Lands' End, Inc.
Lands' End, Inc. Fundamental Analysis
Lands' End, Inc. (LE) shows weak financial fundamentals with a PE ratio of 50.05, profit margin of 0.89%, and ROE of 5.08%. The company generates $1.3B in annual revenue with weak year-over-year growth of -7.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LE's fundamental strength across five key dimensions:
Efficiency Score
WeakLE struggles to generate sufficient returns from assets.
Valuation Score
ModerateLE shows balanced valuation metrics.
Growth Score
WeakLE faces weak or negative growth trends.
Financial Health Score
ExcellentLE maintains a strong and stable balance sheet.
Profitability Score
WeakLE struggles to sustain strong margins.
Key Financial Metrics
Is LE Expensive or Cheap?
P/E Ratio
LE trades at 50.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LE's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values Lands' End, Inc. at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.72 times EBITDA. This is generally considered low.
How Well Does LE Make Money?
Net Profit Margin
For every $100 in sales, Lands' End, Inc. keeps $0.89 as profit after all expenses.
Operating Margin
Core operations generate 4.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.08 in profit for every $100 of shareholder equity.
ROA
Lands' End, Inc. generates $1.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lands' End, Inc. generates limited operating cash flow of $50.24M, signaling weaker underlying cash strength.
Free Cash Flow
Lands' End, Inc. generates weak or negative free cash flow of $10.61M, restricting financial flexibility.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
LE converts 1.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How LE Stacks Against Its Sector Peers
| Metric | LE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.05 | 25.25 | Worse (Expensive) |
| ROE | 5.08% | 1170.00% | Weak |
| Net Margin | 0.89% | 742.00% | Weak |
| Debt/Equity | 0.14 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 9.19 | Neutral |
| ROA | 1.38% | -6467.00% (disorted) | Weak |
LE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lands' End, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.62%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-66.52%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
101.79%
Industry Style: Cyclical, Growth, Discretionary
High Growth