NYSE:LB

Stock Analysis Report

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

Average dividend payer and fair value.

Risks

  • L Brands has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-10.8%

NYSE:LB

-3.1%

US Specialty Retail

-0.7%

US Market


1 Year Return

-37.5%

NYSE:LB

-6.9%

US Specialty Retail

-0.5%

US Market

LB underperformed the Specialty Retail industry which returned -6.5% over the past year.

LB underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

LBIndustryMarket
7 Day-10.8%-3.1%-0.7%
30 Day-21.2%-6.2%-3.0%
90 Day-8.7%-6.5%0.9%
1 Year-33.3%-37.5%-5.3%-6.9%1.7%-0.5%
3 Year-69.5%-73.8%18.0%12.0%39.5%30.4%
5 Year-59.1%-68.1%41.3%28.7%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

L Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).

L Brands's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

L Brands is poor value based on expected growth next year.


Price Based on Value of Assets

L Brands has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.


Next Steps

Future Growth

How is L Brands expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

L Brands's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

L Brands's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

L Brands's revenue growth is positive but not above the United States of America market average.

L Brands's earnings growth is positive but not above the United States of America market average.

L Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

L Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has L Brands performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

L Brands's year on year earnings growth rate was negative over the past 5 years and 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.


Return on Equity

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.


Return on Assets

L Brands used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

L Brands's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is L Brands's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (23.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

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.


Next Steps

Dividend

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

5.98%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase L Brands before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

L Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

L Brands's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of L Brands's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average management tenure


CEO

Les Wexner (82yo)

56.6yrs

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

Les's remuneration is lower than average for companies of similar size in United States of America.

Les's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.0yrs

Average Tenure

60yo

Average Age

The average tenure for the L Brands management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.0yrs

Average Tenure

69yo

Average Age

The tenure for the L Brands board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$180,87726 Nov 18
Raymond Zimmerman
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares6,385
Max PriceUS$28.33

Ownership Breakdown


Management Team

  • Les Wexner (82yo)

    Founder

    • Tenure: 56.6yrs
    • Compensation: US$4.55m
  • Stuart Burgdoerfer (56yo)

    Executive VP & CFO

    • Tenure: 12.3yrs
    • Compensation: US$4.52m
  • Bruce Soll (60yo)

    Senior VP & Counsel of Company Affairs

    • Tenure: 0.0yrs
  • Edward Razek

    President of Brand & Creative Services and Chief Marketing Officer of Brand & Creative Services

    • Tenure: 0.0yrs
  • Shelley Milano (62yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.9yrs
    • Compensation: US$3.46m
  • Martin Waters (53yo)

    CEO & President of L Brands International

    • Tenure: 0.0yrs
    • Compensation: US$4.34m
  • Nick Coe (56yo)

    CEO and President of Bath & Body Works

    • Tenure: 8.0yrs
    • Compensation: US$7.46m
  • Charles McGuigan (62yo)

    COO and CEO & President of Mast Global

    • Tenure: 7.3yrs
    • Compensation: US$6.06m
  • Amie Preston

    Chief Investor Relations Officer

    • Tenure: 9.0yrs
  • Jamie Bersani

    President of Real Estate

    • Tenure: 14.1yrs
    • Compensation: US$3.93m

Board Members

  • Allan Tessler (82yo)

    Lead Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$363.83k
  • Les Wexner (82yo)

    Founder

    • Tenure: 56.6yrs
    • Compensation: US$4.55m
  • Mike Morris (72yo)

    Non-Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$248.81k
  • Raymond Zimmerman (86yo)

    Non-Independent Director

    • Tenure: 35.6yrs
    • Compensation: US$268.82k
  • Bob Schottenstein (66yo)

    Non-Independent Director

    • Tenure: 2.0yrs
    • Compensation: US$232.85k
  • E. Gee (75yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$268.82k
  • Donna James (62yo)

    Non-Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$308.84k
  • Abigail Wexner (57yo)

    Director

    • Tenure: 22.6yrs
    • Compensation: US$273.84k
  • Steve Steinour (60yo)

    Non-Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$223.81k
  • Patricia Bellinger (58yo)

    Director

    • Tenure: 2.0yrs
    • 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$5.626b
  • Shares outstanding: 276.34m
  • Website: https://www.lb.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1973
0JSCLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1973
LTDDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1973
LB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1973
LBRAWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1973
LBRN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/4 COM USD0.50BRBRLJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:41
End of Day Share Price2019/08/16 00:00
Earnings2019/05/04
Annual Earnings2019/02/02


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.