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LAWSON PRODUCTS INC (LAWS) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:LAWS - US5207761058 - Common Stock

40.42
-0.73 (-1.77%)
Last: 5/6/2022, 8:00:03 PM
40.42
0 (0%)
After Hours: 5/6/2022, 8:00:03 PM
Fundamental Rating

3

Taking everything into account, LAWS scores 3 out of 10 in our fundamental rating. LAWS was compared to 50 industry peers in the Trading Companies & Distributors industry. LAWS has a bad profitability rating. Also its financial health evaluation is rather negative. LAWS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year LAWS was profitable.
LAWS Yearly Net Income VS EBIT VS OCF VS FCFLAWS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 10M 20M 30M

1.2 Ratios

Industry RankSector Rank
ROA 5.47%
ROE 10.37%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
LAWS Yearly ROA, ROE, ROICLAWS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 20 30

1.3 Margins

Industry RankSector Rank
OM 5.15%
PM (TTM) 3.42%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
LAWS Yearly Profit, Operating, Gross MarginsLAWS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

3

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, LAWS has about the same amount of shares outstanding.
  • LAWS has a worse debt/assets ratio than last year.
LAWS Yearly Shares OutstandingLAWS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2M 4M 6M 8M
LAWS Yearly Total Debt VS Total AssetsLAWS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

2.2 Solvency

  • An Altman-Z score of 6.47 indicates that LAWS is not in any danger for bankruptcy at the moment.
  • A Debt/Equity ratio of 0.11 indicates that LAWS is not too dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z 6.47
ROIC/WACCN/A
WACCN/A
LAWS Yearly LT Debt VS Equity VS FCFLAWS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 20M 40M 60M 80M 100M

2.3 Liquidity

  • LAWS has a Current Ratio of 2.05. This indicates that LAWS is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 0.97 indicates that LAWS may have some problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 0.97
LAWS Yearly Current Assets VS Current LiabilitesLAWS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 152.87% over the past year.
  • The Earnings Per Share has been growing by 153.17% on average over the past years. This is a very strong growth
  • Looking at the last year, LAWS shows a quite strong growth in Revenue. The Revenue has grown by 18.66% in the last year.
  • LAWS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.59% yearly.
EPS 1Y (TTM)152.87%
EPS 3Y16.37%
EPS 5Y153.17%
EPS Q2Q%26.67%
Revenue 1Y (TTM)18.66%
Revenue growth 3Y6.11%
Revenue growth 5Y8.59%
Sales Q2Q%13.78%

3.2 Future

  • LAWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.95% yearly.
  • Based on estimates for the next years, LAWS will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y23.33%
EPS Next 2Y19.87%
EPS Next 3Y16.86%
EPS Next 5Y15.95%
Revenue Next Year6.61%
Revenue Next 2Y5.51%
Revenue Next 3Y4.81%
Revenue Next 5Y4.99%

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 decreasing: in the next years the growth will be less than in the last years.
LAWS Yearly Revenue VS EstimatesLAWS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
LAWS Yearly EPS VS EstimatesLAWS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.37, the valuation of LAWS can be described as rather expensive.
  • LAWS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 13.52, which indicates a correct valuation of LAWS.
  • LAWS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.37
Fwd PE 13.52
LAWS Price Earnings VS Forward Price EarningsLAWS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 25.87
LAWS Per share dataLAWS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
  • LAWS's earnings are expected to grow with 16.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.12
EPS Next 2Y19.87%
EPS Next 3Y16.86%

0

5. Dividend

5.1 Amount

  • No dividends for LAWS!.
Industry RankSector Rank
Dividend Yield N/A

LAWSON PRODUCTS INC / LAWS FAQ

What is the fundamental rating for LAWS stock?

ChartMill assigns a fundamental rating of 4 / 10 to LAWS.


Can you provide the valuation status for LAWSON PRODUCTS INC?

ChartMill assigns a valuation rating of 3 / 10 to LAWSON PRODUCTS INC (LAWS). This can be considered as Overvalued.


Can you provide the profitability details for LAWSON PRODUCTS INC?

LAWSON PRODUCTS INC (LAWS) has a profitability rating of 2 / 10.


Can you provide the financial health for LAWS stock?

The financial health rating of LAWSON PRODUCTS INC (LAWS) is 7 / 10.


Can you provide the dividend sustainability for LAWS stock?

The dividend rating of LAWSON PRODUCTS INC (LAWS) is 0 / 10 and the dividend payout ratio is 0%.