LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
USA - NYSE:LU - US54975P2011 - ADR
3.21 USD
+0.07 (+2.23%)
3.21 USD
0 (0%)
Taking everything into account, LU scores 3 out of 10 in our fundamental rating. LU was compared to 54 industry peers in the Consumer Finance industry. LU may be in some trouble as it scores bad on both profitability and health. LU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LU had positive earnings in the past year.
LU had a positive operating cash flow in the past year.
In the past 5 years LU has always been profitable.
LU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LU has a worse Return On Assets (-1.64%) than 83.33% of its industry peers.
LU has a Return On Equity of -4.00%. This is amonst the worse of the industry: LU underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.64% | ||
| ROE | -4% | ||
| ROIC | N/A |
ROA(3y)2.51%
ROA(5y)4.28%
ROE(3y)9.45%
ROE(5y)14.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of LU has declined.
LU's Operating Margin has declined in the last couple of years.
LU does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-48.02%
OM growth 5Y-35.49%
PM growth 3Y-52.23%
PM growth 5Y-40.14%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LU has more shares outstanding
The number of shares outstanding for LU has been increased compared to 5 years ago.
LU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that LU is in the distress zone and has some risk of bankruptcy.
LU has a Altman-Z score (0.39) which is in line with its industry peers.
The Debt to FCF ratio of LU is 5.90, which is a neutral value as it means it would take LU, 5.90 years of fcf income to pay off all of its debts.
LU's Debt to FCF ratio of 5.90 is in line compared to the rest of the industry. LU outperforms 59.26% of its industry peers.
LU has a Debt/Equity ratio of 0.60. This is a neutral value indicating LU is somewhat dependend on debt financing.
LU has a better Debt to Equity ratio (0.60) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC4.52%
2.3 Liquidity
LU has a Current Ratio of 0.41. This is a bad value and indicates that LU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LU (0.41) is worse than 68.52% of its industry peers.
LU has a Quick Ratio of 0.41. This is a bad value and indicates that LU is not financially healthy enough and could expect problems in meeting its short term obligations.
LU has a Quick ratio of 0.41. This is in the lower half of the industry: LU underperforms 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
LU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.50%.
Measured over the past years, LU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -55.61% on average per year.
LU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.20%.
LU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.27% yearly.
EPS 1Y (TTM)-42.5%
EPS 3Y-74.02%
EPS 5Y-55.61%
EPS Q2Q%-500%
Revenue 1Y (TTM)-36.2%
Revenue growth 3Y-13%
Revenue growth 5Y-3.27%
Sales Q2Q%-28.91%
3.2 Future
The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
LU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.55% yearly.
EPS Next Y-341.85%
EPS Next 2Y7.21%
EPS Next 3Y19.47%
EPS Next 5Y22.4%
Revenue Next Year-29.79%
Revenue Next 2Y-16.58%
Revenue Next 3Y-7.28%
Revenue Next 5Y2.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.96, the valuation of LU can be described as correct.
LU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LU to the average of the S&P500 Index (27.41), we can say LU is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.14, which indicates a correct valuation of LU.
The rest of the industry has a similar Price/Forward Earnings ratio as LU.
LU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
LU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LU is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as LU's earnings are expected to grow with 19.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.21%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.83%, LU is a good candidate for dividend investing.
LU's Dividend Yield is rather good when compared to the industry average which is at 4.46. LU pays more dividend than 98.15% of the companies in the same industry.
LU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.83% |
5.2 History
LU has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of LU are negative and hence is the payout ratio. LU will probably not be able to sustain this dividend level.
DP-42.45%
EPS Next 2Y7.21%
EPS Next 3Y19.47%
3.21
+0.07 (+2.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners12.02%
Inst Owner Change5.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.78B
Analysts46.15
Price Target2.97 (-7.48%)
Short Float %1.23%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.83% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP-42.45%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1655.08%
Min EPS beat(2)-2673.93%
Max EPS beat(2)-636.24%
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)0
Avg Revenue beat(2)-86.84%
Min Revenue beat(2)-87.24%
Max Revenue beat(2)-86.44%
Revenue beat(4)0
Avg Revenue beat(4)-66.93%
Min Revenue beat(4)-87.48%
Max Revenue beat(4)-6.55%
Revenue beat(8)0
Avg Revenue beat(8)-67.86%
Revenue beat(12)0
Avg Revenue beat(12)-49.17%
Revenue beat(16)0
Avg Revenue beat(16)-38.84%
PT rev (1m)0%
PT rev (3m)-3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.14 | ||
| P/S | 0.78 | ||
| P/FCF | 2.29 | ||
| P/OCF | 2.27 | ||
| P/B | 0.23 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY7.17%
EPS(NY)0.26
Fwd EY8.24%
FCF(TTM)1.4
FCFY43.75%
OCF(TTM)1.41
OCFY44%
SpS4.12
BVpS13.73
TBVpS12.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.64% | ||
| ROE | -4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 34.12% |
ROA(3y)2.51%
ROA(5y)4.28%
ROE(3y)9.45%
ROE(5y)14.25%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.16%
ROCE(5y)16.56%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-48.02%
OM growth 5Y-35.49%
PM growth 3Y-52.23%
PM growth 5Y-40.14%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 0.39 |
F-Score3
WACC4.52%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.28%
Profit Quality(3y)589.29%
Profit Quality(5y)367.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.5%
EPS 3Y-74.02%
EPS 5Y-55.61%
EPS Q2Q%-500%
EPS Next Y-341.85%
EPS Next 2Y7.21%
EPS Next 3Y19.47%
EPS Next 5Y22.4%
Revenue 1Y (TTM)-36.2%
Revenue growth 3Y-13%
Revenue growth 5Y-3.27%
Sales Q2Q%-28.91%
Revenue Next Year-29.79%
Revenue Next 2Y-16.58%
Revenue Next 3Y-7.28%
Revenue Next 5Y2.55%
EBIT growth 1Y-154.71%
EBIT growth 3Y-54.77%
EBIT growth 5Y-37.6%
EBIT Next Year-109.49%
EBIT Next 3Y-21.71%
EBIT Next 5Y2.67%
FCF growth 1Y899.97%
FCF growth 3Y29.4%
FCF growth 5YN/A
OCF growth 1Y971.43%
OCF growth 3Y28.27%
OCF growth 5YN/A