NYSE:LDL

Stock Analysis Report

Executive Summary

Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide.

Rewards

Trading at 11.1% below its fair value

Earnings are forecast to grow 85.68% per year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (5.5%)



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Gorman-Rupp

NYSE:GRC

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LDL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

LDL

1.7%

US Machinery

1.7%

US Market


1 Year Return

-10.3%

LDL

18.4%

US Machinery

23.2%

US Market

Return vs Industry: LDL underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: LDL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

LDLIndustryMarket
7 Day1.5%1.7%1.7%
30 Day8.4%1.3%4.2%
90 Day-0.5%10.6%11.9%
1 Year-10.3%-10.3%20.6%18.4%25.8%23.2%
3 Year-62.0%-62.0%45.9%36.5%52.8%42.9%
5 Year-24.9%-24.9%78.0%56.5%75.2%55.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LDL ($22.42) is trading below our estimate of fair value ($25.21)

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


Price To Earnings Ratio

PE vs Industry: LDL is poor value based on its PE Ratio (54.3x) compared to the Machinery industry average (23.4x).

PE vs Market: LDL is poor value based on its PE Ratio (54.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: LDL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: LDL is good value based on its PB Ratio (1x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

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

85.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDL's forecast earnings growth (85.7% per year) is above the savings rate (1.7%).

Earnings vs Market: LDL's earnings (85.7% 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: LDL's revenue (3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LDL's revenue (3% 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 LDL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lydall performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LDL has a large one-off loss of $32.8M impacting its September 30 2019 financial results.

Growing Profit Margin: LDL's current net profit margins (0.8%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: LDL's earnings have declined by -4% per year over the past 5 years.

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

Earnings vs Industry: LDL had negative earnings growth (-82.9%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: LDL's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lydall's financial position?


Financial Position Analysis

Short Term Liabilities: LDL's short term assets ($312.8M) exceed its short term liabilities ($140.8M).

Long Term Liabilities: LDL's short term assets ($312.8M) do not cover its long term liabilities ($356.4M).


Debt to Equity History and Analysis

Debt Level: LDL's debt to equity ratio (75.1%) is considered high.

Reducing Debt: LDL's debt to equity ratio has increased from 28% to 75.1% over the past 5 years.

Debt Coverage: LDL's debt is well covered by operating cash flow (32.5%).

Interest Coverage: LDL's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: LDL's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate LDL'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 LDL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LDL'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 Lydall's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Sara Greenstein 0

0.2yrs

Tenure

0

Ms. Sara A. Greenstein has been Chief Executive Officer, President and Director of Lydall, Inc. since November 18, 2019. Ms. Greenstein serves as a member of the Board of Directors at Briggs & Stratton Cor ...


Management Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

Experienced Management: LDL's management team is considered experienced (3 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

63yo

Average Age

Experienced Board: LDL's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$66,46724 Jun 19
Joseph Abbruzzi
EntityIndividual
Role
Unit President
President of Thermal Acoustical Solutions
Shares3,362
Max PriceUS$19.77

Ownership Breakdown

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


Management Team

  • James Laughlan (46yo)

    VP, Chief Accounting Officer & Treasurer

    • Tenure: 9.8yrs
    • Compensation: US$419.94k
  • Dale Barnhart (66yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$2.15m
  • Paul Marold (58yo)

    President of Performance Materials

    • Tenure: 3.9yrs
    • Compensation: US$791.97k
  • Robb Junker

    President of Technical Nonwovens

    • Tenure: 0.3yrs
  • Chad McDaniel (45yo)

    Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$845.02k
  • Joe Abbruzzi (60yo)

    President of Thermal Acoustical Solutions

    • Tenure: 5.9yrs
    • Compensation: US$745.66k
  • Randy Gonzales (47yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$2.07m
  • William Feld (56yo)

    GM of Lydall Thermal/Acoustical - Fibers & VP

    • Tenure: 5.9yrs
  • Brendan Moynihan

    Vice President of Financial Planning & Investor Relations

    • Tenure: 2yrs
  • Sara Greenstein

    President

    • Tenure: 0.2yrs

Board Members

  • Kathleen Burdett (63yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$139.24k
  • S. Soderstrom (66yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$130.74k
  • Suzanne Hammett (63yo)

    Independent Director

    • Tenure: 20yrs
    • Compensation: US$123.24k
  • David Bills (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$83.00k
  • Marc Giles (63yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$177.74k
  • Matt Farrell (63yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$123.74k
  • William Gurley (70yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$121.74k
  • Jim Cannon (48yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$111.74k
  • Sara Greenstein

    President

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Lydall, Inc.
  • Ticker: LDL
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$393.212m
  • Shares outstanding: 17.52m
  • Website: https://www.lydall.com

Number of Employees


Location

  • Lydall, Inc.
  • One Colonial Road
  • Manchester
  • Connecticut
  • 6042
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LDLNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1973
LY7DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1973

Biography

Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide. It operates through Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. The Performance Materials segment offers filtration media solutions for air, fluid power, and industrial applications, such as clean-space, commercial, HVAC, power generation, and industrial processes. This segment also provides non-woven veils, papers, and specialty composites for the building products, appliances, and energy and industrial markets; and life sciences filtration products for biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, water filtration, and high purity process filtration. The Technical Nonwovens segment offers nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. The Thermal Acoustical Solutions segment provides engineered products for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment, and lower harmful emissions, as well as assist in the reduction of noise, vibration, and harshness. Its products are used in the tunnel, fuel tank, wheel well, aerodynamic belly pan, and spare tire applications, as well as outer dash, powertrain, catalytic converter, turbo charger, and manifolds of cars, trucks, SUVs, heavy duty trucks, and recreational vehicles. This segment also offers thermal and acoustical insulating solutions comprising organic and inorganic fiber composites for the automotive markets. The company markets its products to original equipment manufacturers and tier-one suppliers through internal sales force and distribution network. Lydall, Inc. was founded in 1879 and is headquartered in Manchester, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 23:39
End of Day Share Price2020/01/17 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.