LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
USA - NYSE:LU - US54975P2011 - ADR
3.32 USD
+0.11 (+3.43%)
3.3891 USD
+0.07 (+2.08%)
Taking everything into account, LU scores 3 out of 10 in our fundamental rating. LU was compared to 54 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.
LU had positive earnings in each of the past 5 years.
LU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LU (-1.64%) is worse than 83.33% of its industry peers.
With a Return On Equity value of -4.00%, LU is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| 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.
LU's Operating Margin has declined in the last couple of years.
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.
Compared to 5 years ago, LU has more shares outstanding
The debt/assets ratio for LU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.40, 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 0.40, LU is in line with its industry, outperforming 42.59% of the companies in the same industry.
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.
LU has a Debt to FCF ratio (5.90) which is in line with its industry peers.
LU has a Debt/Equity ratio of 0.60. This is a neutral value indicating LU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, LU is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.4 |
ROIC/WACCN/A
WACC4.54%
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's Current ratio of 0.41 is on the low side compared to the rest of the industry. LU is outperformed by 68.52% of its industry peers.
LU has a Quick 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 Quick ratio of 0.41. This is in the lower half of the industry: LU underperforms 68.52% 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
The Revenue for LU has decreased by -36.20% in the past year. This is quite bad
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 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
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
A Price/Earnings ratio of 14.43 indicates a correct valuation of LU.
Based on the Price/Earnings ratio, LU is valued a bit more expensive than 61.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of LU to the average of the S&P500 Index (27.38), we can say LU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.56, the valuation of LU can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LU to the average of the S&P500 Index (22.86), we can say LU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LU is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.36 | ||
| 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 4.46, LU pays a better dividend. On top of this LU pays more dividend than 98.15% 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 2.38.
| 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 2Y7.21%
EPS Next 3Y19.47%
3.32
+0.11 (+3.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners12.02%
Inst Owner Change5.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.88B
Analysts46.15
Price Target2.97 (-10.54%)
Short Float %1.23%
Short Ratio4.91
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)-86.84%
Min Revenue beat(2)-87.24%
Max Revenue beat(2)-86.44%
Revenue beat(4)0
Avg Revenue beat(4)-66.93%
Min Revenue beat(4)-87.48%
Max Revenue beat(4)-6.56%
Revenue beat(8)0
Avg Revenue beat(8)-67.87%
Revenue beat(12)0
Avg Revenue beat(12)-49.18%
Revenue beat(16)0
Avg Revenue beat(16)-38.85%
PT rev (1m)0%
PT rev (3m)-3.82%
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 | 14.43 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.81 | ||
| P/FCF | 2.36 | ||
| P/OCF | 2.35 | ||
| P/B | 0.24 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY6.93%
EPS(NY)0.26
Fwd EY7.96%
FCF(TTM)1.4
FCFY42.3%
OCF(TTM)1.41
OCFY42.53%
SpS4.12
BVpS13.73
TBVpS12.08
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 0.4 |
F-Score3
WACC4.54%
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