Lydall Story

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LDL -- USA Stock  

USD 16.93  0.31  1.87%

Lydall Inc is scheduled to announce its earnings today. Lydall Working Capital is relatively stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 155.76 Million. Interest Coverage is projected to rise to 7.32 this year, although the value of Revenue Per Employee will most likely fall to nearly 237.3 K. As many millenniums are trying to avoid industrials space, it makes sense to summarize Lydall Inc a little further and try to understand its current market patterns.
Published over a month ago
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Should I drop my Lydall (NYSE:LDL) position?
Lydall Inc has 310.5 M in debt with debt to equity (D/E) ratio of 1.22, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lydall has an asset utilization ratio of 228.86 percent. This denotes that the company is making $2.29 for each dollar of assets. An increasing asset utilization means that Lydall Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Lydall financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Lydall, including all of Lydall's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Lydall assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lydall debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Lydall Total Liabilities

Lydall Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Lydall Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Lydall balance sheet include debt obligations and money owed to different Lydall vendors, workers, and loan providers. Below is the chart of Lydall short long-term liabilities accounts currently reported on its balance sheet.
You can use Lydall Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is Lydall's Liquidity

Lydall financial leverage refers to using borrowed capital as a funding source to finance Lydall Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lydall financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lydall's total debt and its cash.

An Additional Perspective On Lydall Inc

The latest price spikes of Lydall Inc may encourage stakeholders to take a closer look at the firm as it closed today at a share price of 15.61 on 157,253 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.9. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Lydall Inc partners.

Asset Breakdown

542 M
Assets Non Current
269.2 M
Goodwill
266.7 M
Current Assets
Total Assets660.15 Million
Current Assets266.74 Million
Assets Non Current542 Million
Goodwill269.19 Million
Tax Assets4.12 Million

Over 3 percent hike for Lydall. What does it mean for stakeholders?

Lydall new market risk adjusted performance upsurges over 0.45. Lydall Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Lydall Inc independently to ensure intended market timing strategies are aligned with expectations about Lydall volatility.

The Bottom Line

While many of the other players within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Lydall may offer a potential longer-term growth to stakeholders. All things considered, as of the 28th of July 2020, our overall 30 days buy-or-sell advice on the company is Hold. We believe Lydall is currently fairly valued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Lydall Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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