WSE:LPP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

WSE:LPP

-3.5%

PL Luxury

-2.6%

PL Market


1 Year Return

-20.4%

WSE:LPP

-26.1%

PL Luxury

-8.2%

PL Market

LPP outperformed the Luxury industry which returned -24.1% over the past year.

LPP underperformed the Market in Poland which returned -8.5% over the past year.


Share holder returns

LPPIndustryMarket
7 Day-3.5%-3.5%-2.6%
30 Day-10.3%-11.6%-9.0%
90 Day-8.9%-12.8%-5.3%
1 Year-19.3%-20.4%-25.2%-26.1%-5.3%-8.2%
3 Year51.5%47.9%10.5%7.6%7.7%-0.3%
5 Year-12.5%-15.8%-3.4%-7.6%-1.8%-14.4%

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 based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

LPP's share price is below the future cash flow value, and at a moderate discount (> 20%).

LPP's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

LPP is overvalued based on earnings compared to the PL Luxury industry average.

LPP is overvalued based on earnings compared to the Poland market.


Price Based on Expected Growth

LPP is poor value based on expected growth next year.


Price Based on Value of Assets

LPP is overvalued based on assets compared to the PL Luxury industry average.


Next Steps

Future Growth

How is LPP expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LPP's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

LPP's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

LPP's revenue growth is expected to exceed the Poland market average.

LPP's earnings growth is expected to exceed the Poland market average.

LPP's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

LPP is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has LPP performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LPP's year on year earnings growth rate has been positive over the past 5 years.

LPP's 1-year earnings growth exceeds its 5-year average (9.3% vs 1.1%)

LPP's earnings growth has exceeded the PL Luxury industry average in the past year (9.3% vs 1.5%).


Return on Equity

LPP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

LPP used its assets more efficiently than the PL Luxury industry average last year based on Return on Assets.


Return on Capital Employed

LPP's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is LPP's financial position?


Financial Position Analysis

LPP is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

LPP's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

LPP's level of debt (14.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (34.6% vs 14.3% today).

Debt is well covered by operating cash flow (322.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 21.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.9x debt.


Next Steps

Dividend

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

0.99%

Expected Dividend Yield


Dividend Yield and Payments Analysis

LPP's pays a lower dividend yield than the bottom 25% of dividend payers in Poland (2.88%).

LPP's dividend is below the markets top 25% of dividend payers in Poland (7.39%).

LPP is not paying a notable dividend for Poland, therefore no need to check if the payments are stable.

LPP is not paying a notable dividend for Poland, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of LPP's dividends as it is not paying a notable one for Poland.


Future Payout to Shareholders

No need to calculate the sustainability of LPP's dividends in 3 years as they are not expected to pay a notable one for Poland.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Marek Piechocki (58yo)

Mr. Marek Piechocki is a Co-Founder of LPP SA and serves as its President of Management Board. Mr. Piechocki is responsible for all the aspects of the operations of LPP Spolka Akcyjna. As an experienced p ...


CEO Compensation Analysis

Marek's remuneration is lower than average for companies of similar size in Poland.

Insufficient data for Marek to compare compensation growth.


Board Age and Tenure

1.8yrs

Average Tenure

The average tenure for the LPP board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Przemyslaw Lutkiewicz (49yo)

    Vice President of the Management Board & Financial Controller

  • Marek Piechocki (58yo)

    President of the Management Board

  • Jacek Kujawa (45yo)

    Vice President of the Management Board

    • Tenure: 10.6yrs
  • Slawomir Loboda (54yo)

    Vice President of the Management Board

    • Tenure: 3.8yrs
  • Przemyslaw Konczakowski

    Controlling Director


Board Members

  • Wojciech Olejniczak (62yo)

    Vice-Chairman of the Supervisory Board

    • Tenure: 1.8yrs
  • Jerzy Lubianiec (59yo)

    Chairman of the Supervisory Board

    • Tenure: 19.6yrs
  • Antoni Tyminski

    Member of the Supervisory Board

    • Tenure: 1.8yrs
  • Piotr Piechocki

    Member of the Supervisory Board

    • Tenure: 1.8yrs
  • Magdalena Sekula

    Member of the Supervisory Board

    • Tenure: 1.8yrs
  • Milosz Wisniewski

    Member of the Supervisory Board

    • Tenure: 1.8yrs

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: zł12.740b
  • Shares outstanding: 1.83m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPPWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNMay 2001
0LVLLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNMay 2001
1RYDB (Deutsche Boerse AG)YesCommon Bearer SharesDEEURMay 2001

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 20:48
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.