L Brands
Market Cap
US$5.0b
Last Updated
2019/11/16 23:38 UTC
Data Sources
Company Financials +
Executive Summary
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.
Snowflake
Fundamentals
Established dividend payer and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.8%
LB
1.4%
US Specialty Retail
0.7%
US Market
1 Year Return
-48.8%
LB
12.3%
US Specialty Retail
12.9%
US Market
Return vs Industry: LB underperformed the US Specialty Retail industry which returned 12.3% over the past year.
Return vs Market: LB underperformed the US Market which returned 12.9% over the past year.
Shareholder returns
| LB | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 1.4% | 0.7% |
| 30 Day | -0.2% | 3.3% | 4.4% |
| 90 Day | -11.2% | 15.3% | 7.0% |
| 1 Year | -45.6%-48.8% | 14.2%12.3% | 15.4%12.9% |
| 3 Year | -69.8%-74.2% | 40.6%33.4% | 49.1%39.5% |
| 5 Year | -70.3%-77.1% | 51.0%38.1% | 62.7%44.7% |
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
2 days ago | Simply Wall St
Is L Brands, Inc. (NYSE:LB) At Risk Of Cutting Its Dividend?2 weeks ago | Simply Wall St
Estimating The Fair Value Of L Brands, Inc. (NYSE:LB)1 month ago | Simply Wall St
L Brands, Inc. (NYSE:LB) Earns A Nice Return On Capital EmployedValuation
Is L Brands undervalued compared to its fair value and its price relative to the market?
18.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LB ($18.07) is trading below our estimate of fair value ($22.28)
Significantly Below Fair Value: LB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: LB is good value based on its PE Ratio (8.6x) compared to the Specialty Retail industry average (16.4x).
PE vs Market: LB is good value based on its PE Ratio (8.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: LB is poor value based on its PEG Ratio (2.3x)
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.
Next Steps
Future Growth
How is L Brands forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LB's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).
Earnings vs Market: LB's earnings (3.8% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: LB's earnings are forecast to grow, but not significantly.
Revenue vs Market: LB's revenue (2.3% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: LB's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LB's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has L Brands performed over the past 5 years?
-9.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LB has large one-off items impacting its financial results.
Growing Profit Margin: LB's current net profit margins (4.4%) are lower than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: LB's earnings have declined by -9% per year over the past 5 years.
Accelerating Growth: LB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LB had negative earnings growth (-35.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (5.6%).
Return on Equity
High ROE: LB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
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 (23.9%).
Interest Coverage: LB's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Inventory Level: LB has a high level of physical assets or inventory.
Debt Coverage by Assets: LB has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is L Brands's current dividend yield, its reliability and sustainability?
6.64%
Current Dividend Yield
Upcoming Dividend Payment
Purchase L Brands before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LB's dividend (6.64%) is higher than the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: LB's dividend (6.64%) is in the top 25% of dividend payers in the US market (3.65%)
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (86.1%), LB's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LB's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).
Next Steps
Management
What is the CEO of L Brands's salary, the management and board of directors tenure and is there insider trading?
9.3yrs
Average management tenure
CEO
Les Wexner (82yo)
56.8yrs
Tenure
US$4,553,310
Compensation
Mr. Leslie H. Wexner, also known as Les, founded L Brands, Inc. in 1963 and has been its Chief Executive Officer since 1963 and Executive Chairman since 1975. Mr. Wexner serves as Chief Executive Officer o ...
CEO Compensation Analysis
Compensation vs Market: Les's total compensation ($USD4.55M) is below average for companies of similar size in the US market ($USD6.73M).
Compensation vs Earnings: Les's compensation has been consistent with company performance over the past year.
Management Age and Tenure
9.3yrs
Average Tenure
60yo
Average Age
Experienced Management: LB's management team is seasoned and experienced (9.3 years average tenure).
Board Age and Tenure
7.3yrs
Average Tenure
69yo
Average Age
Experienced Board: LB's board of directors are considered experienced (7.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 6,385 |
| Max Price | US$28.33 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Les Wexner (82yo)
Founder
- Tenure: 56.8yrs
- Compensation: US$4.55m
Stuart Burgdoerfer (56yo)
Executive VP & CFO
- Tenure: 12.6yrs
- Compensation: US$4.52m
Bruce Soll (60yo)
Senior VP & Counsel of Company Affairs
- Tenure: 0yrs
Samuel Fried
Executive VP of Law
- Tenure: 0yrs
Shelley Milano (62yo)
Executive VP & Chief Human Resources Officer
- Tenure: 1.2yrs
- Compensation: US$3.46m
Martin Waters (53yo)
CEO & President of L Brands International
- Tenure: 0yrs
- Compensation: US$4.34m
Nick Coe (56yo)
CEO and President of Bath & Body Works
- Tenure: 8.3yrs
- Compensation: US$7.46m
Charles McGuigan (62yo)
COO and CEO & President of Mast Global
- Tenure: 7.5yrs
- Compensation: US$6.06m
Amie Preston
Chief Investor Relations Officer
- Tenure: 9.3yrs
Jamie Bersani
President of Real Estate
- Tenure: 14.3yrs
- Compensation: US$3.93m
Board Members
Allan Tessler (82yo)
Lead Independent Director
- Tenure: 7.3yrs
- Compensation: US$363.83k
Les Wexner (82yo)
Founder
- Tenure: 56.8yrs
- Compensation: US$4.55m
Mike Morris (72yo)
Independent Director
- Tenure: 7.2yrs
- Compensation: US$248.81k
Raymond Zimmerman (86yo)
Independent Director
- Tenure: 35.8yrs
- Compensation: US$268.82k
Bob Schottenstein (66yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$232.85k
E. Gee (75yo)
Independent Director
- Tenure: 7.2yrs
- Compensation: US$268.82k
Donna James (62yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$308.84k
Abigail Wexner (57yo)
Non-Independent Director
- Tenure: 22.8yrs
- Compensation: US$273.84k
Steve Steinour (60yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$223.81k
Patricia Bellinger (58yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$231.04k
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$4.994b
- Shares outstanding: 276.39m
- Website: https://www.lb.com
Number of Employees
Location
- L Brands, Inc.
- Three Limited Parkway
- Columbus
- Ohio
- 43230
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LB | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1973 |
| 0JSC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Feb 1973 |
| LTD | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1973 |
| LB * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 1973 |
| LBRA | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Feb 1973 |
| LBRN34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR REPR 1/4 COM USD0.50 | BR | BRL | Jul 2015 |
Biography
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: V ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/16 23:38 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/08/03 |
| Annual Earnings | 2019/02/02 |
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.