NYSE:TLRD

Stock Analysis Report

Executive Summary

Tailored Brands, Inc. operates as a specialty apparel retailer the United States and Canada.

Rewards

Trading at 27.3% below its fair value

Earnings are forecast to grow 7.9% per year

Pays a high and reliable dividend of 14.01%

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (1.9%) are lower than last year (3%)



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Tailored Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLRD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

TLRD

-1.1%

US Specialty Retail

-0.3%

US Market


1 Year Return

-76.1%

TLRD

25.7%

US Specialty Retail

18.6%

US Market

Return vs Industry: TLRD underperformed the US Specialty Retail industry which returned 25.7% over the past year.

Return vs Market: TLRD underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

TLRDIndustryMarket
7 Day-4.6%-1.1%-0.3%
30 Day-2.5%2.7%2.2%
90 Day-6.9%7.7%5.6%
1 Year-73.5%-76.1%27.8%25.7%21.1%18.6%
3 Year-77.5%-81.1%34.9%28.0%45.6%36.2%
5 Year-84.2%-87.5%51.4%38.6%71.1%52.2%

Price Volatility Vs. Market

How volatile is Tailored Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tailored Brands undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLRD ($5.14) is trading below our estimate of fair value ($7.07)

Significantly Below Fair Value: TLRD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLRD is good value based on its PE Ratio (4.2x) compared to the Specialty Retail industry average (16.5x).

PE vs Market: TLRD is good value based on its PE Ratio (4.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TLRD is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TLRD is overvalued based on its PB Ratio (57x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Tailored Brands forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLRD's forecast earnings growth (7.9% per year) is above the savings rate (1.7%).

Earnings vs Market: TLRD's earnings (7.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: TLRD's revenue is expected to decline over the next 3 years (-6.6% per year).

High Growth Revenue: TLRD's revenue is forecast to decline over the next 3 years (-6.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TLRD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tailored Brands performed over the past 5 years?

31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLRD has a large one-off loss of $57.1M impacting its August 3 2019 financial results.

Growing Profit Margin: TLRD's current net profit margins (1.9%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: TLRD has become profitable over the past 5 years, growing earnings by 31.2% per year.

Accelerating Growth: TLRD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TLRD had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (3.2%).


Return on Equity

High ROE: Whilst TLRD's Return on Equity (1347.82%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tailored Brands's financial position?


Financial Position Analysis

Short Term Liabilities: TLRD's short term assets ($995.5M) exceed its short term liabilities ($682.7M).

Long Term Liabilities: TLRD's short term assets ($995.5M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: TLRD's debt to equity ratio (25967.7%) is considered high.

Reducing Debt: TLRD's debt to equity ratio has increased from 160.6% to 25967.7% over the past 5 years.

Debt Coverage: TLRD's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: TLRD's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: TLRD has a high level of physical assets or inventory.

Debt Coverage by Assets: TLRD's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

14.01%

Current Dividend Yield


Dividend Yield vs Market

company14.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years7.1%

Current dividend yield vs market & industry

Notable Dividend: TLRD's dividend (14.01%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: TLRD's dividend (14.01%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: TLRD's dividends per share have been stable in the past 10 years.

Growing Dividend: TLRD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.8%), TLRD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Dinesh Lathi (48yo)

0.8yrs

Tenure

US$2,001,370

Compensation

Mr. Dinesh S. Lathi has been the President and Chief Executive Officer at Tailored Brands, Inc. since March 27, 2019 and served as its Executive Chairman from October 1, 2018 to March 27, 2019 and has been ...


CEO Compensation Analysis

Compensation vs Market: Dinesh's total compensation ($USD2.00M) is above average for companies of similar size in the US market ($USD1.13M).

Compensation vs Earnings: Dinesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.9yrs

Average Tenure

50yo

Average Age

Experienced Management: TLRD's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TLRD's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: TLRD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$64,26015 Oct 19
Carrie Ask
EntityIndividual
Shares17,000
Max PriceUS$3.78
BuyUS$51,73810 Oct 19
A. Rhodes
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares13,369
Max PriceUS$3.87
BuyUS$40,00010 Oct 19
Dinesh Lathi
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$4.00
BuyUS$16,80001 Oct 19
Dinesh Lathi
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$4.20
BuyUS$69,60017 Sep 19
Theophlius Killion
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares15,000
Max PriceUS$4.64
BuyUS$72,10017 Sep 19
Dinesh Lathi
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$4.92
BuyUS$4,454,10030 Aug 19
Scion Asset Management, LLC
EntityCompany
Shares750,000
Max PriceUS$5.94
BuyUS$100,03515 Apr 19
Carrie Ask
EntityIndividual
Shares13,500
Max PriceUS$7.41
BuyUS$34,67820 Mar 19
Brian Vaclavik
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares4,250
Max PriceUS$8.16
BuyUS$49,98520 Dec 18
A. Rhodes
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,804
Max PriceUS$13.14
BuyUS$100,72520 Dec 18
Jack Calandra
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP & Treasurer
Shares7,500
Max PriceUS$13.43

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Julie MacMedan

    Vice President of Investor Relations

    • Tenure: 3.3yrs
  • Sandy Rhodes (60yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.19m
  • Dinesh Lathi (48yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$2.00m
  • Mary Blake (52yo)

    Brand President of Jos. A. Bank

    • Tenure: 0yrs
    • Compensation: US$1.80m
  • Jamie Bragg (49yo)

    Chief Supply Chain Officer & Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.24m
  • Brian Vaclavik (52yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 5.5yrs
  • Hyon Park (46yo)

    Chief Information Officer and Executive Vice President

    • Tenure: 8.2yrs
  • Jack Calandra (51yo)

    CFO, Executive VP & Treasurer

    • Tenure: 2.9yrs
    • Compensation: US$2.54m
  • Boris Sherman (45yo)

    CTO & Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$1.33m
  • Mary McGrath

    Senior VP & Chief Marketing Officer

    • Tenure: 0.3yrs

Board Members

  • Sue Gove (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$284.39k
  • David Edwab (64yo)

    Non-Executive Vice Chairman

    • Tenure: 17.8yrs
    • Compensation: US$267.75k
  • Grace Nichols (72yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$260.42k
  • Shelly Stein (65yo)

    Independent Director

    • Tenure: 24.9yrs
    • Compensation: US$260.77k
  • Theo Killion (68yo)

    Independent Chairman

    • Tenure: 0.8yrs
    • Compensation: US$308.07k
  • Dinesh Lathi (48yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$2.00m
  • Irene Britt (56yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$288.40k
  • Drew Vollero (52yo)

    Director

    • Tenure: 0.08yrs

Company Information

Tailored Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tailored Brands, Inc.
  • Ticker: TLRD
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$253.213m
  • Shares outstanding: 50.64m
  • Website: https://www.tailoredbrands.com

Number of Employees


Location

  • Tailored Brands, Inc.
  • 6380 Rogerdale Road
  • Houston
  • Texas
  • 77072
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLRDNYSE (New York Stock Exchange)YesNew Common StockUSUSDApr 1992
WRMDB (Deutsche Boerse AG)YesNew Common StockDEEURApr 1992
TLRD *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNApr 1992

Biography

Tailored Brands, Inc. operates as a specialty apparel retailer the United States and Canada. It operates through two segments, Retail and Corporate Apparel. The Retail segment offers suits, suit separates, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:37
End of Day Share Price2019/12/06 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.