LAKELAND INDUSTRIES INC (LAKE)
US5117951062 - Common Stock
LAKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. LAKE has an excellent financial health rating, but there are some minor concerns on its profitability. LAKE is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year LAKE was profitable.
LAKE had a positive operating cash flow in the past year.
Each year in the past 5 years LAKE has been profitable.
Of the past 5 years LAKE 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LAKE (3.53%) is comparable to the rest of the industry.
LAKE's Return On Equity of 4.40% is in line compared to the rest of the industry. LAKE outperforms 44.00% of its industry peers.
The Return On Invested Capital of LAKE (3.84%) is worse than 62.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LAKE is below the industry average of 10.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 4.4% | ||
| ROIC | 3.84% |
ROA(3y)4.32%
ROA(5y)8.3%
ROE(3y)5.03%
ROE(5y)9.54%
ROIC(3y)6.08%
ROIC(5y)10.3%
1.3 Margins
LAKE has a Profit Margin (4.36%) which is comparable to the rest of the industry.
LAKE's Profit Margin has improved in the last couple of years.
LAKE has a Operating Margin of 5.29%. This is comparable to the rest of the industry: LAKE outperforms 44.00% of its industry peers.
LAKE's Operating Margin has improved in the last couple of years.
The Gross Margin of LAKE (41.05%) is worse than 62.00% of its industry peers.
In the last couple of years the Gross Margin of LAKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.29% | ||
| PM (TTM) | 4.36% | ||
| GM | 41.05% |
OM growth 3Y-37.28%
OM growth 5Y13.37%
PM growth 3Y-41.91%
PM growth 5Y23.49%
GM growth 3Y-6.28%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAKE is destroying value.
The number of shares outstanding for LAKE has been increased compared to 1 year ago.
LAKE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LAKE has a worse debt to assets ratio.
2.2 Solvency
LAKE has an Altman-Z score of 4.70. This indicates that LAKE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.70, LAKE belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
The Debt to FCF ratio of LAKE is 0.12, which is an excellent value as it means it would take LAKE, only 0.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.12, LAKE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that LAKE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.01, LAKE is doing good in the industry, outperforming 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 4.7 |
ROIC/WACC0.41
WACC9.26%
2.3 Liquidity
LAKE has a Current Ratio of 5.53. This indicates that LAKE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.53, LAKE belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
A Quick Ratio of 2.74 indicates that LAKE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.74, LAKE belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.53 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.33% over the past year.
Measured over the past years, LAKE shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.20% on average per year.
The Revenue has grown by 10.49% in the past year. This is quite good.
The Revenue has been growing slightly by 4.72% on average over the past years.
EPS 1Y (TTM)116.33%
EPS 3Y-37.4%
EPS 5Y44.2%
EPS growth Q2Q1000%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-7.78%
Revenue growth 5Y4.72%
Revenue growth Q2Q7.72%
3.2 Future
LAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.93% yearly.
Based on estimates for the next years, LAKE will show a quite strong growth in Revenue. The Revenue will grow by 8.60% on average per year.
EPS Next Y21.25%
EPS Next 2Y18.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.24%
Revenue Next 2Y8.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
LAKE is valuated correctly with a Price/Earnings ratio of 16.50.
LAKE's Price/Earnings ratio is a bit cheaper when compared to the industry. LAKE is cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. LAKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.61, LAKE is valued correctly.
72.00% of the companies in the same industry are more expensive than LAKE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LAKE to the average of the S&P500 Index (20.72), we can say LAKE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LAKE.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.58 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
LAKE's 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 LAKE's earnings are expected to grow with 18.93% in the coming years.
PEG (NY)0.78
PEG (5Y)0.37
EPS Next 2Y18.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, LAKE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.90, LAKE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, LAKE pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
LAKE does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.72% of the earnings are spent on dividend by LAKE. This is a low number and sustainable payout ratio.
DP16.72%
EPS Next 2Y18.93%
EPS Next 3YN/A
LAKELAND INDUSTRIES INC
NASDAQ:LAKE (5/3/2024, 12:05:11 PM)
17.495
+0.61 (+3.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap128.94M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 13.61 | ||
| 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)0.78
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 4.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.29% | ||
| PM (TTM) | 4.36% | ||
| GM | 41.05% | ||
| 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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.53 | ||
| Quick Ratio | 2.74 | ||
| 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)
Growth
EPS 1Y (TTM)116.33%
EPS 3Y-37.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-7.78%
Revenue growth 5Y
Revenue growth 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