Landec Corp

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LNDC : NASDAQ : Consumer Goods
$12.95 | %
Today's Range: 12.87 - 13.00
Avg. Daily Volume: 66,700
09/23/16 - 4:00 PM ET

Financial Analysis


LANDEC CORP's gross profit margin for the fourth quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. LANDEC CORP has weak liquidity. Currently, the Quick Ratio is 1.00 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.52% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)135.31134.45
EBITDA ($mil)10.08.12
EBIT ($mil)7.096.2
Net Income ($mil)4.734.2


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)9.8914.13
Total Assets ($mil)343.47346.47
Total Debt ($mil)62.0242.52
Equity ($mil)210.73218.43


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin18.9915.31
EBITDA Margin7.396.03
Operating Margin5.244.61
Sales Turnover1.581.56
Return on Assets-3.383.9
Return on Equity-5.526.2
Debt Q4 FY15 Q4 FY14
Current Ratio1.531.66
Debt/Capital0.230.16
Interest Expense0.560.46
Interest Coverage12.6213.37


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)27.1526.99
Div / share0.00.0
EPS0.170.15
Book value / share7.768.09
Institutional Own % n/a n/a
Avg Daily Volume69819.0101010.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.61 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 6.19. 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 25.19   LNDC 15.53 Peers 18.14

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 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 15.58 Peers 21.26   LNDC NA Peers 1.17

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 1.61 Peers 6.19   LNDC -186.00 Peers 79.03

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 0.63 Peers 1.91   LNDC 0.34 Peers 0.32

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

LNDC is keeping pace with its peers on the basis of sales growth.

 

 

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