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Lannett Company

NYSE:LCI
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LCI
NYSE
$224M
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States. The last earnings update was 50 days ago. More info.


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  • Lannett Company has significant price volatility in the past 3 months.
LCI Share Price and Events
7 Day Returns
3.9%
NYSE:LCI
1.4%
US Pharmaceuticals
-0.4%
US Market
1 Year Returns
-55.6%
NYSE:LCI
11.1%
US Pharmaceuticals
4.3%
US Market
LCI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lannett Company (LCI) 3.9% 4.2% -22% -55.6% -75.1% -88.5%
US Pharmaceuticals 1.4% 2.6% -0.3% 11.1% 11.8% 15.9%
US Market -0.4% 2.8% 2.7% 4.3% 40.9% 38.2%
1 Year Return vs Industry and Market
  • LCI underperformed the Pharmaceuticals industry which returned 11.1% over the past year.
  • LCI underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
LCI
Industry
5yr Volatility vs Market

LCI Value

 Is Lannett Company undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lannett Company to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lannett Company.

NYSE:LCI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LCI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.679 (1 + (1- 21%) (347.93%))
2.036
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:LCI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lannett Company is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LCI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2019 129.60 Analyst x1 113.04
2020 114.38 Analyst x2 87.02
2021 89.25 Analyst x2 59.22
2022 104.32 Analyst x2 60.38
2023 108.29 Analyst x2 54.67
2024 108.94 Est @ 0.6% 47.97
2025 110.29 Est @ 1.24% 42.36
2026 112.16 Est @ 1.69% 37.57
2027 114.40 Est @ 2% 33.42
2028 116.94 Est @ 2.22% 29.80
Present value of next 10 years cash flows $565.44
NYSE:LCI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $116.94 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$1,007.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,007.80 ÷ (1 + 14.65%)10
$256.82
NYSE:LCI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $565.44 + $256.82
$822.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $822.26 / 37.91
$21.69
NYSE:LCI Discount to Share Price
Calculation Result
Value per share (USD) From above. $21.69
Current discount Discount to share price of $5.90
= -1 x ($5.90 - $21.69) / $21.69
72.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lannett Company is available for.
Intrinsic value
>50%
Share price is $5.9 vs Future cash flow value of $21.69
Current Discount Checks
For Lannett Company to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lannett Company's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lannett Company's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lannett Company's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lannett Company's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LCI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-7.33
NYSE:LCI Share Price ** NYSE (2019-06-26) in USD $5.9
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 18.27x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lannett Company.

NYSE:LCI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LCI Share Price ÷ EPS (both in USD)

= 5.9 ÷ -7.33

-0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lannett Company is loss making, we can't compare its value to the US Pharmaceuticals industry average.
  • Lannett Company is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Lannett Company's expected growth come at a high price?
Raw Data
NYSE:LCI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
Not available
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.7x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Lannett Company, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lannett Company's assets?
Raw Data
NYSE:LCI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.95
NYSE:LCI Share Price * NYSE (2019-06-26) in USD $5.9
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 183 Publicly-Listed Pharmaceuticals Companies 3.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.78x
NYSE:LCI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LCI Share Price ÷ Book Value per Share (both in USD)

= 5.9 ÷ 8.95

0.66x

* Primary Listing of Lannett Company.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lannett Company is good value based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Lannett Company's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Lannett Company has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LCI Future Performance

 How is Lannett Company expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
60.6%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Lannett Company expected to grow at an attractive rate?
  • Unable to compare Lannett Company's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Lannett Company's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Lannett Company's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LCI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LCI Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 60.6%
NYSE:LCI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -4.8%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LCI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LCI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 527 97 4
2022-06-30 513 79 4
2021-06-30 500 64 4
2020-06-30 492 96 5
2019-06-30 642 187 -240 5
NYSE:LCI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 692 197 -276
2018-12-31 694 136 -274
2018-09-30 685 175 -272
2018-06-30 685 119 29
2018-03-31 649 148 46
2017-12-31 640 174 48
2017-09-30 627 127 42
2017-06-30 633 165 -1
2017-03-31 667 133 -3
2016-12-31 665 141 -23
2016-09-30 621 156 -18
2016-06-30 542 135 45

