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Lakeland Industries, Inc. – Hosiery and Sock Mills
Lakeland Industries Inc. manufactures and sells a comprehensive line of industrial protective clothing and accessories for the industrial and public protective clothing market. Its products are sold globally by its in-house sales teams, its customer service group, and authorized independent sales representatives to a network of over 1,600 global safety and industrial supply distributors. Its authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, the company supplies federal, state and local governmental agencies and departments, such as fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Securityand the Centers for Disease Control. Internationally, The company sells to a mixture of end users directly, and to industrial distributors depending on the particular country and market. Sales are made to more than 50 countries, the majority of which were into the United States, China, the European Economic Community('EEC'), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguayand Southeast Asia.
Analysis Results
Intrinsic Value $79.79
Latest Price $15.33
Relative Value 81% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 14.5 13.7
2024 17.3 15.4
2025 20.6 17.3
2026 24.5 19.4
2027 29.2 21.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 744 million. This corresponds to a present value of 524 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 87.5 million. Adding in the terminal value gives a total present value of 612 million.

There are presently 7.67 million outstanding shares, so the intrinsic value per share is 79.79.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 120,646,000
Current Cash 52,719,000
Current Liabilities 12,015,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,912,000
Change in NCWC 294,000
EBIT 16,047,000
Tax Provision 4,781,000
Depreciation and Amortization 1,868,000
Capital Expenditure -801,000
Unlevered Free Cash Flow 12,658,374
Current Assets 123,608,000
Current Cash 52,596,000
Current Liabilities 15,394,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,618,000
Change in NCWC 2,201,000
EBIT 43,853,000
Tax Provision 8,774,000
Depreciation and Amortization 1,965,000
Capital Expenditure -1,662,000
Unlevered Free Cash Flow 37,588,398
Current Assets 79,807,000
Current Cash 14,606,000
Current Liabilities 12,939,000
Current Debt 1,155,000
Non-Cash Working Capital (NCWC) 53,417,000
Change in NCWC 954,000
EBIT 5,876,000
Tax Provision 2,472,000
Depreciation and Amortization 1,645,000
Capital Expenditure -1,033,000
Unlevered Free Cash Flow 4,917,148
Current Assets 75,470,000
Current Cash 12,831,000
Current Liabilities 10,334,000
Current Debt 158,000
Non-Cash Working Capital (NCWC) 52,463,000
Change in NCWC 1,761,000
EBIT 3,565,000
Tax Provision 2,022,000
Depreciation and Amortization 965,000
Capital Expenditure -3,103,000
Unlevered Free Cash Flow 1,117,207
Current Assets 76,500,000
Current Cash 15,788,000
Current Liabilities 10,379,000
Current Debt 369,000
Non-Cash Working Capital (NCWC) 50,702,000
Change in NCWC 8,238,000
EBIT 8,477,000
Tax Provision 7,903,000
Depreciation and Amortization 775,000
Capital Expenditure -905,000
Unlevered Free Cash Flow 8,555,067
Current Assets 60,086,000
Current Cash 10,365,000
Current Liabilities 12,325,000
Current Debt 5,068,000
Non-Cash Working Capital (NCWC) 42,464,000
Change in NCWC -6,962,000
EBIT 6,847,000
Tax Provision 2,380,000
Depreciation and Amortization 1,194,000
Capital Expenditure -413,000
Unlevered Free Cash Flow -1,931,777
Current Assets 63,672,000
Current Cash 7,022,000
Current Liabilities 19,958,000
Current Debt 12,734,000
Non-Cash Working Capital (NCWC) 49,426,000
Change in NCWC 4,203,473
EBIT 11,812,000
Tax Provision 3,117,000
Depreciation and Amortization 986,000
Capital Expenditure -840,000
Unlevered Free Cash Flow 12,785,842
Current Assets 66,818,027
Current Cash 6,761,977
Current Liabilities 23,824,311
Current Debt 8,990,788
Non-Cash Working Capital (NCWC) 45,222,527
Change in NCWC -3,778,800
EBIT 4,957,402
Tax Provision -8,337,360
Depreciation and Amortization 1,334,621
Capital Expenditure -904,703
Unlevered Free Cash Flow 1,608,520
Current Assets 65,481,005
Current Cash 4,555,097
Current Liabilities 26,948,550
Current Debt 15,023,969
Non-Cash Working Capital (NCWC) 49,001,327
Change in NCWC 2,980,660
EBIT -359,009
Tax Provision -2,851,391
Depreciation and Amortization 1,606,993
Capital Expenditure -828,894
Unlevered Free Cash Flow 3,399,750
Current Assets 63,871,883
Current Cash 6,736,962
Current Liabilities 27,902,396
Current Debt 16,788,142
Non-Cash Working Capital (NCWC) 46,020,667
Change in NCWC -14,421,319
EBIT -1,030,168
Tax Provision 5,035,765
Depreciation and Amortization 1,550,865
Capital Expenditure -1,384,539
Unlevered Free Cash Flow -15,285,161

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