Lands' End, Inc. (LE) stock analysis

P/E below its 5-year median

Lands' End's P/E of 0.8 is below its own 5-year median of 29.1.

P/E below the industry

Lands' End's P/E of 0.8 is below the Family Clothing Stores median of 12.0.

EV/EBITDA above its 5-year median

Lands' End's EV/EBITDA of 7.7 is above its 5-year median of 7.2.

P/B below the industry

Lands' End's price-to-book of 0.55 is below the Family Clothing Stores median of 2.58.

Trading below fair value

The share price of $9.24 is below our fair value estimate of $9.94.

Margin of safety under 20%

The price is 7.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.9% 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 growth accelerating

Net income grew 5763% over the last twelve months, against a 5-year average of -12.7% a year.

Growing slower than the industry

Revenue grew 1.4% over the last twelve months; the Family Clothing Stores median is 5.5%.

Guidance lowered

Lands' End lowered its fiscal 2026 Net revenue outlook on Sep 3, 2026.

Gross margin slipping

Gross margin was 55.7% over the last twelve months, against 56.1% a year earlier.

Return on equity under 15%

Return on equity was 97.9% over the last twelve months and averaged -6.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 1.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Lands' End's return on equity of 97.9% is above the Family Clothing Stores median of 40.5%.

Earnings shrank over 5 years

Net income shrank 12.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 30.5% over the last twelve months, against a 5-year average of -1.6%.

Net margin above the industry

Lands' End's net margin of 30.5% is above the Family Clothing Stores median of 9.3%.

No debt

Lands' End 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 0.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.58 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.05; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Lands' End has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.