LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
USA - NYSE:LU - US54975P2011 - ADR
3.12 USD
+0.32 (+11.43%)
3.12 USD
0 (0%)
LU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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.
In the past 5 years LU always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.64%, LU is doing worse than 81.82% of the companies in the same industry.
LU has a worse Return On Equity (-4.00%) than 81.82% 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.
Compared to 1 year ago, LU has more shares outstanding
The number of shares outstanding for LU has been increased compared to 5 years ago.
The debt/assets ratio for LU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that LU is in the distress zone and has some risk of bankruptcy.
LU has a Altman-Z score of 0.39. This is comparable to the rest of the industry: LU outperforms 43.64% 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.
With a decent Debt to FCF ratio value of 5.90, LU is doing good in the industry, outperforming 61.82% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that LU is somewhat dependend on debt financing.
LU's Debt to Equity ratio of 0.60 is fine compared to the rest of the industry. LU outperforms 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC4.5%
2.3 Liquidity
LU has a Current 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 has a Current ratio of 0.41. This is in the lower half of the industry: LU underperforms 67.27% of its industry peers.
A Quick Ratio of 0.41 indicates that LU may have some problems paying 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 67.27% 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
The Revenue has been decreasing by -3.27% on average over the past years.
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.
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
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
Based on the Price/Earnings ratio of 13.57, the valuation of LU can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LU indicates a slightly more expensive valuation: LU is more expensive than 60.00% of the companies listed in the same industry.
LU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of LU can be described as reasonable.
LU's Price/Forward Earnings is on the same level as the industry average.
LU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LU indicates a rather cheap valuation: LU is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| 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 4.80, 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 2.37.
| 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%
3.12
+0.32 (+11.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners12.36%
Inst Owner Change-3.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.70B
Revenue(TTM)25.34B
Net Income(TTM)-3381579000
Analysts46.15
Price Target2.88 (-7.69%)
Short Float %0.94%
Short Ratio2.91
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)-86.86%
Min Revenue beat(2)-87.26%
Max Revenue beat(2)-86.46%
Revenue beat(4)0
Avg Revenue beat(4)-66.98%
Min Revenue beat(4)-87.5%
Max Revenue beat(4)-6.7%
Revenue beat(8)0
Avg Revenue beat(8)-67.92%
Revenue beat(12)0
Avg Revenue beat(12)-49.26%
Revenue beat(16)0
Avg Revenue beat(16)-38.94%
PT rev (1m)-2.88%
PT rev (3m)-2.88%
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 | 13.57 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.76 | ||
| P/FCF | 2.23 | ||
| P/OCF | 2.21 | ||
| P/B | 0.23 | ||
| P/tB | 0.26 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY7.37%
EPS(NY)0.26
Fwd EY8.47%
FCF(TTM)1.4
FCFY44.94%
OCF(TTM)1.41
OCFY45.19%
SpS4.11
BVpS13.71
TBVpS12.06
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.42
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 | 0.39 |
F-Score3
WACC4.5%
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
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 4 / 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 13.57 and the Price/Book (PB) ratio is 0.23.
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%.