ENXTPA:LSS

Stock Analysis Report

Executive Summary

Lectra SA provides technologies for fashion, automotive, and furniture.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

LSS

2.1%

FR Software

1.6%

FR Market


1 Year Return

-8.9%

LSS

17.2%

FR Software

9.6%

FR Market

Return vs Industry: LSS underperformed the French Software industry which returned 17.2% over the past year.

Return vs Market: LSS underperformed the French Market which returned 9.6% over the past year.


Shareholder returns

LSSIndustryMarket
7 Day3.6%2.1%1.6%
30 Day-1.7%4.2%0.6%
90 Day-6.6%1.1%0.6%
1 Year-7.2%-8.9%17.9%17.2%13.4%9.6%
3 Year18.3%12.4%74.1%70.7%42.9%29.1%
5 Year163.8%140.3%184.2%170.0%71.1%45.2%

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?

19.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LSS (€18.26) is trading above our estimate of fair value (€15.42)

Significantly Undervalued: LSS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LSS is good value based on its PE Ratio (20x) compared to the Software industry average (32.3x).

PE vs Market: LSS is poor value based on its PE Ratio (20x) compared to the French market (17.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: LSS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: LSS is overvalued based on its PB Ratio (3.4x) compared to the FR Software industry average (2.2x).


Next Steps

Future Growth

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

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSS's forecast earnings growth (8.3% per year) is above the savings rate (0.7%).

Earnings vs Market: LSS's earnings (8.3% per year) are forecast to grow slower than the French market (11.4% per year).

High Growth Earnings: LSS's earnings are forecast to grow, but not significantly.

Revenue vs Market: LSS's revenue (4.6% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: LSS's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LSS's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Lectra performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LSS's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: LSS's earnings growth over the past year (1.1%) is below its 5-year average (14.3% per year).

Earnings vs Industry: LSS earnings growth over the past year (1.1%) underperformed the Software industry 1.1%.


Return on Equity

High ROE: LSS's Return on Equity (16.9%) is considered low.


Return on Assets

ROA vs Industry: LSS has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: LSS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lectra's financial position?


Financial Position Analysis

Short Term Liabilities: LSS's short term assets (€202.6M) exceeds its short term liabilities (€121.1M)

Long Term Liabilities: LSS's short term assets (202.6M) exceeds its long term liabilities (24.3M)


Debt to Equity History and Analysis

Debt Level: LSS is debt free.

Reducing Debt: LSS has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.

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

Inventory Level: LSS has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LSS's debt is covered by short term assets.


Next Steps

Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%4.6%industryaverage0.6%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LSS's dividend (2.19%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: LSS's dividend (2.19%) is low compared to the top 25% of dividend payers in the French market (4.64%).

Stable Dividend: Whilst dividend payments have been stable, LSS has been paying a dividend for less than 10 years.

Growing Dividend: LSS's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), LSS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LSS's dividends in 3 years are forecast to be well covered by earnings (46.6% payout ratio).


Next Steps

Management

What is the CEO of Lectra's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Lectra has no CEO, or we have no data on them.


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: LSS's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

65yo

Average Age

Experienced Board: LSS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Daniel Harari (64yo)

    Chairman & CEO

    • Tenure: 2.3yrs
    • Compensation: €724.39k
  • Jérôme Viala (57yo)

    Executive Vice President

    • Tenure: 0yrs
  • Edouard Macquin (53yo)

    President of Americas

    • Tenure: 0.8yrs
  • Fabio Canali (57yo)

    President of Southern Europe & North Africa

    • Tenure: 0yrs
  • Véronique Zoccoletto (59yo)

    Chief Transformation Officer

    • Tenure: 3.3yrs
  • Laurence Jacquot (52yo)

    Chief Customer Success Officer

    • Tenure: 0yrs
  • Céline Bedouet (42yo)

    Chief Marketing & Communications Officer

    • Tenure: 0yrs
  • Olivier du Chesnay (44yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
  • Alexandra Boisson

    General Counsel & Compliance Officer

    • Tenure: 3.3yrs
  • Régis Bévillon

    Director of Human Resources

    • Tenure: 0yrs

Board Members

  • Daniel Harari (64yo)

    Chairman & CEO

    • Tenure: 2.3yrs
    • Compensation: €724.39k
  • Ross McInnes (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €49.00k
  • Bernard Jourdan (74yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: €52.00k
  • Anne Binder (68yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: €49.00k
  • Nathalie Rossiensky (49yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: €49.00k

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: €584.887m
  • Shares outstanding: 32.03m
  • Website: https://www.lectra.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSSENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0IVJLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
LCTS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LETDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LSSPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Lectra SA provides technologies for fashion, automotive, and furniture. The company’s solutions enable customers to automate and optimize product design, development, and manufacture of garments, shoes, lu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:38
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.