LECTRA (LSS.PA) Stock Fundamental Analysis
Europe - EPA:LSS - FR0000065484 - Common Stock
23.35 EUR
-0.05 (-0.21%)
We assign a fundamental rating of 4 out of 10 to LSS. LSS was compared to 110 industry peers in the Software industry. There are concerns on the financial health of LSS while its profitability can be described as average. LSS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LSS was profitable.
LSS had a positive operating cash flow in the past year.
LSS had positive earnings in each of the past 5 years.
Each year in the past 5 years LSS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.71%, LSS perfoms like the industry average, outperforming 51.82% of the companies in the same industry.
LSS has a Return On Equity of 9.39%. This is comparable to the rest of the industry: LSS outperforms 55.45% of its industry peers.
The Return On Invested Capital of LSS (6.48%) is better than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LSS is significantly below the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 9.39% | ||
| ROIC | 6.48% |
ROA(3y)4.3%
ROA(5y)4.32%
ROE(3y)8.99%
ROE(5y)8.64%
ROIC(3y)6.81%
ROIC(5y)6.98%
1.3 Margins
LSS's Profit Margin of 5.86% is in line compared to the rest of the industry. LSS outperforms 57.27% of its industry peers.
LSS's Profit Margin has declined in the last couple of years.
LSS has a better Operating Margin (8.91%) than 62.73% of its industry peers.
LSS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 72.18%, LSS perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
LSS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.91% | ||
| PM (TTM) | 5.86% | ||
| GM | 72.18% |
OM growth 3Y-6.53%
OM growth 5Y-8.53%
PM growth 3Y-6.72%
PM growth 5Y-10.78%
GM growth 3Y1.84%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LSS is destroying value.
Compared to 1 year ago, LSS has more shares outstanding
The number of shares outstanding for LSS has been increased compared to 5 years ago.
LSS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.04 indicates that LSS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.04, LSS is doing worse than 65.45% of the companies in the same industry.
LSS has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
LSS has a better Debt to FCF ratio (1.31) than 70.91% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that LSS is not too dependend on debt financing.
The Debt to Equity ratio of LSS (0.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.75
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.80 indicates that LSS may have some problems paying its short term obligations.
LSS's Current ratio of 0.80 is on the low side compared to the rest of the industry. LSS is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.61 indicates that LSS may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, LSS is not doing good in the industry: 84.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
LSS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.08%.
Measured over the past years, LSS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.93% on average per year.
The Revenue has been growing slightly by 5.07% in the past year.
The Revenue has been growing by 13.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.08%
EPS 3Y1.54%
EPS 5Y-1.93%
EPS Q2Q%7.37%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y10.76%
Revenue growth 5Y13.47%
Sales Q2Q%-4.44%
3.2 Future
The Earnings Per Share is expected to grow by 15.24% on average over the next years. This is quite good.
Based on estimates for the next years, LSS will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-31.06%
EPS Next 2Y1.43%
EPS Next 3Y7.6%
EPS Next 5Y15.24%
Revenue Next Year-2.86%
Revenue Next 2Y2.07%
Revenue Next 3Y3.68%
Revenue Next 5Y4.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.83, which means the current valuation is very expensive for LSS.
75.45% of the companies in the same industry are more expensive than LSS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LSS to the average of the S&P500 Index (27.69), we can say LSS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of LSS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LSS is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
LSS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
LSS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LSS is cheaper than 82.73% of the companies in the same industry.
LSS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LSS is cheaper than 91.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.43%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
LSS has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 2.80, LSS pays a better dividend. On top of this LSS pays more dividend than 90.00% of the companies listed in the same industry.
LSS's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of LSS decreases each year by -1.41%.
Dividend Growth(5Y)-1.41%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
50.95% of the earnings are spent on dividend by LSS. This is a bit on the high side, but may be sustainable.
DP50.95%
EPS Next 2Y1.43%
EPS Next 3Y7.6%
EPA:LSS (10/21/2025, 3:37:24 PM)
23.35
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners52.11%
Inst Owner ChangeN/A
Ins Owners13.04%
Ins Owner ChangeN/A
Market Cap883.33M
Analysts84.44
Price Target31.62 (35.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.37
Dividend Growth(5Y)-1.41%
DP50.95%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-45.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 19.31 | ||
| P/S | 1.68 | ||
| P/FCF | 9.48 | ||
| P/OCF | 9.16 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)0.81
EY3.47%
EPS(NY)1.21
Fwd EY5.18%
FCF(TTM)2.46
FCFY10.55%
OCF(TTM)2.55
OCFY10.91%
SpS13.9
BVpS8.67
TBVpS-4.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 9.39% | ||
| ROCE | 8.8% | ||
| ROIC | 6.48% | ||
| ROICexc | 7.31% | ||
| ROICexgc | N/A | ||
| OM | 8.91% | ||
| PM (TTM) | 5.86% | ||
| GM | 72.18% | ||
| FCFM | 17.72% |
ROA(3y)4.3%
ROA(5y)4.32%
ROE(3y)8.99%
ROE(5y)8.64%
ROIC(3y)6.81%
ROIC(5y)6.98%
ROICexc(3y)8.4%
ROICexc(5y)11.14%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.25%
ROCE(5y)9.48%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-4.23%
ROICexc growth 5Y-27.52%
OM growth 3Y-6.53%
OM growth 5Y-8.53%
PM growth 3Y-6.72%
PM growth 5Y-10.78%
GM growth 3Y1.84%
GM growth 5Y-0.48%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 7.64% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 7.42 | ||
| Cash Conversion | 108.02% | ||
| Profit Quality | 302.57% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.04 |
F-Score7
WACC8.66%
ROIC/WACC0.75
Cap/Depr(3y)10.67%
Cap/Depr(5y)13.15%
Cap/Sales(3y)0.68%
Cap/Sales(5y)0.75%
Profit Quality(3y)187.14%
Profit Quality(5y)187.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.08%
EPS 3Y1.54%
EPS 5Y-1.93%
EPS Q2Q%7.37%
EPS Next Y-31.06%
EPS Next 2Y1.43%
EPS Next 3Y7.6%
EPS Next 5Y15.24%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y10.76%
Revenue growth 5Y13.47%
Sales Q2Q%-4.44%
Revenue Next Year-2.86%
Revenue Next 2Y2.07%
Revenue Next 3Y3.68%
Revenue Next 5Y4.55%
EBIT growth 1Y-7.08%
EBIT growth 3Y3.53%
EBIT growth 5Y3.79%
EBIT Next Year50.29%
EBIT Next 3Y27.38%
EBIT Next 5Y20.95%
FCF growth 1Y60.64%
FCF growth 3Y18.65%
FCF growth 5Y14.12%
OCF growth 1Y55.86%
OCF growth 3Y17.45%
OCF growth 5Y12.52%