Aluminum Bakeware

Lifetime Brands: Great Cookware Brands At A P/E Of 7

31.12.69

Lifetime Brands ( LCUT ) sells branded kitchenware and table top products. Of 2012 consolidated revenue, 76% was attributable to kitchenware such as cutlery, cutting boards and bakeware. And in the $3.0 billion tabletop industry, Lifetime Brands is the current market leader. In cutlery, cutting boards and shears -- a segment occupied by Lifetime Brands since 1945 -- the company holds the #1 market position.

The company's industry is, in theory, one, which has been around since time immemorial. Further, the corporation has operating proficiently for most of the past decade -- except, of course, for the pothole in 2009:

On the far right we can see net income of $20.95m. Against the current market capitalization of $145m, that works out to a yield of 14.4% or a P/E of 7. Of course, the most recent earnings are above the average so we will have to decipher whether it is the past average or the most recent figures, which are best to use in estimating earning power going forward. On top of this earning power, we are looking at a corporation with tangible book of around $114m, which, being made up of investments, inventory and AR, provides a bit of a floor to the stock.

Source: Seeking Alpha