ENXTPA:LSS

Stock Analysis Report

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Market Cap

€1.2b

Last Updated

2021/07/28 21:30 UTC

Data Sources

Company Financials +

Executive Summary

Lectra SA designs smart industrial solutions for fashion, automotive, and furniture markets. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Lectra's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LSS is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LSS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

LSS

3.7%

FR Software

1.5%

FR Market


1 Year Return

84.2%

LSS

47.7%

FR Software

34.0%

FR Market

Return vs Industry: LSS exceeded the French Software industry which returned 47.7% over the past year.

Return vs Market: LSS exceeded the French Market which returned 34% over the past year.


Shareholder returns

LSSIndustryMarket
7 Day2.5%3.7%1.5%
30 Day3.6%8.2%-0.4%
90 Day9.8%13.8%4.0%
1 Year85.7%84.2%48.2%47.7%37.4%34.0%
3 Year50.4%42.3%77.8%75.2%32.7%21.6%
5 Year141.1%120.9%207.9%199.0%85.0%58.4%

Long-Term Price Volatility Vs. Market

How volatile is Lectra's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lectra undervalued compared to its fair value and its price relative to the market?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LSS (€33.15) is trading below our estimate of fair value (€59.56)

Significantly Below Fair Value: LSS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LSS is poor value based on its PE Ratio (53.2x) compared to the French Software industry average (52.1x).

PE vs Market: LSS is poor value based on its PE Ratio (53.2x) compared to the French market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: LSS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: LSS is overvalued based on its PB Ratio (5.4x) compared to the FR Software industry average (4.4x).


Future Growth

How is Lectra forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSS's forecast earnings growth (38.2% per year) is above the savings rate (0.4%).

Earnings vs Market: LSS's earnings (38.2% per year) are forecast to grow faster than the French market (17% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LSS's revenue (12.6% per year) is forecast to grow faster than the French market (6.8% per year).

High Growth Revenue: LSS's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LSS's Return on Equity is forecast to be low in 3 years time (16.5%).


Past Performance

How has Lectra performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSS has high quality earnings.

Growing Profit Margin: LSS's current net profit margins (8.4%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: LSS's earnings have declined by 4% per year over the past 5 years.

Accelerating Growth: LSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LSS had negative earnings growth (-25.4%) over the past year, making it difficult to compare to the Software industry average (31.2%).


Return on Equity

High ROE: LSS's Return on Equity (10.1%) is considered low.


Financial Health

How is Lectra's financial position?


Financial Position Analysis

Short Term Liabilities: LSS's short term assets (€234.6M) exceed its short term liabilities (€131.6M).

Long Term Liabilities: LSS's short term assets (€234.6M) exceed its long term liabilities (€23.9M).


Debt to Equity History and Analysis

Debt Level: LSS is debt free.

Reducing Debt: LSS had no debt 5 years ago.

Debt Coverage: LSS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LSS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lectra current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSS's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.34%).

High Dividend: LSS's dividend (0.72%) is low compared to the top 25% of dividend payers in the French market (3.94%).


Stability and Growth of Payments

Stable Dividend: LSS is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: LSS is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LSS is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LSS's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Daniel Harari (66 yo)

19.17yrs

Tenure

€494,423

Compensation

Mr. Daniel Harari has been the Chief Executive Officer of Lectra SA since May 3, 2002 and has been its Chairman of the Board since July 27, 2017. Mr. Harari has been the Chief Executive Officer of Compagni...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD583.73K) is below average for companies of similar size in the French market ($USD1.07M).

Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LSS's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: LSS's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.8%.


Top Shareholders

Company Information

Lectra SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lectra SA
  • Ticker: LSS
  • Exchange: ENXTPA
  • Founded: 1973
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €1.247b
  • Shares outstanding: 37.62m
  • Website: https://www.lectra.com

Number of Employees


Location

  • Lectra SA
  • 16-18 rue Chalgrin
  • Paris
  • Ile-de-France
  • 75016
  • France

Listings


Biography

Lectra SA designs smart industrial solutions for fashion, automotive, and furniture markets. The company’s solutions include software, automated cutting equipment, and related services, which enable custom...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 21:30
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.