LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
NYSE:LU - US54975P2011 - ADR
3.07 USD
+0.17 (+5.86%)
3.08 USD
+0.01 (+0.33%)
We assign a fundamental rating of 3 out of 10 to LU. LU was compared to 53 industry peers in the Consumer Finance industry. LU may be in some trouble as it scores bad on both profitability and health. LU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year LU was profitable.
LU had a positive operating cash flow in the past year.
Each year in the past 5 years LU has been profitable.
Each year in the past 5 years LU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.64%, LU is doing worse than 81.13% of the companies in the same industry.
LU has a worse Return On Equity (-4.00%) than 81.13% 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.
In the last couple of years the Operating Margin of LU has declined.
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.
LU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LU has more shares outstanding
LU has a worse debt/assets ratio than last year.
2.2 Solvency
LU has an Altman-Z score of 0.39. This is a bad value and indicates that LU is not financially healthy and even has some risk of bankruptcy.
LU's Altman-Z score of 0.39 is in line compared to the rest of the industry. LU outperforms 41.51% of its industry peers.
LU has a debt to FCF ratio of 5.90. This is a neutral value as LU would need 5.90 years to pay back of all of its debts.
The Debt to FCF ratio of LU (5.90) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that LU is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.60, LU is doing good in the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC4.49%
2.3 Liquidity
A Current Ratio of 0.41 indicates that LU may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.41, LU is doing worse than 67.92% of the companies in the same industry.
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's Quick ratio of 0.41 is on the low side compared to the rest of the industry. LU is outperformed by 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for LU have decreased strongly by -42.50% in the last year.
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%.
Measured over the past years, LU shows a decrease in Revenue. The Revenue has been decreasing by -3.27% on average per year.
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
LU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.40% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
LU is valuated correctly with a Price/Earnings ratio of 13.35.
LU's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, LU is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.61, the valuation of LU can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LU to the average of the S&P500 Index (22.81), we can say LU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LU is valued cheaply inside the industry as 83.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.21 | ||
| 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
LU has a Yearly Dividend Yield of 9.83%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, LU pays a better dividend. On top of this LU pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LU pays a better dividend.
| 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%
3.07
+0.17 (+5.86%)
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 Cap2.66B
Analysts46.15
Price Target2.97 (-3.26%)
Short Float %1.47%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.83% |
Yearly Dividend0.5
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)-86.98%
Min Revenue beat(2)-87.37%
Max Revenue beat(2)-86.58%
Revenue beat(4)0
Avg Revenue beat(4)-67.27%
Min Revenue beat(4)-87.61%
Max Revenue beat(4)-7.52%
Revenue beat(8)0
Avg Revenue beat(8)-68.2%
Revenue beat(12)0
Avg Revenue beat(12)-49.7%
Revenue beat(16)0
Avg Revenue beat(16)-39.48%
PT rev (1m)0%
PT rev (3m)-0.9%
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 | 13.35 | ||
| Fwd PE | 11.61 | ||
| P/S | 0.75 | ||
| P/FCF | 2.21 | ||
| P/OCF | 2.2 | ||
| P/B | 0.23 | ||
| P/tB | 0.26 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY7.49%
EPS(NY)0.26
Fwd EY8.61%
FCF(TTM)1.39
FCFY45.27%
OCF(TTM)1.4
OCFY45.53%
SpS4.07
BVpS13.59
TBVpS11.96
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
WACC4.49%
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