LATHAM GROUP INC (SWIM) Stock Fundamental Analysis
NASDAQ:SWIM - Nasdaq - US51819L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SWIM. SWIM was compared to 31 industry peers in the Leisure Products industry. SWIM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SWIM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SWIM had negative earnings in the past year.
SWIM had a positive operating cash flow in the past year.
In the past 5 years SWIM reported 4 times negative net income.
In the past 5 years SWIM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SWIM (-1.61%) is comparable to the rest of the industry.
SWIM has a better Return On Equity (-3.33%) than 64.52% of its industry peers.
SWIM has a Return On Invested Capital of 2.17%. This is in the better half of the industry: SWIM outperforms 61.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWIM is below the industry average of 7.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -3.33% | ||
| ROIC | 2.17% |
ROA(3y)-1.06%
ROA(5y)-1.71%
ROE(3y)-2.23%
ROE(5y)-3.39%
ROIC(3y)2.63%
ROIC(5y)N/A
1.3 Margins
SWIM's Operating Margin of 3.86% is fine compared to the rest of the industry. SWIM outperforms 64.52% of its industry peers.
In the last couple of years the Operating Margin of SWIM has declined.
Looking at the Gross Margin, with a value of 32.00%, SWIM is in line with its industry, outperforming 54.84% of the companies in the same industry.
SWIM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.86% | ||
| PM (TTM) | N/A | ||
| GM | 32% |
OM growth 3YN/A
OM growth 5Y-16.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWIM is destroying value.
SWIM has more shares outstanding than it did 1 year ago.
SWIM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SWIM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that SWIM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.04, SWIM is in line with its industry, outperforming 45.16% of the companies in the same industry.
The Debt to FCF ratio of SWIM is 24.00, which is on the high side as it means it would take SWIM, 24.00 years of fcf income to pay off all of its debts.
SWIM's Debt to FCF ratio of 24.00 is in line compared to the rest of the industry. SWIM outperforms 54.84% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that SWIM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, SWIM is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 24 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.26
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.39 indicates that SWIM has no problem at all paying its short term obligations.
With a Current ratio value of 2.39, SWIM perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
SWIM has a Quick Ratio of 1.51. This is a normal value and indicates that SWIM is financially healthy and should not expect problems in meeting its short term obligations.
SWIM has a Quick ratio of 1.51. This is in the better half of the industry: SWIM outperforms 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
SWIM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.14%.
SWIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -75.96% yearly.
The Revenue has decreased by -0.11% in the past year.
Measured over the past years, SWIM shows a quite strong growth in Revenue. The Revenue has been growing by 9.84% on average per year.
EPS 1Y (TTM)-107.14%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%7.82%
3.2 Future
SWIM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 192.36% yearly.
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue Next Year7.47%
Revenue Next 2Y6.65%
Revenue Next 3Y6.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SWIM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 47.06, SWIM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWIM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.29. SWIM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWIM is on the same level as its industry peers.
SWIM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.65 | ||
| EV/EBITDA | 16.64 |
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.
SWIM's earnings are expected to grow with 192.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y301.87%
EPS Next 3Y192.36%
5. Dividend
5.1 Amount
SWIM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.6
-0.3 (-3.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners87.16%
Inst Owner Change3.14%
Ins Owners7.49%
Ins Owner Change-12.7%
Market Cap885.70M
Analysts80
Price Target7.4 (-2.63%)
Short Float %5.13%
Short Ratio9.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.43%
Min EPS beat(2)-5.88%
Max EPS beat(2)36.75%
EPS beat(4)2
Avg EPS beat(4)-14.84%
Min EPS beat(4)-110.88%
Max EPS beat(4)36.75%
EPS beat(8)5
Avg EPS beat(8)62.45%
EPS beat(12)8
Avg EPS beat(12)48.28%
EPS beat(16)11
Avg EPS beat(16)62.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)0.23%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)2.63%
PT rev (3m)2.11%
EPS NQ rev (1m)1.72%
EPS NQ rev (3m)20.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.75%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)4.27%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.06 | ||
| P/S | 1.7 | ||
| P/FCF | 74.65 | ||
| P/OCF | 27.26 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.64 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.16
Fwd EY2.12%
FCF(TTM)0.1
FCFY1.34%
OCF(TTM)0.28
OCFY3.67%
SpS4.48
BVpS3.42
TBVpS-0.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -3.33% | ||
| ROCE | 2.75% | ||
| ROIC | 2.17% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 5.94% | ||
| OM | 3.86% | ||
| PM (TTM) | N/A | ||
| GM | 32% | ||
| FCFM | 2.27% |
ROA(3y)-1.06%
ROA(5y)-1.71%
ROE(3y)-2.23%
ROE(5y)-3.39%
ROIC(3y)2.63%
ROIC(5y)N/A
ROICexc(3y)2.84%
ROICexc(5y)N/A
ROICexgc(3y)7.54%
ROICexgc(5y)N/A
ROCE(3y)3.33%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-29.91%
ROICexc growth 3YN/A
ROICexc growth 5Y-16.75%
OM growth 3YN/A
OM growth 5Y-16.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-0.42%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 24 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 42.46% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | 47.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.04 |
F-Score4
WACC8.39%
ROIC/WACC0.26
Cap/Depr(3y)76.88%
Cap/Depr(5y)74.45%
Cap/Sales(3y)5.17%
Cap/Sales(5y)4.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.14%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%7.82%
Revenue Next Year7.47%
Revenue Next 2Y6.65%
Revenue Next 3Y6.54%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3YN/A
EBIT growth 5Y-8.63%
EBIT Next Year321.13%
EBIT Next 3Y74.63%
EBIT Next 5YN/A
FCF growth 1Y-68.27%
FCF growth 3Y67.85%
FCF growth 5Y8.42%
OCF growth 1Y-61.18%
OCF growth 3Y22.09%
OCF growth 5Y11.45%