NasdaqGM:LAKE

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 89.4% below its fair value

Earnings are forecast to grow 112.65% per year

Became profitable this year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

46.8%

LAKE

-5.0%

US Luxury

-2.7%

US Market


1 Year Return

45.8%

LAKE

15.5%

US Luxury

21.2%

US Market

Return vs Industry: LAKE exceeded the US Luxury industry which returned 19.7% over the past year.

Return vs Market: LAKE exceeded the US Market which returned 23.9% over the past year.


Shareholder returns

LAKEIndustryMarket
7 Day46.8%-5.0%-2.7%
30 Day49.4%-3.9%0.09%
90 Day46.9%8.7%6.9%
1 Year45.8%45.8%17.9%15.5%23.8%21.2%
3 Year47.0%47.0%69.6%61.9%48.1%38.6%
5 Year94.9%94.9%53.5%43.4%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAKE ($10.9) is trading below our estimate of fair value ($103.06)

Significantly Below Fair Value: LAKE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAKE is poor value based on its PE Ratio (587.7x) compared to the Luxury industry average (18.8x).

PE vs Market: LAKE is poor value based on its PE Ratio (587.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: LAKE is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: LAKE is overvalued based on its PB Ratio (1.5x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

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

112.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAKE's forecast earnings growth (112.7% per year) is above the savings rate (1.7%).

Earnings vs Market: LAKE's earnings (112.7% 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: LAKE's revenue (5.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LAKE's revenue (5.3% 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 LAKE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lakeland Industries performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAKE has a large one-off loss of $1.4M impacting its October 31 2019 financial results.

Growing Profit Margin: LAKE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LAKE has become profitable over the past 5 years, growing earnings by -47.6% per year.

Accelerating Growth: LAKE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LAKE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (15%).


Return on Equity

High ROE: LAKE's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lakeland Industries's financial position?


Financial Position Analysis

Short Term Liabilities: LAKE's short term assets ($78.6M) exceed its short term liabilities ($12.6M).

Long Term Liabilities: LAKE's short term assets ($78.6M) exceed its long term liabilities ($2.2M).


Debt to Equity History and Analysis

Debt Level: LAKE's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: LAKE's debt to equity ratio has reduced from 17.8% to 2% over the past 5 years.

Debt Coverage: LAKE's debt is well covered by operating cash flow (36%).

Interest Coverage: LAKE's interest payments on its debt are well covered by EBIT (31.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: LAKE's debt is covered by short term assets (assets are 46.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if LAKE'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 LAKE'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 Lakeland Industries's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Christopher Ryan (67yo)

16.2yrs

Tenure

US$771,265

Compensation

Mr. Christopher J. Ryan has been the Chief Executive Officer and President of Lakeland Industries, Inc. since November 2003 and has been its Secretary since April 1991. Mr. Ryan served as an Executive Vice ...


CEO Compensation Analysis

Compensation vs Market: Christopher's total compensation ($USD771.27K) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Christopher's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

57.5yo

Average Age

Experienced Management: LAKE's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

66yo

Average Age

Experienced Board: LAKE's board of directors are considered experienced (3.6 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.


Ownership Breakdown

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


Management Team

  • Allen Dillard (59yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Christopher Ryan (67yo)

    CEO, President

    • Tenure: 16.2yrs
    • Compensation: US$771.27k
  • Charles Roberson (56yo)

    Chief Operating Officer

    • Tenure: 1.5yrs
    • Compensation: US$366.46k
  • Dan Edwards (52yo)

    Senior Vice President of Sales - North America

    • Tenure: 2.8yrs

Board Members

  • Christopher Ryan (67yo)

    CEO, President

    • Tenure: 16.2yrs
    • Compensation: US$771.27k
  • Jeff Schlarbaum (53yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$125.00k
  • Alfred Kreft (68yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$160.67k
  • James Jenkins (55yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$156.40k
  • Tom McAteer (66yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$163.20k

Company Information

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


Key Information

  • Name: Lakeland Industries, Inc.
  • Ticker: LAKE
  • Exchange: NasdaqGM
  • Founded: 1982
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$128.910m
  • Shares outstanding: 8.01m
  • Website: https://www.lakeland.com

Number of Employees


Location

  • Lakeland Industries, Inc.
  • 3555 Veterans Memorial Highway
  • Suite C
  • Ronkonkoma
  • New York
  • 11779
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAKENasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1986
LLIDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1986

Biography

Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire, burns, and excessive heat. The company also provides reusable woven garments, including electrostatic dissipative apparel for electric and gas utilities; flame resistant meta aramid and FR cotton coveralls/pants/jackets used in petrochemical and refining operations; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments. The company was founded in 1982 and is headquartered in Ronkonkoma, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 23:45
End of Day Share Price2020/01/27 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.