Lifetime Brands (LCUT) AI Stock Analysis

• Market Cap: $82.22M
• Dividend Yield: 4.57%
• Average Volume (3M): 63.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -0.54%
• EPS Growth: -78.88%
• Country: US
• Employees: 1,180
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.71
• Shares Outstanding: 22,162,880
• 10 Day Avg. Volume: 70,333
• 30 Day Avg. Volume: 63,895
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.18
• Price to Cash Flow (P/CF): 1.50
• P/FCF Ratio: 1.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 61.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Lifetime Brands' overall stock score reflects a balanced view of its current challenges and opportunities. The company struggles with declining revenues and negative margins, which are partially offset by stable cash flows and strategic initiatives. Technical indicators suggest potential for a rebound, while corporate strategies could support long-term growth. However, valuation concerns remain due to the negative P/E ratio, despite a strong dividend yield.

Positive Factors

E-commerce Strategy

The company attributed Q4 performance to the execution of its online sales strategy and incremental ecommerce share gains.

Financial Performance

Lifetime Brands reported strong Q4 results, with sales 5% ahead of consensus, adjusted EBITDA in line, and adjusted EPS well above expectations.

Negative Factors

Profitability Concerns

The international business is not profitable, but overall EBITDA would be boosted by about $10M if management can bring it to profitability.

Sales Decline

Posting material sales declines in 10 out of the last 11 quarters, there is skepticism about a +9% return to growth in Q4.

Lifetime Brands Business Overview & Revenue Model

Company Description

Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally. The company provides kitchenware products, including kitchen tools and gadgets, cutlery, kitchen scales, thermometers, cutting boards, shears, cookware, pantryware, spice racks, and bakeware; and tableware products comprising dinnerware, stemware, flatware, and giftware. It also provides home solutions, such as thermal beverageware, bath scales, weather and outdoor household, food storage, neoprene travel, and home décor products. The company owns or licenses various brands, including Farberware, Mikasa, Taylor, KitchenAid, KitchenCraft, Pfaltzgraff, BUILT NY, Rabbit, Kamenstein, and MasterClass. It serves mass market merchants, specialty stores, commercial stores, department stores, warehouse clubs, grocery stores, off-price retailers, food service distributors, pharmacies, food and beverage outlets, and e-commerce. The company sells its products directly, as well as through its own websites. Lifetime Brands, Inc. was founded in 1945 and is headquartered in Garden City, New York.

How the Company Makes Money

Lifetime Brands makes money primarily through the sale of its products to retailers, distributors, and directly to consumers via e-commerce platforms. The company's revenue streams include sales from kitchenware, tableware, and other home products across multiple distribution channels, including department stores, mass merchants, specialty retailers, and online platforms. Key revenue drivers include innovative product designs, brand recognition, and strategic partnerships with retailers and licensors. Additionally, the company may engage in licensing agreements, allowing other companies to produce and sell products under Lifetime Brands' popular trademarks, providing a supplementary income stream.

Lifetime Brands Financial Statement Overview

Summary

Lifetime Brands faces challenges with declining revenue and negative profitability margins, impacting investor confidence. Stable balance sheet with moderate leverage; however, negative return on equity is concerning. Cash flow generation is strong, but declining free cash flow growth is a potential risk.

Income Statement

Lifetime Brands has experienced declining revenue and profit margins over recent years. The gross profit margin for 2024 is approximately 38.17%, which shows stability in cost management. However, the net profit margin is negative at -2.22%, indicating ongoing profitability challenges. Revenue growth is negative, which might concern investors looking for growth prospects.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of approximately 0.33, suggesting a balanced capital structure for 2024. The equity ratio is around 36.24%, reflecting a stable financial position. However, the return on equity is negative due to net losses, highlighting challenges in generating returns for shareholders.

Cash Flow

Lifetime Brands shows a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is also positive, suggesting operational cash flow strength. Despite these strengths, declining free cash flow growth raises concerns about future cash sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
682.95M	686.68M	727.66M	862.92M	769.17M
	Gross Profit
260.70M	254.64M	260.32M	303.32M	274.00M
	EBIT
27.08M	31.94M	24.26M	50.84M	45.28M
	EBITDA
34.78M	51.77M	43.93M	71.77M	48.34M
	Net Income Common Stockholders
-15.16M	-8.41M	3.30M	20.80M	-4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.93M	16.19M	23.60M	27.98M	35.96M
	Total Assets
634.31M	667.14M	725.89M	829.07M	807.48M
	Total Debt
76.78M	285.06M	343.73M	351.08M	397.77M
	Net Debt
73.85M	268.87M	320.13M	323.10M	361.81M
	Total Liabilities
404.39M	436.26M	485.80M	573.43M	577.35M
	Stockholders Equity
229.92M	230.88M	240.09M	255.65M	230.14M
Cash Flow		Free Cash Flow
16.34M	53.63M	21.34M	33.00M	42.73M
	Operating Cash Flow
18.57M	56.43M	24.32M	36.99M	44.81M
	Investing Cash Flow
-2.23M	-2.80M	-20.93M	-1.10M	-2.08M
	Financing Cash Flow
-29.49M	-61.06M	-7.62M	-44.03M	-18.24M

Lifetime Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCUT, the sentiment is Negative. The current price of 3.71 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.78, and below the 200-day MA of 6.01, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 26.36 is Positive, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCUT.

Lifetime Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRWS	67 Neutral	$31.60M	12.90	4.76%	10.85%	-0.07%	-49.06%
KEQU	61 Neutral	$91.91M	5.74	33.52%	―	9.44%	102.67%
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%
BSET	56 Neutral	$153.89M	―	-3.83%	4.36%	-11.78%	-13.89%
LCUT	52 Neutral	$82.22M	―	-6.58%	4.57%	-0.54%	-78.88%
HOFT	48 Neutral	$90.93M	―	-5.89%	10.26%	-8.26%	-233.72%
SNBR	44 Neutral	$148.88M	―	9.10%	―	-10.87%	-33.24%

Lifetime Brands Corporate Events

Lifetime Brands Announces New Distribution Center Move

On January 23, 2025, Lifetime Brands, Inc. entered into a lease agreement for a new 1.027 million-square-foot distribution center in Hagerstown, Maryland, to serve as its primary east coast distribution hub, replacing the Robbinsville, New Jersey facility. This strategic relocation aims to support Lifetime’s long-term growth by optimizing infrastructure and operational efficiencies, aided by tax abatements and incentives totaling approximately $13 million from Maryland and Washington County, and integrating a new warehouse management system. The move, expected to be completed by the second quarter of 2026, includes incurring one-time costs up to $7 million and capital expenditures of around $10 million, with anticipated operational readiness by 2026.