Lifetime Brands, Inc (LCUT) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E below the industry

Lifetime Brands's P/E of 6.2 is below the Cutlery, Handtools, and General Hardware median of 21.2.

EV/EBITDA below its 5-year median

Lifetime Brands's EV/EBITDA of 2.5 is below its 5-year median of 3.5.

P/B below the industry

Lifetime Brands's price-to-book of 0.86 is below the Cutlery, Handtools, and General Hardware median of 2.07.

Trading below fair value

The share price of $7.99 is below our fair value estimate of $22.54.

Margin of safety over 20%

The price is 64.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.2% over the last twelve months; the Cutlery, Handtools, and General Hardware median is 4.3%.

Guidance raised

Lifetime Brands raised its Year Ending December 31, 2026 Adjusted net income outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 43.7% over the last twelve months, against 36.9% a year earlier.

Return on equity under 15%

Return on equity was 14.5% over the last twelve months and averaged -3.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 23.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Lifetime Brands's return on equity of 14.5% is above the Cutlery, Handtools, and General Hardware median of 13.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 4.3% over the last twelve months, against a 5-year average of -1.2%.

Net margin below the industry

Lifetime Brands's net margin of 4.3% is below the Cutlery, Handtools, and General Hardware median of 5.5%.

No debt

Lifetime Brands has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest not well covered

Operating income covers interest expense 2.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.45 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.90; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lifetime Brands paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lifetime Brands yields 2.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 13.4% of net income.

Covered by free cash flow

Dividends take 7.6% of free cash flow.