LANDS' END INC (LE) Stock Fundamental Analysis
NASDAQ:LE - Nasdaq - US51509F1057 - Common Stock - Currency: USD
Taking everything into account, LE scores 4 out of 10 in our fundamental rating. LE was compared to 121 industry peers in the Specialty Retail industry. LE has only an average score on both its financial health and profitability. LE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LE was profitable.
LE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LE reported negative net income in multiple years.
LE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of LE (0.81%) is comparable to the rest of the industry.
LE's Return On Equity of 2.61% is in line compared to the rest of the industry. LE outperforms 58.68% of its industry peers.
LE has a better Return On Invested Capital (6.66%) than 61.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LE is significantly below the industry average of 13.08%.
The 3 year average ROIC (3.89%) for LE is below the current ROIC(6.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.61% | ||
| ROIC | 6.66% |
ROA(3y)-5.48%
ROA(5y)-2.44%
ROE(3y)-18.26%
ROE(5y)-8.73%
ROIC(3y)3.89%
ROIC(5y)4.42%
1.3 Margins
Looking at the Profit Margin, with a value of 0.46%, LE is in line with its industry, outperforming 49.59% of the companies in the same industry.
LE's Profit Margin has declined in the last couple of years.
LE has a Operating Margin of 4.43%. This is in the better half of the industry: LE outperforms 62.81% of its industry peers.
In the last couple of years the Operating Margin of LE has grown nicely.
The Gross Margin of LE (47.94%) is better than 74.38% of its industry peers.
LE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | 0.46% | ||
| GM | 47.94% |
OM growth 3Y-3.17%
OM growth 5Y7.17%
PM growth 3Y-39.26%
PM growth 5Y-19.24%
GM growth 3Y4.3%
GM growth 5Y2.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LE is destroying value.
Compared to 1 year ago, LE has less shares outstanding
The number of shares outstanding for LE has been reduced compared to 5 years ago.
The debt/assets ratio for LE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.38 indicates that LE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.38, LE perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
The Debt to FCF ratio of LE is 15.47, which is on the high side as it means it would take LE, 15.47 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.47, LE perfoms like the industry average, outperforming 47.11% of the companies in the same industry.
LE has a Debt/Equity ratio of 0.94. This is a neutral value indicating LE is somewhat dependend on debt financing.
LE has a Debt to Equity ratio of 0.94. This is comparable to the rest of the industry: LE outperforms 43.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.47 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.62
WACC10.66%
2.3 Liquidity
LE has a Current Ratio of 1.63. This is a normal value and indicates that LE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.63, LE is doing good in the industry, outperforming 67.77% of the companies in the same industry.
LE has a Quick Ratio of 1.63. This is a bad value and indicates that LE is not financially healthy enough and could expect problems in meeting its short term obligations.
LE's Quick ratio of 0.46 is in line compared to the rest of the industry. LE outperforms 42.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
LE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 134.48%, which is quite impressive.
Measured over the past years, LE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.46% on average per year.
LE shows a decrease in Revenue. In the last year, the revenue decreased by -7.45%.
LE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.23% yearly.
EPS 1Y (TTM)134.48%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%690%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-14.22%
3.2 Future
Based on estimates for the next years, LE will show a very strong growth in Earnings Per Share. The EPS will grow by 109.63% on average per year.
Based on estimates for the next years, LE will show a small growth in Revenue. The Revenue will grow by 1.33% on average per year.
EPS Next Y251.49%
EPS Next 2Y109.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y1.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 39.30, LE can be considered very expensive at the moment.
LE's Price/Earnings is on the same level as the industry average.
LE is valuated rather expensively when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
LE is valuated reasonably with a Price/Forward Earnings ratio of 11.18.
LE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LE is cheaper than 71.07% of the companies in the same industry.
LE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LE indicates a rather cheap valuation: LE is cheaper than 80.99% of the companies listed in the same industry.
68.59% of the companies in the same industry are more expensive than LE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.77 | ||
| EV/EBITDA | 5.05 |
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 LE's earnings are expected to grow with 109.63% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y109.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.86
-0.36 (-4.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.08%
Inst Owner Change0.56%
Ins Owners61.43%
Ins Owner Change0.04%
Market Cap242.40M
Analysts84
Price Target18.7 (137.91%)
Short Float %5.72%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-92.66%
Min EPS beat(2)-183.23%
Max EPS beat(2)-2.08%
EPS beat(4)1
Avg EPS beat(4)-53.33%
Min EPS beat(4)-183.23%
Max EPS beat(4)26.73%
EPS beat(8)2
Avg EPS beat(8)-51.21%
EPS beat(12)5
Avg EPS beat(12)-27.13%
EPS beat(16)7
Avg EPS beat(16)-13.79%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-1.86%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)2.72%
Revenue beat(8)2
Avg Revenue beat(8)-2.49%
Revenue beat(12)2
Avg Revenue beat(12)-3.37%
Revenue beat(16)3
Avg Revenue beat(16)-2.8%
PT rev (1m)-3.51%
PT rev (3m)-3.51%
EPS NQ rev (1m)5%
EPS NQ rev (3m)-26.67%
EPS NY rev (1m)20.44%
EPS NY rev (3m)29.59%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 11.18 | ||
| P/S | 0.18 | ||
| P/FCF | 15.77 | ||
| P/OCF | 4.56 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.05 |
EPS(TTM)0.2
EY2.54%
EPS(NY)0.7
Fwd EY8.94%
FCF(TTM)0.5
FCFY6.34%
OCF(TTM)1.72
OCFY21.92%
SpS44.19
BVpS7.76
TBVpS-0.58
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.61% | ||
| ROCE | 11.22% | ||
| ROIC | 6.66% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 13.54% | ||
| OM | 4.43% | ||
| PM (TTM) | 0.46% | ||
| GM | 47.94% | ||
| FCFM | 1.13% |
ROA(3y)-5.48%
ROA(5y)-2.44%
ROE(3y)-18.26%
ROE(5y)-8.73%
ROIC(3y)3.89%
ROIC(5y)4.42%
ROICexc(3y)4.04%
ROICexc(5y)4.61%
ROICexgc(3y)7.94%
ROICexgc(5y)9.37%
ROCE(3y)6.55%
ROCE(5y)7.44%
ROICexcg growth 3Y-2.23%
ROICexcg growth 5Y14.14%
ROICexc growth 3Y0.04%
ROICexc growth 5Y13.91%
OM growth 3Y-3.17%
OM growth 5Y7.17%
PM growth 3Y-39.26%
PM growth 5Y-19.24%
GM growth 3Y4.3%
GM growth 5Y2.25%
F-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.47 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 111.84% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 56.47% | ||
| Profit Quality | 246.64% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 2.38 |
F-Score7
WACC10.66%
ROIC/WACC0.62
Cap/Depr(3y)94.93%
Cap/Depr(5y)85.95%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)134.48%
EPS 3Y-41.32%
EPS 5Y-19.46%
EPS Q2Q%690%
EPS Next Y251.49%
EPS Next 2Y109.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-5.92%
Revenue growth 5Y-1.23%
Sales Q2Q%-14.22%
Revenue Next Year0%
Revenue Next 2Y1.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.85%
EBIT growth 3Y-8.9%
EBIT growth 5Y5.85%
EBIT Next Year90.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.93%
FCF growth 3Y-30.3%
FCF growth 5YN/A
OCF growth 1Y-59.3%
OCF growth 3Y-9.03%
OCF growth 5Y14.25%