Liberty Shoes Limited manufactures and sells footwear and fashion accessories in India and internationally.
The last earnings update was 113 days ago.
More info.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Liberty Shoes
to its discounted cash flow analysis.value.
The discounted cash flow value is simply looking at what the company is worth
today, based on estimates of how much money it is expected to make in the
future.
Discounted Cash Flow Calculation for BSE:526596 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Liberty Shoes
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:526596 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹707.38 +
₹2,134.34
₹2,841.72
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹2,841.72 /
17.04
₹166.77
BSE:526596 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹166.77
Current discount
Discount to share price of
₹141.85
= -1 x (₹141.85 - ₹166.77) / ₹166.77
14.9%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
Current Discount
Amount off the current price
Liberty Shoes
is available for.
15%
Share price is
₹141.85
vs Future cash flow value of
₹166.77
Current Discount Checks
For
Liberty Shoes
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Liberty Shoes's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Liberty Shoes's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Liberty Shoes's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Liberty Shoes's earnings available for a low price, and how does
this compare to other companies in the same industry?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
it right!
25.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Liberty Shoes
expected to grow at an
attractive
rate?
Liberty Shoes's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
Liberty Shoes's earnings growth is expected to exceed the India market average.
Liberty Shoes's revenue growth is positive but not above the India market average.
Liberty Shoes's earnings are expected to grow significantly at over 20% yearly.
Liberty Shoes's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
All data from Liberty Shoes Company Filings, last reported 4 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:526596 Future Estimates Data
Date (Data in INR Millions)
EPS *
EPS High Estimate
EPS Low Estimate
Avg. No. Analysts
2020-03-31
7.27
7.27
7.27
1.00
2019-03-31
5.53
5.53
5.53
1.00
BSE:526596 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-09-30
5.09
2018-06-30
4.58
2018-03-31
3.87
2017-03-31
3.75
2016-03-31
5.90
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Liberty Shoes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Liberty Shoes's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
Liberty Shoes
has a total score of
3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Liberty Shoes's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
Liberty Shoes's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
Liberty Shoes's 1-year earnings growth exceeds its 5-year average (33.3% vs -17.8%)
Liberty Shoes's earnings growth has exceeded the IN Luxury industry average in the past year (33.3% vs 13.8%).
Earnings and Revenue History
Liberty Shoes's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from Liberty Shoes Company Filings, last reported 4 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:526596 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-09-30
6,085.57
86.60
1,149.65
2018-06-30
5,675.35
77.88
1,129.97
2018-03-31
5,432.86
66.01
1,106.39
2017-03-31
4,959.08
63.90
1,067.09
2016-03-31
4,524.81
100.55
958.67
2015-03-31
5,238.90
169.23
978.23
2014-03-31
4,834.89
132.69
1,369.09
2013-03-31
3,602.64
53.88
1,138.78
2012-03-31
3,563.93
43.84
1,110.12
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
Liberty Shoes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Liberty Shoes used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
Liberty Shoes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
We assess
Liberty Shoes's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Luxury
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Liberty Shoes
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
Liberty Shoes's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Liberty Shoes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Liberty Shoes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Liberty Shoes's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
We assess
Liberty Shoes's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Liberty Shoes
has a total score of
4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Liberty Shoes
dividends.
If you bought
₹2,000 of
Liberty Shoes
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate Liberty Shoes's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Liberty Shoes's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
CEO
AdeshGupta
COMPENSATION
₹4,800,000
AGE
58
TENURE AS CEO
15.1 years
CEO Bio
Mr. Adesh Kumar Gupta, B.E(Mechanical Eng.) serves as the Chairman of Liberty Shoes Ltd. Mr. Gupta has been the Chief Executive Officer of Liberty Shoes Ltd since January 8, 2004. He served as the Chairman of Northern Region of appointments and their promotions etc., from 2006 to 2007. He has been an Executive Director of Liberty Shoes Ltd., since September 28, 1990. Mr. Gupta holds a BE in Mechanical Engineering.
