LESLIE'S INC (LESL) Stock Fundamental Analysis
NASDAQ:LESL - Nasdaq - US5270641096 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LESL. LESL was compared to 121 industry peers in the Specialty Retail industry. LESL has a bad profitability rating. Also its financial health evaluation is rather negative. LESL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LESL had negative earnings in the past year.
LESL had a positive operating cash flow in the past year.
LESL had positive earnings in 4 of the past 5 years.
In the past 5 years LESL always reported a positive cash flow from operatings.
1.2 Ratios
LESL has a worse Return On Assets (-2.94%) than 64.46% of its industry peers.
LESL's Return On Invested Capital of 6.06% is in line compared to the rest of the industry. LESL outperforms 57.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LESL is in line with the industry average of 14.53%.
The 3 year average ROIC (12.93%) for LESL is well above the current ROIC(6.06%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.94% | ||
| ROE | N/A | ||
| ROIC | 6.06% |
ROA(3y)4.91%
ROA(5y)6.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.93%
ROIC(5y)16.83%
1.3 Margins
LESL has a Operating Margin of 4.75%. This is in the better half of the industry: LESL outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of LESL has declined.
LESL has a Gross Margin (35.61%) which is comparable to the rest of the industry.
LESL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 35.61% |
OM growth 3Y-32.03%
OM growth 5Y-17.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.83%
GM growth 5Y-2.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LESL is still creating some value.
The number of shares outstanding for LESL has been increased compared to 1 year ago.
LESL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LESL has been reduced compared to a year ago.
2.2 Solvency
LESL has an Altman-Z score of 1.40. This is a bad value and indicates that LESL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.40, LESL is not doing good in the industry: 67.77% of the companies in the same industry are doing better.
LESL has a debt to FCF ratio of 23.90. This is a negative value and a sign of low solvency as LESL would need 23.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.90, LESL is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.76
WACC7.97%
2.3 Liquidity
LESL has a Current Ratio of 1.76. This is a normal value and indicates that LESL 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, LESL is in the better half of the industry, outperforming 76.86% of the companies in the same industry.
A Quick Ratio of 0.36 indicates that LESL may have some problems paying its short term obligations.
The Quick ratio of LESL (0.36) is worse than 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
LESL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -114.29%.
The Revenue has decreased by -6.90% in the past year.
LESL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.46% yearly.
EPS 1Y (TTM)-114.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-0.32%
Revenue growth 5Y7.46%
Sales Q2Q%0.73%
3.2 Future
The Earnings Per Share is expected to grow by 171.53% on average over the next years. This is a very strong growth
Based on estimates for the next years, LESL will show a small growth in Revenue. The Revenue will grow by 2.62% on average per year.
EPS Next Y439.35%
EPS Next 2Y298.51%
EPS Next 3Y171.53%
EPS Next 5YN/A
Revenue Next Year0.29%
Revenue Next 2Y1.64%
Revenue Next 3Y2.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LESL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 7.42, which indicates a rather cheap valuation of LESL.
Based on the Price/Forward Earnings ratio, LESL is valued cheaper than 88.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. LESL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LESL.
Based on the Price/Free Cash Flow ratio, LESL is valued cheaply inside the industry as 94.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 10.08 |
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.
LESL's earnings are expected to grow with 171.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y298.51%
EPS Next 3Y171.53%
5. Dividend
5.1 Amount
No dividends for LESL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.03
+0.03 (+3.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.12%
Inst Owner Change1.98%
Ins Owners0.6%
Ins Owner Change0.02%
Market Cap190.79M
Analysts52.94
Price Target2.57 (149.51%)
Short Float %14.72%
Short Ratio3.55
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)-42.57%
Min EPS beat(2)-82.56%
Max EPS beat(2)-2.59%
EPS beat(4)2
Avg EPS beat(4)-18.77%
Min EPS beat(4)-82.56%
Max EPS beat(4)6%
EPS beat(8)3
Avg EPS beat(8)-16%
EPS beat(12)5
Avg EPS beat(12)-6.8%
EPS beat(16)9
Avg EPS beat(16)1.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-3.65%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-2.85%
Revenue beat(12)4
Avg Revenue beat(12)-1.25%
Revenue beat(16)8
Avg Revenue beat(16)1.6%
PT rev (1m)-20.13%
PT rev (3m)-24.89%
EPS NQ rev (1m)-39.36%
EPS NQ rev (3m)-45.6%
EPS NY rev (1m)-63.44%
EPS NY rev (3m)-81.79%
Revenue NQ rev (1m)-2.28%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.42 | ||
| P/S | 0.14 | ||
| P/FCF | 5.77 | ||
| P/OCF | 2.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.08 |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.14
Fwd EY13.48%
FCF(TTM)0.18
FCFY17.34%
OCF(TTM)0.4
OCFY38.92%
SpS7.19
BVpS-1.19
TBVpS-2.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.94% | ||
| ROE | N/A | ||
| ROCE | 8.18% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 8.56% | ||
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 35.61% | ||
| FCFM | 2.48% |
ROA(3y)4.91%
ROA(5y)6.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.93%
ROIC(5y)16.83%
ROICexc(3y)14.82%
ROICexc(5y)24.05%
ROICexgc(3y)21.72%
ROICexgc(5y)36.28%
ROCE(3y)17.45%
ROCE(5y)22.71%
ROICexcg growth 3Y-44.76%
ROICexcg growth 5Y-34.55%
ROICexc growth 3Y-44.16%
ROICexc growth 5Y-29.4%
OM growth 3Y-32.03%
OM growth 5Y-17.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.83%
GM growth 5Y-2.61%
F-Score2
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Debt/EBITDA | 8.22 | ||
| Cap/Depr | 124.85% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 1.01 | ||
| Cash Conversion | 77.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.4 |
F-Score2
WACC7.97%
ROIC/WACC0.76
Cap/Depr(3y)119.65%
Cap/Depr(5y)107.77%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-114.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y439.35%
EPS Next 2Y298.51%
EPS Next 3Y171.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-0.32%
Revenue growth 5Y7.46%
Sales Q2Q%0.73%
Revenue Next Year0.29%
Revenue Next 2Y1.64%
Revenue Next 3Y2.62%
Revenue Next 5YN/A
EBIT growth 1Y-36.91%
EBIT growth 3Y-32.25%
EBIT growth 5Y-11.41%
EBIT Next Year50.3%
EBIT Next 3Y21.83%
EBIT Next 5YN/A
FCF growth 1Y236.69%
FCF growth 3Y-24.58%
FCF growth 5Y14.65%
OCF growth 1Y852.08%
OCF growth 3Y-14.06%
OCF growth 5Y13.21%