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lannett Company is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Lannett Company's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LCI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Lannett Company Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LCI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.45 0.45 0.45 1.00
2022-06-30 0.31 0.31 0.31 1.00
2021-06-30 0.15 0.15 0.15 1.00
2020-06-30 -0.38 -0.20 -0.56 2.00
2019-06-30 -3.65 -0.44 -6.85 2.00
NYSE:LCI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -7.33
2018-12-31 -7.31
2018-09-30 -7.30
2018-06-30 0.77
2018-03-31 1.24
2017-12-31 1.30
2017-09-30 1.14
2017-06-30 -0.02
2017-03-31 -0.07
2016-12-31 -0.63
2016-09-30 -0.49
2016-06-30 1.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Lannett Company will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Lannett Company's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lannett Company has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LCI Past Performance

  How has Lannett Company performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lannett Company's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lannett Company does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Lannett Company's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Lannett Company's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
Lannett Company's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lannett Company Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LCI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 692.48 -275.88 80.89 37.71
2018-12-31 694.07 -273.76 73.35 30.60
2018-09-30 684.66 -272.10 78.65 31.60
2018-06-30 684.56 28.69 77.10 29.20
2018-03-31 648.77 45.78 78.16 32.28
2017-12-31 640.10 47.93 81.68 37.89
2017-09-30 626.74 42.08 71.26 37.11
2017-06-30 633.34 -0.58 73.48 42.07
2017-03-31 667.11 -2.74 78.92 43.61
2016-12-31 665.10 -23.16 77.45 51.77
2016-09-30 621.22 -17.81 74.05 50.90
2016-06-30 542.49 44.78 68.33 45.05
2016-03-31 496.48 75.15 58.64 39.08
2015-12-31 432.12 116.88 54.10 31.74
2015-09-30 419.88 148.17 50.26 30.51
2015-06-30 406.84 149.92 45.21 30.34
2015-03-31 388.18 139.51 44.90 29.96
2014-12-31 368.83 126.27 42.84 31.38
2014-09-30 321.33 98.03 41.91 29.33
2014-06-30 273.77 57.10 38.61 27.71
2014-03-31 233.33 37.13 32.47 24.80
2013-12-31 192.35 18.08 28.15 19.45
2013-09-30 161.59 4.40 23.42 17.23
2013-06-30 151.05 13.32 22.41 16.25
2013-03-31 146.57 11.17 21.98 16.56
2012-12-31 138.24 8.94 22.36 14.24
2012-09-30 129.41 6.67 21.62 13.18
2012-06-30 122.99 3.95 20.19 11.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Lannett Company has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Lannett Company has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Lannett Company improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Lannett Company's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lannett Company has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LCI Health

 How is Lannett Company's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lannett Company's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lannett Company is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lannett Company's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lannett Company's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lannett Company Company Filings, last reported 2 months ago.

