LIFETIME BRANDS INC (LCUT)
US53222Q1031 - Common Stock
We assign a fundamental rating of 4 out of 10 to LCUT. LCUT was compared to 67 industry peers in the Household Durables industry. LCUT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LCUT is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years LCUT reported 4 times negative net income.
In the past 5 years LCUT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.26%, LCUT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a Return On Equity value of -3.64%, LCUT is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.04%, LCUT perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LCUT is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -3.64% | ||
| ROIC | 5.04% |
ROA(3y)0.13%
ROA(5y)-1.15%
ROE(3y)0.64%
ROE(5y)-3.64%
ROIC(3y)5.86%
ROIC(5y)5.16%
1.3 Margins
With a Operating Margin value of 4.78%, LCUT perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
LCUT's Operating Margin has improved in the last couple of years.
The Gross Margin of LCUT (37.09%) is better than 75.76% of its industry peers.
In the last couple of years the Gross Margin of LCUT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.78% | ||
| PM (TTM) | N/A | ||
| GM | 37.09% |
OM growth 3Y-6.65%
OM growth 5Y7.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
LCUT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LCUT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LCUT has been increased compared to 5 years ago.
LCUT has a better debt/assets ratio than last year.
2.2 Solvency
LCUT has an Altman-Z score of 1.85. This is not the best score and indicates that LCUT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LCUT (1.85) is worse than 71.21% of its industry peers.
LCUT has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as LCUT would need 3.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.75, LCUT is in line with its industry, outperforming 53.03% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that LCUT is somewhat dependend on debt financing.
LCUT has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: LCUT underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.45
WACC11.08%
2.3 Liquidity
LCUT has a Current Ratio of 2.48. This indicates that LCUT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.48, LCUT is in line with its industry, outperforming 48.48% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that LCUT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.24, LCUT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
LCUT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.00%, which is quite impressive.
LCUT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.15% yearly.
The Revenue has decreased by -5.63% in the past year.
Measured over the past years, LCUT shows a decrease in Revenue. The Revenue has been decreasing by -0.51% on average per year.
EPS 1Y (TTM)70%
EPS 3Y-18.15%
EPS 5YN/A
EPS growth Q2Q31.82%
Revenue 1Y (TTM)-5.63%
Revenue growth 3Y-3.71%
Revenue growth 5Y-0.51%
Revenue growth Q2Q-1.86%
3.2 Future
Based on estimates for the next years, LCUT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.08% on average per year.
LCUT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.45% yearly.
EPS Next Y34.67%
EPS Next 2Y34.91%
EPS Next 3Y18.4%
EPS Next 5Y17.08%
Revenue Next Year1.51%
Revenue Next 2Y2.16%
Revenue Next 3Y2.2%
Revenue Next 5Y2.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.43, which indicates a rather expensive current valuation of LCUT.
The rest of the industry has a similar Price/Earnings ratio as LCUT.
LCUT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.69, the valuation of LCUT can be described as correct.
LCUT's Price/Forward Earnings is on the same level as the industry average.
LCUT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than LCUT, based on the Enterprise Value to EBITDA ratio.
LCUT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LCUT is cheaper than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.87 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
LCUT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LCUT's earnings are expected to grow with 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y34.91%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
LCUT has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, LCUT pays a better dividend. On top of this LCUT pays more dividend than 86.36% of the companies listed in the same industry.
LCUT's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of LCUT decreases each year by -1.35%.
LCUT has been paying a dividend for at least 10 years, so it has a reliable track record.
LCUT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.35%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
LCUT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-44.49%
EPS Next 2Y34.91%
EPS Next 3Y18.4%
LIFETIME BRANDS INC
NASDAQ:LCUT (5/3/2024, 7:03:04 PM)
9.4
+0.11 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap207.46M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 13.69 | ||
| 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)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -3.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.78% | ||
| PM (TTM) | N/A | ||
| GM | 37.09% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.24 | ||
| 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)70%
EPS 3Y-18.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y34.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.63%
Revenue growth 3Y-3.71%
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
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OCF growth 3Y
OCF growth 5Y