LPP SA
WSE:LPP

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LPP SA
WSE:LPP
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Price: 14 690 PLN 3.45% Market Closed
Market Cap: 27.3B PLN
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Intrinsic Value

The intrinsic value of one LPP stock under the Base Case scenario is 23 725.34 PLN. Compared to the current market price of 14 690 PLN, LPP SA is Undervalued by 38%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

LPP Intrinsic Value
23 725.34 PLN
Undervaluation 38%
Intrinsic Value
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LPP SA

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

LPP SA, a prominent player in the fashion retail sector, has carved out a significant niche in Central and Eastern Europe with its portfolio of beloved brands, including Reserved, Cropp, House, Mohito, and Sinsay. Founded in 1991 in Poland, the company has successfully expanded its footprint across various markets, blending trendy styles with affordability. LPP SA distinguishes itself through a vertically integrated business model that allows for swift responsiveness to fashion trends, efficient manufacturing, and streamlined distribution channels. This approach not only enhances its competitive edge but also allows the company to maintain strong supply chain control, essential in the fast-p...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
LPP SA

Current Assets 7.2B
Cash & Short-Term Investments 2.2B
Receivables 956m
Other Current Assets 4.1B
Non-Current Assets 8.8B
PP&E 7.7B
Intangibles 562m
Other Non-Current Assets 550m
Current Liabilities 8B
Accounts Payable 5.5B
Accrued Liabilities 253m
Other Current Liabilities 2.2B
Non-Current Liabilities 3.8B
Long-Term Debt 3.8B
Other Non-Current Liabilities 43m
Efficiency

Earnings Waterfall
LPP SA

Revenue
18.5B PLN
Cost of Revenue
-8.7B PLN
Gross Profit
9.8B PLN
Operating Expenses
-7.3B PLN
Operating Income
2.5B PLN
Other Expenses
-736.6m PLN
Net Income
1.8B PLN

Free Cash Flow Analysis
LPP SA

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Company's Black Week sales saw double-digit increases with a higher gross margin, benefiting from both offline and online channels, leading to a strong Q3. A new Moihito app launched aims to boost brand loyalty and reduce marketing costs. A logistics center in Romania is operational, providing efficient supply chain support for Southern Europe. Q3 online sales were flat, contributing to overall flat revenue year-over-year. Q4's focus is on profitability, with a guidance for an EBIT margin around 13% and a pledge to maintain a disciplined cost structure. To enhance competitiveness, the company plans to open new stores, particularly for the Sinsay brand, and implement strategies like a purchasing office in Istanbul for better quality collections. The long-term growth target is 15% per annum, with an immediate aim to reach at least PLN 20 billion in revenue next year, a gross margin of 52%-53%, and keeping the cost-to-sales rate below 40%.

What is Earnings Call?
Fundamental Scores

LPP Profitability Score
Profitability Due Diligence

LPP SA's profitability score is 69/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Gross Profit
Exceptional ROE
Exceptional 3-Years Revenue Growth
69/100
Profitability
Score

LPP SA's profitability score is 69/100. The higher the profitability score, the more profitable the company is.

LPP Solvency Score
Solvency Due Diligence

LPP SA's solvency score is 56/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
High Interest Coverage
Low D/E
Long-Term Solvency
56/100
Solvency
Score

LPP SA's solvency score is 56/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LPP Price Targets Summary
LPP SA

Wall Street analysts forecast LPP stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LPP is 19 970.66 PLN with a low forecast of 13 938 PLN and a high forecast of 26 250 PLN.

Lowest
Price Target
13 938 PLN
5% Downside
Average
Price Target
19 970.66 PLN
36% Upside
Highest
Price Target
26 250 PLN
79% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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100
Shareholder Yield

Current shareholder yield for LPP is .

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Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Profile

LPP SA Logo
LPP SA

Country

Poland

Industry

Textiles, Apparel & Luxury Goods

Market Cap

27.3B PLN

Dividend Yield

4.15%

Description

LPP SA engages in the manufacture and distribution of clothing and accessories for men, women and children. The company is headquartered in Gdansk, Woj. Pomorskie and currently employs 23,060 full-time employees. The company went IPO on 2001-05-16. The firm specializes in the design and distribution of clothing, such as sweatshirts, shirts, jumpers, coats, trousers and dresses, as well as underwear, and accessories, such as shoes, gloves, scarves and caps, among others. LPP SA operates through a network of numerous shops in Central and Eastern Europe, as well as in Egypt and Qatar. The company also offers online shopping to its brands, particularly in Poland. The firm owns several brands such as RESERVED, Cropp, House, MOHITO and SiNSAY. The firm operates departments in Gdansk, Cracow, Shanghai and Dhaka. LPP SA operates several national and numerous foreign subsidiaries.

Contact

WOJ. POMORSKIE
Gdansk
ul. Lakowa 39/44
+48587696900.0
www.lppsa.com

IPO

2001-05-16

Employees

23 060

Officers

CEO & President of the Management Board
Mr. Marek Piechocki
Vice President of the Management Board & Financial Controller
Mr. Przemyslaw Lutkiewicz
Vice President of the Management Board
Mr. Marcin Piechocki
Deputy CEO & Vice Chairman of Management Board
Mr. Mikolaj Wezdecki
IR Director
Ms. Magdalena Kopaczewska
Communications Director
Mr. Slawomir Ronkowski
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HR Manager
Mr. Grzegorz Markowicz
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See Also

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What is the Intrinsic Value of one LPP stock?

The intrinsic value of one LPP stock under the Base Case scenario is 23 725.34 PLN.

Is LPP stock undervalued or overvalued?

Compared to the current market price of 14 690 PLN, LPP SA is Undervalued by 38%.

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