LAKELAND INDUSTRIES INC (LAKE) Stock Fundamental Analysis
NASDAQ:LAKE - Nasdaq - US5117951062 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LAKE. LAKE was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While LAKE seems to be doing ok healthwise, there are quite some concerns on its profitability. LAKE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LAKE has reported negative net income.
LAKE had a negative operating cash flow in the past year.
Of the past 5 years LAKE 4 years were profitable.
In multiple years LAKE reported negative operating cash flow during the last 5 years.
1.2 Ratios
LAKE has a worse Return On Assets (-10.84%) than 72.00% of its industry peers.
LAKE has a Return On Equity of -16.49%. This is in the lower half of the industry: LAKE underperforms 68.00% of its industry peers.
The Return On Invested Capital of LAKE (5.87%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LAKE is significantly below the industry average of 11.09%.
The last Return On Invested Capital (5.87%) for LAKE is above the 3 year average (5.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.84% | ||
| ROE | -16.49% | ||
| ROIC | 5.87% |
ROA(3y)-1.21%
ROA(5y)5.94%
ROE(3y)-2.12%
ROE(5y)6.3%
ROIC(3y)5.64%
ROIC(5y)10.92%
1.3 Margins
Looking at the Operating Margin, with a value of 7.68%, LAKE is in line with its industry, outperforming 54.00% of the companies in the same industry.
LAKE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.35%, LAKE is doing worse than 74.00% of the companies in the same industry.
In the last couple of years the Gross Margin of LAKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | N/A | ||
| GM | 38.35% |
OM growth 3Y-5.33%
OM growth 5Y15.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.51%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAKE is destroying value.
LAKE has more shares outstanding than it did 1 year ago.
LAKE has more 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 2.91. This is not the best score and indicates that LAKE is in the grey zone with still only limited risk for bankruptcy at the moment.
LAKE has a Altman-Z score (2.91) which is in line with its industry peers.
A Debt/Equity ratio of 0.18 indicates that LAKE is not too dependend on debt financing.
LAKE's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. LAKE outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.91 |
ROIC/WACC0.64
WACC9.23%
2.3 Liquidity
A Current Ratio of 3.88 indicates that LAKE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.88, LAKE belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that LAKE should not have too much problems paying its short term obligations.
LAKE's Quick ratio of 1.51 is fine compared to the rest of the industry. LAKE outperforms 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
LAKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -156.36%.
Measured over the past years, LAKE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -52.18% on average per year.
Looking at the last year, LAKE shows a very strong growth in Revenue. The Revenue has grown by 34.28%.
The Revenue has been growing by 9.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-156.36%
EPS 3Y-80.74%
EPS 5Y-52.18%
EPS Q2Q%-286.36%
Revenue 1Y (TTM)34.28%
Revenue growth 3Y12.19%
Revenue growth 5Y9.18%
Sales Q2Q%28.74%
3.2 Future
The Earnings Per Share is expected to grow by 1159.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, LAKE will show a quite strong growth in Revenue. The Revenue will grow by 16.88% on average per year.
EPS Next Y4388%
EPS Next 2Y1159.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year30.48%
Revenue Next 2Y16.88%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for LAKE. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 8.42, the valuation of LAKE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LAKE is valued cheaper than 88.00% of the companies in the same industry.
LAKE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAKE indicates a somewhat cheap valuation: LAKE is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.62 |
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.
LAKE's earnings are expected to grow with 1159.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1159.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, LAKE is not a good candidate for dividend investing.
In the last 3 months the price of LAKE has falen by -20.72%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.89, LAKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, LAKE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
LAKE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of LAKE are negative and hence is the payout ratio. LAKE will probably not be able to sustain this dividend level.
DP-4.02%
EPS Next 2Y1159.4%
EPS Next 3YN/A
13.35
-0.56 (-4.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners77.73%
Inst Owner Change-0.86%
Ins Owners2.6%
Ins Owner Change13.8%
Market Cap126.96M
Analysts82
Price Target25.5 (91.01%)
Short Float %12.65%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-4.02%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-209.62%
Min EPS beat(2)-311.56%
Max EPS beat(2)-107.69%
EPS beat(4)0
Avg EPS beat(4)-167.28%
Min EPS beat(4)-311.56%
Max EPS beat(4)-97.42%
EPS beat(8)2
Avg EPS beat(8)-83.1%
EPS beat(12)3
Avg EPS beat(12)-67.09%
EPS beat(16)4
Avg EPS beat(16)-57.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-6.18%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)1.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.12%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)4
Avg Revenue beat(16)-3.64%
PT rev (1m)0%
PT rev (3m)-5.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-73.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-65.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.42 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.89 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)-0.62
EYN/A
EPS(NY)1.59
Fwd EY11.88%
FCF(TTM)-2.45
FCFYN/A
OCF(TTM)-2.21
OCFYN/A
SpS18.68
BVpS15.08
TBVpS10.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.84% | ||
| ROE | -16.49% | ||
| ROCE | 7.5% | ||
| ROIC | 5.87% | ||
| ROICexc | 6.53% | ||
| ROICexgc | 8.86% | ||
| OM | 7.68% | ||
| PM (TTM) | N/A | ||
| GM | 38.35% | ||
| FCFM | N/A |
ROA(3y)-1.21%
ROA(5y)5.94%
ROE(3y)-2.12%
ROE(5y)6.3%
ROIC(3y)5.64%
ROIC(5y)10.92%
ROICexc(3y)6.61%
ROICexc(5y)16.93%
ROICexgc(3y)8.41%
ROICexgc(5y)18.14%
ROCE(3y)7.16%
ROCE(5y)13.84%
ROICexcg growth 3Y-8.58%
ROICexcg growth 5Y14.09%
ROICexc growth 3Y-17.28%
ROICexc growth 5Y7.72%
OM growth 3Y-5.33%
OM growth 5Y15.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.51%
GM growth 5Y3.16%
F-Score2
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 59.97% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.91 |
F-Score2
WACC9.23%
ROIC/WACC0.64
Cap/Depr(3y)92.08%
Cap/Depr(5y)80.66%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-156.36%
EPS 3Y-80.74%
EPS 5Y-52.18%
EPS Q2Q%-286.36%
EPS Next Y4388%
EPS Next 2Y1159.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.28%
Revenue growth 3Y12.19%
Revenue growth 5Y9.18%
Sales Q2Q%28.74%
Revenue Next Year30.48%
Revenue Next 2Y16.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.18%
EBIT growth 3Y6.22%
EBIT growth 5Y26.58%
EBIT Next Year320.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-294.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-469.51%
OCF growth 3YN/A
OCF growth 5YN/A