Last Updated: 18 Sep 2024
Executive Summary
Lakeland Industries Inc. (LAKE) is a manufacturer and seller of industrial protective clothing and accessories. The company has a market capitalization of $151.85 million and trades on the NASDAQ exchange. The latest stock price is $20.02. Lakeland has a trailing price-to-earnings (PE) ratio of 78.5, a forward PE of 21.37, and a price-to-sales ratio of 1.103. The company's financial performance has been mixed in recent quarters, with revenue growth slowing and profitability declining. However, analysts are generally positive on the stock, with two buy ratings and no sell ratings.
Company Overview
Lakeland Industries was founded in 1954 and is headquartered in Decatur, Alabama. The company manufactures and sells a wide range of industrial protective clothing and accessories, including gloves, coveralls, aprons, and respirators. Lakeland's products are used in a variety of industries, including manufacturing, construction, healthcare, and food processing.
Fundamental Analysis
Lakeland's financial performance has been mixed in recent quarters. Revenue growth has slowed, and profitability has declined. In the most recent quarter, the company reported revenue of $137.7 million, up 16.5% year-over-year. However, net income declined by 22.2% to $1.8 million. The company's gross margin also declined, from 38.4% to 37.0%.
Lakeland's financial ratios are also mixed. The company has a high trailing PE ratio of 78.5, but a forward PE of 21.37. The company's price-to-sales ratio is 1.103, which is in line with the industry average. Lakeland's return on assets (ROA) and return on equity (ROE) are both below the industry average.
Technical Analysis
Lakeland's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for Lakeland is mixed. The company's financial performance has been weak in recent quarters, and the stock price has been trending lower. However, the stock is oversold, and there is potential for a rebound in the near term.
Long Term Outlook
The long-term outlook for Lakeland is more positive. The company is a leader in the industrial protective clothing market, and there is a growing demand for its products. Lakeland is also well-positioned to benefit from the increasing demand for personal protective equipment (PPE).
Analyst Recommendations
Analysts are generally positive on Lakeland stock. Two analysts have buy ratings on the stock, and no analysts have sell ratings. The average analyst target price is $27, which represents a potential upside of 35% from the current price.
