LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LU - US54975P2011 - ADR
2.62 USD
+0.04 (+1.55%)
2.62 USD
0 (0%)
Taking everything into account, LU scores 3 out of 10 in our fundamental rating. LU was compared to 55 industry peers in the Consumer Finance industry. Both the profitability and financial health of LU have multiple concerns. LU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LU had positive earnings in the past year.
In the past year LU had a positive cash flow from operations.
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 Return On Assets of -1.64%. This is amonst the worse of the industry: LU underperforms 87.27% of its industry peers.
Looking at the Return On Equity, with a value of -4.00%, LU is doing worse than 83.64% of the companies in the same industry.
| 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.
The number of shares outstanding for LU has been increased compared to 1 year ago.
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
LU has an Altman-Z score of 0.38. This is a bad value and indicates that LU is not financially healthy and even 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 better Debt to Equity ratio (0.60) than 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.
LU has a Current ratio of 0.41. This is in the lower half of the industry: LU underperforms 69.09% of its industry peers.
A Quick Ratio of 0.41 indicates that LU may have some problems paying its short term obligations.
LU has a Quick ratio of 0.41. This is in the lower half of the industry: LU underperforms 69.09% 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%.
The earnings per share for LU have been decreasing by -55.61% on average. This is quite bad
Looking at the last year, LU shows a very negative growth in Revenue. The Revenue has decreased by -36.20% in the last year.
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
The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 11.39, the valuation of LU can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.26, LU is valued rather cheaply.
The Price/Forward Earnings ratio is 9.52, which indicates a very decent valuation of LU.
The rest of the industry has a similar Price/Forward Earnings ratio as LU.
When comparing the Price/Forward Earnings ratio of LU to the average of the S&P500 Index (23.68), we can say 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 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.85 | ||
| 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
With a Yearly Dividend Yield of 9.83%, LU is a good candidate for dividend investing.
In the last 3 months the price of LU has falen by -21.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LU's Dividend Yield is rather good when compared to the industry average which is at 2.44. LU pays more dividend than 98.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, LU pays a better dividend.
| 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
LU has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-42.45%
EPS Next 2Y9.36%
EPS Next 3Y27.99%
2.62
+0.04 (+1.55%)
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 %1.22%
Short Ratio2.37
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)-86.73%
Min Revenue beat(2)-87.13%
Max Revenue beat(2)-86.32%
Revenue beat(4)0
Avg Revenue beat(4)-66.64%
Min Revenue beat(4)-87.38%
Max Revenue beat(4)-5.75%
Revenue beat(8)0
Avg Revenue beat(8)-67.59%
Revenue beat(12)0
Avg Revenue beat(12)-48.74%
Revenue beat(16)0
Avg Revenue beat(16)-38.32%
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 | 1.85 | ||
| P/OCF | 1.84 | ||
| 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)1.42
FCFY54.07%
OCF(TTM)1.42
OCFY54.37%
SpS4.15
BVpS13.85
TBVpS12.19
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.47
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%.