Landec Corp. relative valuation is UNDERVALUED and it has a fundamental analysis score of 50.
Our analysis is based on comparing Landec Corp. with the following peers – E. I. du Pont de Nemours and Company, PolyOne Corporation, Westlake Chemical Corporation, Huntsman Corporation, Pinnacle Foods, Inc., J. M. Smucker Company, Kraft Heinz Company, General Mills, Inc., Air Products and Chemicals, Inc. and Campbell Soup Company (DD-US, POL-US, WLK-US, HUN-US, PF-US, SJM-US, KHC-US, GIS-US, APD-US and CPB-US).
Landec Corp. has shown good performance overall, both over the last one year (at 27.93%) as well as over the last month (at 1.95%). Share price performance over the last month, though has been lower than that over the last year. But Landec Corp.’s stock has done better than its overall peer group whose performance was -0.67% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It trades at a lower Price/Book multiple (1.59) than its peer median (3.80).
- The market expects faster earnings growth from LNDC-US than from its peers and also a turnaround in its current ROE.
- LNDC-US has relatively low net profit margins while its asset efficiency is relatively high.
- Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
- LNDC-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
- Compared with the peers chosen, LNDC-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
- LNDC-US has the financial and operating capacity to borrow quickly.
- Our analysis rates Landec Corp. as UNDERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
LNDC-US‘s share price performance of 27.93% over the last 12 months is above peer median of 17.19%. The 30-day trend in its share price performance of 1.95% is also above the peer median of -0.67% suggesting that this company is a leading performer relative to its peers.
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Landec Corp.’s price of USD 13.10 is lower than CapitalCube’s implied price of USD 18.84. CapitalCube believes that at these levels, Landec Corp. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 9.85 and USD 15.50.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Landec Corp. engages in designing, developing, manufacturing, and selling of products for food and biomaterials markets and license technology applications. It operates through the following segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. The Packaged Fresh Vegetables segment includes marketing and packing specialty packaged whole and fresh-cut fruit and vegetables. The Food Export segment consists of sale of whole commodity fruit and vegetable product. The Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is distributed in the extracellular matrix of connective tissues in both animals and humans. The company was founded by Ray Stewart on October 31, 1986 and is headquartered in Menlo Park, CA.
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