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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.25
LO's Cash to Debt is ranked higher than
76% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 0.25 vs. LO: 0.25 )
LO' s 10-Year Cash to Debt Range
Min: 0.25   Max: No Debt
Current: 0.25

Equity to Asset -0.77
LO's Equity to Asset is ranked higher than
61% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 0.20 vs. LO: -0.77 )
LO' s 10-Year Equity to Asset Range
Min: -0.77   Max: 0.48
Current: -0.77

-0.77
0.48
Interest Coverage 11.94
LO's Interest Coverage is ranked higher than
76% of the 34 Companies
in the Global Tobacco industry.

( Industry Median: 11.94 vs. LO: 11.94 )
LO' s 10-Year Interest Coverage Range
Min: 11.94   Max: 9999.99
Current: 11.94

11.94
9999.99
F-Score: 3
Z-Score: 6.49
M-Score: -2.11
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 29.55
LO's Operating margin (%) is ranked higher than
80% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 30.57 vs. LO: 29.55 )
LO' s 10-Year Operating margin (%) Range
Min: 27.73   Max: 33.66
Current: 29.55

27.73
33.66
Net-margin (%) 16.98
LO's Net-margin (%) is ranked higher than
76% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 19.97 vs. LO: 16.98 )
LO' s 10-Year Net-margin (%) Range
Min: 16.59   Max: 22.63
Current: 16.98

16.59
22.63
ROA (%) 33.37
LO's ROA (%) is ranked higher than
95% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 14.52 vs. LO: 33.37 )
LO' s 10-Year ROA (%) Range
Min: 22.11   Max: 38.22
Current: 33.37

22.11
38.22
ROC (Joel Greenblatt) (%) 650.00
LO's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 41 Companies
in the Global Tobacco industry.

( Industry Median: 168.06 vs. LO: 650.00 )
LO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 119.29   Max: 722.14
Current: 650

119.29
722.14
Revenue Growth (%) 12.60
LO's Revenue Growth (%) is ranked higher than
97% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 2.40 vs. LO: 12.60 )
LO' s 10-Year Revenue Growth (%) Range
Min: 4.9   Max: 23.9
Current: 12.6

4.9
23.9
EBITDA Growth (%) 13.40
LO's EBITDA Growth (%) is ranked higher than
95% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 6.20 vs. LO: 13.40 )
LO' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 17.6
Current: 13.4

0
17.6
EPS Growth (%) 11.80
LO's EPS Growth (%) is ranked higher than
92% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 6.50 vs. LO: 11.80 )
LO' s 10-Year EPS Growth (%) Range
Min: 6.7   Max: 15.8
Current: 11.8

6.7
15.8
» LO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

LO Guru Trades in Q3 2013

Sarah Ketterer 432,400 sh (New)
Wintergreen Fund 202,014 sh (New)
David Winters 237,590 sh (New)
Pioneer Investments 38,379 sh (+134.26%)
Joel Greenblatt 392,020 sh (+29.18%)
James Barrow 2,727,748 sh (+2.09%)
Manning & Napier Advisors, Inc 63,273 sh (+0.67%)
Ken Heebner Sold Out
Steven Cohen Sold Out
Paul Tudor Jones 7,500 sh (-28.57%)
Ray Dalio 91,261 sh (-35.79%)
Jean-Marie Eveillard 7,203,461 sh (-38.04%)
Jeremy Grantham 4,306,660 sh (-39.47%)
Jim Simons 1,687,800 sh (-54.74%)
David Dreman 1,336 sh (-97.39%)
» More
Q4 2013

LO Guru Trades in Q4 2013

Steven Cohen 40,231 sh (New)
Ken Heebner 565,000 sh (New)
Paul Tudor Jones 9,700 sh (+29.33%)
Sarah Ketterer 515,000 sh (+19.1%)
Joel Greenblatt 428,435 sh (+9.29%)
James Barrow 2,804,202 sh (+2.8%)
Wintergreen Fund Sold Out
David Winters Sold Out
Pioneer Investments 38,100 sh (-0.73%)
Jeremy Grantham 3,257,512 sh (-24.36%)
Jean-Marie Eveillard 4,631,935 sh (-35.7%)
Manning & Napier Advisors, Inc 40,455 sh (-36.06%)
Ray Dalio 54,261 sh (-40.54%)
Jim Simons 503,700 sh (-70.16%)
David Dreman 370 sh (-72.31%)
» More
Q1 2014

