NYSE:LB

Stock Analysis Report

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Market Cap

US$22.0b

Last Updated

2021/07/31 22:52 UTC

Data Sources

Company Financials +

Executive Summary

L Brands, Inc. operates as a specialty retailers of body care, home fragrance products, soaps, and sanitizers. More Details


Snowflake Analysis

Questionable track record with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

LB

-0.8%

US Specialty Retail

-0.5%

US Market


1 Year Return

228.0%

LB

63.1%

US Specialty Retail

35.9%

US Market

Return vs Industry: LB exceeded the US Specialty Retail industry which returned 65.7% over the past year.

Return vs Market: LB exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

LBIndustryMarket
7 Day2.9%-0.8%-0.5%
30 Day8.9%-1.7%0.09%
90 Day21.5%-0.4%3.2%
1 Year228.7%228.0%64.4%63.1%38.0%35.9%
3 Year175.7%146.3%83.5%77.0%62.8%52.6%
5 Year32.2%7.3%109.3%95.1%121.2%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LB ($80.07) is trading above our estimate of fair value ($70.86)

Significantly Below Fair Value: LB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LB is poor value based on its PE Ratio (15.7x) compared to the US Specialty Retail industry average (13.6x).

PE vs Market: LB is good value based on its PE Ratio (15.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LB has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Future Growth

How is L Brands forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LB's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: LB's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: LB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LB's revenue (3.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: LB's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LB's Return on Equity is forecast to be very high in 3 years time (106.7%).


Past Performance

How has L Brands performed over the past 5 years?

-28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LB has high quality earnings.

Growing Profit Margin: LB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LB's earnings have declined by 28.8% per year over the past 5 years.

Accelerating Growth: LB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (157.5%).


Return on Equity

High ROE: LB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is L Brands's financial position?


Financial Position Analysis

Short Term Liabilities: LB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LB's debt is well covered by operating cash flow (49.2%).

Interest Coverage: LB's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LB's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: LB's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: LB's dividend payments have been volatile in the past 10 years.

Growing Dividend: LB's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as LB has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: LB's dividends in 3 years are forecast to be well covered by earnings (18.1% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Andrew Meslow (51 yo)

1.17yrs

Tenure

US$18,799,089

Compensation

Mr. Andrew M. Meslow has been Chief Executive Officer and Director of L Brands, Inc., since May 14, 2020. He served as Chief Executive Officer at Bath & Body Works, LLC since February 2020 until May 2020. ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD18.80M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Leadership Team

Experienced Management: LB's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: LB's board of directors are not considered experienced ( 2.2 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: LB insiders have only sold shares 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

L Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L Brands, Inc.
  • Ticker: LB
  • Exchange: NYSE
  • Founded: 1963
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$21.999b
  • Shares outstanding: 274.75m
  • Website: https://www.lb.com

Number of Employees


Location

  • L Brands, Inc.
  • Three Limited Parkway
  • Columbus
  • Ohio
  • 43230
  • United States

Listings


Biography

L Brands, Inc. operates as a specialty retailers of body care, home fragrance products, soaps, and sanitizers. The company sells its products under the Bath & Body Works, White Barn, C.O. Bigelow, and othe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:52
End of Day Share Price2021/07/30 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.