NasdaqGS:LNDC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

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

0.8%

LNDC

0.4%

US Food

2.2%

US Market


1 Year Return

-8.5%

LNDC

6.0%

US Food

16.2%

US Market

Return vs Industry: LNDC underperformed the US Food industry which returned 5.6% over the past year.

Return vs Market: LNDC underperformed the US Market which returned 15.9% over the past year.


Shareholder returns

LNDCIndustryMarket
7 Day0.8%0.4%2.2%
30 Day30.3%7.0%4.9%
90 Day-5.3%11.4%17.8%
1 Year-8.5%-8.5%8.7%6.0%18.7%16.2%
3 Year-21.5%-21.5%5.4%-3.4%41.1%32.0%
5 Year-25.1%-25.1%15.1%-0.2%74.5%55.7%

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?

1.17x

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 US 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 (1.9x).


Next Steps

Future Growth

How is Landec forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

86.1%

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 (2.2%).

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 (3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: LNDC's revenue (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 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?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNDC is currently unprofitable.

Growing Profit Margin: LNDC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LNDC is unprofitable, and losses have increased over the past 5 years at a rate of 8.5% 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 (-4%).


Return on Equity

High ROE: LNDC has a negative Return on Equity (-9.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Landec's financial position?


Financial Position Analysis

Short Term Liabilities: LNDC's short term assets ($148.8M) do not cover its short term liabilities ($158.0M).

Long Term Liabilities: LNDC's short term assets ($148.8M) exceed its long term liabilities ($144.4M).


Debt to Equity History and Analysis

Debt Level: LNDC's debt to equity ratio (71%) is considered high.

Reducing Debt: LNDC's debt to equity ratio has increased from 23.1% to 71% over the past 5 years.

Debt Coverage: LNDC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if LNDC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LNDC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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

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

1.0yrs

Average management tenure


CEO

Al Bolles (62 yo)

1.25yrs

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 ($USD1.43M) is about average for companies of similar size in the US market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Albert Bolles
CEO, President & Director1.25yrsUS$1.43m0.090%
$ 251.1k
Brian McLaughlin
Chief Financial Officer0.58yrUS$482.99k0.050%
$ 139.5k
James Hall
Vice President3.25yrsUS$824.47k0.10%
$ 279.8k
Parker Javid
Vice Presidentno dataUS$460.69k0.022%
$ 62.1k
Timothy Burgess
Senior Vice President of Operationsno datano data0.017%
$ 49.0k
Dawn Kimball
Senior VP & Chief People Officer0.83yrno datano data
Geoffrey Leonard
Secretaryno datano datano data

1.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: LNDC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Albert Bolles
CEO, President & Director1.25yrsUS$1.43m0.090%
$ 251.1k
Nelson Obus
Independent Director1.83yrsUS$72.20k0.12%
$ 325.6k
Charles Macaluso
Independent Director0.83yrno datano data
Katrina Houde
Independent Director1yrno datano data
Tonia Pankopf
Independent Director7.75yrsUS$130.00k0.14%
$ 403.6k
Andrew Kenneth Powell
Interim Independent Chairman of the Board1.25yrsUS$73.66k0.034%
$ 95.2k
Catherine Sohn
Independent Director7.75yrsUS$131.67k0.13%
$ 350.5k
Deborah Carosella
Independent Director3.42yrsUS$123.74k0.065%
$ 182.7k
Frederick Frank
Independent Director20.67yrsUS$123.96k0.23%
$ 633.8k
Craig Barbarosh
Independent Director0.83yrno datano data

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LNDC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$280.149m
  • Shares outstanding: 29.18m
  • 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 Analysis2020/08/04 23:55
End of Day Share Price2020/08/04 00:00
Earnings2020/02/23
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.