LINEAGE INC (LINE) Stock Fundamental Analysis
NASDAQ:LINE - Nasdaq - US53566V1061 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to LINE. LINE was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of LINE have multiple concerns. LINE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year LINE has reported negative net income.
LINE had a positive operating cash flow in the past year.
1.2 Ratios
LINE's Return On Assets of -3.56% is on the low side compared to the rest of the industry. LINE is outperformed by 80.00% of its industry peers.
Looking at the Return On Equity, with a value of -7.69%, LINE is doing worse than 72.31% of the companies in the same industry.
LINE has a worse Return On Invested Capital (1.60%) than 74.62% of its industry peers.
LINE had an Average Return On Invested Capital over the past 3 years of 1.85%. This is in line with the industry average of 3.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.56% | ||
| ROE | -7.69% | ||
| ROIC | 1.6% |
ROA(3y)-1.44%
ROA(5y)N/A
ROE(3y)-3.48%
ROE(5y)N/A
ROIC(3y)1.85%
ROIC(5y)N/A
1.3 Margins
LINE's Operating Margin of 6.50% is on the low side compared to the rest of the industry. LINE is outperformed by 82.31% of its industry peers.
LINE's Operating Margin has been stable in the last couple of years.
LINE has a Gross Margin of 33.00%. This is amonst the worse of the industry: LINE underperforms 86.92% of its industry peers.
LINE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.5% | ||
| PM (TTM) | N/A | ||
| GM | 33% |
OM growth 3Y0.12%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.87%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LINE is destroying value.
LINE has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, LINE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that LINE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.97, LINE is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
LINE has a debt to FCF ratio of 531.33. This is a negative value and a sign of low solvency as LINE would need 531.33 years to pay back of all of its debts.
The Debt to FCF ratio of LINE (531.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.71 indicates that LINE is somewhat dependend on debt financing.
LINE has a better Debt to Equity ratio (0.71) than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 531.33 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.21
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.86 indicates that LINE may have some problems paying its short term obligations.
LINE's Current ratio of 0.86 is in line compared to the rest of the industry. LINE outperforms 49.23% of its industry peers.
A Quick Ratio of 0.74 indicates that LINE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, LINE is doing worse than 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for LINE have decreased strongly by -887.61% in the last year.
Looking at the last year, LINE shows a decrease in Revenue. The Revenue has decreased by -0.03% in the last year.
The Revenue has been growing by 12.99% on average over the past years. This is quite good.
EPS 1Y (TTM)-887.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.23%
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y12.99%
Revenue growth 5YN/A
Sales Q2Q%-74.93%
3.2 Future
Based on estimates for the next years, LINE will show a very strong growth in Earnings Per Share. The EPS will grow by 29.96% on average per year.
LINE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y100.31%
EPS Next 2Y44.13%
EPS Next 3Y29.96%
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
3.3 Evolution
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
LINE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
LINE is valuated quite expensively with a Price/Forward Earnings ratio of 6468.07.
LINE's Price/Forward Earnings ratio is in line with the industry average.
LINE is valuated expensively when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6468.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LINE is valued a bit more expensive than 62.31% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as LINE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1075.2 | ||
| EV/EBITDA | 15.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LINE does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as LINE's earnings are expected to grow with 29.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.13%
EPS Next 3Y29.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, LINE has a reasonable but not impressive dividend return.
LINE's Dividend Yield is slightly below the industry average, which is at 16.87.
Compared to an average S&P500 Dividend Yield of 2.52, LINE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
LINE has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y44.13%
EPS Next 3Y29.96%
56.54
+0.49 (+0.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners33.4%
Inst Owner Change0.08%
Ins Owners0.03%
Ins Owner Change-0.03%
Market Cap12.90B
Analysts76.52
Price Target72.74 (28.65%)
Short Float %5.26%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-283.86%
Min EPS beat(2)-466.27%
Max EPS beat(2)-101.44%
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)-1.65%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.55%
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)-3.39%
PT rev (3m)-13.82%
EPS NQ rev (1m)-315.02%
EPS NQ rev (3m)-139.63%
EPS NY rev (1m)-97.99%
EPS NY rev (3m)-98.21%
Revenue NQ rev (1m)-7.88%
Revenue NQ rev (3m)-9%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6468.07 | ||
| P/S | 2.42 | ||
| P/FCF | 1075.2 | ||
| P/OCF | 18.35 | ||
| P/B | 1.49 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)-3.12
EYN/A
EPS(NY)0.01
Fwd EY0.02%
FCF(TTM)0.05
FCFY0.09%
OCF(TTM)3.08
OCFY5.45%
SpS23.4
BVpS37.85
TBVpS18.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.56% | ||
| ROE | -7.69% | ||
| ROCE | 2.02% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 2.19% | ||
| OM | 6.5% | ||
| PM (TTM) | N/A | ||
| GM | 33% | ||
| FCFM | 0.22% |
ROA(3y)-1.44%
ROA(5y)N/A
ROE(3y)-3.48%
ROE(5y)N/A
ROIC(3y)1.85%
ROIC(5y)N/A
ROICexc(3y)1.86%
ROICexc(5y)N/A
ROICexgc(3y)2.54%
ROICexgc(5y)N/A
ROCE(3y)2.34%
ROCE(5y)N/A
ROICexcg growth 3Y8.4%
ROICexcg growth 5YN/A
ROICexc growth 3Y8.9%
ROICexc growth 5YN/A
OM growth 3Y0.12%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.87%
GM growth 5YN/A
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 531.33 | ||
| Debt/EBITDA | 5.03 | ||
| Cap/Depr | 78.88% | ||
| Cap/Sales | 12.94% | ||
| Interest Coverage | 0.66 | ||
| Cash Conversion | 57.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.97 |
F-Score6
WACC7.56%
ROIC/WACC0.21
Cap/Depr(3y)99.91%
Cap/Depr(5y)N/A
Cap/Sales(3y)14.59%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-887.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.23%
EPS Next Y100.31%
EPS Next 2Y44.13%
EPS Next 3Y29.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y12.99%
Revenue growth 5YN/A
Sales Q2Q%-74.93%
Revenue Next Year3.49%
Revenue Next 2Y4.32%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
EBIT growth 1Y-29.21%
EBIT growth 3Y13.12%
EBIT growth 5YN/A
EBIT Next Year410.44%
EBIT Next 3Y77.77%
EBIT Next 5YN/A
FCF growth 1Y-59.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.58%
OCF growth 3Y28.68%
OCF growth 5YN/A