LO Guru Trades in Q1 2014

Eric Mindich 506,779 sh (New)
Pioneer Investments 195,312 sh (+412.63%)
David Dreman 1,689 sh (+356.49%)
James Barrow 3,108,602 sh (+10.86%)
Manning & Napier Advisors, Inc 42,260 sh (+4.46%)
David Einhorn 1,200,800 sh (unchged)
Ray Dalio Sold Out
Ken Heebner Sold Out
Jim Simons Sold Out
Paul Tudor Jones Sold Out
Jean-Marie Eveillard Sold Out
Sarah Ketterer 501,200 sh (-2.68%)
Steven Cohen 29,408 sh (-26.9%)
Joel Greenblatt 273,363 sh (-36.19%)
Jeremy Grantham 1,853,478 sh (-43.1%)
» More
Q2 2014

LO Guru Trades in Q2 2014

Louis Moore Bacon 1,000 sh (New)
Chuck Royce 1,600 sh (New)
Paul Tudor Jones 27,332 sh (New)
Caxton Associates 5,000 sh (New)
Jim Simons 78,000 sh (New)
RS Investment Management 94,300 sh (New)
Pioneer Investments 3,817,492 sh (+1854.56%)
Eric Mindich 669,317 sh (+32.07%)
Manning & Napier Advisors, Inc 48,874 sh (+15.65%)
Sarah Ketterer 543,700 sh (+8.48%)
David Dreman 1,793 sh (+6.16%)
James Barrow 3,138,002 sh (+0.95%)
Louis Moore Bacon 35,000 sh (unchged)
Joel Greenblatt 129,801 sh (-52.52%)
Jeremy Grantham 203,123 sh (-89.04%)
» More
» Details

Insider Trades

Latest Guru Trades with LO

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Reduce -52.52%0.12%$52.24 - $65.18 $ 59.522%129801
Jean-Marie Eveillard 2014-03-31 Sold Out 0.64%$47.31 - $55.26 $ 59.5218%0
Joel Greenblatt 2014-03-31 Reduce -36.19%0.19%$47.31 - $55.26 $ 59.5218%273363
Ray Dalio 2014-03-31 Sold Out 0.02%$47.31 - $55.26 $ 59.5218%0
David Dreman 2014-03-31 Add 356.49%0.01%$47.31 - $55.26 $ 59.5218%1689
Jean-Marie Eveillard 2013-12-31 Reduce -35.7%0.34%$44.18 - $53 $ 59.5219%4631935
Ray Dalio 2013-12-31 Reduce -40.54%0.01%$44.18 - $53 $ 59.5219%54261
David Dreman 2013-12-31 Reduce -72.31%$44.18 - $53 $ 59.5219%370
Jean-Marie Eveillard 2013-09-30 Reduce -38.04%0.61%$41.86 - $46.53 $ 59.5235%7203461
Joel Greenblatt 2013-09-30 Add 29.18%0.13%$41.86 - $46.53 $ 59.5235%392020
David Dreman 2013-09-30 Reduce -97.39%0.06%$41.86 - $46.53 $ 59.5235%1336
Ray Dalio 2013-09-30 Reduce -35.79%0.02%$41.86 - $46.53 $ 59.5235%91261
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Lorillard Inc

Columbia Management Comments on Lorillard - Oct 26, 2012

Lorillard (LO) is a producer of cigarettes for both the premium and discount segments of the domestic cigarette industry. Lorillard shares declined due to concerns about excess inventory in the channel and consecutive quarters of being unable to raise prices.

From Columbia Large Cap Fund third quarter commentary.


Check out Columbia Management latest stock trades

Top Ranked Articles about Lorillard Inc

Tobacco Giant Lorillard Declares Dividend
Smoking has been declining in the United States for years, but one-fifth of the world’s population continues to smoke cigarettes, reports the American Cancer Society’s Tobacco Atlas, which has led to a 13% overall increase in cigarette consumption in the last decade. Read more...
GuruFocus Reports Top Five Dividend Growers of the Week
During the past week, GuruFocus recognized five companies as dividend growers. In order to be qualified for this list, the company had to: Read more...
Lorillard and Others Reported as GuruFocus Dividend Growers of the Week
During the past week, GuruFocus recognized five companies as dividend growers. In order to be qualified for this list, the company had to: Read more...
First Eagle Investment Management Sells Out Auto Makers, Reduces BRK.B, LO
The stock picks by Jean-Marie Eveillard’s First Eagle Investment Management over the past 12 months have an average 12-month return of 60.79%. As of the third quarter, the portfolio lists 361 stocks, 62 of them new, and a total value at $34.43 billion, with a quarter-over-quarter turnover of 12%. The portfolio is weighted with top three sectors: basic materials at 19%, technology at 15.2% and financial services at 13.9%. Read more...
CenturyLink and Lorillard Top GuruFocus Dividend Growers
During the past week, GuruFocus recognized six companies as dividend growers. In order to be qualified for this list, the company had to: Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 19.50
LO's P/E(ttm) is ranked higher than
81% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 19.40 vs. LO: 19.50 )
LO' s 10-Year P/E(ttm) Range
Min: 6.97   Max: 21.8
Current: 19.5

