LNDC - Landec Corporation Is Reaching An Inflection Point But Risk Is High
- We believe Landec is at an inflection point and should see better profitability as management completes restructuring Curation Foods.
- While revenues are expected to decrease in the current fiscal year, gross margins and EBITDA are expected to increase.
- That said, risks are high due to its highly levered balance sheet. The company ended its most recent quarter with a leverage ratio of 4.7 to 1.
- Once the company stabilizes Curation Foods, earnings could start a steady growth path driven by the high growth rate of Lifecore.
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Landec Corporation Is Reaching An Inflection Point, But Risk Is High