CEO Compensation
Adesh's compensation has been consistent with company performance over the past year.
Adesh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
Liberty Shoes
management team in years:
11.5
Average Tenure
54
Average Age
The average tenure for the Liberty Shoes management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Adesh Gupta
TITLE
Chairman & CEO
COMPENSATION
₹5M
AGE
58
TENURE
15.1 yrs
Munish Kakra
TITLE
CFO, Company Secretary & Compliance Officer
COMPENSATION
₹4M
AGE
54
Shammi Bansal
TITLE
Executive Director
COMPENSATION
₹5M
AGE
57
Adeesh Gupta
TITLE
Executive Director
COMPENSATION
₹5M
AGE
54
Ashok Kumar
TITLE
Executive Director
COMPENSATION
₹1M
AGE
49
Satish Saini
TITLE
CFO of Retail
AGE
49
TENURE
11.5 yrs
Ramesh Sadhu
TITLE
CEO of Retail
AGE
63
Sunil Bansal
TITLE
Director Exports & Executive Director
AGE
57
Ram Prakash
TITLE
Head of Information Technology
AGE
43
TENURE
9.7 yrs
Manan Bansal
TITLE
Director of Marketing
Board of Directors Tenure
Average tenure and age of the
Liberty Shoes
board of directors in years:
7.5
Average Tenure
57.5
Average Age
The tenure for the Liberty Shoes board of directors is about average.
Board of Directors
Adesh Gupta
TITLE
Chairman & CEO
COMPENSATION
₹5M
AGE
58
Shammi Bansal
TITLE
Executive Director
COMPENSATION
₹5M
AGE
57
TENURE
28.4 yrs
Adeesh Gupta
TITLE
Executive Director
COMPENSATION
₹5M
AGE
54
TENURE
7.5 yrs
Ashok Kumar
TITLE
Executive Director
COMPENSATION
₹1M
AGE
49
TENURE
4.1 yrs
Sunil Bansal
TITLE
Director Exports & Executive Director
AGE
57
TENURE
10.1 yrs
Raghu Dayal
TITLE
Independent Non-Executive Director
COMPENSATION
₹100K
AGE
84
TENURE
13.2 yrs
Ramesh Palhan
TITLE
Independent Non-Executive Director
COMPENSATION
₹100K
AGE
74
TENURE
6.9 yrs
Amitabh Suraj Taneja
TITLE
Independent Non-Executive Director
AGE
51
TENURE
13.2 yrs
Pushpinder Grewal
TITLE
Independent Non-Executive Director
COMPENSATION
₹30K
AGE
72
TENURE
6.5 yrs
Lovelena Mody
TITLE
Independent Non-Executive Director
COMPENSATION
₹10K
AGE
65
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
Liberty Shoes insiders have only sold shares in the past 3 months.
Liberty Shoes Limited manufactures and sells footwear and fashion accessories in India and internationally. It offers footwear products, such as casual, formal, sports, fashion, women, and men shoes under the Healers, Fortune, Force 10, Senorita, Lucky Luke, Gliders, AHA, Rebounce, Coolers, Tiptopp, Prefect, Footflin, and Zeppelin brand names. It operates through distributors and 400 exclusive showrooms, as well as online. Liberty Shoes Limited was founded in 1954 and is headquartered in Karnal, India.
Liberty Shoes Limited
Liberty House,
Liberty Road,
Karnal,
Haryana, 132001,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
526596
Equity Shares
Mumbai Stock Exchange
IN
INR
27. Sep 1995
NSEI
LIBERTSHOE
Equity Shares
National Stock Exchange of India
IN
INR
27. Sep 1995
Number of employees
Current staff
2,198
Liberty Shoes
employees.
Industry
Footwear
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/15 12:40
End of day share price update:
2019/02/15 00:00
Last estimates confirmation:
2018/08/13
Last earnings filing:
2018/10/25
Last earnings reported:
2018/09/30
Last annual earnings reported:
2018/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.