LESLIE'S INC (LESL)
US5270641096 - Common Stock
Taking everything into account, LESL scores 4 out of 10 in our fundamental rating. LESL was compared to 126 industry peers in the Specialty Retail industry. LESL has a medium profitability rating, but doesn't score so well on its financial health evaluation. LESL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LESL was profitable.
In the past year LESL had a positive cash flow from operations.
In the past 5 years LESL has always been profitable.
LESL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LESL's Return On Assets of 1.80% is in line compared to the rest of the industry. LESL outperforms 55.56% of its industry peers.
The Return On Invested Capital of LESL (9.49%) is better than 70.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LESL is above the industry average of 13.64%.
The 3 year average ROIC (18.42%) for LESL is well above the current ROIC(9.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | N/A | ||
| ROIC | 9.49% |
ROA(3y)9.7%
ROA(5y)7.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.42%
ROIC(5y)21.72%
1.3 Margins
LESL has a Profit Margin of 1.25%. This is comparable to the rest of the industry: LESL outperforms 56.35% of its industry peers.
In the last couple of years the Profit Margin of LESL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.00%, LESL is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Operating Margin of LESL has declined.
Looking at the Gross Margin, with a value of 37.30%, LESL is in line with its industry, outperforming 53.17% of the companies in the same industry.
LESL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7% | ||
| PM (TTM) | 1.25% | ||
| GM | 37.3% |
OM growth 3Y-20.38%
OM growth 5Y-11.56%
PM growth 3Y-29.14%
PM growth 5Y-0.44%
GM growth 3Y-3.03%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LESL is creating value.
Compared to 1 year ago, LESL has more shares outstanding
LESL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LESL has a worse debt to assets ratio.
2.2 Solvency
LESL has an Altman-Z score of 2.02. This is not the best score and indicates that LESL is in the grey zone with still only limited risk for bankruptcy at the moment.
LESL has a Altman-Z score of 2.02. This is comparable to the rest of the industry: LESL outperforms 42.86% of its industry peers.
LESL has a debt to FCF ratio of 10.85. This is a negative value and a sign of low solvency as LESL would need 10.85 years to pay back of all of its debts.
LESL has a Debt to FCF ratio (10.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.85 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.03
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.92 indicates that LESL should not have too much problems paying its short term obligations.
LESL has a better Current ratio (1.92) than 75.40% of its industry peers.
A Quick Ratio of 0.28 indicates that LESL may have some problems paying its short term obligations.
With a Quick ratio value of 0.28, LESL is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for LESL have decreased strongly by -76.14% in the last year.
Measured over the past years, LESL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.76% on average per year.
Looking at the last year, LESL shows a decrease in Revenue. The Revenue has decreased by -9.05% in the last year.
Measured over the past years, LESL shows a quite strong growth in Revenue. The Revenue has been growing by 10.21% on average per year.
EPS 1Y (TTM)-76.14%
EPS 3Y-21.49%
EPS 5Y10.76%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y9.27%
Revenue growth 5Y10.21%
Revenue growth Q2Q-10.84%
3.2 Future
LESL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.77% yearly.
Based on estimates for the next years, LESL will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y6.28%
EPS Next 2Y23.99%
EPS Next 3Y21.77%
EPS Next 5YN/A
Revenue Next Year0.14%
Revenue Next 2Y2.42%
Revenue Next 3Y3.51%
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.
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
Based on the Price/Earnings ratio of 22.33, the valuation of LESL can be described as rather expensive.
LESL's Price/Earnings ratio is a bit cheaper when compared to the industry. LESL is cheaper than 60.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of LESL to the average of the S&P500 Index (28.05), we can say LESL is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.30 indicates a reasonable valuation of LESL.
LESL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LESL is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LESL to the average of the S&P500 Index (20.30), we can say LESL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
LESL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LESL is valued a bit cheaper than the industry average as 76.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 12.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LESL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LESL may justify a higher PE ratio.
LESL's earnings are expected to grow with 21.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.56
PEG (5Y)2.08
EPS Next 2Y23.99%
EPS Next 3Y21.77%
5. Dividend
5.1 Amount
LESL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LESLIE'S INC
NASDAQ:LESL (5/8/2024, 6:00:39 PM)
After market: 4.5 -0.19 (-4.05%)4.69
-0.22 (-4.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap865.35M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 11.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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TBVpS
PEG (NY)3.56
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7% | ||
| PM (TTM) | 1.25% | ||
| GM | 37.3% | ||
| 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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.92 | ||
| Quick Ratio | 0.28 | ||
| 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)-76.14%
EPS 3Y-21.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y9.27%
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
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