Landec Story

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LNDC -- USA Stock  

USD 10.80  0.17  1.55%

Landec Cp is scheduled to announce its earnings today. The next earnings report is expected on the 10th of August 2021. Landec Cp Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 839,122. The current year Invested Capital is expected to grow to about 608.2 M, whereas Net Income Per Employee is forecasted to decline to (55.7 K). As many passive investors are finally getting excited about consumer defensive space, Landec Cp could be a good starting point. I will address a few possible reasons investors do not currently respect this stock.
Published over a week ago
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What is May outlook for Landec (NASDAQ:LNDC)?
The company currently holds 198.83 M in liabilities with Debt to Equity (D/E) ratio of 0.95, which is about average as compared to similar companies. Landec Cp has a current ratio of 0.87, indicating that it has a negative working capital and may not be able to pay financial obligations when due. About 92.0% of the company shares are owned by institutional investors. Landec Cp has price-to-book ratio of 1.54. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity recorded a loss per share of 1.74. The firm had not issued any dividends in recent years.
Landec Cp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Landec Cp, including all of Landec Cp'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 Landec Cp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Landec Cp 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 Landec Total Debt

Landec Cp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Landec Cp 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 Landec Cp balance sheet include debt obligations and money owed to different Landec Cp vendors, workers, and loan providers. Below is the chart of Landec main long-term debt accounts currently reported on its balance sheet.
You can use Landec Cp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Landec Cp's Liquidity

Landec Cp financial leverage refers to using borrowed capital as a funding source to finance Landec Cp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Landec Cp 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 Landec Cp's total debt and its cash.

Purchase by Morberg John D of 2000 shares of Landec Cp

Legal trades by Landec Cp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Landec insider trading alert for perchase of common stock by Morberg John D, Chief Financial Officer, on 16th of April 2021. This event was filed by Landec Corp with SEC on 2021-04-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Landec Cp valued fairly by the market?

The entity reported the previous year's revenue of 575.61 M. Net Loss for the year was (50.97 M) with profit before overhead, payroll, taxes, and interest of 71.99 M.

Liabilities Breakdown

Tax Liabilities
204 M
Current Liabilities
181 M
Long-Term Liabilities
Total Liabilities384.98 Million
Current Liabilities203.97 Million
Long-Term Liabilities181.01 Million
Tax Liabilities20.02 Million

How will Landec investors react to the next slip?

The skewness is down to 0.65 as of today. Landec Cp currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.02. However, we advise investors to further question Landec Cp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Landec Cp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Landec Cp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Landec Cp

Whereas some other firms in the packaged foods industry are either recovering or due for a correction, Landec Cp may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 7th of April 2021, we believe that at this point, Landec Cp is not too volatile with below average odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our primary 30 days 'Buy-vs-Sell' recommendation on the company is Buy.

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 Landec Cp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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