LATHAM GROUP INC (SWIM) Stock Fundamental Analysis
NASDAQ:SWIM - Nasdaq - US51819L1070 - Common Stock - Currency: USD
Overall SWIM gets a fundamental rating of 3 out of 10. We evaluated SWIM against 30 industry peers in the Leisure Products industry. The financial health of SWIM is average, but there are quite some concerns on its profitability. While showing a medium growth rate, SWIM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SWIM was profitable.
In the past year SWIM had a positive cash flow from operations.
SWIM had negative earnings in 4 of the past 5 years.
In the past 5 years SWIM always reported a positive cash flow from operatings.
1.2 Ratios
SWIM has a Return On Assets (-1.94%) which is in line with its industry peers.
SWIM has a Return On Equity of -4.19%. This is comparable to the rest of the industry: SWIM outperforms 53.33% of its industry peers.
The Return On Invested Capital of SWIM (1.64%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SWIM is significantly below the industry average of 7.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.19% | ||
| ROIC | 1.64% |
ROA(3y)-1.06%
ROA(5y)-1.71%
ROE(3y)-2.23%
ROE(5y)-3.39%
ROIC(3y)2.63%
ROIC(5y)N/A
1.3 Margins
SWIM's Operating Margin of 3.03% is in line compared to the rest of the industry. SWIM outperforms 60.00% of its industry peers.
SWIM's Operating Margin has declined in the last couple of years.
SWIM has a Gross Margin (30.64%) which is in line with its industry peers.
SWIM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.64% |
OM growth 3YN/A
OM growth 5Y-16.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWIM is destroying value.
The number of shares outstanding for SWIM has been increased compared to 1 year ago.
Compared to 5 years ago, SWIM has less shares outstanding
SWIM has a better debt/assets ratio than last year.
2.2 Solvency
SWIM has an Altman-Z score of 1.73. This is a bad value and indicates that SWIM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SWIM (1.73) is worse than 66.67% of its industry peers.
The Debt to FCF ratio of SWIM is 10.10, which is on the high side as it means it would take SWIM, 10.10 years of fcf income to pay off all of its debts.
SWIM has a Debt to FCF ratio of 10.10. This is comparable to the rest of the industry: SWIM outperforms 46.67% of its industry peers.
SWIM has a Debt/Equity ratio of 0.80. This is a neutral value indicating SWIM is somewhat dependend on debt financing.
The Debt to Equity ratio of SWIM (0.80) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.18
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.55 indicates that SWIM has no problem at all paying its short term obligations.
SWIM has a Current ratio (2.55) which is in line with its industry peers.
SWIM has a Quick Ratio of 1.50. This is a normal value and indicates that SWIM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SWIM (1.50) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
SWIM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -95.65%.
SWIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -75.96% yearly.
SWIM shows a decrease in Revenue. In the last year, the revenue decreased by -5.58%.
The Revenue has been growing by 9.84% on average over the past years. This is quite good.
EPS 1Y (TTM)-95.65%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%0.72%
3.2 Future
The Earnings Per Share is expected to grow by 192.36% on average over the next years. This is a very strong growth
SWIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue Next Year7.52%
Revenue Next 2Y6.69%
Revenue Next 3Y6.54%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SWIM is valuated quite expensively with a Price/Earnings ratio of 638.00.
SWIM's Price/Earnings is on the same level as the industry average.
SWIM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.15.
Based on the Price/Forward Earnings ratio of 39.51, the valuation of SWIM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWIM is on the same level as its industry peers.
SWIM is valuated expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 638 | ||
| Fwd PE | 39.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWIM.
SWIM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| EV/EBITDA | 16.62 |
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.
A more expensive valuation may be justified as SWIM's earnings are expected to grow with 192.36% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y301.87%
EPS Next 3Y192.36%
5. Dividend
5.1 Amount
No dividends for SWIM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.38
-0.2 (-3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners87.06%
Inst Owner Change-0.48%
Ins Owners7.49%
Ins Owner Change-12.69%
Market Cap742.44M
Analysts80
Price Target7.21 (13.01%)
Short Float %5.01%
Short Ratio7.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-37.07%
Min EPS beat(2)-110.88%
Max EPS beat(2)36.75%
EPS beat(4)3
Avg EPS beat(4)68.85%
Min EPS beat(4)-110.88%
Max EPS beat(4)328.87%
EPS beat(8)5
Avg EPS beat(8)62.55%
EPS beat(12)8
Avg EPS beat(12)48.66%
EPS beat(16)12
Avg EPS beat(16)63.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)0.23%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)1.2%
PT rev (1m)-0.5%
PT rev (3m)0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)2.86%
EPS NY rev (3m)61.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 638 | ||
| Fwd PE | 39.51 | ||
| P/S | 1.46 | ||
| P/FCF | 24.17 | ||
| P/OCF | 15.17 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.62 |
EPS(TTM)0.01
EY0.16%
EPS(NY)0.16
Fwd EY2.53%
FCF(TTM)0.26
FCFY4.14%
OCF(TTM)0.42
OCFY6.59%
SpS4.38
BVpS3.28
TBVpS-0.54
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.19% | ||
| ROCE | 2.08% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 4.45% | ||
| OM | 3.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.64% | ||
| FCFM | 6.03% |
ROA(3y)-1.06%
ROA(5y)-1.71%
ROE(3y)-2.23%
ROE(5y)-3.39%
ROIC(3y)2.63%
ROIC(5y)N/A
ROICexc(3y)2.84%
ROICexc(5y)N/A
ROICexgc(3y)7.54%
ROICexgc(5y)N/A
ROCE(3y)3.33%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-29.91%
ROICexc growth 3YN/A
ROICexc growth 5Y-16.75%
OM growth 3YN/A
OM growth 5Y-16.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-0.42%
F-Score3
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.1 | ||
| Debt/EBITDA | 4.95 | ||
| Cap/Depr | 39.21% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | 79.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.73 |
F-Score3
WACC8.9%
ROIC/WACC0.18
Cap/Depr(3y)76.88%
Cap/Depr(5y)74.45%
Cap/Sales(3y)5.17%
Cap/Sales(5y)4.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-95.65%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%0.72%
Revenue Next Year7.52%
Revenue Next 2Y6.69%
Revenue Next 3Y6.54%
Revenue Next 5YN/A
EBIT growth 1Y-24.44%
EBIT growth 3YN/A
EBIT growth 5Y-8.63%
EBIT Next Year321.25%
EBIT Next 3Y74.63%
EBIT Next 5YN/A
FCF growth 1Y-5.06%
FCF growth 3Y67.85%
FCF growth 5Y8.42%
OCF growth 1Y-35.01%
OCF growth 3Y22.09%
OCF growth 5Y11.45%