Latest news with #Leslies
Yahoo
12-07-2025
- Business
- Yahoo
Leslie's, SoundHound AI, E.W. Scripps, eHealth, and VF Corp Shares Are Falling, What You Need To Know
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Specialty Retail company Leslie's (NASDAQ:LESL) fell 5.4%. Is now the time to buy Leslie's? Access our full analysis report here, it's free. Automation Software company SoundHound AI (NASDAQ:SOUN) fell 5.6%. Is now the time to buy SoundHound AI? Access our full analysis report here, it's free. Broadcasting company E.W. Scripps (NASDAQ:SSP) fell 7.3%. Is now the time to buy E.W. Scripps? Access our full analysis report here, it's free. Online Marketplace company eHealth (NASDAQ:EHTH) fell 4.7%. Is now the time to buy eHealth? Access our full analysis report here, it's free. Apparel and Accessories company VF Corp (NYSE:VFC) fell 4.1%. Is now the time to buy VF Corp? Access our full analysis report here, it's free. E.W. Scripps's shares are extremely volatile and have had 97 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. E.W. Scripps is up 49.2% since the beginning of the year, but at $3.76 per share, it is still trading 9.4% below its 52-week high of $4.15 from July 2025. Investors who bought $1,000 worth of E.W. Scripps's shares 5 years ago would now be looking at an investment worth $411.38. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
04-07-2025
- Business
- Yahoo
Leslie's, Inc.'s (NASDAQ:LESL) Intrinsic Value Is Potentially 66% Above Its Share Price
Using the 2 Stage Free Cash Flow to Equity, Leslie's fair value estimate is US$0.69 Leslie's is estimated to be 40% undervalued based on current share price of US$0.42 The US$1.37 analyst price target for LESL is 98% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Leslie's, Inc. (NASDAQ:LESL) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$14.0m US$19.0m US$15.6m US$13.8m US$12.8m US$12.2m US$12.0m US$11.9m US$12.0m US$12.1m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -17.88% Est @ -11.64% Est @ -7.26% Est @ -4.20% Est @ -2.06% Est @ -0.56% Est @ 0.49% Est @ 1.23% Present Value ($, Millions) Discounted @ 12% US$12.5 US$15.3 US$11.2 US$8.9 US$7.4 US$6.3 US$5.6 US$5.0 US$4.5 US$4.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$81m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 12%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$12m× (1 + 2.9%) ÷ (12%– 2.9%) = US$144m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$144m÷ ( 1 + 12%)10= US$48m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$129m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$0.4, the company appears quite undervalued at a 40% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Leslie's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12%, which is based on a levered beta of 2.000. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Leslie's Strength No major strengths identified for LESL. Weakness Interest payments on debt are not well covered. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Significant insider buying over the past 3 months. Threat Debt is not well covered by operating cash flow. Total liabilities exceed total assets, which raises the risk of financial distress. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Leslie's, there are three fundamental factors you should look at: Risks: For example, we've discovered 4 warning signs for Leslie's (2 are a bit unpleasant!) that you should be aware of before investing here. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for LESL's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
19-06-2025
- Business
- Yahoo
3 Reasons to Sell LESL and 1 Stock to Buy Instead
What a brutal six months it's been for Leslie's. The stock has dropped 76.9% and now trades at $0.48, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Leslie's, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we're cautious about Leslie's. Here are three reasons why you should be careful with LESL and a stock we'd rather own. Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. Leslie's demand has been shrinking over the last two years as its same-store sales have averaged 8.6% annual declines. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Leslie's full-year EPS turned negative over the last four years. In a mature sector such as consumer retail, we tend to steer our readers away from companies with falling EPS because it could imply changing secular trends and preferences. If the tide turns unexpectedly, Leslie's low margin of safety could leave its stock price susceptible to large downswings. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Leslie's $1.11 billion of debt exceeds the $17.25 million of cash on its balance sheet. Furthermore, its 12× net-debt-to-EBITDA ratio (based on its EBITDA of $87.06 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Leslie's could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Leslie's can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. We cheer for all companies serving everyday consumers, but in the case of Leslie's, we'll be cheering from the sidelines. Following the recent decline, the stock trades at 6.6× forward P/E (or $0.48 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are superior stocks to buy right now. We'd suggest looking at a dominant Aerospace business that has perfected its M&A strategy. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
22-05-2025
- Automotive
- Yahoo
1 Russell 2000 Stock for Long-Term Investors and 2 to Brush Off
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two best left off your watchlist. Market Cap: $145.8 million Named after founder Philip Leslie, who established the company in 1963, Leslie's (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services. Why Are We Out on LESL? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Earnings per share have dipped by 42.7% annually over the past four years, which is concerning because stock prices follow EPS over the long term 12× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings At $0.82 per share, Leslie's trades at 11.2x forward P/E. If you're considering LESL for your portfolio, see our FREE research report to learn more. Market Cap: $1.92 billion Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians. Why Should You Sell UTI? Poor expense management has led to an operating margin of 7.8% that is below the industry average Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.7 percentage points ROIC of 9.2% reflects management's challenges in identifying attractive investment opportunities Universal Technical Institute's stock price of $35.32 implies a valuation ratio of 15.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including UTI in your portfolio, it's free. Market Cap: $1.71 billion Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses. Why Could LZ Be a Winner? Subscription Units are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Free cash flow margin increased by 13.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders LegalZoom is trading at $9.87 per share, or 9.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Leslie's price target lowered to $1.25 from $3 at Telsey Advisory
Telsey Advisory lowered the firm's price target on Leslie's (LESL) to $1.25 from $3 and keeps a Market Perform rating on the shares. While the firm likes to hear of the strategic efforts and messaging delivered by the company's leadership team, the firm believes visibility into trends going into this year are clouded, the analyst tells investors. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on LESL: Disclaimer & DisclosureReport an Issue Leslie's price target lowered to $1 from $4 at Loop Capital Leslie's Hold Rating: Balancing Strategic Initiatives with Immediate Challenges Leslie's, Inc. Reports Q2 2025 Results Amid Challenges Leslie's reports Q2 adjusted EPS (25c), consensus (24c) Leslie's backs FY25 adjusted EPS view (1c)-7c, consensus 3c
