ENXTPA:LSS

Stock Analysis Report

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Executive Summary

Lectra SA provides technological solutions for fashion, automotive, and furniture markets. More Details


Snowflake Analysis

Flawless balance sheet with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

LSS

-2.1%

FR Software

-0.04%

FR Market


1 Year Return

15.3%

LSS

18.8%

FR Software

-6.4%

FR Market

Return vs Industry: LSS underperformed the French Software industry which returned 18.8% over the past year.

Return vs Market: LSS exceeded the French Market which returned -6.4% over the past year.


Shareholder returns

LSSIndustryMarket
7 Day-3.1%-2.1%-0.04%
30 Day-0.5%-1.2%0.6%
90 Day14.0%-0.8%-0.03%
1 Year18.7%15.3%19.4%18.8%-4.3%-6.4%
3 Year-17.1%-22.3%75.4%72.1%7.1%-2.2%
5 Year112.7%91.9%128.9%121.3%31.9%13.8%

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?

30.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSS (€20.25) is trading above our estimate of fair value (€18.27)

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 (30.7x) compared to the FR Software industry average (66.4x).

PE vs Market: LSS is poor value based on its PE Ratio (30.7x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LSS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: LSS is overvalued based on its PB Ratio (3.7x) compared to the FR Software industry average (2.8x).


Next Steps

Future Growth

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

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSS's forecast earnings growth (29% per year) is above the savings rate (0.6%).

Earnings vs Market: LSS's earnings (29% per year) are forecast to grow faster than the French market (23.6% per year).

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

Revenue vs Market: LSS's revenue (6.7% per year) is forecast to grow slower than the French market (6.7% per year).

High Growth Revenue: LSS's revenue (6.7% 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%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Lectra performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSS has high quality earnings.

Growing Profit Margin: LSS's current net profit margins (8.2%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: LSS's earnings have grown by 4.1% 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 (-27.4%) over the past year, making it difficult to compare to the Software industry average (-1.2%).


Return on Equity

High ROE: LSS's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Lectra's financial position?


Financial Position Analysis

Short Term Liabilities: LSS's short term assets (€192.6M) exceed its short term liabilities (€115.7M).

Long Term Liabilities: LSS's short term assets (€192.6M) exceed its long term liabilities (€27.3M).


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


Next Steps

Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSS's dividend (1.98%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: LSS's dividend (1.98%) is low compared to the top 25% of dividend payers in the French market (5.21%).


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 reasonable payout ratio (60.7%), LSS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LSS's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Daniel Harari (65 yo)

18.42yrs

Tenure

€682,373

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 ($USD807.16K) is about average for companies of similar size in the French market ($USD638.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Harari
Chairman & CEO18.42yrs€682.37k17.04%
€ 111.5m
Olivier du Chesnay
Chief Financial Officer3.08yrsno datano data
Jérôme Viala
Executive Vice Presidentno datano datano data
Edouard Macquin
President of Americas1.75yrsno datano data
Véronique Zoccoletto
Chief Transformation Officer4.25yrsno datano data
Alexandra Boisson
General Counsel & Compliance Officer4.33yrsno datano data
Céline Bedouet
Chief Marketing & Communications Officerno datano datano data
Régis Bévillon
Director of Human Resourcesno datano datano data
Fabio Canali
President of Southern Europe & North Africano datano datano data
Laurence Jacquot
Chief Customer Success Officerno datano datano data
Yves Delhaye
Managing Director of Aseanno datano datano data
Andreas Kim
Managing Director of Chinano datano datano data

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: LSS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Harari
Chairman & CEO18.42yrs€682.37k17.04%
€ 111.5m
Bernard Jourdan
Lead Independent Director3.75yrs€52.00k0.0046%
€ 30.4k
Anne Binder
Independent Director9yrs€49.00k0.0046%
€ 30.4k
Nathalie Rossiensky
Independent Director4.5yrs€49.00k0.0046%
€ 30.4k

4.1yrs

Average Tenure

67yo

Average Age

Experienced Board: LSS's board of directors are considered experienced (4.1 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: €654.402m
  • Shares outstanding: 32.32m
  • 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 technological solutions for fashion, automotive, and furniture markets. The company’s solutions include software, automated cutting equipment, and related services, which enable customer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 22:17
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.