NYSE:LKSD

Stock Analysis Report

Executive Summary

LSC Communications, Inc. provides various traditional and digital print services, print-related services, and office products in the United States and internationally.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.

Risks

  • LSC Communications has significant price volatility in the past 3 months.
  • LSC Communications is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.5%

NYSE:LKSD

-3.0%

US Commercial Services

-1.6%

US Market


1 Year Return

-89.1%

NYSE:LKSD

2.3%

US Commercial Services

-3.0%

US Market

LKSD underperformed the Commercial Services industry which returned 2.3% over the past year.

LKSD underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

LKSDIndustryMarket
7 Day12.5%-3.0%-1.6%
30 Day-4.3%-3.8%-5.7%
90 Day-74.7%0.2%0.2%
1 Year-87.9%-89.1%6.2%2.3%-0.8%-3.0%
3 Yearn/a59.5%48.6%38.1%29.1%
5 Yearn/a90.2%71.1%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LSC Communications undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

LSC Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

LSC Communications is loss making, we can't compare its value to the US Commercial Services industry average.

LSC Communications is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for LSC Communications, we can't assess if its growth is good value.


Price Based on Value of Assets

LSC Communications is good value based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is LSC Communications expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

72.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LSC Communications's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

LSC Communications is not considered high growth as it is expected to be loss making for the next 1-3 years.

LSC Communications's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare LSC Communications's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare LSC Communications's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if LSC Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has LSC Communications performed over the past 5 years?

-75.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LSC Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare LSC Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare LSC Communications's 1-year growth to the US Commercial Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if LSC Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if LSC Communications has efficiently used its assets last year compared to the US Commercial Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if LSC Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is LSC Communications's financial position?


Financial Position Analysis

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

LSC Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

LSC Communications's level of debt (657.9%) compared to net worth is high (greater than 40%).

Unable to establish if LSC Communications's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (23%, greater than 20% of total debt).

Unable to confirm if the interest payments on LSC Communications's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

64.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

LSC Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

LSC Communications's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, LSC Communications has been paying a dividend for less than 10 years.

Dividend payments have increased, but LSC Communications only paid a dividend in the past 3 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Tom Quinlan (56yo)

2.8yrs

Tenure

US$4,337,670

Compensation

Mr. Thomas J. Quinlan, III, also known as Tom, is the Chairman, President and Chief Executive Officer of LSC Communications, Inc. since October 2016. Mr. Quinlan was a Co-Founder and Director of Work-Bench ...


CEO Compensation Analysis

Tom's remuneration is higher than average for companies of similar size in United States of America.

Tom's compensation has increased whilst company is loss making.


Management Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

The tenure for the LSC Communications management team is about average.


Board Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

The tenure for the LSC Communications board of directors is about average.


Insider Trading

More shares have been bought than sold by LSC Communications individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$51,31512 Aug 19
Margaret Breya
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$1.03
BuyUS$47,08512 Aug 19
Thomas Quinlan
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares50,000
Max PriceUS$0.94
BuyUS$24,24012 Aug 19
Francis Jules
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$0.97
BuyUS$53,91512 Aug 19
Judith Hamilton
EntityIndividual
Role
Lead Director
Lead Director
Shares50,000
Max PriceUS$1.08
BuyUS$77,33712 Aug 19
Douglas Stotlar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares83,400
Max PriceUS$0.93

Ownership Breakdown


Management Team

  • Suzanne Bettman (54yo)

    Chief Administrative Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.16m
  • Tom Quinlan (56yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$4.34m
  • Rick Lane (62yo)

    Chief Strategy & Supply Chain Officer

    • Tenure: 2.8yrs
    • Compensation: US$884.78k
  • Andrew Coxhead (50yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.28m
  • Kent Hansen (47yo)

    Chief Accounting Officer & Controller

    • Tenure: 2.8yrs
    • Compensation: US$486.09k
  • Janet Halpin

    Senior VP of Investor Relations & Treasurer

    • Tenure: 2.8yrs

Board Members

  • Judith Hamilton (74yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$385.85k
  • Margaret Atkins (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$225.06k
  • Tom Quinlan (56yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$4.34m
  • Tom O’Toole (61yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$225.06k
  • Frank Jules (62yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$250.06k
  • Doug Stotlar (58yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$225.06k
  • Shivan Subramaniam (70yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$225.06k
  • Marge Breya (57yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$225.06k
  • Richard Palmer (52yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$253.10k

Company Information

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


Key Information

  • Name: LSC Communications, Inc.
  • Ticker: LKSD
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$45.294m
  • Shares outstanding: 33.55m
  • Website: https://www.lsccom.com

Number of Employees


Location

  • LSC Communications, Inc.
  • 191 North Wacker Drive
  • Suite 1400
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LKSDNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2016
2L3DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2016

Biography

LSC Communications, Inc. provides various traditional and digital print services, print-related services, and office products in the United States and internationally. It operates through Magazines, Catalo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:47
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.