LIFETIME BRANDS INC (LCUT) Stock Fundamental Analysis
NASDAQ:LCUT - Nasdaq - US53222Q1031 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LCUT. LCUT was compared to 64 industry peers in the Household Durables industry. LCUT has a bad profitability rating. Also its financial health evaluation is rather negative. LCUT has a bad growth rate and is valued cheaply. LCUT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LCUT had positive earnings in the past year.
In the past year LCUT had a positive cash flow from operations.
LCUT had negative earnings in 4 of the past 5 years.
In the past 5 years LCUT always reported a positive cash flow from operatings.
1.2 Ratios
LCUT's Return On Assets of -2.39% is on the low side compared to the rest of the industry. LCUT is outperformed by 68.75% of its industry peers.
LCUT has a worse Return On Equity (-6.60%) than 70.31% of its industry peers.
LCUT has a Return On Invested Capital of 4.43%. This is comparable to the rest of the industry: LCUT outperforms 40.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LCUT is significantly below the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.39% | ||
| ROE | -6.6% | ||
| ROIC | 4.43% |
ROA(3y)-1.5%
ROA(5y)-0.47%
ROE(3y)-4.27%
ROE(5y)-1.2%
ROIC(3y)4.56%
ROIC(5y)5.56%
1.3 Margins
With a Operating Margin value of 3.97%, LCUT is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LCUT has grown nicely.
LCUT has a Gross Margin of 38.17%. This is in the better half of the industry: LCUT outperforms 76.56% of its industry peers.
In the last couple of years the Gross Margin of LCUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.97% | ||
| PM (TTM) | N/A | ||
| GM | 38.17% |
OM growth 3Y-18.91%
OM growth 5Y7.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.79%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LCUT is destroying value.
The number of shares outstanding for LCUT has been increased compared to 1 year ago.
Compared to 5 years ago, LCUT has more shares outstanding
The debt/assets ratio for LCUT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that LCUT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.68, LCUT is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
The Debt to FCF ratio of LCUT is 10.92, which is on the high side as it means it would take LCUT, 10.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LCUT (10.92) is comparable to the rest of the industry.
LCUT has a Debt/Equity ratio of 0.76. This is a neutral value indicating LCUT is somewhat dependend on debt financing.
LCUT has a worse Debt to Equity ratio (0.76) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.92 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.42
WACC10.52%
2.3 Liquidity
LCUT has a Current Ratio of 2.46. This indicates that LCUT is financially healthy and has no problem in meeting its short term obligations.
LCUT has a Current ratio (2.46) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that LCUT should not have too much problems paying its short term obligations.
LCUT has a Quick ratio of 1.13. This is comparable to the rest of the industry: LCUT outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.73% over the past year.
Measured over the past 5 years, LCUT shows a small growth in Earnings Per Share. The EPS has been growing by 5.21% on average per year.
The Revenue has decreased by -0.54% in the past year.
The Revenue has been decreasing by -1.46% on average over the past years.
EPS 1Y (TTM)13.73%
EPS 3Y-29.71%
EPS 5Y5.21%
EPS Q2Q%89.66%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y-7.5%
Revenue growth 5Y-1.46%
Sales Q2Q%5.94%
3.2 Future
The Earnings Per Share is expected to grow by 5.41% on average over the next years.
LCUT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y2.88%
EPS Next 2Y15.23%
EPS Next 3Y4.56%
EPS Next 5Y5.41%
Revenue Next Year3.02%
Revenue Next 2Y2.73%
Revenue Next 3Y2.16%
Revenue Next 5Y1.98%
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 stable.
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
Based on the Price/Earnings ratio of 5.97, the valuation of LCUT can be described as very cheap.
Based on the Price/Earnings ratio, LCUT is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
LCUT is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.80, the valuation of LCUT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LCUT indicates a rather cheap valuation: LCUT is cheaper than 85.94% of the companies listed in the same industry.
LCUT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
84.38% of the companies in the same industry are more expensive than LCUT, based on the Enterprise Value to EBITDA ratio.
90.63% of the companies in the same industry are more expensive than LCUT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.74 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LCUT does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.07
PEG (5Y)1.15
EPS Next 2Y15.23%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.75%, LCUT is a good candidate for dividend investing.
