L Brands
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 15 days ago. More info.
Add to Portfolio Compare Print Invest
LB Share Price and Events
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for L Brands.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 26 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 13.2% |
| 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.
| 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 | 0.94 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.941 (1 + (1- 21%) (69.16%)) |
1.455 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.46 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.455 * 7.05%) |
13.21% |
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.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 772.24 | 703.13 | 838.16 | 837.50 | 823.00 |
| Source | Analyst x11 | Analyst x10 | Analyst x5 | Analyst x2 | Analyst x2 |
|
Present Value Discounted (@ 13.21%) |
682.13 | 548.62 | 577.67 | 509.87 | 442.58 |
| Present value of next 5 years cash flows | $2,760.88 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $823.00 × (1 + 2.95%) ÷ (13.21% – 2.95%) |
$8,258.76 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $8,258.76 ÷ (1 + 13.21%)5 |
$4,441.27 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $2,760.88 + $4,441.27 |
$7,202.15 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $7,202.15 / 275.06 |
$26.18 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $26.18 |
| Current discount | Discount to share price of
$30.37
= -1 x ($30.37 - $26.18) / $26.18 |
-16% |
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.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-08-04) in USD | $3.20 |
| NYSE:LB Share Price ** | NYSE (2018-09-21) in USD | $30.37 |
| United States of America Specialty Retail Industry PE Ratio | Median Figure of 66 Publicly-Listed Specialty Retail Companies | 21.36x |
| United States of America Market PE Ratio | Median Figure of 3,049 Publicly-Listed Companies | 20.14x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of L Brands.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:LB Share Price ÷ EPS (both in USD) = 30.37 ÷ 3.20 |
9.48x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.48x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts |
1%per year |
| United States of America Specialty Retail Industry PEG Ratio | Median Figure of 62 Publicly-Listed Specialty Retail Companies | 1.88x |
| United States of America Market PEG Ratio | Median Figure of 2,046 Publicly-Listed Companies | 1.4x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.48x ÷ 1% |
9.79x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-08-04) in USD | $-4.09 |
| NYSE:LB Share Price * | NYSE (2018-09-21) in USD | $30.37 |
| United States of America Specialty Retail Industry PB Ratio | Median Figure of 101 Publicly-Listed Specialty Retail Companies | 1.9x |
| United States of America Market PB Ratio | Median Figure of 5,244 Publicly-Listed Companies | 2.02x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:LB Share Price ÷ Book Value per Share (both in USD) = 30.37 ÷ -4.09 |
-7.43x |
* 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.
Value checks
We assess L Brands's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check) 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 26 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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:LB Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts | 1% |
| NYSE:LB Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts | 3.7% |
| United States of America Specialty Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 13.4% |
| United States of America Specialty Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 16.6% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.8% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-01-31 | 15,373 | 1,542 | 786 | 2 |
| 2022-01-31 | 14,646 | 1,524 | 743 | 2 |
| 2021-01-31 | 14,147 | 1,428 | 692 | 9 |
| 2020-01-31 | 13,490 | 1,311 | 702 | 26 |
| 2019-01-31 | 13,127 | 1,387 | 699 | 26 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-08-04 | 13,050 | 1,397 | 897 |
| 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 | 1,703 | 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 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
All data from L Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-01-31 | 2.97 | 3.77 | 2.16 | 2.00 |
| 2022-01-31 | 2.75 | 3.32 | 2.18 | 2.00 |
| 2021-01-31 | 2.55 | 2.95 | 2.00 | 6.00 |
| 2020-01-31 | 2.59 | 2.93 | 1.80 | 22.00 |
| 2019-01-31 | 2.53 | 2.66 | 2.25 | 21.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-08-04 | 3.20 |
| 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 |
*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.
Future performance checks
We assess L Brands's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from L Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-08-04 | 13,050.00 | 897.00 | 4,139.00 | |
| 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 |
*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).
Past performance checks
We assess L Brands's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from L Brands Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-08-04 | -1,122.00 | 5,777.00 | 843.00 |
| 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 |
- 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 (24.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
Financial health checks
We assess L Brands's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) L Brands has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
L Brands
shares you are expected to receive
$158
in your first year as a dividend.
Dividend Amount
- L Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.26%).
