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If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry. Lumber Liquidators Holdings, Inc. operates in a very competitive Home Improvement Stores industry. This competition does take toll on the overall long term profitability of the organization. Lumber Liquidators Holdings, Inc. is one of the leading firms in the Home Improvement Stores. Over the years Lumber Liquidators Holdings, Inc. has redefined the ways of doing business in Services. Lumber Liquidators Holdings, Inc. is listed at New York Stock Exchange (NYSE) and have a market cap 707.98M USD.

You don’t drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Lumber Liquidators Holdings’s future profits. Over the last three years, Lumber Liquidators Holdings has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don’t think the percent growth rate is particularly meaningful. Like a firecracker arcing through the night sky, Lumber Liquidators Holdings’s EPS shot from US$1.12 to US$2.38, over the last year. But ultimately it is the future, not the past, that will determine how well the owners of this business will do.

What Is The Ownership Structure Like For Lumber Liquidators Holdings, Inc. (NYSE:LL)?

There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Lumber Liquidators Holdings is not a large company by global standards. It has a market capitalization of US$566m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Lumber Liquidators Holdings. Lumber Liquidators markets hardwood, laminate flooring, bamboo flooring, cork flooring and resilient vinyl flooring.

• Al. found that it is ‘quite common’ for investors to lose money by buying into ‘pump and dump’ schemes.
• By understanding the Porter Five Forces in great detail Lumber Liquidators Holdings, Inc. ‘s managers can shape those forces in their favor.
• Its products include foreign and domestic hardwood species, engineered hardwood, laminate, resilient vinyl, bamboo, and cork flooring.
• Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition.

The good news, alongside the insider buying, for Lumber Liquidators Holdings bulls is that insiders (collectively) have a meaningful investment in the stock. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 2.9% of the company, the value of that investment is enough to show Blue chip stock list insiders have plenty riding on the venture. LL has built up its total debt levels in the last twelve months, from US$20.00M to US$40.00M – this includes both the current and long-term debt. With this growth in debt, LL currently has US$10.27M remaining in cash and short-term investments , ready to deploy into the business.

Strategic Management Essays, Term Papers & Presentations

While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run. The company was formerly known as Lumber Liquidators Holdings, Inc. and changed its name to LL Flooring Holdings, Inc. in January 2022.

• Note that our analysis does not factor in the latest price sensitive company announcements.
• This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Lumber Liquidators Holdings deserves timely attention.
• We note that hedge funds don’t have a meaningful investment in Lumber Liquidators Holdings.

Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. Porter Five Forces focuses on – how Lumber Liquidators Holdings, Inc. can build a sustainable competitive advantage in Home Improvement Stores industry. Institutional investors commonly compare their own https://investmentsanalysis.info/ returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Lumber Liquidators also provides tips, and advisory and installation services. Overall market sentiment has been high on Lumber Liquidators Holdings Inc (LL) stock lately.

Lumber Liquidators Holdings, Inc. Porter Five ( Forces Analysis for Services Industry

Meanwhile, the second and third largest shareholders, hold 13% and 7.5%, of the shares outstanding, respectively. The company also offers its products through stores, digital platform, and catalogs. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company’s growth. Lumber Liquidators Holdings shareholders can take confidence from the fact that EBIT margins are up from 3.5% to 7.0%, and revenue is growing. Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors.

Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

All most all the companies in the Home Improvement Stores industry buy their raw material from numerous suppliers. Suppliers in dominant position can decrease the margins Lumber Liquidators Holdings, Inc. can earn in the market. Powerful suppliers in Services sector use their negotiating power to extract higher prices from the firms in Home Improvement Stores field. The overall impact of higher supplier bargaining power is that it lowers the overall profitability of Home Improvement Stores.

What Does The Institutional Ownership Tell Us About Lumber Liquidators Holdings?

It primarily targets do-it-yourself (DIY), do-it-for-me (DIFM), and commercial customers. Lumber Liquidators Holdings already has institutions on the share registry. This can indicate that the company has a certain degree of credibility in the investment community.

Lumber Liquidators Holdings’s earnings per share have taken off like a rocket aimed right at the moon. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Lumber Liquidators Holdings deserves timely attention. Case in point, we’ve spotted 2 warning signs for Lumber Liquidators Holdings you should be aware of, and 1 of them shouldn’t be ignored. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy.

Lumber Liquidators Holdings Shareholder

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.

The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry. They want to buy the best offerings available by paying the minimum price as possible. This put pressure on Lumber Liquidators Holdings, Inc. profitability in the long run. The smaller and more powerful the customer base is of Lumber Liquidators Holdings, Inc. the higher the bargaining power of the customers and higher their ability to seek increasing discounts and offers. Lumber Liquidators Holdings, Inc. has to manage all these challenges and build effective barriers to safeguard its competitive edge.

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LL Flooring is one of the country’s leading specialty retailers of hard-surface flooring with more than 420 stores nationwide. The Company seeks to offer the best customer experience online and in stores, with more than 500 varieties of hard-surface floors featuring a range of quality styles and on-trend designs. LL Flooring’s online tools also help empower customers to find the right solution for the space they’ve envisioned. LL Flooring stores are staffed with flooring experts who provide advice, Pro partnership services and installation options for all of LL Flooring’s products, the majority of which is in stock and ready for delivery. Lumber Liquidators Holdings Inc is a United States-based specialty retailer of hardwood flooring in North America.