Stock Analysis

Introducing Lakeland Industries (NASDAQ:LAKE), The Stock That Zoomed 180% In The Last Five Years

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NasdaqGM:LAKE
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Lakeland Industries, Inc. (NASDAQ:LAKE) which saw its share price drive 180% higher over five years. On top of that, the share price is up 49% in about a quarter.

See our latest analysis for Lakeland Industries

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, Lakeland Industries managed to grow its earnings per share at 5.1% a year. This EPS growth is slower than the share price growth of 23% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
NasdaqGM:LAKE Earnings Per Share Growth February 5th 2021

It is of course excellent to see how Lakeland Industries has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Lakeland Industries' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Lakeland Industries has rewarded shareholders with a total shareholder return of 173% in the last twelve months. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Lakeland Industries you should be aware of, and 1 of them is concerning.

But note: Lakeland Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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What are the risks and opportunities for Lakeland Industries?

Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide.

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Rewards

  • Earnings are forecast to grow 111.62% per year

Risks

  • Profit margins (2%) are lower than last year (14.8%)

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Lakeland Industries

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