A Chinese flooring scandal has sent shares of this retailer to a buyable level. Earnings are due August 5, and analysts estimate an EPS of $0.06.
Lumber Liquidators Holdings, Inc. (LL)
from Validea Hot List Newsletter
Strategy: P/E/Growth Investor
Based on: Peter Lynch
Guru Score: 91%
Lumber Liquidators Holdings, Inc. (LL) is a retailer of hardwood flooring, and hardwood flooring enhancements and accessories in North America. The Company sells its products primarily to homeowners or to contractors on behalf of homeowners and offers wood flooring under18 brand names, led by Bellawood, a collection of solid and engineered hardwood flooring, bamboo flooring, moldings and accessories. The Company also offers a range of flooring enhancements and installation accessories, including moldings, noise-reducing underlay and tools. As of February 23, 2015, Lumber Liquidators operated around 354 stores located in 46 states of the United States and nine store locations in Canada.
P/E/GROWTH RATIO: [PASS]
The P/E/G ratio for LL (0.50) makes it favorable.
SALES AND P/E RATIO: [PASS]
LL, whose sales are $1,061.1 million, needs to have a P/E below 40 to pass this criterion. LL’s P/E of (13.36) is considered acceptable.
EPS GROWTH RATE: [PASS]
The EPS growth rate for LL is 26.5%, based on the average of the 3, 4 and 5 year historical EPS growth rates, which is acceptable.
TOTAL DEBT/EQUITY RATIO: [PASS]
This methodology would consider the Debt/Equity ratio for LL (0.00%) to be wonderfully low (equity is at least ten times debt). This ratio is one quick way to determine the financial strength of the company.
John Reese, Validea Hot List Newsletter, www.validea.com, 877-439-0506, July 17, 2015