One-glance verdict
Undervalued
$17.48 our estimate vs market $8.95
Wall Street consensus: $15.25 (-12.7% lower than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Lakeland Industries, Inc.
LAKE · NGM · Consumer Cyclical · Apparel Manufacturing
Current price
$8.95
52-week range
$7.15 - $16.91
Market cap
$88.89M
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: 16.4%).
What this company does
Lakeland Industries, Inc.
Lakeland Industries makes protective clothing for people working in dangerous jobs, like firefighters and chemical plant workers. Their money mostly comes from selling these specialized suits and garments, which matters because demand for safety gear often increases when industrial activity picks up or when there's a greater focus on worker protection.
How the company got here
Lakeland Industries was founded in 1982, initially focusing on disposable protective clothing and work gloves. Over the years, the company expanded its product lines and global reach, establishing manufacturing facilities in Mexico, Canada, and China. A significant turning point was its expansion into the firefighter protective apparel market through acquisitions, which broadened its portfolio and market presence. The company has navigated various economic conditions and market shifts, adapting its strategy to maintain growth and competitiveness in the industrial safety sector.
What it actually does
Lakeland Industries designs, manufactures, and sells protective clothing and accessories. These products are crucial for workers in various industries and for first responders, offering protection against a wide range of hazards. Think of it like specialized workwear that shields people from dangerous chemicals, extreme heat, biological agents, or even just everyday industrial grime. The company's offerings range from disposable coveralls to high-performance suits designed for the most demanding environments.
Chemical Protective Clothing
This is a major part of Lakeland's business, focusing on suits and garments designed to protect individuals from highly concentrated, toxic, or lethal chemicals and biological agents. These are not your average raincoats; they are specialized barriers for workers in industries like chemical manufacturing, oil and gas, and hazardous waste management. Customers in these sectors pay a premium for this high level of protection, as it's essential for their safety and regulatory compliance. This segment is a significant revenue generator for the company, reflecting the critical need for advanced chemical safety.
Firefighter Protective Apparel
Lakeland provides a range of protective clothing for firefighters and other emergency responders. This includes suits designed to withstand extreme heat and flames, as well as accessories that enhance safety during firefighting operations. These products are vital for the safety of firefighters, who face dangerous conditions regularly. The company has been actively expanding its presence in this market, recognizing the consistent demand for reliable and high-performance fire safety gear.
Disposable and Limited Use Protective Clothing
This segment includes items like coveralls, lab coats, aprons, and hoods that are designed for single use or limited wear. They offer protection against less severe hazards, such as dust, dirt, grease, and light splashes, making them suitable for a wide array of industrial settings, cleanrooms, and laboratories. While less specialized than chemical suits, these disposable garments are a consistent source of revenue, providing an accessible and cost-effective safety solution for many businesses.
What management is betting on now
Lakeland's management is focused on several key strategies to drive future growth and profitability. They are investing in high-growth product categories and geographic regions, aiming to expand their market share. A significant part of their strategy involves building a leading global brand in firefighter safety through product innovation and enhanced marketing efforts. Additionally, they are pursuing profitable growth in their high-end chemical and disposable protective clothing lines by focusing on product development, strategic pricing, and operational efficiency. The company is also open to strategic acquisitions that can strengthen its position in key markets.
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 $17.48 vs current price $8.95
Wall Street consensus is the average analyst price target: $15.25 (-12.7% lower than our fair-value estimate).
Our most-likely fair value is $17.48 a share — about 95.3% above today's price of $8.95, 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 $82.71M Interest coverage 160.10x This peer still has a real interest-payment cushion, while LAKE does not.
Total debt $49.84M 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: 16.4%).
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
16.73x
P/B
0.71x
P/S
0.47x
EV/EBITDA
-33.38x
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
-2.73
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
0.0%
Payout ratio
48.0%
Last ex-div date
2025-11-17