NYSE:LCI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 339.30 778.19 205.21
2018-12-31 326.51 813.45 163.77
2018-09-30 312.02 826.97 150.33
2018-06-30 598.92 839.27 98.59
2018-03-31 606.97 851.53 123.11
2017-12-31 592.80 886.07 167.70
2017-09-30 576.27 895.22 116.43
2017-06-30 561.12 903.65 144.83
2017-03-31 553.92 937.06 154.57
2016-12-31 536.65 1,045.46 259.12
2016-09-30 527.72 1,053.69 253.06
2016-06-30 554.46 1,061.85 238.86
2016-03-31 547.53 1,053.85 238.41
2015-12-31 549.66 1,060.52 192.82
2015-09-30 501.89 0.98 222.66
2015-06-30 463.77 1.01 213.81
2015-03-31 427.25 1.04 225.39
2014-12-31 379.63 1.07 184.94
2014-09-30 332.63 1.11 152.32
2014-06-30 294.77 1.14 146.28
2014-03-31 269.04 1.17 123.48
2013-12-31 236.08 1.35 105.85
2013-09-30 145.11 6.39 45.80
2013-06-30 128.81 6.51 51.15
2013-03-31 123.79 6.78 38.97
2012-12-31 118.09 6.91 38.09
2012-09-30 114.92 7.04 31.37
2012-06-30 111.31 7.16 29.23
  • Lannett Company's level of debt (229.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.4% vs 229.4% today).
  • Debt is well covered by operating cash flow (25.3%, greater than 20% of total debt).
  • Lannett Company is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Lannett Company's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lannett Company has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LCI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lannett Company dividends.
If you bought $2,000 of Lannett Company shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lannett Company's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lannett Company's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LCI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LCI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lannett Company has not reported any payouts.
  • Unable to verify if Lannett Company's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lannett Company's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lannett Company has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Lannett Company's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lannett Company afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lannett Company has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LCI Management

 What is the CEO of Lannett Company's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim Crew
COMPENSATION $1,680,320
AGE 57
TENURE AS CEO 1.4 years
CEO Bio

Mr. Timothy C. Crew, also known as Tim, has been Chief Executive Officer and Director of Lannett Company, Inc. since January 2, 2018 and January 18, 2018 respectively. Mr. Crew has more than 25 years of experience in the generic and branded pharmaceutical industries. Mr. Crew served as Chief Executive Officer of North America at Cipla Limited from 2013 to 2017. Mr. Crew served as Executive Vice President of Corporate Business Development at Dr. Reddy's Laboratories Ltd. Mr. Crew led the identification, negotiation and consummation of external commercial opportunities in the United States and other regulated markets. He was also involved with the human resources and finance functions within the United States. He worked for eight years at Teva Pharmaceuticals Industries Ltd., where he served as Senior Vice President and Commercial Operating Officer of the North American Generics Division and Vice President of Alliances and Business Development. He joined Dr. Reddy’s Laboratories Limited following a 12-year stint with Bristol-Myers Squibb, where he held a number of positions of increasing responsibility in sales, marketing, strategic planning and business development. His last three key executive positions there included Senior Director of Marketing and Business Development at Apothecon (a subsidiary of Bristol-Myers Squibb), Senior Director of U.S. Managed Health Care Marketing, and Senior Director of Global Marketing. Prior to joining Bristol-Myers Squibb, he served as a Captain in the United States Army. He holds a B.A. in Economics from Pomona College, California, and an M.B.A. in Marketing and Management from Columbia University, New York.

CEO Compensation
  • Insufficient data for Tim to compare compensation growth.
  • Tim's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lannett Company management team in years:

2.9
Average Tenure
56
Average Age
  • The tenure for the Lannett Company management team is about average.
Management Team

Tim Crew

TITLE
CEO & Director
COMPENSATION
$2M
AGE
57
TENURE
1.4 yrs

Marty Galvan

TITLE
VP of Finance & CFO
COMPENSATION
$764K
AGE
66
TENURE
7.8 yrs

Sam Israel

TITLE
General Counsel & Chief Legal Officer
COMPENSATION
$1M
AGE
56
TENURE
1.9 yrs

John Abt

TITLE
VP & Chief Quality Operations Officer
COMPENSATION
$565K
AGE
53

John Kozlowski

TITLE
Chief of Staff & Strategy Officer
COMPENSATION
$596K
AGE
46

Grant Brock

TITLE
Vice President of Operations

Mike Landis

TITLE
Chief Accounting Officer
AGE
52

Robert Ehlinger

TITLE
VP of Logistics & Chief Information Officer
COMPENSATION
$406K
AGE
61
TENURE
12.9 yrs

Kristie Stephens

TITLE
Chief Compliance Officer & VP of Regulatory Affairs
TENURE
2.9 yrs

Alicia Evolga

TITLE
Vice President of Marketing
Board of Directors Tenure

Average tenure and age of the Lannett Company board of directors in years:

3.9
Average Tenure
58
Average Age
  • The tenure for the Lannett Company board of directors is about average.
Board of Directors

Pat LePore

TITLE
Chairman of the Board
COMPENSATION
$130K
AGE
63
TENURE
0.9 yrs

Tim Crew

TITLE
CEO & Director
COMPENSATION
$2M
AGE
57
TENURE
1.4 yrs

David Drabik

TITLE
Director
COMPENSATION
$266K
AGE
50
TENURE
8.4 yrs

Paul Taveira

TITLE
Independent Director
COMPENSATION
$240K
AGE
59
TENURE
7.1 yrs

Al Paonessa

TITLE
Director
COMPENSATION
$248K
AGE
58
TENURE
3.9 yrs

John Chapman

TITLE
Director
AGE
63
TENURE
0.9 yrs

Jeff Farber

TITLE
Director
COMPENSATION
$247K
AGE
58
TENURE
13.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Lannett Company individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. May 19 Buy Jeffrey Farber Individual 15. May 19 15. May 19 5,000 $5.80 $29,000
09. May 19 Buy Jeffrey Farber Individual 09. May 19 09. May 19 10,000 $6.85 $68,500
09. May 19 Buy Patrick LePore Individual 08. May 19 08. May 19 25,000 $7.32 $183,000
13. Feb 19 Buy Patrick LePore Individual 12. Feb 19 12. Feb 19 25,000 $8.93 $223,250
17. Dec 18 Buy John Chapman Individual 14. Dec 18 14. Dec 18 10,000 $4.93 $49,300
17. Dec 18 Buy Patrick LePore Individual 13. Dec 18 13. Dec 18 25,000 $5.10 $127,500
14. Dec 18 Buy Jeffrey Farber Individual 12. Dec 18 12. Dec 18 10,000 $5.32 $53,200
14. Dec 18 Buy Albert Paonessa Individual 13. Dec 18 13. Dec 18 10,000 $5.07 $50,700
04. Sep 18 Buy Patrick LePore Individual 31. Aug 18 31. Aug 18 25,000 $5.34 $133,500
X
Management checks
We assess Lannett Company's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lannett Company has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LCI News

Simply Wall St News

If You Had Bought Lannett Company (NYSE:LCI) Stock Five Years Ago, You'd Be Sitting On A 88% Loss, Today

There will continue to be wide discrepancies between price and value in the marketplace...' 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. … In the last half decade Lannett Company saw its share price fall as its EPS declined below zero. … Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change.

Simply Wall St -

How Many Lannett Company, Inc. (NYSE:LCI) Shares Did Insiders Buy, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in Lannett Company, Inc. … That means that even when the share price was higher than US$7.83 (the recent price), an insider wanted to purchase shares. … As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Simply Wall St -

Is Lannett Company Inc's (NYSE:LCI) Growth Strong Enough To Justify Its November Share Price?

Lannett Company Inc (NYSE:LCI) is considered a high growth stock. … Check out our latest analysis for Lannett Company? … Analysts are predicting good growth prospects for Lannett Company over the next couple of years

Simply Wall St -

Lannett Company Inc (NYSE:LCI): What Are The Future Prospects?

Based on Lannett Company Inc's (NYSE:LCI) earnings update in March 2018, … as a 58.3% rise in profits is expected in the upcoming year, … 5-year average growth rate of 13.5%.

Simply Wall St -

Why Lannett Company Inc (NYSE:LCI) Delivered An Inferior ROE Compared To The Industry

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Lannett Company Inc (NYSE:LCI). … Lannett Company Inc (NYSE:LCI) generated a below-average return on equity of 7.54% in the past 12 months, while its industry returned 11.81%.

Simply Wall St -

What You Must Know About Lannett Company Inc's (NYSE:LCI) Return on Equity

and looking to gauge the potential return on investment in Lannett Company Inc (NYSE:LCI). … Lannett Company Inc’s (NYSE:LCI) most recent return on equity was a substandard 7.54% relative to its industry performance of 12.03% over the past year. … Return on Equity (ROE) weighs Lannett Company’s profit against the level of its shareholders’ equity.

