One-glance verdict
Undervalued
$18.06 our estimate vs market $10.22
Wall Street consensus: $15.25 (-15.6% lower than our fair-value estimate)
43% below our estimate, below the bear case
Fundamentals snapshot
Lakeland Industries, Inc.
LAKE · NGM · Consumer Cyclical · Apparel Manufacturing
Current price
$10.22
52-week range
$7.15 - $18.00
Market cap
$101.55M
Balance sheet
Distressed
-6.36x Concerning
Net debt $21.04M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -19.6% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 4.9% to -4.2% over 3 years.
- Risk Insider ownership is only 13.2% (peer median: 16.7%).
What this company does
Lakeland Industries, Inc.
Lakeland Industries makes and sells specialized protective clothing, such as firefighter suits and chemical-resistant coveralls, to keep workers safe in hazardous jobs. Its money primarily comes from selling these products through a network of distributors to industrial companies and government agencies. Therefore, the company's success is often tied to the strength of the industrial economy and workplace safety regulations.
How the company got here
Lakeland Industries was founded in 1982, initially focusing on disposable protective clothing for industrial workers and specialty work gloves. A key shift happened in 1986 when the company expanded into making specialized gear for firefighters and protective suits for handling hazardous chemicals. Over the years, Lakeland grew by expanding its manufacturing into other countries like Canada, Mexico, and China to build a global presence. More recently, the company has been acquiring other businesses to become a more comprehensive supplier for fire and safety services worldwide.
What it actually does
Lakeland Industries makes and sells a wide variety of protective clothing and accessories designed to keep workers safe in hazardous environments. Think of the special gear firefighters wear to enter a burning building, or the disposable coveralls a factory worker might use to protect against chemicals or dust. Their products are used by first responders, as well as people working in industries like oil and gas, chemical manufacturing, utilities, and healthcare. The company sells its products through a network of distributors and its own sales teams.
Fire Services
This is now the company's largest business area, making up a significant portion of its sales. It provides firefighters and other emergency responders with everything they need to be protected from head to toe, including fire-resistant suits, helmets, boots, and gloves. Beyond just selling new gear, this segment also offers services like inspecting, cleaning, and repairing the equipment, which creates an ongoing relationship with customers like municipal fire departments.
Industrial Protective Apparel
This part of the business provides a wide range of protective clothing for various industrial jobs. This includes disposable coveralls for workers in cleanrooms or handling chemicals, high-visibility jackets for construction crews, and flame-resistant clothing for utility and energy workers. Customers are typically industrial and safety supply distributors who then sell to end-users in manufacturing, construction, and pharmaceutical industries.
What management is betting on now
The company's main focus is to continue growing its Fire Services business, aiming to become a top global provider of head-to-toe firefighter gear. They are doing this by acquiring other companies in the fire safety industry and expanding their service offerings like cleaning and repair, which provides a steady, recurring source of revenue (income that is predictable and likely to continue in the future). Management is also working on making the company more efficient by consolidating warehouses and streamlining its manufacturing operations to improve profitability.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-9.08M
FY2025 Q4
$-3.44M
FY2026 Q1
$-6.05M
FY2026 Q2
$-5.74M
FY2026 Q3
$-9.28M
FY2026 Q4
$1.73M
FY2027 Q1
$4.41M
FY2027 Q2
$-447.00K
Revenue
$50.14M
Net income
$-4.93M
Diluted EPS
-0.50
Operating cash flow
$-404.00K
Free cash flow
$-447.00K
Fetching…
Sources
Revenue
$47.42M
Net income
$369.00K
Diluted EPS
0.04
Operating cash flow
$5.80M
Free cash flow
$4.41M
Fetching…
Sources
Revenue
$45.82M
Net income
$-6.21M
Diluted EPS
-0.66
Operating cash flow
$1.84M
Free cash flow
$1.73M
Fetching…
Sources
Revenue
$47.59M
Net income
$-15.96M
Diluted EPS
-1.64
Operating cash flow
$-7.93M
Free cash flow
$-9.28M
Fetching…
Sources
Revenue
$52.50M
Net income
$766.00K
Diluted EPS
0.08
Operating cash flow
$-4.82M
Free cash flow
$-5.74M
Fetching…
Sources
Revenue
$46.75M
Net income
$-3.91M
Diluted EPS
-0.41
Operating cash flow
$-4.84M
Free cash flow
$-6.05M
Fetching…
Sources
Revenue
$46.63M
Net income
$-18.44M
Diluted EPS
-2.47
Operating cash flow
$-3.39M
Free cash flow
$-3.44M
Fetching…
Sources
Revenue
$45.76M
Net income
$86.00K
Diluted EPS
0.01
Operating cash flow
$-8.44M
Free cash flow
$-9.08M
Fetching…
Sources
Is it cheap or expensive?
Fair value $18.06 vs current price $10.22
Wall Street consensus is the average analyst price target: $15.25 (-15.6% lower than our fair-value estimate).
Our most-likely fair value is $18.06 a share — about 76.6% above today's price of $10.22, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $21.0M. Interest coverage -6.4x.
Net debt
$21.04M
Interest coverage
-6.36x
Lakeland Industries, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
LAKE
BASELINE
Lakeland Industries, Inc.
Total debt $38.94M Interest coverage -6.36x This is the baseline the peer rows are being compared against.
Total debt $7.62M Interest coverage 5.92x This peer still has a real interest-payment cushion, while LAKE does not.
Total debt $93.27M Interest coverage 2.60x This peer still has a real interest-payment cushion, while LAKE does not.
Total debt $87.82M Interest coverage 160.10x This peer still has a real interest-payment cushion, while LAKE does not.
Total debt $51.90M Interest coverage 1,934.09x This peer still has a real interest-payment cushion, while LAKE does not.
Total debt $76.13M Interest coverage -2.13x Neither company has much profit cushion over interest right now.
What you should know
The case for and against LAKE
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -19.6% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 4.9% to -4.2% over 3 years.
-
Insider ownership is only 13.2% (peer median: 16.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
19.11x
P/B
0.77x
P/S
0.53x
EV/EBITDA
-37.03x
PEG ratio
1.14x
Profitability
How much profit each dollar creates
Gross margin
32.6%
Operating margin
-4.2%
Net margin
-14.0%
ROE
-19.6%
ROA
-2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.31x
Current ratio
2.98x
Quick ratio
1.28x
Total debt
$38.94M
Total cash
$17.90M
Growth
How the business has been compounding
Revenue TTM
$190.96M
Revenue 5Y CAGR
12.9%
EPS TTM
-2.76
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-693.00K
Free CF TTM
$-16.42M
FCF margin
-8.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
46.2%
Last ex-div date
2025-11-17