L Brands is part of the consumer cyclical sector and trades as part of the retail apparel and specialty industry. The company CEO is Leslie H. Wexner. L Brands Inc is a women’s intimate, personal care, and beauty retailer. The company through its retail outlets sells products under various brands such as Victoria’s Secret, Pink, Bath and Body Works, La Senza, and Henri Bendel brands.
Previous Intraday Trading Performance:
The LB stock showed a previous change of 2.39% with an open at 24.47 and a close of 24.84. It reached an intraday high of 25.07 and a low of 24.15.
SeekingAlpha: Why I Was Wrong About L Brands
Liquidity:
The stock has a market cap of $6.8b with 275.2m shares outstanding, of which the float is 272.4m shares. Trading volume reached 6,236,340 shares compared to its average volume of 4,959,345 shares. Based on the current average volume and close price, the trading liquidity is good.
Historical Trading Performance:
Over the last five trading days, L Brands shares returned 11.34% and in the past 30 trading days it returned -3.83%. Over three months, it changed -10.23%. In one year it has changed -24.53% and within that year its 52-week high was 38.14 and its 52-week low was 21.47. LB stock is 15.70% above its 52 Week Low.
Our calculations show a 200 day moving average of 28.00 and a 50 day moving average of 25.66. Currently LB stock is trading -11.29% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.
SeekingAlpha: Why I Was Wrong About L Brands
Earnings:
The last annual fiscal EPS for the company was reported at 2.31 that ended on 31st of January 2019, which according to the previous close, that is a PE of 10.75. Based on 11 analyst estimates, the consensus EPS for the next quarter is 0.15. The TTM EPS is 3.06, which comes to a TTM PE of 8.12. Historically, the PE high was 28.90 and the PE low was 6.90. If the stock reached its PE low, that would represent a price of 21.11, which is a decrease of -15.02%.
Below was the last reported quarterly diluted earnings per share:
| Apr19 | 0.14 |
|---|---|
| Jan19 | 1.94 |
| Oct18 | -0.16 |
| Jul18 | 0.36 |
| Apr18 | 0.17 |
The dividend per share is currently 1.20, which is a dividend yield of 4.83%. Also, the payout ratio is 39.22%, therefore the dividend is safe according to our calculations. LB stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.
Base on our calculations, the intrinsic value per share is 40.70, which means it is possibly undervalued and has a margin of safety of 38.97%.
Indicators to Watch:
Short-interest was 11,966,061, which was 4.35% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.71. This stock has some short interest, but it may be normal and no cause for concern if long the position.
The current calculated beta is 0.50.
PR Newswire: KLA Announces Upcoming Investor Presentation
Fundamental Indicators:
Based on last reported financials, the company’s return on assets is 8.21%, profit margin is 4.81%, price-to-sales is 0.50 and.
Company Scores:
All scores are out of six:
3 :Valuation Score
1 :Past Performance Score
3 :Financial Strength Score
2 :Future Growth Score
4 :Dividend Score
2 :Overall Score
