LE is now undervalued and could go up 163%
Lands' End, Inc., a digital retailer headquartered in Dodgeville, Wisconsin, offers casual clothing, accessories, footwear, and home products across five distribution channels including U.S. eCommerce, International, Outfitters, Third Party, and Retail. The company employs 5,000 full-time staff and operates in markets like the U.S., Europe, and Japan, providing products through e-commerce websites, third-party affiliates, and company-operated stores.
Based on our analysis, Lands' End Inc. has received an undervalued rating of 4 out of 5 stars from Cashu, indicating significant potential for growth despite current challenges. A key financial metric is the Price-to-Book (PB) ratio, which stands at 1.21 compared to the sector average of 2.03. A lower PB ratio suggests that the market may undervalue the company relative to its assets, presenting a potential buying opportunity for investors.
The Net Profit Margin for Lands' End is -8.87, while the sector average is -0.31. Although the company currently operates at a loss, the negative margin indicates that Lands' End is facing operational challenges that could be addressed through strategic improvements, potentially leading to future profitability.
Additionally, the Return on Equity (ROE) ratio for Lands' End is -54.09, significantly lower than the sector average of 0.51. This negative ROE reflects the company's struggles to generate profit from its equity. However, it also indicates that there may be opportunities for turnaround strategies that could improve profitability and shareholder value.
Lastly, the Return on Assets (ROA) for Lands' End stands at -16.10, compared to the sector average of -0.79. This metric shows the company is currently not effectively utilizing its assets to generate earnings, but it also suggests that with improved management and operational efficiency, there is room for enhancement.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary