LIFETIME BRANDS INC (LCUT) Stock Fundamental Analysis
USA - NASDAQ:LCUT - US53222Q1031 - Common Stock
3.2 USD
-0.11 (-3.32%)
3.22 USD
+0.02 (+0.63%)
Overall LCUT gets a fundamental rating of 3 out of 10. We evaluated LCUT against 61 industry peers in the Household Durables industry. LCUT may be in some trouble as it scores bad on both profitability and health. LCUT has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally LCUT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LCUT was profitable.
In the past year LCUT had a positive cash flow from operations.
In the past 5 years LCUT reported 4 times negative net income.
LCUT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LCUT (-6.28%) is worse than 80.33% of its industry peers.
LCUT has a worse Return On Equity (-18.65%) than 80.33% of its industry peers.
The Return On Invested Capital of LCUT (3.94%) is worse than 62.30% 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 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -18.65% | ||
| ROIC | 3.94% |
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
The Operating Margin of LCUT (3.16%) is worse than 65.57% of its industry peers.
LCUT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.27%, LCUT is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
In the last couple of years the Gross Margin of LCUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 37.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LCUT is destroying value.
LCUT has more shares outstanding than it did 1 year ago.
LCUT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LCUT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that LCUT is in the distress zone and has some risk of bankruptcy.
LCUT has a worse Altman-Z score (1.72) than 72.13% of its industry peers.
The Debt to FCF ratio of LCUT is 8.63, which is on the high side as it means it would take LCUT, 8.63 years of fcf income to pay off all of its debts.
LCUT has a Debt to FCF ratio (8.63) which is in line with its industry peers.
LCUT has a Debt/Equity ratio of 0.89. This is a neutral value indicating LCUT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, LCUT is not doing good in the industry: 67.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.38
WACC10.32%
2.3 Liquidity
A Current Ratio of 2.65 indicates that LCUT has no problem at all paying its short term obligations.
LCUT has a Current ratio (2.65) which is in line with its industry peers.
A Quick Ratio of 0.94 indicates that LCUT may have some problems paying its short term obligations.
LCUT's Quick ratio of 0.94 is in line compared to the rest of the industry. LCUT outperforms 47.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
LCUT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -97.87%.
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.
Looking at the last year, LCUT shows a decrease in Revenue. The Revenue has decreased by -1.14% in the last year.
LCUT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.46% yearly.
EPS 1Y (TTM)-97.87%
EPS 3Y-29.71%
EPS 5Y5.21%
EPS Q2Q%-1566.67%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y-7.5%
Revenue growth 5Y-1.46%
Sales Q2Q%-6.92%
3.2 Future
LCUT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.93% yearly.
LCUT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y-136.93%
EPS Next 2Y-9.57%
EPS Next 3Y-9.61%
EPS Next 5Y-2.93%
Revenue Next Year-1.66%
Revenue Next 2Y0.36%
Revenue Next 3Y1.08%
Revenue Next 5Y1.45%
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 decreasing.
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 320.00 indicates a quite expensive valuation of LCUT.
Based on the Price/Earnings ratio, LCUT is valued a bit more expensive than the industry average as 73.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.67, LCUT is valued quite expensively.
LCUT is valuated cheaply with a Price/Forward Earnings ratio of 6.75.
LCUT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LCUT is cheaper than 95.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.33. LCUT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 320 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LCUT indicates a rather cheap valuation: LCUT is cheaper than 90.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LCUT is valued cheaper than 91.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.66 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
A cheap valuation may be justified as LCUT's earnings are expected to decrease with -9.61% in the coming years.
PEG (NY)N/A
PEG (5Y)61.46
EPS Next 2Y-9.57%
EPS Next 3Y-9.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, LCUT is a good candidate for dividend investing.
In the last 3 months the price of LCUT has falen by -34.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LCUT's Dividend Yield is rather good when compared to the industry average which is at 3.07. LCUT pays more dividend than 90.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LCUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of LCUT has a limited annual growth rate of 0.43%.
LCUT has been paying a dividend for at least 10 years, so it has 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
The earnings of LCUT are negative and hence is the payout ratio. LCUT will probably not be able to sustain this dividend level.
DP-10.87%
EPS Next 2Y-9.57%
EPS Next 3Y-9.61%
3.2
-0.11 (-3.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners39.17%
Inst Owner Change-0.02%
Ins Owners16.21%
Ins Owner Change2.14%
Market Cap72.51M
Revenue(TTM)670.99M
Net Income(TTM)-34638000
Analysts82.86
Price Target6.12 (91.25%)
Short Float %1.98%
Short Ratio9.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend0.17
Dividend Growth(5Y)0.43%
DP-10.87%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-210.55%
Min EPS beat(2)-263.11%
Max EPS beat(2)-158%
EPS beat(4)1
Avg EPS beat(4)-110.83%
Min EPS beat(4)-263.11%
Max EPS beat(4)25.4%
EPS beat(8)2
Avg EPS beat(8)-53.72%
EPS beat(12)5
Avg EPS beat(12)-25.33%
EPS beat(16)7
Avg EPS beat(16)-38.17%
Revenue beat(2)0
Avg Revenue beat(2)-5.06%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-3.73%
Revenue beat(4)1
Avg Revenue beat(4)-3.94%
Min Revenue beat(4)-8.51%
Max Revenue beat(4)2.89%
Revenue beat(8)3
Avg Revenue beat(8)-2.78%
Revenue beat(12)5
Avg Revenue beat(12)-2.72%
Revenue beat(16)5
Avg Revenue beat(16)-4.46%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-231.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 320 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.11 | ||
| P/FCF | 3.66 | ||
| P/OCF | 3.06 | ||
| P/B | 0.39 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)0.01
EY0.31%
EPS(NY)0.47
Fwd EY14.82%
FCF(TTM)0.87
FCFY27.33%
OCF(TTM)1.05
OCFY32.68%
SpS29.61
BVpS8.2
TBVpS1.95
PEG (NY)N/A
PEG (5Y)61.46
Graham Number1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -18.65% | ||
| ROCE | 4.99% | ||
| ROIC | 3.94% | ||
| ROICexc | 4.06% | ||
| ROICexgc | 6.18% | ||
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 37.27% | ||
| FCFM | 2.95% |
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%
ROICexgc growth 3Y-18.91%
ROICexgc 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-Score4
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 16.41% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | 52.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.72 |
F-Score4
WACC10.32%
ROIC/WACC0.38
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)-97.87%
EPS 3Y-29.71%
EPS 5Y5.21%
EPS Q2Q%-1566.67%
EPS Next Y-136.93%
EPS Next 2Y-9.57%
EPS Next 3Y-9.61%
EPS Next 5Y-2.93%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y-7.5%
Revenue growth 5Y-1.46%
Sales Q2Q%-6.92%
Revenue Next Year-1.66%
Revenue Next 2Y0.36%
Revenue Next 3Y1.08%
Revenue Next 5Y1.45%
EBIT growth 1Y-34.39%
EBIT growth 3Y-24.99%
EBIT growth 5Y5.68%
EBIT Next Year-2.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.79%
FCF growth 3Y-20.88%
FCF growth 5Y-4.62%
OCF growth 1Y-61.89%
OCF growth 3Y-20.52%
OCF growth 5Y-9.07%