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L Brands

NYSE:LB
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LB
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, beauty and personal care products, home fragrance products, and accessories. The last earnings update was 78 days ago. More info.


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LB Share Price and Events
Price Volatility
LB
Industry
5yr Volatility vs Market
Related Companies

LB Value

 Is L Brands 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 L Brands 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 L Brands.

NYSE:LB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

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:LB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.774 (1 + (1- 21%) (66.1%))
1.178
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.178 * 7.05%)
11.25%

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

The calculations below outline how an intrinsic value for L Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LB DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 790.30 758.48 729.42 739.88 664.50
Source Analyst x12 Analyst x10 Analyst x9 Analyst x4 Analyst x2
Present Value
Discounted (@ 11.25%)
710.37 612.81 529.72 482.97 389.89
Present value of next 5 years cash flows $2,726
NYSE:LB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $665 × (1 + 2.95%) ÷ (11.25% – 2.95%)
$8,240
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $8,240 ÷ (1 + 11.25%)5
$4,835
NYSE:LB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $2,726 + $4,835
$7,560
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,560 / 277
$27.27
NYSE:LB Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.27
Current discount Discount to share price of $31.70
= -1 x ($31.70 - $27.27) / $27.27
-16.2%

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

  • The current share price of L Brands is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 L Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are L Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $3.32
NYSE:LB Share Price ** NYSE (2018-07-20) in USD $31.7
United States of America Specialty Retail Industry PE Ratio Median Figure of 136 Publicly-Listed Specialty Retail Companies 19.9x
United States of America Market PE Ratio Median Figure of 7,819 Publicly-Listed Companies 18.37x

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

** Primary Listing of L Brands.

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

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

= 31.7 ÷ 3.32

9.55x

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

  • L Brands is good value based on earnings compared to the US Specialty Retail industry average.
  • L Brands is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does L Brands's expected growth come at a high price?
Raw Data
NYSE:LB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
2%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 124 Publicly-Listed Specialty Retail Companies 1.71x
United States of America Market PEG Ratio Median Figure of 5,913 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NYSE:LB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.55x ÷ 2%

4.74x

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

  • L Brands is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on L Brands's assets?
Raw Data
NYSE:LB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $-3.49
NYSE:LB Share Price * NYSE (2018-07-20) in USD $31.7
United States of America Specialty Retail Industry PB Ratio Median Figure of 189 Publicly-Listed Specialty Retail Companies 1.84x
United States of America Market PB Ratio Median Figure of 13,249 Publicly-Listed Companies 1.73x
NYSE:LB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 31.7 ÷ -3.49

-9.08x

* Primary Listing of L Brands.

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

  • L Brands has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.
X
Value checks
We assess L Brands'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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. L Brands has a total score of 2/6, 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.

LB Future Performance

 How is L Brands expected to perform in the next 1 to 3 years based on estimates from 24 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
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is L Brands expected to grow at an attractive rate?
  • L Brands's earnings growth is positive but not above the low risk savings rate of 3%.
Growth vs Market Checks
  • L Brands's earnings growth is positive but not above the United States of America market average.
  • L Brands's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 2%
NYSE:LB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 4%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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:LB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 15,361 1,679 870 2
2022-01-31 14,638 1,609 829 2
2021-01-31 14,341 1,549 830 6
2020-01-31 13,502 1,469 791 22
2019-01-31 13,073 1,453 772 24
NYSE:LB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-05-05 12,821 1,320 937
2018-02-03 12,632 1,406 983
2017-10-28 12,298 1,617 951
2017-07-29 12,262 1,603 986
2017-04-29 12,397 2,040 1,100
2017-01-28 12,574 1,990 1,158
2016-10-29 12,480 2,018 1,162
2016-07-30 12,381 2,002 1,205
2016-04-30 12,256 1,982 1,155
2016-01-30 12,154 2,027 1,253
2015-10-31 11,828 1,678 1,182
2015-08-01 11,665 1,715 1,150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • L Brands's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • L Brands's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
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:LB 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 24 Analyst Estimates (S&P Global) See Below

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

NYSE:LB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31 3.27 4.00 2.54 2.00
2022-01-31 3.07 3.54 2.59 2.00
2021-01-31 3.04 3.35 2.62 3.00
2020-01-31 2.88 3.29 2.06 16.00
2019-01-31 2.76 2.96 2.42 17.00
NYSE:LB Past Financials Data
Date (Data in USD Millions) EPS *
2018-05-05 3.32
2018-02-03 3.46
2017-10-28 3.33
2017-07-29 3.44
2017-04-29 3.84
2017-01-28 4.03
2016-10-29 4.05
2016-07-30 4.18
2016-04-30 3.99
2016-01-30 4.31
2015-10-31 4.05
2015-08-01 3.94

*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 L Brands will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess L Brands'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.
L Brands 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.

