Q: Current thoughts on LIF?
5i Research Answer:
LIF pays a yield of ~10% but analyst estimates are for a decline in earnings and sales over the next couple of years and sales have declined over the past couple of years. It has a healthy and growing balance sheet, and its free cash flow is quite good. It trades at a fairly cheap valuation of 10.1X forward P/E. Its outlook is reasonable, though it is sensitive to interest rates, and we feel it is OK for an investor looking for income, however, it is a smaller name ($2.0B market cap) and has small-cap risks as well as risks from declining fundamentals.