WSE:LPP

Stock Analysis Report

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Market Cap

zł24.7b

Last Updated

2021/07/27 22:33 UTC

Data Sources

Company Financials +

Executive Summary

LPP SA designs, manufactures, distributes, and retails clothing for women, men, and children. More Details

Rewards

Earnings are forecast to grow 30.56% per year

Risk Analysis

No risks detected for LPP from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LPP is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LPP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

LPP

-1.5%

PL Luxury

-0.2%

PL Market


1 Year Return

92.6%

LPP

90.9%

PL Luxury

23.5%

PL Market

Return vs Industry: LPP underperformed the Polish Luxury industry which returned 108.1% over the past year.

Return vs Market: LPP exceeded the Polish Market which returned 23.8% over the past year.


Shareholder returns

LPPIndustryMarket
7 Day-1.2%-1.5%-0.2%
30 Day1.6%2.4%-2.2%
90 Day38.1%31.5%6.9%
1 Year99.5%92.6%96.3%90.9%25.9%23.5%
3 Year54.7%47.5%13.6%9.9%11.3%5.2%
5 Year181.8%165.5%66.4%58.9%32.3%19.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

126.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPP (PLN13350) is trading above our estimate of fair value (PLN10398.7)

Significantly Below Fair Value: LPP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LPP is poor value based on its PE Ratio (126.9x) compared to the Polish Luxury industry average (27.5x).

PE vs Market: LPP is poor value based on its PE Ratio (126.9x) compared to the Polish market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: LPP is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: LPP is overvalued based on its PB Ratio (8x) compared to the PL Luxury industry average (1.6x).


Future Growth

How is LPP forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPP's forecast earnings growth (30.6% per year) is above the savings rate (2.6%).

Earnings vs Market: LPP's earnings (30.6% per year) are forecast to grow faster than the Polish market (16.4% per year).

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

Revenue vs Market: LPP's revenue (12.4% per year) is forecast to grow faster than the Polish market (7.8% per year).

High Growth Revenue: LPP's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LPP's Return on Equity is forecast to be high in 3 years time (30.8%)


Past Performance

How has LPP performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPP has high quality earnings.

Growing Profit Margin: LPP's current net profit margins (2.1%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: LPP's earnings have declined by 1.5% per year over the past 5 years.

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

Earnings vs Industry: LPP had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Luxury industry average (-9.2%).


Return on Equity

High ROE: LPP's Return on Equity (6.2%) is considered low.


Financial Health

How is LPP's financial position?


Financial Position Analysis

Short Term Liabilities: LPP's short term assets (PLN5.0B) exceed its short term liabilities (PLN4.5B).

Long Term Liabilities: LPP's short term assets (PLN5.0B) exceed its long term liabilities (PLN3.1B).


Debt to Equity History and Analysis

Debt Level: LPP's debt to equity ratio (31%) is considered satisfactory.

Reducing Debt: LPP's debt to equity ratio has reduced from 50% to 31% over the past 5 years.

Debt Coverage: LPP's debt is well covered by operating cash flow (183%).

Interest Coverage: LPP's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

0.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LPP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LPP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LPP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LPP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LPP is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Marek Piechocki (60 yo)

no data

Tenure

zł1,262,000

Compensation

Mr. Marek Piechocki is a Co-Founder of LPP SA and serves as its Chief Executive Officer and President of Management Board. Mr. Piechocki is responsible for all the aspects of the operations of LPP Spolka A...


CEO Compensation Analysis

Compensation vs Market: Marek's total compensation ($USD325.16K) is below average for companies of similar size in the Polish market ($USD771.25K).

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


Leadership Team

Experienced Management: LPP's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: LPP's board of directors are considered experienced (3.8 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

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


Key Information

  • Name: LPP SA
  • Ticker: LPP
  • Exchange: WSE
  • Founded: 1989
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: zł24.730b
  • Shares outstanding: 1.85m
  • Website: https://www.lppsa.com

Number of Employees


Location

  • LPP SA
  • ul. Lakowa 39/44
  • Gdansk
  • 80-769
  • Poland

Listings


Biography

LPP SA designs, manufactures, distributes, and retails clothing for women, men, and children. The company also offers footwear and accessories. It offers its products under the Reserved, Mohito, Cropp, Hou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 22:33
End of Day Share Price2021/07/27 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


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.