LB Past Performance

  How has L Brands 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 L Brands's growth in the last year to its industry (Specialty Retail).
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.
  • L Brands's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • L Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • L Brands's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.
Earnings and Revenue History
L Brands'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 L Brands Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-05-05 12,821.00 937.00 4,035.00
2018-02-03 12,632.00 983.00 3,940.00
2017-10-28 12,298.00 951.00 3,811.00
2017-07-29 12,262.00 986.00 3,797.00
2017-04-29 12,397.00 1,100.00 3,774.00
2017-01-28 12,574.00 1,158.00 3,776.00
2016-10-29 12,480.00 1,162.00 3,675.00
2016-07-30 12,381.00 1,205.00 3,625.00
2016-04-30 12,256.00 1,155.00 3,632.00
2016-01-30 12,154.00 1,253.00 3,620.00
2015-10-31 11,828.00 1,182.00 3,544.00
2015-08-01 11,665.00 1,150.00 3,515.00
2015-05-02 11,575.00 1,135.00 3,472.00
2015-01-31 11,454.00 1,042.00 3,434.00
2014-11-01 11,203.00 967.00 3,297.00
2014-08-02 11,055.00 927.00 3,280.00
2014-05-03 10,896.00 917.00 3,243.00
2014-02-01 10,773.00 903.00 3,227.00
2013-11-02 10,811.00 824.00 3,320.00
2013-08-03 10,690.00 806.00 3,312.00
2013-05-04 10,573.00 771.00 3,318.00
2013-02-02 10,459.00 753.00 3,232.00
2012-10-27 10,118.00 701.00 3,025.00
2012-07-28 10,242.00 722.00 2,986.00
2012-04-28 10,301.00 810.00 3,058.00
2012-01-28 10,364.00 850.00 3,074.00
2011-10-29 10,305.00 944.00 3,176.00
2011-07-30 10,114.00 910.00 3,142.00

*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 L Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • L Brands used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • L Brands's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess L Brands'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 Specialty Retail 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.
L Brands has a total score of 2/6, 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.

LB Health

 How is L Brands'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 L Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • L Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • L Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of L Brands'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.
  • L Brands has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 L Brands Company Filings, last reported 2 months ago.

NYSE:LB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-05-05 -969.00 5,808.00 1,032.00
2018-02-03 -751.00 5,794.00 1,532.00
2017-10-28 -1,119.00 5,785.00 735.00
2017-07-29 -912.00 5,768.00 1,360.00
2017-04-29 -835.00 5,746.00 1,555.00
2017-01-28 -727.00 5,736.00 1,939.00
2016-10-29 -1,188.00 5,724.00 654.00
2016-07-30 -1,129.00 5,719.00 1,273.00
2016-04-30 -1,086.00 5,726.00 1,267.00
2016-01-30 -258.00 5,721.00 2,570.00
2015-10-31 -657.00 5,766.00 1,321.00
2015-08-01 -647.00 4,759.00 830.00
2015-05-02 -606.00 4,760.00 699.00
2015-01-31 19.00 4,722.00 1,681.00
2014-11-01 -433.00 4,982.00 745.00
2014-08-02 -503.00 4,998.00 1,147.00
2014-05-03 -609.00 4,993.00 912.00
2014-02-01 -369.00 4,989.00 1,519.00
2013-11-02 -820.00 5,018.00 425.00
2013-08-03 -861.00 4,518.00 551.00
2013-05-04 -994.00 4,533.00 382.00
2013-02-02 -1,014.00 4,536.00 773.00
2012-10-27 -515.00 4,594.00 547.00
2012-07-28 -245.00 4,590.00 1,193.00
2012-04-28 -131.00 4,600.00 1,286.00
2012-01-28 138.00 3,598.00 935.00
2011-10-29 521.00 3,602.00 498.00
2011-07-30 625.00 3,607.00 1,035.00
  • L Brands has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if L Brands's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (22.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess L Brands'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. L Brands has a total score of 3/6, 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.

