L Brands, Inc. operates as a retailer of home fragrance products, body care products, soaps and sanitizers, women’s intimate and other apparel, and personal and beauty care products. More Details
Imperfect balance sheet unattractive dividend payer.
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.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: LB exceeded the US Specialty Retail industry which returned 110.4% over the past year.
Return vs Market: LB exceeded the US Market which returned 52.8% over the past year.
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
3 months ago | Simply Wall StL Brands, Inc. (NYSE:LB) Shares Could Be 27% Above Their Intrinsic Value Estimate
4 months ago | Simply Wall StShould You Think About Buying L Brands, Inc. (NYSE:LB) Now?
4 months ago | Simply Wall StThe Returns At L Brands (NYSE:LB) Provide Us With Signs Of What's To Come
Is L Brands undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LB ($65.94) is trading above our estimate of fair value ($55.92)
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 (21.7x) compared to the US Specialty Retail industry average (16.8x).
PE vs Market: LB is poor value based on its PE Ratio (21.7x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: LB is poor value based on its PEG Ratio (11.4x)
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.
How is L Brands forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LB's forecast earnings growth (1.9% per year) is below the savings rate (2%).
Earnings vs Market: LB's earnings (1.9% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: LB's earnings are forecast to grow, but not significantly.
Revenue vs Market: LB's revenue (5.3% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: LB's revenue (5.3% 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 (76%).
How has L Brands performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LB has a large one-off loss of $347.0M impacting its January 30 2021 financial results.
Growing Profit Margin: LB became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LB's earnings have declined by 37.9% 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 (47.4%).
Return on Equity
High ROE: LB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 (32%).
Interest Coverage: LB's interest payments on its debt are well covered by EBIT (4.3x coverage).
What is L Brands's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LB's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: LB's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.42%).
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: With its low payout ratio (9.9%), LB's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LB's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andrew Meslow (50 yo)
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 ($USD11.15M).
Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.
Experienced Management: LB's management team is seasoned and experienced (10.8 years average tenure).
Experienced Board: LB's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LB insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
L Brands, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: L Brands, Inc.
- Ticker: LB
- Exchange: NYSE
- Founded: 1963
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$18.321b
- Shares outstanding: 278.90m
- Website: https://www.lb.com
Number of Employees
- L Brands, Inc.
- Three Limited Parkway
- United States
L Brands, Inc. operates as a retailer of home fragrance products, body care products, soaps and sanitizers, women’s intimate and other apparel, and personal and beauty care products. It operates in two seg...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 22:30|
|End of Day Share Price||2021/05/06 00:00|
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.