L Brands Inc. (NYSE:LB) Relative Strength Index (RSI) is 62.34, with weekly volatility at 11.36% and ATR at 1.36. The LB stock’s 52-week price range has touched low of $8.00 and a $28.01 high. Intraday shares traded counted 4.9 million, which was 57.4% higher than its 30-day average trading volume of 11.50M. Its shares traded higher over the last trading session, gaining 1.52% on 05/21/20. The shares fell to a low of $13.01 before closing at $14.67. LB’s previous close was $14.45 while the outstanding shares total 276.00M. The firm has a beta of 1.12.
Investors have identified the Apparel Retail company L Brands Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.86 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
L Brands Inc. (LB) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LB, the company has in raw cash 1.5 billion on their books with 539.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3245000000 million total, with 2372000000 million as their total liabilities.
LB were able to record 778.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 86.0 million. In cash movements, the company had a total of 1.24 billion as operating cash flow.
Potential earnings growth for L Brands Inc. (LB)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, L Brands Inc. recorded a total of 4.71 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.1% coming in sequential stages and their sales for the third quarter increasing by 43.12%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.91 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.79 billion. This allows shareholders to hold on to 276.00M with the revenue now reading -0.71 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.71 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.29 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LB sounds very interesting.
Is the stock of LB attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
8 out of 28 analysts covering the stock have rated it a Buy, while 18 have maintained a Hold recommendation on L Brands Inc.. 2 analysts has assigned a Sell rating on the LB stock. The 12-month mean consensus price target for the company’s shares has been set at $16.21.