NasdaqGS:LAWS

Stock Analysis Report

Executive Summary

Lawson Products, Inc. distributes products and services to the industrial, commercial, institutional, and government maintenance, repair, and operations marketplace in the United States, Puerto Rico, Canada, Mexico, and the Caribbean.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LAWS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

LAWS

-1.6%

US Trade Distributors

0.5%

US Market


1 Year Return

57.7%

LAWS

13.8%

US Trade Distributors

16.1%

US Market

Return vs Industry: LAWS exceeded the US Trade Distributors industry which returned 13.8% over the past year.

Return vs Market: LAWS exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

LAWSIndustryMarket
7 Day0.4%-1.6%0.5%
30 Day13.1%3.5%3.9%
90 Day30.4%15.8%6.6%
1 Year57.7%57.7%16.0%13.8%18.7%16.1%
3 Year103.2%103.2%32.3%26.5%47.2%37.7%
5 Year115.3%115.3%30.6%21.6%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAWS ($48.86) is trading below our estimate of fair value ($50)

Significantly Below Fair Value: LAWS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LAWS is poor value based on its PE Ratio (34.1x) compared to the Trade Distributors industry average (17.9x).

PE vs Market: LAWS is poor value based on its PE Ratio (34.1x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LAWS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LAWS is overvalued based on its PB Ratio (3.9x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

How is Lawson Products forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAWS's forecast earnings growth (42.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LAWS's earnings (42.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: LAWS's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LAWS's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LAWS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lawson Products performed over the past 5 years?

57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAWS has high quality earnings.

Growing Profit Margin: LAWS's current net profit margins (3.5%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: LAWS has become profitable over the past 5 years, growing earnings by 57.3% per year.

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

Earnings vs Industry: LAWS had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.1%).


Return on Equity

High ROE: LAWS's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lawson Products's financial position?


Financial Position Analysis

Short Term Liabilities: LAWS's short term assets ($113.8M) exceeds its short term liabilities ($60.2M)

Long Term Liabilities: LAWS's short term assets ($113.8M) exceeds its long term liabilities (34.6M)


Debt to Equity History and Analysis

Debt Level: LAWS's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: LAWS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: LAWS's debt is well covered by operating cash flow (821.8%).

Interest Coverage: LAWS's interest payments on its debt are well covered by EBIT (25.7x coverage).


Balance Sheet

Inventory Level: LAWS has a high level of physical assets or inventory.

Debt Coverage by Assets: LAWS's debt is covered by short term assets (assets are 51.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: LAWS is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Mike DeCata (61yo)

7.2yrs

Tenure

US$3,187,184

Compensation

Mr. Michael G. DeCata, also known as Mike, has been the Chief Executive Officer and President of Lawson Products, Inc. since September 24, 2012. Mr. DeCata serves as an Executive Affiliate at Hamilton Robi ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD3.19M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.9yrs

Average Tenure

58yo

Average Age

Experienced Management: LAWS's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

60yo

Average Age

Experienced Board: LAWS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LAWS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$47,50019 Nov 19
Michael DeCata
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$47.50
BuyUS$28,26808 Nov 19
Michael DeCata
EntityIndividual
Role
Chief Executive Officer
President
Shares608
Max PriceUS$46.49
BuyUS$59,23314 Jun 19
Mark Moon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,696
Max PriceUS$34.92
SellUS$89,65406 Jun 19
Shane McCarthy
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Supply Chain & Business Development
Shares2,478
Max PriceUS$36.18
SellUS$63,68923 May 19
Shane McCarthy
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Supply Chain & Business Development
Shares1,636
Max PriceUS$38.93
SellUS$1,206,62419 Apr 19
Wilma Smelcer
EntityIndividual
Shares37,707
Max PriceUS$32.00
BuyUS$1,206,62418 Apr 19
Luther King Capital Management Corporation
EntityCompany
Shares37,707
Max PriceUS$32.00
BuyUS$54,841,18423 Jan 19
Ronald Port
EntityIndividual
Shares1,713,787
Max PriceUS$32.00
SellUS$12,670,17623 Jan 19
James Errant
EntityIndividual
Shares395,943
Max PriceUS$32.00
SellUS$27,757,24823 Jan 19
Ronald Port
EntityIndividual
Shares867,414
Max PriceUS$32.00
BuyUS$55,161,18422 Jan 19
Luther King Capital Management Corporation
EntityCompany
Shares1,723,787
Max PriceUS$32.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jerome Shaffer (91yo)

    Vice President and Special Advisor to Chief Executive Officer

    • Tenure: 15.8yrs
    • Compensation: US$258.92k
  • Neil Jenkins (69yo)

    Executive VP

    • Tenure: 15.8yrs
    • Compensation: US$1.15m
  • Ron Knutson (55yo)

    Executive VP

    • Tenure: 10yrs
    • Compensation: US$963.74k
  • Mike DeCata (61yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$3.19m
  • Shane McCarthy (50yo)

    Senior Vice President of Supply Chain & Business Development

    • Tenure: 3.9yrs
    • Compensation: US$650.04k
  • Sue Eaglebarger

    Vice President of Human Resources

    • Tenure: 0yrs
  • Elizabeth Abrahamson

    Vice President of Marketing & Continuous Improvement

    • Tenure: 3.9yrs
  • Matt Brown (55yo)

    Senior Vice President of Sales

    • Tenure: 2.7yrs
    • Compensation: US$556.39k
  • Rick Pufpaf

    Chief Compliance Officer

    • Tenure: 2.9yrs
  • Kurt Mario

    President of Bolt Supply House

    • Tenure: 1.1yrs

Board Members

  • Lee Hillman (64yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$190.00k
  • Charley Hale (52yo)

    Independent Director

    • Tenure: 0.8yrs
  • I. Edelson (60yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$150.00k
  • Mike DeCata (61yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$3.19m
  • Tom Postek (77yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$170.00k
  • John King (48yo)

    Independent Chairman

    • Tenure: 0.7yrs
    • Compensation: US$150.00k
  • Mark Moon (55yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Lawson Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lawson Products, Inc.
  • Ticker: LAWS
  • Exchange: NasdaqGS
  • Founded: 1952
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$437.638m
  • Shares outstanding: 8.96m
  • Website: https://www.lawsonproducts.com

Number of Employees


Location

  • Lawson Products, Inc.
  • 8770 West Bryn Mawr Avenue
  • Suite 900
  • Chicago
  • Illinois
  • 60631
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAWSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972

Biography

Lawson Products, Inc. distributes products and services to the industrial, commercial, institutional, and government maintenance, repair, and operations marketplace in the United States, Puerto Rico, Canad ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:37
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.