In the last 3 months the price of LCUT has falen by -35.33%. 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 3.59, LCUT pays a better dividend. On top of this LCUT pays more dividend than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, LCUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of LCUT has a limited annual growth rate of 0.43%.
LCUT has paid a dividend for at least 10 years, which is a reliable track record.
LCUT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.43%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
LCUT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
LCUT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-25.12%
EPS Next 2Y15.23%
EPS Next 3Y4.56%
3.46
-0.12 (-3.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners42.1%
Inst Owner Change0.92%
Ins Owners14.75%
Ins Owner Change1.73%
Market Cap77.54M
Analysts82.86
Price Target8.67 (150.58%)
Short Float %2.67%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend0.17
Dividend Growth(5Y)0.43%
DP-25.12%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.11%
Min EPS beat(2)-47.61%
Max EPS beat(2)25.4%
EPS beat(4)1
Avg EPS beat(4)-8.77%
Min EPS beat(4)-47.61%
Max EPS beat(4)25.4%
EPS beat(8)4
Avg EPS beat(8)14.82%
EPS beat(12)5
Avg EPS beat(12)-22.78%
EPS beat(16)9
Avg EPS beat(16)32.86%
Revenue beat(2)1
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-8.51%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-8.51%
Max Revenue beat(4)2.89%
Revenue beat(8)4
Avg Revenue beat(8)-2.18%
Revenue beat(12)5
Avg Revenue beat(12)-4.08%
Revenue beat(16)7
Avg Revenue beat(16)-1.41%
PT rev (1m)3.03%
PT rev (3m)-19.05%
EPS NQ rev (1m)5%
EPS NQ rev (3m)18.57%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)-1.25%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 5.8 | ||
| P/S | 0.11 | ||
| P/FCF | 4.74 | ||
| P/OCF | 4.18 | ||
| P/B | 0.34 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)0.58
EY16.76%
EPS(NY)0.6
Fwd EY17.25%
FCF(TTM)0.73
FCFY21.08%
OCF(TTM)0.83
OCFY23.95%
SpS30.48
BVpS10.26
TBVpS2.07
PEG (NY)2.07
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.39% | ||
| ROE | -6.6% | ||
| ROCE | 5.61% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 7.23% | ||
| OM | 3.97% | ||
| PM (TTM) | N/A | ||
| GM | 38.17% | ||
| FCFM | 2.39% |
ROA(3y)-1.5%
ROA(5y)-0.47%
ROE(3y)-4.27%
ROE(5y)-1.2%
ROIC(3y)4.56%
ROIC(5y)5.56%
ROICexc(3y)4.68%
ROICexc(5y)5.78%
ROICexgc(3y)7.62%
ROICexgc(5y)9.4%
ROCE(3y)5.77%
ROCE(5y)7.04%
ROICexcg growth 3Y-18.91%
ROICexcg growth 5Y10.55%
ROICexc growth 3Y-19.78%
ROICexc growth 5Y12.35%
OM growth 3Y-18.91%
OM growth 5Y7.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.79%
GM growth 5Y1.91%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 10.92 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 9.98% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 1.36 | ||
| Cash Conversion | 37.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.68 |
F-Score5
WACC10.52%
ROIC/WACC0.42
Cap/Depr(3y)13.18%
Cap/Depr(5y)13.14%
Cap/Sales(3y)0.38%
Cap/Sales(5y)0.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.73%
EPS 3Y-29.71%
EPS 5Y5.21%
EPS Q2Q%89.66%
EPS Next Y2.88%
EPS Next 2Y15.23%
EPS Next 3Y4.56%
EPS Next 5Y5.41%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y-7.5%
Revenue growth 5Y-1.46%
Sales Q2Q%5.94%
Revenue Next Year3.02%
Revenue Next 2Y2.73%
Revenue Next 3Y2.16%
Revenue Next 5Y1.98%
EBIT growth 1Y-17.52%
EBIT growth 3Y-24.99%
EBIT growth 5Y5.68%
EBIT Next Year16.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.53%
FCF growth 3Y-20.88%
FCF growth 5Y-4.62%
OCF growth 1Y-67.09%
OCF growth 3Y-20.52%
OCF growth 5Y-9.07%