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

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


Market Performance


7 Day Return

3.7%

LB

4.9%

US Specialty Retail

2.3%

US Market


1 Year Return

-43.1%

LB

4.4%

US Specialty Retail

5.6%

US Market

Return vs Industry: LB underperformed the US Specialty Retail industry which returned 4.4% over the past year.

Return vs Market: LB underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

LBIndustryMarket
7 Day3.7%4.9%2.3%
30 Day-8.4%2.1%-1.0%
90 Day-32.5%3.3%-0.7%
1 Year-39.5%-43.1%6.2%4.4%7.9%5.6%
3 Year-71.0%-75.4%41.0%33.8%45.6%36.3%
5 Year-66.6%-74.4%59.5%45.4%65.8%47.6%

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?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LB ($17.81) is trading below our estimate of fair value ($22.32)

Significantly Undervalued: 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 (8.5x) compared to the Specialty Retail industry average (15.1x).

PE vs Market: LB is good value based on its PE Ratio (8.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: LB is poor value based on its PEG Ratio (2.2x)


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?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LB's forecast earnings growth (3.9% per year) is above the savings rate (2.7%).

Earnings vs Market: LB's earnings (3.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: LB's earnings are forecast to grow, but not significantly.

Revenue vs Market: LB's revenue (2.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LB's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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


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 (8.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: LB has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: LB's Return on Capital Employed has declined over the past 3 years.


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?

6.74%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years6.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LB's dividend (6.74%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: LB's dividend (6.74%) is in the top 25% of dividend payers in the US market (3.76%)

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 (48.1% 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?

9.2yrs

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 ($USD4.55M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Les's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.2yrs

Average Tenure

60yo

Average Age

Experienced Management: LB's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

69yo

Average Age

Experienced Board: LB's board of directors are considered experienced (7.2 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

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: 56.8yrs
    • Compensation: US$4.55m
  • Stuart Burgdoerfer (56yo)

    Executive VP & CFO

    • Tenure: 12.5yrs
    • Compensation: US$4.52m
  • Bruce Soll (60yo)

    Senior VP & Counsel of Company Affairs

    • Tenure: 0yrs
  • Edward Razek

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

    • Tenure: 0yrs
  • Shelley Milano (62yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.1yrs
    • 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: 8.2yrs
    • Compensation: US$7.46m
  • Charles McGuigan (62yo)

    COO and CEO & President of Mast Global

    • Tenure: 7.4yrs
    • Compensation: US$6.06m
  • Amie Preston

    Chief Investor Relations Officer

    • Tenure: 9.2yrs
  • 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)

    Non-Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$248.81k
  • Raymond Zimmerman (86yo)

    Non-Independent Director

    • Tenure: 35.8yrs
    • Compensation: US$268.82k
  • Bob Schottenstein (66yo)

    Non-Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$232.85k
  • E. Gee (75yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: US$268.82k
  • Donna James (62yo)

    Non-Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$308.84k
  • Abigail Wexner (57yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$273.84k
  • Steve Steinour (60yo)

    Non-Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$223.81k
  • Patricia Bellinger (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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$4.923b
  • 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

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 Analysis2019/10/16 23:37
End of Day Share Price2019/10/16 00:00
Earnings2019/08/03
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.