- L Brands's dividend is above the markets top 25% of dividend payers in United States of America (3.3%).
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.
| 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 26 Analyst Estimates (S&P Global) | See Below |
| United States of America Specialty Retail Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1973 Stocks | 2.6% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.7% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.3% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| 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 | 2.53 | 9.00 |
| 2020-01-31 | 2.44 | 17.00 |
| 2019-01-31 | 2.41 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-08-10 | 2.400 | 8.277 |
| 2018-05-18 | 2.400 | 6.987 |
| 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 |
| 2008-09-23 | 0.600 | 4.509 |
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 earnings (1.3x coverage).
- Dividends after 3 years are not well covered by earnings (1x coverage).
Income/ dividend checks
We assess L Brands's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | $5,695,577 |
| AGE | 81 |
| TENURE AS CEO | 55.7 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.
Management Team Tenure
Average tenure and age of the L Brands management team in years:
- 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
Founder
$6M
81
55.7 yrs
Stuart Burgdoerfer
Executive VP & CFO
$4M
55
11.4 yrs
Charles McGuigan
Chief Operating Officer
$6M
61
6.3 yrs
Amie Preston
Chief Investor Relations Officer
8.1 yrs
Shelley Milano
Executive VP & Chief Human Resources Officer
61
Bruce Soll
Senior VP & Counsel of Company Affairs
74
Edward Razek
President of Brand & Creative Services and Chief Marketing Officer of Brand & Creative Services
Samuel Fried
Executive Vice President of Law
Brian Leinbach
Executive VP & CIO
Jamie Bersani
President of Real Estate
13.2 yrs
Board of Directors Tenure
Average tenure and age of the L Brands board of directors in years:
- 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
Founder
$6M
81
43.7 yrs
David Kollat
Non-Independent Director
$329K
79
42.7 yrs
Abigail Wexner
Director
$274K
56
21.7 yrs
Allan Tessler
Non-Independent Director
$364K
81
31.7 yrs
Donna James
Non-Independent Director
$309K
61
15.7 yrs
Raymond Zimmerman
Non-Independent Director
$269K
85
34.7 yrs
E. Gee
Director
$269K
74
6 yrs
Dennis Hersch
Director
$244K
70
12.2 yrs
Mike Morris
Non-Independent Director
$249K
71
6 yrs
Steve Steinour
Non-Independent Director
$224K
59
4.7 yrs
Who owns this company?
Management checks
We assess L Brands's management by checking for:- 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)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Simply Wall St News
L Brands Inc (NYSE:LB): A Look At Solid Capital Returns
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently L Brands is able to use capital to create earnings will help us understand your potential return.
Simply Wall St - – Full articleL Brands Inc (NYSE:LB): What You Have To Know Before Buying For The Upcoming Dividend
On the 07 September 2018, L Brands Inc (NYSE:LB) will be paying shareholders an upcoming dividend amount of US$0.60 per share. … 5 checks you should use to assess a dividend stock? … Based on future earnings growth, will it be able to continue to payout dividend at the current rate
Simply Wall St - – Full articleWhat Should You Know About The Future Of L Brands Inc's (NYSE:LB)?
Looking at L Brands Inc's (NYSE:LB) earnings update in May 2018, … with earnings expected to decline by -18.05% in the upcoming year … the past 5-year average growth rate of 5.54%.
Simply Wall St - – Full articleHow 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 - – Full articleHave 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 - – Full articleShould 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 $30.88, there’s only an insignificant downside when the price falls to its real value. … The stock appears to be trading at fair value, which means there’s less benefit from mispricing.
Simply Wall St - – Full articleEstimating The Intrinsic Value Of L Brands Inc (NYSE:LB)
5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, 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 - – Full articleIs 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 - – Full articleL 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 - – Full articleL 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 - – Full articleLB 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 September 13, 2018, the company operated 3,084 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 and online 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 |
| $8,353,676,460 | |
| 275,063,433 | |
| 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
Industry
| Apparel Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/09/22 21:06 |
| End of day share price update: | 2018/09/21 00:00 |
| Last estimates confirmation: | 2018/09/20 |
| Last earnings filing: | 2018/09/07 |
| Last earnings reported: | 2018/08/04 |
| Last annual earnings reported: | 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.