6.97
21.8
P/S 3.10
LO's P/S is ranked higher than
67% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 3.70 vs. LO: 3.10 )
LO' s 10-Year P/S Range
Min: 1.02   Max: 3.99
Current: 3.1

1.02
3.99
PFCF 21.10
LO's PFCF is ranked higher than
62% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 19.30 vs. LO: 21.10 )
LO' s 10-Year PFCF Range
Min: 6.59   Max: 23.58
Current: 21.1

6.59
23.58
EV-to-EBIT 12.35
LO's EV-to-EBIT is ranked higher than
83% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 13.42 vs. LO: 12.35 )
LO' s 10-Year EV-to-EBIT Range
Min: 5.7   Max: 42.5
Current: 12.35

5.7
42.5
PEG 1.33
LO's PEG is ranked higher than
95% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 2.63 vs. LO: 1.33 )
LO' s 10-Year PEG Range
Min: 0.05   Max: 1.57
Current: 1.33

0.05
1.57
Shiller P/E 21.80
LO's Shiller P/E is ranked higher than
71% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 21.70 vs. LO: 21.80 )
LO' s 10-Year Shiller P/E Range
Min: 13.52   Max: 24.36
Current: 21.8

13.52
24.36
Current Ratio 1.78
LO's Current Ratio is ranked higher than
81% of the 31 Companies
in the Global Tobacco industry.

( Industry Median: 1.32 vs. LO: 1.78 )
LO' s 10-Year Current Ratio Range
Min: 1.4   Max: 2.55
Current: 1.78

1.4
2.55
Quick Ratio 1.37
LO's Quick Ratio is ranked higher than
87% of the 31 Companies
in the Global Tobacco industry.

( Industry Median: 0.72 vs. LO: 1.37 )
LO' s 10-Year Quick Ratio Range
Min: 1.16   Max: 2.25
Current: 1.37

1.16
2.25

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.00
LO's Dividend Yield is ranked lower than
62% of the 39 Companies
in the Global Tobacco industry.

( Industry Median: 4.10 vs. LO: 4.00 )
LO' s 10-Year Dividend Yield Range
Min: 1.19   Max: 5.85
Current: 4

1.19
5.85
Dividend Payout 0.77
LO's Dividend Payout is ranked higher than
74% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 0.77 vs. LO: 0.77 )
LO' s 10-Year Dividend Payout Range
Min: 0.54   Max: 0.91
Current: 0.77

0.54
0.91
Dividend growth (3y) 15.80
LO's Dividend growth (3y) is ranked higher than
92% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 12.70 vs. LO: 15.80 )
LO' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 41.4
Current: 15.8

0
41.4
Yield on cost (5-Year) 8.29
LO's Yield on cost (5-Year) is ranked higher than
77% of the 39 Companies
in the Global Tobacco industry.

( Industry Median: 7.02 vs. LO: 8.29 )
LO' s 10-Year Yield on cost (5-Year) Range
Min: 2.47   Max: 12.13
Current: 8.29

2.47
12.13
Share Buyback Rate 6.40
LO's Share Buyback Rate is ranked higher than
97% of the 33 Companies
in the Global Tobacco industry.