LB Dividends

 What is L Brands'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
7.57%
Current annual income from L Brands dividends. Estimated to be 7.91% next year.
If you bought $2,000 of L Brands shares you are expected to receive $151 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?
  • L Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • L Brands's dividend is above the markets top 25% of dividend payers in United States of America (3.97%).
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:LB 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 24 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 101 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5868 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

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

NYSE:LB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31 3.09 2.00
2022-01-31 2.92 2.00
2021-01-31 2.52 7.00
2020-01-31 2.47 15.00
2019-01-31 2.41 15.00
NYSE:LB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-18 2.400 6.774
2018-02-08 2.400 6.158
2017-11-10 2.400 4.544
2017-08-04 2.400 5.873
2017-05-19 2.400 4.907
2017-02-02 2.400 4.702
2016-11-03 4.400 6.630
2016-08-05 4.400 6.036
2016-05-20 4.400 6.360
2016-02-04 4.400 5.483
2015-11-06 4.000 4.207
2015-05-21 4.000 4.564
2015-02-05 4.000 4.369
2014-11-07 1.360 1.646
2014-08-08 1.360 2.042
2014-05-23 1.360 2.326
2014-02-03 1.360 2.441
2013-11-11 1.200 2.003
2013-08-08 4.200 7.024
2013-05-24 5.200 10.023
2013-02-04 5.200 11.054
2012-11-14 4.000 8.357
2012-05-25 4.000 8.536
2012-01-30 4.000 8.497
2011-11-07 3.800 9.314
2011-08-05 1.800 4.651
2011-05-31 1.800 4.766
2011-01-28 0.800 2.292
2010-11-05 0.600 1.941
2010-08-16 0.600 2.215
2010-05-28 0.600 2.440
2010-02-04 0.600 2.458
2009-11-05 0.600 3.206
2009-08-07 0.600 3.632
2009-05-28 0.600 4.925
2009-02-02 0.600 6.497
2008-11-06 0.600 6.701
2008-08-08 0.600 3.791
2008-07-23 0.600 3.593

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of L Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by net profit (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by net profit (1.1x coverage).
X
Income/ dividend checks
We assess L Brands'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 L Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. L Brands has a total score of 4/6, see the detailed checks below.


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

LB Management

 What is the CEO of L Brands'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
Les Wexner, image provided by Google.
Les Wexner
COMPENSATION $5,695,577
AGE 81
TENURE AS CEO 55.5 years
CEO Bio

Mr. Leslie H. Wexner, also known as Les, founded L Brands, Inc. in 1963 and has been its Chief Executive Officer since 1963 and Executive Chairman since 1975. He serves as Chief Executive Officer of LBrands Inc at Victoria's Secret Stores, LLC. Mr. Wexner has been Chief Executive Officer and Executive Director of L Brands, Inc. since 1963 and serves as its President and co-owner at Linden Trust. He serves as Chief Executive Officer of Limited Brands at Bath & Body Works, LLC. He serves as Chairman and Chief Executive Officer at Limited Brands Store Operations, Inc. He is the Founder of New Albany Company LLC. He served as Chairman and Chief Executive Officer of Intimate Brands, Inc. since 1995. He was a Founding Member and the First Chair of The Ohio State University Foundation. He serves as the Chairman of Limited Brands at Bath & Body Works, LLC. Mr. Wexner serves as Chairman of Victoria's Secret Direct, LLC. He served as Chairman of Limited Stores LLC. He served as a Director of Hollinger International Publishing Inc. He served as a Director of Sun-Times Media Group Inc. Mr. Wexner is Member of the American Academy of Arts and Sciences; Member of the Visiting Committee of the Kennedy School of Government at Harvard University; Trustee of the Columbus Jewish Federation and Foundation; Member of the Royal Shakespeare Company International Council; Member of the John Glenn School of Public Affairs; and Chairman of The Columbus Partnership. His areas of community interest include the Wexner Center for the Arts at The Ohio State University; the Wexner Institute for Pediatric Research at Children’s Hospital, Columbus; the Martin Luther King Center for the Performing Arts, Columbus; and the Wexner Heritage Village. Mr. Wexner has a profound interest in the development of tomorrow’s leaders through the works of the Fisher College of Business at The Ohio State University; Harvard University’s Center for Public Leadership; and The Wexner Foundation. Mr. Wexner was inaugurated by Harvard University into the Society of John Harvard Fellows and serves as a visiting lecturer at Harvard’s Kennedy School of Government. Mr. Wexner was a recipient of The Alexis de Tocqueville Society Award of the United Way of America, Woodrow Wilson Award for Citizenship, Ordre des arts et des letters, Knight of the Italian Republic and The American Jewish Committee Herbert H. Lehman Centennial Leadership Award. Mr. Wexner holds a B.S. degree in Business Administration from The Ohio State University and honorary degrees from The Ohio State University; The Hebrew University of Jerusalem; University of Tel Aviv; Hofstra University; Marietta College; Hebrew Union College; The Jewish Theological Seminary of America; Yeshiva University; and Brandeis University.

