Leslies Inc (LESL, Financial) has recently experienced a notable surge in its stock price, capturing the attention of investors and market analysts alike. Over the past week, the company's stock has seen a significant 22.10% gain, while the past three months have witnessed an 18.82% increase. This performance is particularly striking when considering the company's current market capitalization of $1.22 billion and its current stock price of $6.63.
When assessing the stock's valuation, the GF Value stands at $20.96, a stark contrast to the past GF Value of $22.15. This indicates that Leslies Inc is currently significantly undervalued, a shift from the previous assessment of a possible value trap. Such a valuation suggests that the stock may present a compelling opportunity for investors seeking undervalued assets.
Leslies Inc: A Leader in Pool and Spa Care
Leslies Inc operates within the retail - cyclical industry, specializing as a direct-to-consumer pool and spa care brand. The company boasts a comprehensive product range that includes chemicals, equipment, cleaning and maintenance tools, and various safety and recreational items. Leslies Inc serves a diverse customer base, including residential pool and spa owners, professional pool service providers, and commercial pool operators, exclusively within the United States. The company's focused business model and extensive product offerings have positioned it as a key player in its sector.
Assessing Profitability
Leslies Inc's financial health is reflected in its Profitability Rank of 7/10, indicating a strong position relative to its industry peers. The company's operating margin of 7.04% is better than 67.6% of its competitors, showcasing efficient management and robust operational performance. Furthermore, Leslies Inc's return on equity (ROE) is reported at an exceptional 10000.00%, surpassing 99.91% of industry peers, although this figure suggests a potential data anomaly or an extraordinary event that may require further investigation. The return on assets (ROA) stands at 2.47%, and the return on invested capital (ROIC) is at 8.69%, both of which are commendable figures that highlight the company's ability to generate profits from its assets and investments.
Growth Trajectory
The company's Growth Rank is also impressive at 7/10. Leslies Inc has demonstrated a solid 3-Year Revenue Growth Rate per Share of 9.60%, outperforming 66.7% of its industry counterparts. The 5-Year Revenue Growth Rate per Share is even more robust at 12.80%, surpassing 78.63% of competitors. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is a modest 0.97%, which still manages to exceed the performance of 21.9% of industry peers. The 3-Year EPS without NRI Growth Rate shows a decline of -12.60%, but the 5-Year EPS without NRI Growth Rate has soared to 47.90%, indicating a strong long-term earnings trajectory.
Key Shareholders
Leslies Inc's shareholder base includes notable investors such as John Rogers (Trades, Portfolio), who holds a significant 13.58% share percentage with 24,987,417 shares. PRIMECAP Management (Trades, Portfolio) and HOTCHKIS & WILEY are also among the top holders, with 0.53% and 0.52% share percentages, respectively. These major stakeholders' commitment to the company underscores confidence in its strategic direction and future prospects.
Competitive Landscape
In comparison to its competitors, Leslies Inc holds its own within the retail - cyclical industry. Olaplex Holdings Inc (OLPX, Financial) has a larger market cap of $1.7 billion, while Petco Health and Wellness Co Inc (WOOF, Financial) and ARKO Corp (ARKO, Financial) have market caps of $872.588 million and $923.961 million, respectively. Leslies Inc's recent stock performance and valuation suggest that it is well-positioned to compete effectively in the market.
Conclusion
In summary, Leslies Inc's recent stock performance has been remarkable, with significant gains over the past week and three months. The company's current valuation indicates that it is significantly undervalued, presenting a potentially attractive investment opportunity. Leslies Inc's profitability and growth metrics are strong, particularly in comparison to industry peers. The company's significant shareholders demonstrate a vested interest in its success, and its competitive positioning within the industry is solid. As investors continue to monitor Leslies Inc, its recent momentum and underlying financial health suggest that it may continue to be a noteworthy player in the retail - cyclical sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
