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. The financial health of LAKE is average, but there are quite some concerns on its profitability. LAKE is not valued too expensively and it also shows a decent growth rate.
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.
LAKE had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LAKE reported negative operating cash flow in multiple years.
1.2 Ratios
LAKE's Return On Assets of -10.84% is on the low side compared to the rest of the industry. LAKE is outperformed by 72.00% of its industry peers.
LAKE has a worse Return On Equity (-16.49%) than 68.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.87%, LAKE is in line with its industry, outperforming 48.00% of the companies in the same 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 3 year average ROIC (5.64%) for LAKE is below the current ROIC(5.87%), indicating increased profibility in the last year.
| 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
LAKE's Operating Margin of 7.68% is in line compared to the rest of the industry. LAKE outperforms 54.00% of its industry peers.
In the last couple of years the Operating Margin of LAKE has grown nicely.
LAKE's Gross Margin of 38.35% is on the low side compared to the rest of the industry. LAKE is outperformed by 74.00% of its industry peers.
LAKE's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAKE is destroying value.
LAKE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LAKE has been increased compared to 5 years ago.
The debt/assets ratio for LAKE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.95 indicates that LAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LAKE's Altman-Z score of 2.95 is in line compared to the rest of the industry. LAKE outperforms 60.00% of its industry peers.
LAKE has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.18, LAKE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.95 |
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.
The Current ratio of LAKE (3.88) is better than 94.00% of its industry peers.
A Quick Ratio of 1.51 indicates that LAKE should not have too much problems paying its short term obligations.
LAKE has a Quick ratio of 1.51. This is in the better half 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
The earnings per share for LAKE have decreased strongly by -156.36% in the last year.
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%.
LAKE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.18% yearly.
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
The Revenue is expected to grow by 16.88% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
LAKE is valuated reasonably with a Price/Forward Earnings ratio of 8.42.
Based on the Price/Forward Earnings ratio, LAKE is valued cheaper than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, LAKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAKE is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.93 |
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 LAKE's earnings are expected to grow with 1159.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1159.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LAKE has a yearly dividend return of 0.86%, which is pretty low.
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 3.70, LAKE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.86, LAKE pays less dividend than the S&P500 average, which is at 2.35.
| 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
LAKE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 Change0.07%
Ins Owners2.6%
Ins Owner Change13.61%
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)-71.79%
EPS NQ rev (3m)-73.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-65.49%
Revenue NQ rev (1m)4%
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 | 7.93 |
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 | 2.95 |
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