CEO Compensation
  • Les's compensation has been consistent with company performance over the past year.
  • Les's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the L Brands management team in years:

7.9
Average Tenure
58.5
Average Age
  • The average tenure for the L Brands management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Les Wexner

TITLE
Founder
COMPENSATION
$6M
AGE
81
TENURE
55.5 yrs

Stuart Burgdoerfer

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
55
TENURE
11.3 yrs

Charles McGuigan

TITLE
Chief Operating Officer
COMPENSATION
$6M
AGE
61
TENURE
6.2 yrs

Martin Waters

TITLE
CEO & President of L Brands International
COMPENSATION
$5M
AGE
52

Nick Coe

TITLE
CEO and President of Bath & Body Works
COMPENSATION
$6M
AGE
55
TENURE
6.9 yrs

Amie Preston

TITLE
Chief Investor Relations Officer
TENURE
7.9 yrs

Shelley Milano

TITLE
General Counsel
AGE
61

Timothy Faber

TITLE
Senior VP & Treasurer
AGE
56

Bruce Soll

TITLE
Senior VP & Counsel of Company Affairs
AGE
74

Edward Razek

TITLE
President of Brand & Creative Services and Chief Marketing Officer of Brand & Creative Services
Board of Directors Tenure

Average tenure and age of the L Brands board of directors in years:

18.5
Average Tenure
72.5
Average Age
  • The average tenure for the L Brands board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Les Wexner

TITLE
Founder
COMPENSATION
$6M
AGE
81
TENURE
43.5 yrs

David Kollat

TITLE
Non-Independent Director
COMPENSATION
$329K
AGE
79
TENURE
42.5 yrs

Abigail Wexner

TITLE
Director
COMPENSATION
$274K
AGE
56
TENURE
21.5 yrs

Allan Tessler

TITLE
Non-Independent Director
COMPENSATION
$364K
AGE
81
TENURE
31.5 yrs

Donna James

TITLE
Non-Independent Director
COMPENSATION
$309K
AGE
61
TENURE
15.5 yrs

Raymond Zimmerman

TITLE
Non-Independent Director
COMPENSATION
$269K
AGE
85
TENURE
34.5 yrs

E. Gee

TITLE
Director
COMPENSATION
$269K
AGE
74
TENURE
5.8 yrs

Dennis Hersch

TITLE
Director
COMPENSATION
$244K
AGE
70
TENURE
12 yrs

Mike Morris

TITLE
Non-Independent Director
COMPENSATION
$249K
AGE
71
TENURE
5.8 yrs

Steve Steinour

TITLE
Non-Independent Director
COMPENSATION
$224K
AGE
59
TENURE
4.5 yrs
Recent Insider Trading
  • More shares have been bought than sold by L Brands insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess L Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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. L Brands 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.

LB News

External News
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Simply Wall St News

How Does L Brands Inc (NYSE:LB) Fare As A Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … In the past 10 years L Brands Inc (NYSE:LB) has returned an average of 5.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether L Brands should have a place in your portfolio.

Simply Wall St -

Have You Accounted For These Three Things In L Brands Inc's (NYSE:LB) Relative Value?

The 11.05x trailing PE given to LB means investors are paying a discount to the US Specialty Retail industry (20.73x PE) for earnings. … But is this multiple truly representative of LB’s value? … A drawback of any conclusion based on a static multiple like trailing PE is that it does not consider fundamental factors such as the company’s outlook or capital structure.

Simply Wall St -

Should You Buy L Brands Inc (NYSE:LB) At $33.99?

According to my valuation model, L Brands seems to be fairly priced at around 10% above my intrinsic value, which means if you buy L Brands today, you’d be paying a relatively fair price for it. … And if you believe that the stock is really worth $30.88, there’s only an insignificant downside when the price falls to its real value. … The stock appears to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

Estimating The Intrinsic Value Of L Brands Inc (NYSE:LB)

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $790.30 $898.90 $851.92 $882.24 $883.00 Source Analyst x12 Analyst x12 Analyst x11 Analyst x5 Analyst x3 Present Value Discounted @ 11.99% $705.66 $716.67 $606.47 $560.79 $501.16 Present Value of 5-year Cash Flow (PVCF)= $3,091 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $883 × (1 + 2.5%) ÷ (12% – 2.5%) = $9,500 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $9,500 / ( 1 + 12%)5 = $5,392 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $8,482. … NYSE:LB Intrinsic Value May 12th 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is L Brands Inc (NYSE:LB) A Smart Choice For Dividend Investors?

