LESLIE'S INC (LESL)
US5270641096 - Common Stock
Overall LESL gets a fundamental rating of 4 out of 10. We evaluated LESL against 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of LESL while its profitability can be described as average. LESL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LESL was profitable.
In the past year LESL had a positive cash flow from operations.
In the past 5 years LESL has always been profitable.
Each year in the past 5 years LESL had a positive operating cash flow.
1.2 Ratios
LESL has a Return On Assets (0.27%) which is comparable to the rest of the industry.
LESL's Return On Invested Capital of 6.63% is fine compared to the rest of the industry. LESL outperforms 64.46% of its industry peers.
LESL had an Average Return On Invested Capital over the past 3 years of 18.42%. This is significantly above the industry average of 12.27%.
The last Return On Invested Capital (6.63%) for LESL is well below the 3 year average (18.42%), which needs to be investigated, but indicates that LESL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | N/A | ||
| ROIC | 6.63% |
ROA(3y)9.7%
ROA(5y)7.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.42%
ROIC(5y)21.72%
1.3 Margins
Looking at the Profit Margin, with a value of 0.22%, LESL is in line with its industry, outperforming 52.07% of the companies in the same industry.
LESL's Profit Margin has been stable in the last couple of years.
LESL has a Operating Margin of 5.29%. This is in the better half of the industry: LESL outperforms 69.42% of its industry peers.
In the last couple of years the Operating Margin of LESL has declined.
LESL has a Gross Margin (36.18%) which is comparable to the rest of the industry.
LESL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.29% | ||
| PM (TTM) | 0.22% | ||
| GM | 36.18% |
OM growth 3Y-20.38%
OM growth 5Y-11.56%
PM growth 3Y-29.14%
PM growth 5Y-0.44%
GM growth 3Y-3.03%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LESL is creating value.
The number of shares outstanding for LESL has been increased compared to 1 year ago.
Compared to 5 years ago, LESL has less shares outstanding
The debt/assets ratio for LESL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that LESL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.57, LESL is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
The Debt to FCF ratio of LESL is 8.13, which is on the high side as it means it would take LESL, 8.13 years of fcf income to pay off all of its debts.
LESL has a Debt to FCF ratio (8.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.65
WACC10.2%
2.3 Liquidity
LESL has a Current Ratio of 1.60. This is a normal value and indicates that LESL is financially healthy and should not expect problems in meeting its short term obligations.
LESL has a Current ratio of 1.60. This is in the better half of the industry: LESL outperforms 65.29% of its industry peers.
LESL has a Quick Ratio of 1.60. This is a bad value and indicates that LESL is not financially healthy enough and could expect problems in meeting its short term obligations.
LESL has a Quick ratio of 0.54. This is comparable to the rest of the industry: LESL outperforms 55.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for LESL have decreased strongly by -77.08% in the last year.
Measured over the past years, LESL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.76% on average per year.
LESL shows a decrease in Revenue. In the last year, the revenue decreased by -8.68%.
The Revenue has been growing by 10.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-77.08%
EPS 3Y-21.49%
EPS 5Y10.76%
EPS Q2Q%-17.07%
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y9.27%
Revenue growth 5Y10.21%
Sales Q2Q%-6.75%
3.2 Future
The Earnings Per Share is expected to grow by 1.98% on average over the next years.
Based on estimates for the next years, LESL will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y-68.2%
EPS Next 2Y-17.5%
EPS Next 3Y1.98%
EPS Next 5YN/A
Revenue Next Year-7.09%
Revenue Next 2Y-1.86%
Revenue Next 3Y0.5%
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 decreasing.
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
Based on the Price/Earnings ratio of 31.91, the valuation of LESL can be described as expensive.
LESL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.56, LESL is valued at the same level.
With a Price/Forward Earnings ratio of 19.10, LESL is valued on the expensive side.
66.12% of the companies in the same industry are more expensive than LESL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LESL to the average of the S&P500 Index (24.20), we can say LESL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LESL.
LESL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LESL is cheaper than 95.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The decent profitability rating of LESL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y-17.5%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
LESL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LESLIE'S INC
NASDAQ:LESL (11/25/2024, 7:59:30 PM)
After market: 2.79 -0.72 (-20.51%)3.51
+0.32 (+10.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap649.03M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 19.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.29% | ||
| PM (TTM) | 0.22% | ||
| GM | 36.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-77.08%
EPS 3Y-21.49%
EPS 5Y
EPS Q2Q%
EPS Next Y-68.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y9.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y