LESLIE'S INC (LESL) Stock Fundamental Analysis
NASDAQ:LESL - Nasdaq - US5270641096 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LESL. LESL was compared to 121 industry peers in the Specialty Retail industry. LESL has a bad profitability rating. Also its financial health evaluation is rather negative. LESL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year LESL has reported negative net income.
LESL had a positive operating cash flow in the past year.
Of the past 5 years LESL 4 years were profitable.
Each year in the past 5 years LESL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LESL (-4.33%) is worse than 69.42% of its industry peers.
The Return On Invested Capital of LESL (4.47%) is comparable to the rest of the industry.
LESL had an Average Return On Invested Capital over the past 3 years of 12.93%. This is in line with the industry average of 12.74%.
The 3 year average ROIC (12.93%) for LESL is well above the current ROIC(4.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.33% | ||
| ROE | N/A | ||
| ROIC | 4.47% |
ROA(3y)4.91%
ROA(5y)6.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.93%
ROIC(5y)16.83%
1.3 Margins
LESL has a Operating Margin (3.54%) which is in line with its industry peers.
LESL's Operating Margin has declined in the last couple of years.
LESL's Gross Margin of 35.13% is in line compared to the rest of the industry. LESL outperforms 46.28% of its industry peers.
LESL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.54% | ||
| PM (TTM) | N/A | ||
| GM | 35.13% |
OM growth 3Y-32.03%
OM growth 5Y-17.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.83%
GM growth 5Y-2.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LESL is still creating some value.
LESL has more shares outstanding than it did 1 year ago.
LESL has less shares outstanding than it did 5 years ago.
LESL has a better debt/assets ratio than last year.
2.2 Solvency
LESL has an Altman-Z score of 1.15. This is a bad value and indicates that LESL is not financially healthy and even has some risk of bankruptcy.
LESL's Altman-Z score of 1.15 is on the low side compared to the rest of the industry. LESL is outperformed by 74.38% of its industry peers.
LESL has a debt to FCF ratio of 25.23. This is a negative value and a sign of low solvency as LESL would need 25.23 years to pay back of all of its debts.
LESL's Debt to FCF ratio of 25.23 is in line compared to the rest of the industry. LESL outperforms 42.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 25.23 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.59
WACC7.6%
2.3 Liquidity
LESL has a Current Ratio of 1.56. This is a normal value and indicates that LESL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.56, LESL is in the better half of the industry, outperforming 64.46% of the companies in the same industry.
LESL has a Quick Ratio of 1.56. This is a bad value and indicates that LESL is not financially healthy enough and could expect problems in meeting its short term obligations.
LESL has a Quick ratio of 0.31. This is in the lower half of the industry: LESL underperforms 75.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
LESL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -161.11%.
LESL shows a decrease in Revenue. In the last year, the revenue decreased by -6.12%.
Measured over the past years, LESL shows a small growth in Revenue. The Revenue has been growing by 7.46% on average per year.
EPS 1Y (TTM)-161.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-47.06%
Revenue 1Y (TTM)-6.12%
Revenue growth 3Y-0.32%
Revenue growth 5Y7.46%
Sales Q2Q%-6.11%
3.2 Future
Based on estimates for the next years, LESL will show a very strong growth in Earnings Per Share. The EPS will grow by 162.64% on average per year.
Based on estimates for the next years, LESL will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y263.2%
EPS Next 2Y283.46%
EPS Next 3Y162.64%
EPS Next 5YN/A
Revenue Next Year-0.66%
Revenue Next 2Y1.02%
Revenue Next 3Y2.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LESL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 6.19, the valuation of LESL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LESL indicates a rather cheap valuation: LESL is cheaper than 93.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, LESL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
LESL's Enterprise Value to EBITDA ratio is in line with the industry average.
95.04% of the companies in the same industry are more expensive than LESL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 12.43 |
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.
LESL's earnings are expected to grow with 162.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y283.46%
EPS Next 3Y162.64%
5. Dividend
5.1 Amount
LESL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.7861
-0.09 (-9.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners107.12%
Inst Owner Change-10.03%
Ins Owners0.6%
Ins Owner Change0.2%
Market Cap145.61M
Analysts55.29
Price Target2.25 (186.22%)
Short Float %8.44%
Short Ratio3.54
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)-1.59%
Min EPS beat(2)-2.59%
Max EPS beat(2)-0.6%
EPS beat(4)1
Avg EPS beat(4)-20.42%
Min EPS beat(4)-82.56%
Max EPS beat(4)4.05%
EPS beat(8)3
Avg EPS beat(8)-12.79%
EPS beat(12)4
Avg EPS beat(12)-11.59%
EPS beat(16)8
Avg EPS beat(16)-4.16%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-6.16%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-3.21%
Min Revenue beat(4)-6.16%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-2.84%
Revenue beat(12)3
Avg Revenue beat(12)-2.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.37%
PT rev (1m)-6.75%
PT rev (3m)-29.95%
EPS NQ rev (1m)-2.29%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)-51.91%
EPS NY rev (3m)-58.69%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.19 | ||
| P/S | 0.11 | ||
| P/FCF | 4.31 | ||
| P/OCF | 2.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.13
Fwd EY16.16%
FCF(TTM)0.18
FCFY23.21%
OCF(TTM)0.37
OCFY46.86%
SpS7.13
BVpS-1.45
TBVpS-2.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.33% | ||
| ROE | N/A | ||
| ROCE | 6.03% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 6.36% | ||
| OM | 3.54% | ||
| PM (TTM) | N/A | ||
| GM | 35.13% | ||
| FCFM | 2.56% |
ROA(3y)4.91%
ROA(5y)6.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.93%
ROIC(5y)16.83%
ROICexc(3y)14.82%
ROICexc(5y)24.05%
ROICexgc(3y)21.72%
ROICexgc(5y)36.28%
ROCE(3y)17.45%
ROCE(5y)22.71%
ROICexcg growth 3Y-44.76%
ROICexcg growth 5Y-34.55%
ROICexc growth 3Y-44.16%
ROICexc growth 5Y-29.4%
OM growth 3Y-32.03%
OM growth 5Y-17.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.83%
GM growth 5Y-2.61%
F-Score2
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 25.23 | ||
| Debt/EBITDA | 10.63 | ||
| Cap/Depr | 103.1% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 0.83 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 1.15 |
F-Score2
WACC7.6%
ROIC/WACC0.59
Cap/Depr(3y)119.65%
Cap/Depr(5y)107.77%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-161.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-47.06%
EPS Next Y263.2%
EPS Next 2Y283.46%
EPS Next 3Y162.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.12%
Revenue growth 3Y-0.32%
Revenue growth 5Y7.46%
Sales Q2Q%-6.11%
Revenue Next Year-0.66%
Revenue Next 2Y1.02%
Revenue Next 3Y2.01%
Revenue Next 5YN/A
EBIT growth 1Y-48.79%
EBIT growth 3Y-32.25%
EBIT growth 5Y-11.41%
EBIT Next Year29.26%
EBIT Next 3Y17.23%
EBIT Next 5YN/A
FCF growth 1Y145.18%
FCF growth 3Y-24.58%
FCF growth 5Y14.65%
OCF growth 1Y260.19%
OCF growth 3Y-14.06%
OCF growth 5Y13.21%