Lifetime Brands (NasdaqGS:LCUT) - Share price, News & Analysis

LCUT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	1/6
Financial Health	3/6
Dividends	4/6

LCUT Stock Overview

Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally.

Rewards

Trading at 53.5% below our estimate of its fair value

Earnings are forecast to grow 34.27% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (2.1%) are lower than last year (3.4%)

Lifetime Brands Competitors

Newell Brands

NasdaqGS:NWL

US$7.8b

Tupperware Brands

NYSE:TUP

US$259.9m

Trex Company

NYSE:TREX

US$6.8b

Helen of Troy

NasdaqGS:HELE

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Lifetime Brands
Historical stock prices
Current Share Price	US$11.02
52 Week High	US$19.93
52 Week Low	US$10.57
Beta	1.22
1 Month Change	-13.70%
3 Month Change	-15.43%
1 Year Change	-27.31%
3 Year Change	32.45%
5 Year Change	-40.27%
Change since IPO	139.30%

Shareholder Returns

	LCUT	US Consumer Durables	US Market
7D	-5.7%	-8.9%	-4.0%
1Y	-27.3%	-31.7%	-13.2%

Return vs Industry: LCUT matched the US Consumer Durables industry which returned -28.1% over the past year.

Return vs Market: LCUT underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is LCUT's price volatile compared to industry and market?
LCUT volatility
LCUT Average Weekly Movement	7.3%
Consumer Durables Industry Average Movement	7.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: LCUT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LCUT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1945	1,350	Rob Kay	https://www.lifetimebrands.com

Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally. The company provides kitchenware products, including kitchen tools and gadgets, cutlery, kitchen scales, thermometers, cutting boards, shears, cookware, pantryware, spice racks, and bakeware; and tableware products comprising dinnerware, stemware, flatware, and giftware. It also provides home solutions, such as thermal beverageware, bath scales, weather and outdoor household, food storage, neoprene travel, and home décor products.

Lifetime Brands Fundamentals Summary

How do Lifetime Brands's earnings and revenue compare to its market cap?
LCUT fundamental statistics
Market Cap	US$244.45m
Earnings (TTM)	US$18.11m
Revenue (TTM)	US$849.99m

13.5x

P/E Ratio

0.3x

P/S Ratio

Is LCUT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LCUT income statement (TTM)
Revenue	US$849.99m
Cost of Revenue	US$549.60m
Gross Profit	US$300.39m
Other Expenses	US$282.27m
Earnings	US$18.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.82
Gross Margin	35.34%
Net Profit Margin	2.13%
Debt/Equity Ratio	94.6%

How did LCUT perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

20%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LCUT ($11.02) is trading below our estimate of fair value ($23.72)

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

Price To Earnings Ratio

PE vs Industry: LCUT is poor value based on its Price-To-Earnings Ratio (13.5x) compared to the US Consumer Durables industry average (8.1x).

PE vs Market: LCUT is good value based on its Price-To-Earnings Ratio (13.5x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: LCUT is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: LCUT is good value based on its Price-To-Book Ratio (1x) compared to the US Consumer Durables industry average (1.3x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

34.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCUT's forecast earnings growth (34.3% per year) is above the savings rate (1.9%).

Earnings vs Market: LCUT's earnings (34.3% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: LCUT's revenue (5.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: LCUT's revenue (5.5% 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 LCUT's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Lifetime Brands performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LCUT has a large one-off loss of $17.1M impacting its March 31 2022 financial results.

Growing Profit Margin: LCUT's current net profit margins (2.1%) are lower than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: LCUT's earnings have grown by 5.9% per year over the past 5 years.

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

Earnings vs Industry: LCUT had negative earnings growth (-35.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (45.1%).

Return on Equity

High ROE: LCUT's Return on Equity (7.1%) is considered low.

Financial Health

How is Lifetime Brands's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LCUT's short term assets ($420.6M) exceed its short term liabilities ($164.8M).

Long Term Liabilities: LCUT's short term assets ($420.6M) exceed its long term liabilities ($354.4M).

Debt to Equity History and Analysis

Debt Level: LCUT's net debt to equity ratio (88.8%) is considered high.

Reducing Debt: LCUT's debt to equity ratio has increased from 39.4% to 94.6% over the past 5 years.

Debt Coverage: LCUT's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: LCUT's interest payments on its debt are well covered by EBIT (4.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LCUT's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: LCUT's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

Stable Dividend: LCUT's dividends per share have been stable in the past 10 years.

Growing Dividend: LCUT's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.2%), LCUT's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.2%), LCUT's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure

CEO

Rob Kay (58 yo)

4.17yrs

Tenure

US$4,559,720

Compensation

Mr. Robert Bruce Kay, also known as Rob, has been Chief Executive Officer and Director of Lifetime Brands Inc. since March 2, 2018 and March 1, 2018 respectively. Mr. Kay has served as Chief Executive Offi...

CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD4.56M) is above average for companies of similar size in the US market ($USD1.69M).

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

Leadership Team

Experienced Management: LCUT's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: LCUT's board of directors are considered experienced (7.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31