LATHAM GROUP INC (SWIM) Stock Fundamental Analysis
NASDAQ:SWIM - Nasdaq - US51819L1070 - Common Stock - Currency: USD
SWIM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. While SWIM seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, SWIM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SWIM had positive earnings in the past year.
SWIM had a positive operating cash flow in the past year.
SWIM had negative earnings in 4 of the past 5 years.
SWIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SWIM (-1.94%) is comparable to the rest of the industry.
SWIM has a Return On Equity of -4.19%. This is comparable to the rest of the industry: SWIM outperforms 53.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.64%, SWIM is in line with its industry, outperforming 56.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWIM is significantly below the industry average of 7.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.19% | ||
| ROIC | 1.64% |
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
With a Operating Margin value of 3.03%, SWIM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
SWIM's Operating Margin has declined in the last couple of years.
The Gross Margin of SWIM (30.64%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SWIM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.64% |
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.
The number of shares outstanding for SWIM has been increased compared to 1 year ago.
Compared to 5 years ago, SWIM has less shares outstanding
SWIM has a better debt/assets ratio than last year.
2.2 Solvency
SWIM has an Altman-Z score of 1.84. This is not the best score and indicates that SWIM 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 1.84, SWIM is doing worse than 63.33% of the companies in the same industry.
The Debt to FCF ratio of SWIM is 10.10, which is on the high side as it means it would take SWIM, 10.10 years of fcf income to pay off all of its debts.
SWIM has a Debt to FCF ratio (10.10) which is in line with its industry peers.
A Debt/Equity ratio of 0.80 indicates that SWIM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, SWIM is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.18
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.55 indicates that SWIM has no problem at all paying its short term obligations.
With a Current ratio value of 2.55, SWIM perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that SWIM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.50, SWIM is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
SWIM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -95.65%.
The earnings per share for SWIM have been decreasing by -75.96% on average. This is quite bad
Looking at the last year, SWIM shows a decrease in Revenue. The Revenue has decreased by -5.58% in the last 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)-95.65%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%0.72%
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.
SWIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue Next Year7.52%
Revenue Next 2Y6.69%
Revenue Next 3Y6.54%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 703.00, which means the current valuation is very expensive for SWIM.
SWIM's Price/Earnings ratio is in line with the industry average.
SWIM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 43.53, the valuation of SWIM can be described as expensive.
SWIM's Price/Forward Earnings ratio is in line with the industry average.
SWIM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 703 | ||
| Fwd PE | 43.53 |
4.2 Price Multiples
SWIM's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SWIM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.64 | ||
| EV/EBITDA | 17.84 |
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 SWIM's earnings are expected to grow with 192.36% in the coming years.
PEG (NY)0.7
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 |
7.03
+0.09 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners87.06%
Inst Owner Change-0.48%
Ins Owners7.49%
Ins Owner Change-12.69%
Market Cap818.08M
Analysts80
Price Target7.21 (2.56%)
Short Float %4.94%
Short Ratio7.89
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)-37.07%
Min EPS beat(2)-110.88%
Max EPS beat(2)36.75%
EPS beat(4)3
Avg EPS beat(4)68.85%
Min EPS beat(4)-110.88%
Max EPS beat(4)328.87%
EPS beat(8)5
Avg EPS beat(8)62.55%
EPS beat(12)8
Avg EPS beat(12)48.66%
EPS beat(16)12
Avg EPS beat(16)63.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)0.23%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)1.2%
PT rev (1m)-0.5%
PT rev (3m)0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)2.86%
EPS NY rev (3m)61.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 703 | ||
| Fwd PE | 43.53 | ||
| P/S | 1.61 | ||
| P/FCF | 26.64 | ||
| P/OCF | 16.72 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.84 |
EPS(TTM)0.01
EY0.14%
EPS(NY)0.16
Fwd EY2.3%
FCF(TTM)0.26
FCFY3.75%
OCF(TTM)0.42
OCFY5.98%
SpS4.38
BVpS3.28
TBVpS-0.54
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.94% | ||
| ROE | -4.19% | ||
| ROCE | 2.08% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 4.45% | ||
| OM | 3.03% | ||
| PM (TTM) | N/A | ||
| GM | 30.64% | ||
| FCFM | 6.03% |
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-Score3
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.1 | ||
| Debt/EBITDA | 4.95 | ||
| Cap/Depr | 39.21% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | 79.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.84 |
F-Score3
WACC8.9%
ROIC/WACC0.18
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)-95.65%
EPS 3Y-75.96%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y1001.6%
EPS Next 2Y301.87%
EPS Next 3Y192.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.58%
Revenue growth 3Y-6.92%
Revenue growth 5Y9.84%
Sales Q2Q%0.72%
Revenue Next Year7.52%
Revenue Next 2Y6.69%
Revenue Next 3Y6.54%
Revenue Next 5YN/A
EBIT growth 1Y-24.44%
EBIT growth 3YN/A
EBIT growth 5Y-8.63%
EBIT Next Year321.25%
EBIT Next 3Y74.63%
EBIT Next 5YN/A
FCF growth 1Y-5.06%
FCF growth 3Y67.85%
FCF growth 5Y8.42%
OCF growth 1Y-35.01%
OCF growth 3Y22.09%
OCF growth 5Y11.45%