NYSE:LL

Stock Analysis Report

Lumber Liquidators Holdings

Executive Summary

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • Lumber Liquidators Holdings has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Lumber Liquidators Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.1%

NYSE:LL

-3.4%

US Specialty Retail

-1.0%

US Market


1 Year Return

-52.7%

NYSE:LL

-6.5%

US Specialty Retail

-0.4%

US Market

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

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


Share holder returns

LLIndustryMarket
7 Day-0.1%-3.4%-1.0%
30 Day-20.8%-6.7%-3.3%
90 Day-27.4%-6.4%0.8%
1 Year-52.7%-52.7%-5.0%-6.5%1.9%-0.4%
3 Year-50.5%-50.5%17.8%11.8%39.4%30.4%
5 Year-85.9%-85.9%41.5%28.9%54.2%37.1%

Price Volatility Vs. Market

How volatile is Lumber Liquidators Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lumber Liquidators Holdings undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Lumber Liquidators Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Lumber Liquidators Holdings is loss making, we can't compare its value to the US Specialty Retail industry average.

Lumber Liquidators Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Lumber Liquidators Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Lumber Liquidators Holdings is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Lumber Liquidators Holdings expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

39.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lumber Liquidators Holdings's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Lumber Liquidators Holdings's earnings are expected to grow significantly at over 20% yearly.

Lumber Liquidators Holdings's revenue growth is positive but not above the United States of America market average.

Lumber Liquidators Holdings's earnings growth is expected to exceed the United States of America market average.

Lumber Liquidators Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Lumber Liquidators Holdings performed over the past 5 years?

-36.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lumber Liquidators Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Lumber Liquidators Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Lumber Liquidators Holdings's 1-year growth to the US Specialty Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Lumber Liquidators Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Lumber Liquidators Holdings has efficiently used its assets last year compared to the US Specialty Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Lumber Liquidators Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Lumber Liquidators Holdings's financial position?


Financial Position Analysis

Lumber Liquidators Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lumber Liquidators Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Lumber Liquidators Holdings's level of debt (63.3%) compared to net worth is high (greater than 40%).

Unable to establish if Lumber Liquidators Holdings's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Lumber Liquidators Holdings has less than a year of cash runway based on current free cash flow.

Lumber Liquidators Holdings has less than a year of cash runway if free cash flow continues to reduce at historical rates of -11.4% each year.


Next Steps

Dividend

What is Lumber Liquidators Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Lumber Liquidators Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Lumber Liquidators Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Lumber Liquidators Holdings has not reported any payouts.

Unable to verify if Lumber Liquidators Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Lumber Liquidators Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Lumber Liquidators Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Lumber Liquidators Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Dennis Knowles (54yo)

2.8yrs

Tenure

US$2,322,693

Compensation

Mr. Dennis R. Knowles has been the Chief Executive Officer of Lumber Liquidators, Inc. since November 9, 2016. Mr. Knowles is also the Chief Executive Officer at Lumber Liquidators Holdings, Inc. since Nov ...


CEO Compensation Analysis

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

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


Management Age and Tenure

1.9yrs

Average Tenure

50.5yo

Average Age

The average tenure for the Lumber Liquidators Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

57.5yo

Average Age

The tenure for the Lumber Liquidators Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Lumber Liquidators Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$112,61012 Aug 19
Dennis Knowles
EntityIndividual
Role
President
Member of the Board of Directors
Shares14,000
Max PriceUS$8.04
BuyUS$39,59203 Jun 19
Charles Tyson
EntityIndividual
Role
Chief Customer Experience Officer
Shares4,000
Max PriceUS$9.90

Ownership Breakdown


Management Team

  • Charles Tyson (57yo)

    Chief Customer Experience Officer

    • Tenure: 1.2yrs
    • Compensation: $1.65m
  • Timothy Mulvaney (50yo)

    Interim CFO & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Danielle O'Brien

    Investor Relations Executive

  • Michael Horn (64yo)

    Senior Vice President of Sales & Services

    • Tenure: 1.6yrs
  • Chris Thomsen (43yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.0yrs
  • Jennifer Bohaty-Yelle (49yo)

    Chief Ethics & Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: $753.99k
  • Jay Keith

    Vice President of Human Resources

  • Susan Starnes (46yo)

    Senior Vice President of Strategy & Business Development

    • Tenure: 2.9yrs
  • Michael Reeves (51yo)

    Senior VP

    • Tenure: 2.2yrs
    • Compensation: $673.47k
  • Dennis Knowles (54yo)

    President

    • Tenure: 2.8yrs
    • Compensation: $2.32m

Board Members

  • Jim Wade (65yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: $236.00k
  • Nancy Taylor (59yo)

    Independent Chairman

    • Tenure: 3.8yrs
    • Compensation: $417.50k
  • David Levin (68yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $137.50k
  • Martin Roper (56yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $229.00k
  • Terri Graham (53yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: $54.42k
  • Douglas Moore (62yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: $140.00k
  • Famous Rhodes (44yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: $153.65k
  • Dennis Knowles (54yo)

    President

    • Tenure: 2.7yrs
    • Compensation: $2.32m

Company Information

Lumber Liquidators Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lumber Liquidators Holdings, Inc.
  • Ticker: LL
  • Exchange: NYSE
  • Founded: 1994
  • Industry: home improvement retail
  • Sector: retail
  • Market Cap: US$232.192m
  • Shares outstanding: 28.70m
  • Website: Click here

Number of Employees


Location

  • Lumber Liquidators Holdings, Inc.
  • 3000 John Deere Road
  • Toano
  • Virginia
  • 23168
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2007
LKUDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2007

Biography

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:13
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.