LUFAX HOLDING LTD-ADR (LU)
US54975P2011 - ADR
Taking everything into account, LU scores 4 out of 10 in our fundamental rating. LU was compared to 51 industry peers in the Consumer Finance industry. There are concerns on the financial health of LU while its profitability can be described as average. LU has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years LU has been profitable.
In the past 5 years LU always reported a positive cash flow from operatings.
1.2 Ratios
LU's Return On Assets of 0.37% is in line compared to the rest of the industry. LU outperforms 41.18% of its industry peers.
LU has a worse Return On Equity (0.96%) than 62.75% of its industry peers.
LU has a Return On Invested Capital (0.85%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LU is in line with the industry average of 6.30%.
The last Return On Invested Capital (0.85%) for LU is well below the 3 year average (7.78%), which needs to be investigated, but indicates that LU had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.96% | ||
| ROIC | 0.85% |
ROA(3y)2.51%
ROA(5y)4.28%
ROE(3y)9.45%
ROE(5y)14.25%
ROIC(3y)7.78%
ROIC(5y)10.7%
1.3 Margins
LU has a Profit Margin of 2.59%. This is in the lower half of the industry: LU underperforms 64.71% of its industry peers.
LU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.50%, LU is in line with its industry, outperforming 45.10% of the companies in the same industry.
LU's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 2.59% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LU is creating some value.
LU has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LU has less shares outstanding
Compared to 1 year ago, LU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.37, we must say that LU is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.37, LU is in line with its industry, outperforming 45.10% of the companies in the same industry.
LU has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as LU would need 2.98 years to pay back of all of its debts.
LU's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. LU outperforms 76.47% of its industry peers.
LU has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
LU's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. LU outperforms 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.14
WACC6.1%
2.3 Liquidity
A Current Ratio of 0.43 indicates that LU may have some problems paying its short term obligations.
With a Current ratio value of 0.43, LU is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
LU has a Quick Ratio of 0.43. This is a bad value and indicates that LU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.43, LU is doing worse than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
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 -41.43% on average per year.
The Revenue for LU has decreased by -41.05% in the past year. This is quite bad
The Revenue has been decreasing by -3.27% on average over the past years.
EPS 1Y (TTM)-42.5%
EPS 3Y-58.75%
EPS 5Y-41.43%
EPS growth Q2Q-5%
Revenue 1Y (TTM)-41.05%
Revenue growth 3Y-13%
Revenue growth 5Y-3.27%
Revenue growth Q2Q-44.32%
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 quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.27% yearly.
EPS Next Y69.06%
EPS Next 2Y84.89%
EPS Next 3Y73.7%
EPS Next 5Y22.4%
Revenue Next Year-16.47%
Revenue Next 2Y-3.52%
Revenue Next 3Y2.72%
Revenue Next 5Y11.27%
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.
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
LU is valuated rather expensively with a Price/Earnings ratio of 19.57.
Compared to the rest of the industry, the Price/Earnings ratio of LU is on the same level as its industry peers.
LU is valuated rather cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.57, the valuation of LU can be described as very reasonable.
LU's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, LU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LU is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LU's earnings are expected to grow with 73.70% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y84.89%
EPS Next 3Y73.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.24%, LU is a good candidate for dividend investing.
LU's Dividend Yield is rather good when compared to the industry average which is at 4.32. LU pays more dividend than 92.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, LU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y84.89%
EPS Next 3Y73.7%
LUFAX HOLDING LTD-ADR
NYSE:LU (4/24/2024, 1:44:06 PM)
4.5
+0.14 (+3.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 11.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.5% | ||
| PM (TTM) | 2.59% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-42.5%
EPS 3Y-58.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y69.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-41.05%
Revenue growth 3Y-13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y