.18% |
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 (0.33%) 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 4.39% is fine compared to the rest of the industry. LE outperforms 63.64% of its industry peers.
LE's Operating Margin has improved in the last couple of years.
The Gross Margin of LE (48.34%) is better than 76.86% of its industry peers.
LE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 0.33% | ||
| GM | 48.34% |
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.
LE has less shares outstanding than it did 1 year ago.
LE has less shares outstanding than it did 5 years ago.
LE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LE has a Altman-Z score (2.46) which is in line with its industry peers.
LE has a debt to FCF ratio of 16.02. This is a negative value and a sign of low solvency as LE would need 16.02 years to pay back of all of its debts.
LE's Debt to FCF ratio of 16.02 is in line compared to the rest of the industry. LE outperforms 52.07% of its industry peers.
LE has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.14, LE perfoms like the industry average, outperforming 42.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 16.02 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.58
WACC10.6%
2.3 Liquidity
LE has a Current Ratio of 1.86. This is a normal value and indicates that LE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.86, LE is doing good in the industry, outperforming 78.51% of the companies in the same industry.
LE has a Quick Ratio of 1.86. This is a bad value and indicates that LE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.52, LE perfoms like the industry average, outperforming 53.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
LE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.81%, 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 -7.58% in the last year.
The Revenue has been decreasing by -1.23% on average over the past years.
EPS 1Y (TTM)117.81%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%-35%
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-8.5%
3.2 Future
The Earnings Per Share is expected to grow by 102.98% 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 0.70% yearly.
EPS Next Y263.08%
EPS Next 2Y102.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.91%
Revenue Next 2Y0.7%
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 82.38, the valuation of LE can be described as expensive.
LE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, LE is valued quite expensively.
The Price/Forward Earnings ratio is 13.00, which indicates a correct 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 71.07% of the companies listed in the same industry.
LE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.38 | ||
| Fwd PE | 13 |
4.2 Price Multiples
LE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LE is cheaper than 76.86% 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 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.23 | ||
| EV/EBITDA | 6.36 |
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)0.31
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.71
+0.13 (+1.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners26.06%
Inst Owner Change-4.11%
Ins Owners62.5%
Ins Owner Change0.13%
Market Cap330.30M
Analysts84.44
Price Target16.32 (52.38%)
Short Float %6.31%
Short Ratio2.3
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)-21.89%
Min EPS beat(2)-41.7%
Max EPS beat(2)-2.08%
EPS beat(4)0
Avg EPS beat(4)-70.43%
Min EPS beat(4)-183.23%
Max EPS beat(4)-2.08%
EPS beat(8)1
Avg EPS beat(8)-64.25%
EPS beat(12)4
Avg EPS beat(12)-33.27%
EPS beat(16)6
Avg EPS beat(16)-24.32%
Revenue beat(2)0
Avg Revenue beat(2)-6.74%
Min Revenue beat(2)-6.97%
Max Revenue beat(2)-6.52%
Revenue beat(4)1
Avg Revenue beat(4)-3.79%
Min Revenue beat(4)-6.97%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-3.33%
Revenue beat(12)2
Avg Revenue beat(12)-3.11%
Revenue beat(16)2
Avg Revenue beat(16)-3.94%
PT rev (1m)-12.73%
PT rev (3m)-15.79%
EPS NQ rev (1m)-49.92%
EPS NQ rev (3m)75%
EPS NY rev (1m)3.3%
EPS NY rev (3m)33.86%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.38 | ||
| Fwd PE | 13 | ||
| P/S | 0.25 | ||
| P/FCF | 19.23 | ||
| P/OCF | 5.85 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.13
EY1.21%
EPS(NY)0.82
Fwd EY7.69%
FCF(TTM)0.56
FCFY5.2%
OCF(TTM)1.83
OCFY17.1%
SpS43.41
BVpS7.46
TBVpS-0.87
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.92% | ||
| ROCE | 10.41% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 12.07% | ||
| OM | 4.39% | ||
| PM (TTM) | 0.33% | ||
| GM | 48.34% | ||
| FCFM | 1.28% |
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 Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 16.02 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 118.94% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 61.56% | ||
| Profit Quality | 389.19% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.46 |
F-Score7
WACC10.6%
ROIC/WACC0.58
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)117.81%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%-35%
EPS Next Y263.08%
EPS Next 2Y102.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-8.5%
Revenue Next Year-0.91%
Revenue Next 2Y0.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y168.84%
EBIT growth 3Y-8.9%
EBIT growth 5Y5.85%
EBIT Next Year89.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.8%
FCF growth 3Y-30.3%
FCF growth 5YN/A
OCF growth 1Y-24.87%
OCF growth 3Y-9.03%
OCF growth 5Y14.25%