( Industry Median: 1.70 vs. LO: 6.40 )
LO' s 10-Year Share Buyback Rate Range
Min: 7.6   Max: 0
Current: 6.4

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.70
LO's Price/DCF (Projected) is ranked higher than
83% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 1.74 vs. LO: 1.70 )
LO' s 10-Year Price/DCF (Projected) Range
Min: 1.06   Max: 1.79
Current: 1.7

1.06
1.79
Price/Median PS Value 1.20
LO's Price/Median PS Value is ranked higher than
74% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 1.14 vs. LO: 1.20 )
LO' s 10-Year Price/Median PS Value Range
Min: 0.43   Max: 1.51
Current: 1.2

0.43
1.51
Price/Peter Lynch Fair Value 1.40
LO's Price/Peter Lynch Fair Value is ranked higher than
98% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 2.36 vs. LO: 1.40 )
LO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.48   Max: 1.46
Current: 1.4

0.48
1.46
Earnings Yield (Greenblatt) 8.10
LO's Earnings Yield (Greenblatt) is ranked higher than
80% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 7.80 vs. LO: 8.10 )
LO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.4   Max: 17.5
Current: 8.1

2.4
17.5
Forward Rate of Return (Yacktman) 16.83
LO's Forward Rate of Return (Yacktman) is ranked higher than
97% of the 37 Companies
in the Global Tobacco industry.

( Industry Median: 12.24 vs. LO: 16.83 )
LO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.9   Max: 240.3
Current: 16.83

4.9
240.3

Business Description

Industry: Tobacco Products » Tobacco
Compare: » details
Traded in other countries:LLV.Germany
Lorillard, Inc. through its subsidiaries is engaged in the manufacture and sale of cigarettes. Its principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold with substantially all of its sales in the United States of America. The Company manufactures all of its products at its Greensboro, North Carolina facility. It produces cigarettes for both the premium and discount segments of the domestic cigarette market. The predominant form of promotion in the industry and for the Company consists of retail price reduction programs, such as discounting or lowering the price of a pack or carton of cigarettes in the retail store, and free pack with purchase promotions. These programs are developed, implemented and executed by its sales force through merchandising or promotional agreements with retail chain accounts and independent retailers. The Company focuses its retail programs in markets and stores reflecting unique potential for increased menthol sales. In the Company's production of cigarettes, it uses domestic and foreign grown burley and flue-cured leaf tobaccos, as well as aromatic tobaccos grown mainly in Turkey and other Near Eastern countries. It sells its products mainly to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the U.S. Armed Forces. The Company's principal competitors are the two other major U.S. cigarette manufacturers, Philip Morris USA Inc. (Philip Morris), a subsidiary of Altria Group, Inc., and R.J. Reynolds Tobacco Company (RJR Tobacco), a subsidiary of RAI. It also competes with numerous other smaller manufacturers and importers of cigarettes. It owns the patents, trade secrets, know-how and trademarks, including its brand names and the distinctive packaging and displays, used by the Company in its business. The Company's business operations are subject to a variety of federal, state and local laws and regulations governing, among other things, publication of health warnings on cigarette packaging, advertising and sales of tobacco products, restrictions on smoking in public places and fire safety standards.
» More Articles for LO

Headlines

Articles On GuruFocus.com
3 Cigarette Stocks Positioned for Growth in New Markets Aug 27 2014 
Income Investors May Find Lorillard's Dividend Yield Very Attractive Aug 22 2014 
Tobacco Giant Lorillard Declares Dividend Aug 18 2014 
How to Benefit from E-Cigarettes Jul 23 2014 
This Tobacco Stock Looks Attractive Enough Jul 23 2014 
Lorillard is a Bad Deal for Reynolds American Investors Jul 15 2014 
Lorillard is Smoking up Higher Jul 09 2014 
Lorillard Is a Solid Long-Term Pick Jun 29 2014 
Three Cigarette Stocks Positioned for Growth in New Markets Jun 25 2014 
Philip Morris Is a Leading Tobacco Maker in an Incredible Profitable Industry Jun 14 2014 

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Business Highlights Sep 02 2014
Reynolds-Lorillard Merger Delayed; Review Period Extended Sep 02 2014
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Reynolds American And Lorillard Receive Requests For Additional Information From FTC Aug 29 2014
WHO urges stiff regulatory curbs on e-cigarettes Aug 26 2014
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Altria (MO) Rewards Shareholders with 8.3% Dividend Hike Aug 22 2014
Income Investors May Find Lorillard's Dividend Yield Very Attractive Aug 22 2014
How One Team Of Stockpickers Makes Global Turmoil Pay Off Aug 19 2014
In Court: Next-Generation Cigarette vs. Next-Generation Cigarette Lighter Aug 18 2014
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How Will Lorillard (LO) Stock React After Zippo Wins German Preliminary Injunction Over Blu E-Cig? Aug 18 2014
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U.S. Attorneys General press FDA for tougher e-cigarette rules Aug 08 2014

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