LANDS' END, INC. (LE) - Comprehensive Stock Analysis & Investment Research
Deep dive into LANDS' END, INC.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
LANDS' END, INC. Investment Summary
When evaluating whether LANDS' END, INC. (LE) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
LANDS' END, INC. (LE) operates within the Trade & Services sector, specifically in the Retail-Family Clothing Stores industry. The company employs approximately 2,929 people. With a market capitalization of $446 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
LANDS' END, INC. generates annual revenues of approximately $1 billion. The company operates with a net margin of 3.3%, showing modest profitability.
From a profitability standpoint, the company has a Return on Equity (ROE) of 7.4%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at 2.7%, suggesting potential for operational improvement.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 2.29x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.98x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
LANDS' END, INC. currently reports negative free cash flow of $-40 million, which may reflect heavy investment in growth or operational challenges. Operating cash flow stands at $-13 million, indicating the company is consuming cash in its operations. Year-over-year operating cash flow has changed by 235.8%, showing strong cash flow momentum.
Valuation Analysis
The current P/E ratio of 74.5x suggests the market has high expectations for future earnings growth. This premium valuation means the stock is priced for perfection, and any earnings disappointments could lead to significant price corrections. The price-to-book ratio stands at 1.98x, suggesting the stock trades at a modest premium to book value.
AI-Powered Price Predictions
Our AI models continuously analyze LANDS' END, INC. to identify potential price movements. Subscribe to Intratio Premium to unlock detailed AI-powered price predictions for 7, 30, and 90-day horizons.
Investment Considerations
When determining whether LANDS' END, INC. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, LANDS' END, INC. may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
LANDS' END, INC. (Stock Symbol: LE) is a prominent company operating within the Trade & Services sector, with a specific focus on the Retail-Family Clothing Stores industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 2,929 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $446 million, LANDS' END, INC. is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Trade & Services sector, LANDS' END, INC. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
LANDS' END, INC. generates annual revenues of $1 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 3.3% net profit margin, reflecting thin profitability that may be characteristic of the industry or indicative of competitive pressures. Companies operating at these margins have limited buffer against economic downturns or cost increases.
Operating margin is 5.7%, indicating moderate operational leverage where fixed costs consume a significant portion of gross profits.
Market Valuation
Current market capitalization stands at $446 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 7.4%, suggesting below-average capital efficiency that may reflect industry characteristics, high equity base, or operational challenges.
Return on Assets (ROA) stands at 2.7%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures 6.8%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow of $-40 million indicates the company is currently consuming more cash than it generates, which may reflect heavy growth investments, working capital needs, or operational challenges.
Operating cash flow reaches $-13 million , with year-over-year growth of 235.8%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
LANDS' END, INC. strategically competes in the highly dynamic Retail-Family Clothing Stores marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
LANDS' END, INC. competes within the Trade & Services sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company currently shows negative free cash flow of $-40 million , with year-over-year cash flow growth of 235.8%. Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.
Asset Utilization Efficiency
Asset turnover ratio of 1.52x indicates exceptional efficiency in utilizing company assets to generate revenue. High asset turnover is characteristic of retail, distribution, or service businesses that operate with relatively lean asset bases. This efficiency translates to higher returns on invested capital when combined with reasonable margins.
Financial Strength & Leverage
Current ratio of 2.29 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.