The stock currently pays out a dividend yield of 6.33%, and has a market cap of US$10.68B. … See our latest analysis for L Brands How I analyze a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it the top 25% annual dividend yield payer? … Going forward, analysts expect LB's payout to remain around the same level at 71.60% of its earnings, which leads to a dividend yield of around 6.67%.

Simply Wall St -

L Brands Inc (NYSE:LB): Is Now A Good Time To Buy?

L Brands Inc (NYSE:LB) closed yesterday at $48.18, which left some investors asking whether the high earnings potential can still be justified at this price. … But, to be able to properly assess the value of a high-growth stock such as L Brands, we must incorporate its earnings growth in our valuation. … A PE ratio of 14.46x and expected year-on-year earnings growth of 10.73% give L Brands a higher PEG ratio of 1.35x.

Simply Wall St -

L Brands Inc (NYSE:LB): Dividend Is Coming In 2 Days, Should You Buy?

Check out our latest analysis for L Brands 5 checks you should do on a dividend stock When researching a dividend stock, I always follow the following screening criteria: Does it pay an annual yield higher than 75% of dividend payers? … The current trailing twelve-month payout ratio for the stock is 72.05%, which means that the dividend is covered by earnings. … However, EPS should increase to $3.34, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

Simply Wall St -

Should You Be Tempted To Sell L Brands Inc (NYSE:LB) At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LB Price per share = $61.02 Earnings per share = $3.331 ∴ Price-Earnings Ratio = $61.02 ÷ $3.331 = 18.3x 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. … At 18.3x, LB’s P/E is higher than its industry peers (18x). … If this assumption does not hold true, LB’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Simply Wall St -

How Do Analysts See L Brands Inc (LB) Performing In The Years Ahead?

Investors may find it useful to understand how market analysts view L Brands's earnings growth trajectory over the next couple of years and whether the future looks brighter. … See our latest analysis for LB Market analysts' prospects for this coming year seems pessimistic, with earnings falling by -4.61%. … The slope of this line is the rate of earnings growth, which in this case is 8.85%.

Simply Wall St -

L Brands Inc (LB): Ex-Dividend Is Coming In 3 Days, Should You Buy?

View our latest analysis for L Brands 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend payers? … The current payout ratio for the stock is 17.95%, which means that the dividend is covered by earnings. … In the near future, analysts are predicting a higher payout ratio of 64.70%, leading to a dividend yield of 4.90%.

Simply Wall St -

LB Company Info

Map
Description

L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, beauty and personal care products, home fragrance products, and accessories. The company operates in three segments: Victoria’s Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include loungewear, bras, panties, athletic attire, shower gels and lotions, aromatherapy, body care, soaps and sanitizers, handbags, jewelry, and personal care accessories. The company offers its products under the Victoria’s Secret, PINK, Bath & Body Works, La Senza, Henri Bendel, C.O. Bigelow, White Barn, and other brand names. L Brands, Inc. sells its merchandise through company-owned specialty retail stores, which are primarily mall-based; through its Websites comprising VictoriasSecret.com, BathandBodyWorks.com, HenriBendel.com, and LaSenza.com; and through franchises, licenses, and wholesale partners. As of March 8, 2018, the company operated 3,071 company-owned specialty stores in the United States, Canada, the United Kingdom, Ireland, and Greater China, as well as sold its brands through approximately 800 franchised locations worldwide. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013. L Brands, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

Details
Name: L Brands, Inc.
LB
Exchange: NYSE
Founded: 1963
$8,787,369,653
277,204,090
Website: http://www.lb.com
Address: L Brands, Inc.
Three Limited Parkway,
Columbus,
Ohio, 43230,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LB Common Stock New York Stock Exchange US USD 09. Feb 1973
DB LTD Common Stock Deutsche Boerse AG DE EUR 09. Feb 1973
LSE 0JSC Common Stock London Stock Exchange GB USD 09. Feb 1973
BMV LB * Common Stock Bolsa Mexicana de Valores MX MXN 09. Feb 1973
BOVESPA LBRN34 BDR REPR 1/4 COM USD0.50 Bolsa de Valores de Sao Paulo BR BRL 27. Jul 2015
Number of employees
Current staff
Staff numbers
59,200
L Brands employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/22 21:13
End of day share price update: 2018/07/20 00:00
Last estimates confirmation: 2018/07/21
Last earnings update: 2018/05/05
Last annual earnings update: 2018/02/03


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.