L Brands Inc (LB)
We assign a fundamental rating of 2 out of 10 to LB. LB was compared to 126 industry peers in the Specialty Retail industry. Both the profitability and financial health of LB have multiple concerns. LB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LB had positive earnings in the past year.
In the past 5 years LB always reported negative net income.
LB had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | N/A | ||
| 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
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.69% | ||
| PM (TTM) | 10.73% | ||
| 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
2. Health
2.1 Basic Checks
There is no outstanding debt for LB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.95 indicates that LB is not a great score, but indicates only limited risk for bankruptcy at the moment.
A Debt/Equity ratio of -10.03 indicates that LB is not too dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | -10.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.95 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.72 indicates that LB should not have too much problems paying its short term obligations.
A Quick Ratio of 1.20 indicates that LB should not have too much problems paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
LB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 392.17%, which is quite impressive.
Measured over the past years, LB shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.13% on average per year.
Looking at the last year, LB shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
LB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)392.17%
EPS 3Y2.03%
EPS 5Y-3.13%
EPS growth Q2Q226.26%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-2.12%
Revenue growth 5Y-0.51%
Revenue growth Q2Q82.83%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
Based on estimates for the next years, LB will show a small growth in Revenue. The Revenue will grow by 6.51% on average per year.
EPS Next Y75.28%
EPS Next 2Y30.96%
EPS Next 3Y21.01%
EPS Next 5Y11.59%
Revenue Next Year20.36%
Revenue Next 2Y12.01%
Revenue Next 3Y8.97%
Revenue Next 5Y6.51%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.12 indicates a correct valuation of LB.
LB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.63, the valuation of LB can be described as correct.
The average S&P500 Price/Forward Earnings ratio is at 20.41. LB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.22 |
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 LB's earnings are expected to grow with 21.01% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y30.96%
EPS Next 3Y21.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, LB is not a good candidate for dividend investing.
Compared to an average S&P500 Dividend Yield of 2.41, LB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of LB decreases each year by -27.11%.
LB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-27.11%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DP0%
EPS Next 2Y30.96%
EPS Next 3Y21.01%
L Brands Inc
NYSE:LB (8/2/2021, 7:15:54 PM)
After market: 80.15 +0.23 (+0.29%)79.92
-0.15 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.63 | ||
| 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)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.69% | ||
| PM (TTM) | 10.73% | ||
| GM | N/A | ||
| 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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | -10.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 | ||
| 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)392.17%
EPS 3Y2.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y75.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.7%
Revenue growth 3Y-2.12%
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