Simply Wall St -

Should You Be Tempted To Buy Lannett Company Inc (NYSE:LCI) At Its Current PE Ratio?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LCI Price per share = $16.75 Earnings per share = $1.236 ∴ Price-Earnings Ratio = $16.75 ÷ $1.236 = 13.5x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … LCI’s P/E of 13.5x is lower than its industry peers (23.5x), which implies that each dollar of LCI’s earnings is being undervalued by investors.

Simply Wall St -

Lannett Company Inc (NYSE:LCI): What Can We Expect From Future Profit Margins?

Margin Calculation for LCI Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 45.78 Million ÷ 652.77 Million = 7.01% Lannett Company's margin has contracted in the past five years, with 28.57% in average revenue growth exceeding 15.41% in average net income growth, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … Using Lannett Company's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will shift towards expansion, with annual revenue growth tipped at 0.10% and annual net income growth forecasted at 14.92%. … Thus, it is essential to run your own analysis on Lannett Company's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

Does The Hype Around Lannett Company Inc's (NYSE:LCI) Growth Justify Its April Share Price?

Lannett Company Inc (NYSE:LCI) closed yesterday at $16.2, which left some investors asking whether the high earnings potential can still be justified at this price. … But, seeing as Lannett Company is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 12.49x and expected year-on-year earnings growth of 14.59% give Lannett Company a low PEG ratio of 0.86x.

Simply Wall St -

Is Lannett Company Inc's (NYSE:LCI) Balance Sheet A Threat To Its Future?

Additionally, LCI has produced US$165.37M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 18.30%, indicating that LCI’s current level of operating cash is not high enough to cover debt. … At the current liabilities level of US$192.21M liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.72x. … In LCI's case, the ratio of 2.19x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as LCI’s low interest coverage already puts the company at higher risk of default.Next Steps: At its current level of cash flow coverage, LCI has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

LCI Company Info

Description

Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States. The company offers solid oral and extended release, topical, liquid, nasal, and oral solution finished dosage forms of drugs that address a range of therapeutic areas, as well as ophthalmic, patch, foam, buccal, sublingual, suspension, soft gel, and injectable dosages. It also provides its products for various medical indications comprising cholesterol, muscle spasm, pain management, irritable bowel, antipsychosis, gastrointestinal, cardiovascular, thyroid deficiency, central nervous system, urinary, migraine, bronchospasms, and gallstone. In addition, the company manufactures active pharmaceutical ingredients. It markets its products under the Lipitor, Lioresal, Bentyl, Prolixin, MiraLAX, Imdur, Levoxyl/Synthroid, Concerta, Toprol-XL, Prilosec, Ditropan, Protonix, Imitrex, Brethine, and Actigall brands to generic pharmaceutical and private label distributors, drug wholesalers, chain drug retailers, mail-order pharmacies, other pharmaceutical manufacturers, managed care and health maintenance organizations, hospital buying groups, and governmental entities. The company has supply and development agreements with Jerome Stevens Pharmaceuticals, Summit Bioscience LLC, HEC Pharm Group, Andor Pharmaceuticals LLC, Dexcel Pharma, and Aralez Pharmaceuticals. Lannett Company, Inc. was founded in 1942 and is based in Philadelphia, Pennsylvania.

Details
Name: Lannett Company, Inc.
LCI
Exchange: NYSE
Founded: 1942
$223,660,663
37,908,587
Website: http://www.lannett.com
Address: Lannett Company, Inc.
9000 State Road,
Philadelphia,
Pennsylvania, 19136,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LCI Common Stock New York Stock Exchange US USD 31. Jan 1975
DB LN5 Common Stock Deutsche Boerse AG DE EUR 31. Jan 1975
BST LN5 Common Stock Boerse-Stuttgart DE EUR 31. Jan 1975
Number of employees
Current staff
Staff numbers
1,251
Lannett Company employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:40
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.