Spiros Segalas (Trades, Portfolio) purchased a stake in L Brands Inc. (LB, Financial) during the second quarter.
L Brands was founded in 1963 in Columbus, Ohio. The company is an apparel-based specialty retailer to a segment leader focused on women’s intimate and other apparel, personal care and beauty categories. The company owns and operates some of the world's most popular, world-renowned brands that focuses on women's apparel. These brands include Victoria's Secret, PINK, Bath & Body Works, La Senza and Henri Bendel. The company operates its business in 3,038 company-owned specialty stores in the U.S., Canada, the United Kingdom and China, and its brands are sold in more than 700 additional franchised locations worldwide.
L Brands Inc. has a market cap of $19.42 billion, a P/E ratio of 17.37 and an enterprise value of $23.88 billion.
Spiros Segalas (Trades, Portfolio) invests in securities that have over a $1 billion market cap with sales momentum, strong balance sheets and a long track record of high profitability or tremendous future profitability potential.
According to L Brands' most recent first quarter earnings report, the company reported net sales before taxes of $2613.8 million and gross profit of $1.054 billion. This indicates that L Brands has good momentum in 2016.
L Brands has reported solid growth on its financial statements over the previous 10 years. L Brands reported 32.10% growth in free cash flow, 13.10% in operating income growth and an 11.4% growth in its reported EBITDA.
L Brands is also trading below its intrinsic value, which is currently $107.87 according to the DCF calculator, which also likely had an impact on Segalas' decision to purchase a stake in L Brands.
Below is a Peter Lynch Chart for L Brands.
L Brands has gained solid momentum with its first quarter reports. The company has reported solid growth in free cash flow, operating income and EBITDA. It is also trading below its intrinsic value. All of these could have influenced Spiros Segalas (Trades, Portfolio) to purchase a stake in the company during the second quarter.
Cheers to your investment success.
Disclosure: Author does not own any shares of this company.
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