LEROY SEAFOOD GROUP ASA (LSG.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:LSG - NO0003096208 - Common Stock
46.32 NOK
+0.54 (+1.18%)
We assign a fundamental rating of 5 out of 10 to LSG. LSG was compared to 62 industry peers in the Food Products industry. LSG has only an average score on both its financial health and profitability. LSG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LSG had positive earnings in the past year.
- LSG had a positive operating cash flow in the past year.
- In the past 5 years LSG has always been profitable.
- In the past 5 years LSG always reported a positive cash flow from operatings.
1.2 Ratios
- LSG's Return On Assets of 4.47% is fine compared to the rest of the industry. LSG outperforms 66.13% of its industry peers.
- LSG has a Return On Equity of 9.68%. This is comparable to the rest of the industry: LSG outperforms 56.45% of its industry peers.
- With a Return On Invested Capital value of 5.31%, LSG perfoms like the industry average, outperforming 53.23% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LSG is in line with the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 9.68% | ||
| ROIC | 5.31% |
ROA(3y)4.91%
ROA(5y)5.01%
ROE(3y)9.86%
ROE(5y)9.75%
ROIC(3y)6.82%
ROIC(5y)6.56%
1.3 Margins
- The Profit Margin of LSG (5.30%) is better than 62.90% of its industry peers.
- In the last couple of years the Profit Margin of LSG has remained more or less at the same level.
- The Operating Margin of LSG (6.83%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of LSG has declined.
- With a decent Gross Margin value of 43.07%, LSG is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- In the last couple of years the Gross Margin of LSG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 5.3% | ||
| GM | 43.07% |
OM growth 3Y-7.05%
OM growth 5Y-8.07%
PM growth 3Y-9.03%
PM growth 5Y-1.13%
GM growth 3Y0.62%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LSG is destroying value.
- Compared to 1 year ago, LSG has about the same amount of shares outstanding.
- The number of shares outstanding for LSG remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, LSG has a worse debt to assets ratio.
2.2 Solvency
- LSG has an Altman-Z score of 2.52. This is not the best score and indicates that LSG is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.52, LSG is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
- LSG has a debt to FCF ratio of 7.92. This is a slightly negative value and a sign of low solvency as LSG would need 7.92 years to pay back of all of its debts.
- LSG has a Debt to FCF ratio (7.92) which is in line with its industry peers.
- LSG has a Debt/Equity ratio of 0.57. This is a neutral value indicating LSG is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.57, LSG perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.73
WACC7.3%
2.3 Liquidity
- LSG has a Current Ratio of 2.02. This indicates that LSG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.02, LSG is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- A Quick Ratio of 1.74 indicates that LSG should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.74, LSG belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- LSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.79%, which is quite impressive.
- Measured over the past years, LSG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.38% on average per year.
- LSG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.15%.
- Measured over the past years, LSG shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
EPS 1Y (TTM)48.79%
EPS 3Y20.89%
EPS 5Y8.38%
EPS Q2Q%-169.46%
Revenue 1Y (TTM)10.15%
Revenue growth 3Y10.49%
Revenue growth 5Y8.79%
Sales Q2Q%10.97%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.20% on average over the next years.
- Based on estimates for the next years, LSG will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y-59.04%
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y6.15%
Revenue Next 3Y5.4%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- LSG is valuated reasonably with a Price/Earnings ratio of 8.48.
- Based on the Price/Earnings ratio, LSG is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
- LSG is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.35 indicates a reasonable valuation of LSG.
- Based on the Price/Forward Earnings ratio, LSG is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, LSG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LSG is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSG indicates a somewhat cheap valuation: LSG is cheaper than 61.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.13 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
- A cheap valuation may be justified as LSG's earnings are expected to decrease with -3.20% in the coming years.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.43%, LSG is a good candidate for dividend investing.
- LSG's Dividend Yield is rather good when compared to the industry average which is at 2.38. LSG pays more dividend than 88.71% of the companies in the same industry.
- LSG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
- The dividend of LSG has a limited annual growth rate of 3.85%.
Dividend Growth(5Y)3.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- LSG pays out 85.27% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of LSG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP85.27%
EPS Next 2Y-10.18%
EPS Next 3Y-3.2%
LEROY SEAFOOD GROUP ASA / LSG.OL FAQ
Can you provide the ChartMill fundamental rating for LEROY SEAFOOD GROUP ASA?
ChartMill assigns a fundamental rating of 5 / 10 to LSG.OL.
What is the valuation status of LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
ChartMill assigns a valuation rating of 5 / 10 to LEROY SEAFOOD GROUP ASA (LSG.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for LEROY SEAFOOD GROUP ASA?
LEROY SEAFOOD GROUP ASA (LSG.OL) has a profitability rating of 5 / 10.
What are the PE and PB ratios of LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
The Price/Earnings (PE) ratio for LEROY SEAFOOD GROUP ASA (LSG.OL) is 8.48 and the Price/Book (PB) ratio is 1.48.
What is the expected EPS growth for LEROY SEAFOOD GROUP ASA (LSG.OL) stock?
The Earnings per Share (EPS) of LEROY SEAFOOD GROUP ASA (LSG.OL) is expected to decline by -59.04% in the next year.