LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LU - US54975P2011 - ADR
2.62 USD
+0.07 (+2.75%)
2.62 USD
0 (0%)
Overall LU gets a fundamental rating of 3 out of 10. We evaluated LU against 55 industry peers in the Consumer Finance industry. Both the profitability and financial health of LU have multiple concerns. LU has a valuation in line with the averages, 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 87.27% of its industry peers.
The Return On Equity of LU (-4.00%) is worse than 83.64% 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.
The number of shares outstanding for LU has been increased compared to 1 year ago.
LU has more shares outstanding than it did 5 years ago.
LU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that LU is in the distress zone and has some risk of bankruptcy.
LU has a Altman-Z score (0.38) which is in line with 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.
With a decent Debt to FCF ratio value of 5.90, LU is doing good in the industry, outperforming 70.91% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that LU is somewhat dependend on debt financing.
LU has a Debt to Equity ratio of 0.60. This is in the better half of the industry: LU outperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.38 |
ROIC/WACCN/A
WACC4.42%
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 69.09% of the companies in the same industry.
A Quick Ratio of 0.41 indicates that LU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.41, LU is doing worse than 69.09% of the companies in the same industry.
| 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%.
The earnings per share for LU have been decreasing by -55.61% on average. This is quite bad
The Revenue for LU has decreased by -36.20% in the past year. This is quite bad
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
Based on estimates for the next years, LU will show a very strong growth in Earnings Per Share. The EPS will grow by 22.40% on average per year.
The Revenue is expected to grow by 2.55% on average over the next years.
EPS Next Y-341.85%
EPS Next 2Y9.36%
EPS Next 3Y27.99%
EPS Next 5Y22.4%
Revenue Next Year-29.79%
Revenue Next 2Y-15.4%
Revenue Next 3Y-5.36%
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
LU is valuated reasonably with a Price/Earnings ratio of 11.39.
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 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.52, which indicates a very decent valuation of LU.
LU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, LU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
LU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LU is cheaper than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.86 | ||
| 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 27.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.36%
EPS Next 3Y27.99%
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 5.09, LU pays a better dividend. On top of this LU pays more dividend than 98.18% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.83% |
5.2 History
LU has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 2Y9.36%
EPS Next 3Y27.99%
2.62
+0.07 (+2.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners10.93%
Inst Owner Change-14.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.27B
Revenue(TTM)25.34B
Net Income(TTM)-3.38B
Analysts46.15
Price Target2.96 (12.98%)
Short Float %1.49%
Short Ratio2.21
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)-86.78%
Min Revenue beat(2)-87.18%
Max Revenue beat(2)-86.37%
Revenue beat(4)0
Avg Revenue beat(4)-66.77%
Min Revenue beat(4)-87.42%
Max Revenue beat(4)-6.1%
Revenue beat(8)0
Avg Revenue beat(8)-67.71%
Revenue beat(12)0
Avg Revenue beat(12)-48.93%
Revenue beat(16)0
Avg Revenue beat(16)-38.55%
PT rev (1m)2.65%
PT rev (3m)-0.3%
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 | 11.39 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.63 | ||
| P/FCF | 1.86 | ||
| P/OCF | 1.85 | ||
| P/B | 0.19 | ||
| P/tB | 0.22 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY8.78%
EPS(NY)0.28
Fwd EY10.5%
FCF(TTM)1.41
FCFY53.86%
OCF(TTM)1.42
OCFY54.16%
SpS4.14
BVpS13.8
TBVpS12.14
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.45
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 0.38 |
F-Score3
WACC4.42%
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 2Y9.36%
EPS Next 3Y27.99%
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-15.4%
Revenue Next 3Y-5.36%
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
LUFAX HOLDING LTD-ADR / LU FAQ
What is the ChartMill fundamental rating of LUFAX HOLDING LTD-ADR (LU) stock?
ChartMill assigns a fundamental rating of 3 / 10 to LU.
What is the valuation status of LUFAX HOLDING LTD-ADR (LU) stock?
ChartMill assigns a valuation rating of 5 / 10 to LUFAX HOLDING LTD-ADR (LU). This can be considered as Fairly Valued.
What is the profitability of LU stock?
LUFAX HOLDING LTD-ADR (LU) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for LU stock?
The Price/Earnings (PE) ratio for LUFAX HOLDING LTD-ADR (LU) is 11.39 and the Price/Book (PB) ratio is 0.19.
Can you provide the dividend sustainability for LU stock?
The dividend rating of LUFAX HOLDING LTD-ADR (LU) is 4 / 10 and the dividend payout ratio is -42.45%.