NasdaqGS:LNDC

Stock Analysis Report

Executive Summary

Landec Corporation, together with its subsidiaries, designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets.

Snowflake

Fundamentals

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.09%

LNDC

1.5%

US Food

0.7%

US Market


1 Year Return

-22.6%

LNDC

3.7%

US Food

13.7%

US Market

Return vs Industry: LNDC underperformed the US Food industry which returned 3.7% over the past year.

Return vs Market: LNDC underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

LNDCIndustryMarket
7 Day0.09%1.5%0.7%
30 Day16.1%2.2%4.7%
90 Day-1.8%0.5%6.1%
1 Year-22.6%-22.6%6.7%3.7%16.2%13.7%
3 Year-24.2%-24.2%2.1%-6.1%48.8%39.2%
5 Year-17.8%-17.8%36.5%20.3%62.5%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LNDC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LNDC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LNDC is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: LNDC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LNDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LNDC is good value based on its PB Ratio (1.2x) compared to the US Food industry average (2.3x).


Next Steps

Future Growth

How is Landec forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

56.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: LNDC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LNDC's is expected to become profitable in the next 3 years.

Revenue vs Market: LNDC's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LNDC's revenue (4.6% 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 LNDC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Landec performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNDC has a high level of non-cash earnings.

Growing Profit Margin: LNDC's current net profit margins (-0.5%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: LNDC is unprofitable, but has reduced losses over the past 5 years at a rate of 2.5% per year.

Accelerating Growth: Unable to compare LNDC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LNDC is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-17.5%).


Return on Equity

High ROE: LNDC has a negative Return on Equity (-1.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Landec's financial position?


Financial Position Analysis

Short Term Liabilities: LNDC's short term assets ($130.6M) do not cover its short term liabilities ($146.8M)

Long Term Liabilities: LNDC's short term assets (130.6M) do not cover its long term liabilities (134.4M)


Debt to Equity History and Analysis

Debt Level: LNDC's debt to equity ratio (62.7%) is considered high

Reducing Debt: LNDC's debt to equity ratio has increased from 19.2% to 62.7% over the past 5 years.

Debt Coverage: LNDC's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: LNDC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: LNDC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.4yrs

Average management tenure


CEO

Al Bolles (61yo)

0.5yrs

Tenure

US$1,429,407

Compensation

Dr. Albert D. Bolles, also known as Al, Ph.D. has been an Independent Director of SunOpta Inc. since October 7, 2016. Dr. Bolles has been the Chief Executive Officer and President of Landec Corporation sin ...


CEO Compensation Analysis

Compensation vs Market: Al's total compensation ($USD1.43M) is about average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Al's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.4yrs

Average Tenure

59.5yo

Average Age

Experienced Management: LNDC's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LNDC's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LNDC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$49,89606 Nov 19
Albert Bolles
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares4,650
Max PriceUS$10.91
BuyUS$103,80005 Nov 19
Wynnefield Capital, Inc.
EntityCompany
Shares10,000
Max PriceUS$10.38
BuyUS$49,67401 Nov 19
Timothy Burgess
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares5,100
Max PriceUS$9.74
BuyUS$46,60016 Oct 19
Wynnefield Capital, Inc.
EntityCompany
Shares5,000
Max PriceUS$9.32
BuyUS$48,35011 Oct 19
Wynnefield Capital, Inc.
EntityCompany
Shares5,000
Max PriceUS$9.67
BuyUS$99,60010 Oct 19
Wynnefield Capital, Inc.
EntityCompany
Shares10,000
Max PriceUS$9.96
BuyUS$81,12009 Oct 19
Wynnefield Capital, Inc.
EntityCompany
Shares8,000
Max PriceUS$10.14
BuyUS$72,80008 Oct 19
Wynnefield Capital, Inc.
EntityCompany
Shares7,000
Max PriceUS$10.40
BuyUS$105,00006 Aug 19
Wynnefield Capital, Inc.
EntityCompany
Shares10,000
Max PriceUS$10.50
BuyUS$214,40005 Aug 19
Wynnefield Capital, Inc.
EntityCompany
Shares20,000
Max PriceUS$10.72
BuyUS$51,03003 Jun 19
Deborah Carosella
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,500
Max PriceUS$11.34
BuyUS$309,90011 Apr 19
Wynnefield Capital, Inc.
EntityCompany
Shares30,000
Max PriceUS$10.33
BuyUS$310,00010 Apr 19
Wynnefield Capital, Inc.
EntityCompany
Shares30,000
Max PriceUS$10.38
BuyUS$156,34012 Feb 19
Wynnefield Capital, Inc.
EntityCompany
Shares12,900
Max PriceUS$12.15
BuyUS$247,60006 Feb 19
Wynnefield Capital, Inc.
EntityCompany
Shares20,000
Max PriceUS$12.38
BuyUS$6,10114 Jan 19
Andrew Kenneth Powell
EntityIndividual
Role
Chairman of the Board
Interim Chairman
Shares525
Max PriceUS$11.62
BuyUS$226,60014 Jan 19
Wynnefield Capital, Inc.
EntityCompany
Shares20,000
Max PriceUS$11.33
BuyUS$11,23011 Jan 19
Catherine Sohn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$11.23
BuyUS$224,80010 Jan 19
Steven Goldby
EntityIndividual
Shares20,000
Max PriceUS$11.24
BuyUS$281,25009 Jan 19
Gregory Skinner
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & Administration and CFO
Shares25,000
Max PriceUS$11.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Greg Skinner (58yo)

    Executive VP of Finance & Administration and CFO

    • Tenure: 20yrs
    • Compensation: US$845.95k
  • Geoffrey Leonard

    Secretary

    • Tenure: 0yrs
  • Steven Bitler (61yo)

    Vice President of Corporate Technology

    • Tenure: 17.7yrs
    • Compensation: US$372.31k
  • Al Bolles (61yo)

    CEO, President & Director

    • Tenure: 0.5yrs
    • Compensation: US$1.43m
  • James Hall (56yo)

    President of Lifecore Biomedical

    • Tenure: 2.4yrs
    • Compensation: US$824.47k
  • Dawn Kimball

    Senior VP & Chief People Officer

    • Tenure: 0.08yrs
  • Tim Burgess

    Senior Vice President of Operations

    • Tenure: 0yrs

Board Members

  • Nelson Obus (72yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$72.20k
  • Charles Macaluso (75yo)

    Director

    • Tenure: 0.08yrs
  • Kathy Houde (61yo)

    Director

    • Tenure: 0.3yrs
  • Tonia Pankopf (51yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$130.00k
  • Andrew Kenneth Powell (61yo)

    Interim Chairman

    • Tenure: 0.5yrs
    • Compensation: US$73.66k
  • Al Bolles (61yo)

    CEO, President & Director

    • Tenure: 0.5yrs
    • Compensation: US$1.43m
  • Cathy Sohn (66yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$131.67k
  • Debbie Carosella (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$123.74k
  • Fred Frank (87yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$123.96k
  • Craig Barbarosh (51yo)

    Director

    • Tenure: 0.08yrs

Company Information

Landec Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Landec Corporation
  • Ticker: LNDC
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$318.053m
  • Shares outstanding: 29.15m
  • Website: https://www.landec.com

Number of Employees


Location

  • Landec Corporation
  • 5201 Great America Parkway
  • Suite 232
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNDCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1996

Biography

Landec Corporation, together with its subsidiaries, designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets. It operates through Curation Fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:40
End of Day Share Price2019/11/15 00:00
Earnings2019/08/25
Annual Earnings2019/05/26


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.