Landec Corp

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LNDC : NASDAQ : Consumer Goods
$11.55 | %
Today's Range: 11.35 - 11.95
Avg. Daily Volume: 70500.0
03/24/17 - 4:00 PM ET

Financial Analysis


LANDEC CORP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. LANDEC CORP has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.16% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)135.87140.44
EBITDA ($mil)5.824.94
EBIT ($mil)3.262.81
Net Income ($mil)1.331.87


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2.575.98
Total Assets ($mil)341.34361.11
Total Debt ($mil)54.9848.21
Equity ($mil)218.01225.15


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin15.8313.81
EBITDA Margin4.283.51
Operating Margin2.42.0
Sales Turnover1.561.52
Return on Assets-3.463.54
Return on Equity-5.425.67
Debt Q2 FY16 Q2 FY15
Current Ratio1.81.52
Debt/Capital0.20.18
Interest Expense0.380.44
Interest Coverage8.616.4


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)27.2627.03
Div / share0.00.0
EPS0.050.07
Book value / share8.08.33
Institutional Own % n/a n/a
Avg Daily Volume70535.079568.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.49 indicates a discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 5.11. 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, LANDEC CORP 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
LNDC NM Peers 31.49   LNDC 12.93 Peers 18.83

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

LNDC's P/E is negative making this valuation measure meaningless.

 

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.

LNDC 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
LNDC 15.62 Peers 20.87   LNDC NA Peers 1.71

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LNDC is trading at a valuation on par with 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LNDC 1.49 Peers 5.11   LNDC -193.61 Peers 1487.20

Discount. 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.

LNDC is trading at a significant discount to its peers.

 

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

However, LNDC 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
LNDC 0.61 Peers 2.40   LNDC -2.78 Peers 8.16

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.

LNDC 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.

LNDC significantly trails its peers on the basis of sales growth

 

 

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