Lee Enterprises Inc

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LEE : NYSE : Services
$1.8 -0.05 | -2.7%
Today's Range: 1.8 - 1.88
Avg. Daily Volume: 252000.0
07/27/17 - 4:02 PM ET

Financial Analysis


LEE ENTERPRISES INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LEE ENTERPRISES INC has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)133.39146.84
EBITDA ($mil)26.0227.83
EBIT ($mil)15.716.88
Net Income ($mil)6.1319.23


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)16.016.47
Total Assets ($mil)639.05717.93
Total Debt ($mil)560.5656.5
Equity ($mil)-108.38-127.8


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin56.0655.8
EBITDA Margin19.518.94
Operating Margin11.7711.5
Sales Turnover0.920.88
Return on Assets3.565.88
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio0.750.76
Debt/Capital1.241.24
Interest Expense15.7118.32
Interest Coverage1.00.92


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)56.6355.71
Div / share0.00.0
EPS0.110.36
Book value / share-1.91-2.29
Institutional Own % n/a n/a
Avg Daily Volume248257.0161079.0

Valuation


SELL. LEE ENTERPRISES INC's P/E ratio indicates a significant discount compared to an average of 20.97 for the Media industry and a significant discount compared to the S&P 500 average of 24.66. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, LEE ENTERPRISES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LEE 4.52 Peers 20.97   LEE 1.50 Peers 11.99

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LEE is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LEE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LEE 6.44 Peers 27.44   LEE NM Peers 2.17

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

LEE is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LEE's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LEE NM Peers 3.87   LEE -46.16 Peers 94.15

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LEE's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, LEE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LEE 0.18 Peers 18.35   LEE -6.91 Peers 38.50

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LEE is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LEE significantly trails its peers on the basis of sales growth

 

 

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