LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
NYSE:LU - New York Stock Exchange, Inc. - US54975P2011 - ADR - Currency: USD
Taking everything into account, LU scores 3 out of 10 in our fundamental rating. LU was compared to 52 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
In the past year LU was profitable.
LU had a positive operating cash flow in the past year.
In the past 5 years LU has always been profitable.
Each year in the past 5 years LU had a positive operating cash flow.
1.2 Ratios
LU's Return On Assets of -1.64% is on the low side compared to the rest of the industry. LU is outperformed by 80.77% of its industry peers.
LU's Return On Equity of -4.00% is on the low side compared to the rest of the industry. LU is outperformed by 76.92% 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
LU's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of LU has declined.
The Profit Margin and Operating Margin and Gross Margin are not available for LU so they could not be analyzed.
| 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
LU has more shares outstanding than it did 5 years ago.
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 44.23% of 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 has a Debt to FCF ratio (5.90) which is comparable to the rest of the industry.
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 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.41 indicates that LU may have some problems paying its short term obligations.
LU has a worse Current ratio (0.41) than 69.23% 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.
The Quick ratio of LU (0.41) is worse than 69.23% 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%.
LU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -55.61% yearly.
The Revenue for LU has decreased by -36.20% in the past year. This is quite bad
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.
Based on estimates for the next years, LU will show a small growth in Revenue. The Revenue will grow by 2.55% on average per year.
EPS Next Y-341.85%
EPS Next 2Y7.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.74, which indicates a correct valuation of LU.
The rest of the industry has a similar Price/Earnings ratio as LU.
LU is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.11, the valuation of LU can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.15. LU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LU is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.11 | ||
| 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 2Y7.07%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
LU has a Yearly Dividend Yield of 20.69%, which is a nice return.
Compared to an average industry Dividend Yield of 4.39, LU pays a better dividend. On top of this LU pays more dividend than 100.00% of the companies listed 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 | 20.69% |
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 2Y7.07%
EPS Next 3Y19.47%
2.93
-0.17 (-5.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners10.63%
Inst Owner Change22.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.54B
Analysts75
Price Target2.99 (2.05%)
Short Float %1.39%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.69% |
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)-87%
Min Revenue beat(2)-87.4%
Max Revenue beat(2)-86.61%
Revenue beat(4)0
Avg Revenue beat(4)-67.34%
Min Revenue beat(4)-87.64%
Max Revenue beat(4)-7.72%
Revenue beat(8)0
Avg Revenue beat(8)-68.27%
Revenue beat(12)0
Avg Revenue beat(12)-49.81%
Revenue beat(16)0
Avg Revenue beat(16)-39.61%
PT rev (1m)-0.24%
PT rev (3m)-0.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.72 | ||
| P/FCF | 2.11 | ||
| P/OCF | 2.1 | ||
| P/B | 0.22 | ||
| P/tB | 0.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY7.85%
EPS(NY)0.26
Fwd EY9%
FCF(TTM)1.39
FCFY47.33%
OCF(TTM)1.39
OCFY47.6%
SpS4.06
BVpS13.56
TBVpS11.93
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
WACC6.82%
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 2Y7.07%
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