LEROY SEAFOOD GROUP ASA (LSG.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:LSG - NO0003096208 - Common Stock
45.56 NOK
+0.14 (+0.31%)
We assign a fundamental rating of 5 out of 10 to LSG. LSG was compared to 62 industry peers in the Food Products industry. Both the profitability and the financial health of LSG get a neutral evaluation. Nothing too spectacular is happening here. LSG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LSG had positive earnings in the past year.
- In the past year LSG had a positive cash flow from operations.
- Each year in the past 5 years LSG has been profitable.
- Each year in the past 5 years LSG had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.47%, LSG is doing good in the industry, outperforming 66.13% of the companies in the same industry.
- LSG's Return On Equity of 9.68% is in line compared to the rest of the industry. LSG outperforms 56.45% of its industry peers.
- LSG has a Return On Invested Capital (5.31%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LSG is in line with the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 9.68% | ||
| ROIC | 5.31% |
ROA(3y)4.91%
ROA(5y)5.01%
ROE(3y)9.86%
ROE(5y)9.75%
ROIC(3y)6.82%
ROIC(5y)6.56%
1.3 Margins
- The Profit Margin of LSG (5.30%) is better than 62.90% of its industry peers.
- In the last couple of years the Profit Margin of LSG has remained more or less at the same level.
- LSG has a Operating Margin of 6.83%. This is comparable to the rest of the industry: LSG outperforms 54.84% of its industry peers.
- LSG's Operating Margin has declined in the last couple of years.
- LSG has a Gross Margin of 43.07%. This is in the better half of the industry: LSG outperforms 64.52% of its industry peers.
- LSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 5.3% | ||
| GM | 43.07% |
OM growth 3Y-7.05%
OM growth 5Y-8.07%
PM growth 3Y-9.03%
PM growth 5Y-1.13%
GM growth 3Y0.62%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
- LSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LSG has about the same amount of shares outstanding.
- Compared to 5 years ago, LSG has about the same amount of shares outstanding.
- LSG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.52 indicates that LSG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LSG's Altman-Z score of 2.52 is fine compared to the rest of the industry. LSG outperforms 62.90% of its industry peers.
- The Debt to FCF ratio of LSG is 7.92, which is on the high side as it means it would take LSG, 7.92 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.92, LSG is in line with its industry, outperforming 53.23% of the companies in the same industry.
- LSG has a Debt/Equity ratio of 0.57. This is a neutral value indicating LSG is somewhat dependend on debt financing.
- LSG has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.73
WACC7.28%
2.3 Liquidity
- A Current Ratio of 2.02 indicates that LSG has no problem at all paying its short term obligations.
- LSG's Current ratio of 2.02 is fine compared to the rest of the industry. LSG outperforms 79.03% of its industry peers.
- A Quick Ratio of 1.74 indicates that LSG should not have too much problems paying its short term obligations.
- LSG's Quick ratio of 1.74 is amongst the best of the industry. LSG outperforms 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 48.79% over the past year.
- Measured over the past years, LSG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.38% on average per year.
- LSG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.15%.
- The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)48.79%
EPS 3Y20.89%
EPS 5Y8.38%
EPS Q2Q%-169.46%
Revenue 1Y (TTM)10.15%
Revenue growth 3Y10.49%
Revenue growth 5Y8.79%
Sales Q2Q%10.97%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.20% on average over the next years.
- Based on estimates for the next years, LSG will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y-59.04%
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y6.15%
Revenue Next 3Y5.4%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 8.34 indicates a reasonable valuation of LSG.
- LSG's Price/Earnings ratio is rather cheap when compared to the industry. LSG is cheaper than 88.71% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. LSG is valued rather cheaply when compared to this.
- LSG is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LSG indicates a somewhat cheap valuation: LSG is cheaper than 77.42% of the companies listed in the same industry.
- LSG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
- LSG's Enterprise Value to EBITDA is on the same level as the industry average.
- LSG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LSG is cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 8.54 |
4.3 Compensation for Growth
- A cheap valuation may be justified as LSG's earnings are expected to decrease with -3.20% in the coming years.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.43%, LSG is a good candidate for dividend investing.
- LSG's Dividend Yield is rather good when compared to the industry average which is at 2.38. LSG pays more dividend than 88.71% of the companies in the same industry.
- LSG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
- The dividend of LSG has a limited annual growth rate of 3.85%.
Dividend Growth(5Y)3.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- LSG pays out 85.27% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of LSG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP85.27%
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
LEROY SEAFOOD GROUP ASA / LSG.OL FAQ
Can you provide the ChartMill fundamental rating for LEROY SEAFOOD GROUP ASA?
ChartMill assigns a fundamental rating of 5 / 10 to LSG.OL.
What is the valuation status of LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
ChartMill assigns a valuation rating of 5 / 10 to LEROY SEAFOOD GROUP ASA (LSG.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for LEROY SEAFOOD GROUP ASA?
LEROY SEAFOOD GROUP ASA (LSG.OL) has a profitability rating of 5 / 10.
What are the PE and PB ratios of LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
The Price/Earnings (PE) ratio for LEROY SEAFOOD GROUP ASA (LSG.OL) is 8.34 and the Price/Book (PB) ratio is 1.46.
What is the expected EPS growth for LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
The Earnings per Share (EPS) of LEROY SEAFOOD GROUP ASA (LSG.OL) is expected to decline by -59.04% in the next year.