ENXTPA:LSS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with acceptable track record.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

LSS

-0.09%

FR Software

-0.5%

FR Market


1 Year Return

2.8%

LSS

20.1%

FR Software

15.2%

FR Market

Return vs Industry: LSS underperformed the French Software industry which returned 20.1% over the past year.

Return vs Market: LSS underperformed the French Market which returned 15.2% over the past year.


Shareholder returns

LSSIndustryMarket
7 Day-3.5%-0.09%-0.5%
30 Day-7.8%-4.9%0.6%
90 Day-1.6%10.0%2.8%
1 Year4.8%2.8%20.7%20.1%19.2%15.2%
3 Year15.0%9.3%93.6%89.6%43.8%30.2%
5 Year99.4%81.6%147.8%137.5%52.3%30.8%

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?

23.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSS (€22.55) is trading above our estimate of fair value (€17.19)

Significantly Below Fair Value: 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 (24.6x) compared to the Software industry average (33.5x).

PE vs Market: LSS is poor value based on its PE Ratio (24.6x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LSS is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: LSS is overvalued based on its PB Ratio (4x) compared to the FR Software industry average (2.4x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSS's forecast earnings growth (5.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: LSS's earnings (5.1% per year) are forecast to grow slower than the French market (12.9% per year).

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

Revenue vs Market: LSS's revenue (4.3% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: LSS's revenue (4.3% 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 (14.9%).


Next Steps

Past Performance

How has Lectra performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSS has high quality earnings.

Growing Profit Margin: LSS's current net profit margins (10.5%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: LSS's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: LSS's earnings growth over the past year (2%) is below its 5-year average (9.9% per year).

Earnings vs Industry: LSS earnings growth over the past year (2%) underperformed the Software industry 3%.


Return on Equity

High ROE: LSS's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lectra's financial position?


Financial Position Analysis

Short Term Liabilities: LSS's short term assets (€220.6M) exceed its short term liabilities (€131.6M).

Long Term Liabilities: LSS's short term assets (€220.6M) exceed its long term liabilities (€28.8M).


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 0.4%.

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?

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%4.6%industryaverage0.5%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: LSS's dividend (1.77%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: LSS's dividend (1.77%) is low compared to the top 25% of dividend payers in the French market (4.58%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), 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 (47.4% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Daniel Harari (64yo)

17.8yrs

Tenure

€724,391

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 ($USD786.87K) is about average for companies of similar size in the French market ($USD681.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Harari
Chairman & CEO17.8yrs€724.39k17.16% 119.8m
Jérôme Viala
Executive Vice President0yrsno datano data
Edouard Macquin
President of Americas1.1yrsno datano data
Véronique Zoccoletto
Chief Transformation Officer3.6yrsno datano data
Olivier du Chesnay
Chief Financial Officer2.4yrsno datano data
Alexandra Boisson
General Counsel & Compliance Officer3.7yrsno datano data
Céline Bedouet
Chief Marketing & Communications Officer0yrsno datano data
Régis Bévillon
Director of Human Resources0yrsno datano data
Fabio Canali
President of Southern Europe & North Africa0yrsno datano data
Laurence Jacquot
Chief Customer Success Officer0yrsno datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: LSS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Harari
Chairman & CEO17.8yrs€724.39k17.16% 119.8m
Ross McInnes
Independent Director2.1yrs€49.00k0.0016% 10.9k
Bernard Jourdan
Lead Independent Director3.1yrs€52.00k0.0047% 32.7k
Anne Binder
Independent Director8.3yrs€49.00k0.0047% 32.6k
Nathalie Rossiensky
Independent Director3.8yrs€49.00k0.0031% 21.5k

3.1yrs

Average Tenure

65yo

Average Age

Experienced Board: LSS's board of directors are considered experienced (3.1 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 not been meaningfully diluted in the past year.


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: €697.982m
  • Shares outstanding: 32.09m
  • 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, luggage, car seats and interiors, airbags, and sofas; and the management of collections that cover the entire product lifecycle to help companies control calendars, schedules, resources and costs, as well as handling complex relationships with external suppliers, lean cutting room, and fashion design solutions in the fashion and apparel industry. It also offers technical maintenance, support, training, and consulting services; and sells consumables and parts. The company serves fashion and apparel, automotive, and furniture markets, as well as other industries, such as composites, technical textiles, and leather. It operates in Europe, the Americas, the Asia-Pacific, and internationally. Lectra SA was founded in 1973 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:49
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.