LUFAX HOLDING LTD-ADR (LU) Stock Fundamental Analysis
NYSE:LU - New York Stock Exchange, Inc. - US54975P2011 - ADR - Currency: USD
Overall LU gets a fundamental rating of 3 out of 10. We evaluated LU against 53 industry peers in the Consumer Finance industry. LU has a bad profitability rating. Also its financial health evaluation is rather negative. LU has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years LU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.64%, LU is doing worse than 76.92% of the companies in the same industry.
With a Return On Equity value of -4.00%, LU is not doing good in the industry: 76.92% 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.
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.
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 0.39, 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 0.39, LU is in line with its industry, outperforming 44.23% 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.
Looking at the Debt to FCF ratio, with a value of 5.90, LU is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that LU is somewhat dependend on debt financing.
The Debt to Equity ratio of LU (0.60) is better than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC6.9%
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 69.23% 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 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for LU have decreased strongly by -42.50% in the last year.
LU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -55.61% yearly.
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
LU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.40% yearly.
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-340.61%
EPS Next 2Y-3.64%
EPS Next 3Y22.93%
EPS Next 5Y22.4%
Revenue Next Year-29.51%
Revenue Next 2Y-15.42%
Revenue Next 3Y-6.13%
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
A Price/Earnings ratio of 13.48 indicates a correct valuation of LU.
LU's Price/Earnings is on the same level as the industry average.
LU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of LU can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as LU.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, LU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LU indicates a somewhat cheap valuation: LU is cheaper than 78.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.26 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LU's earnings are expected to grow with 22.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.64%
EPS Next 3Y22.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 19.39%, LU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.03, LU pays a better dividend. On top of this LU pays more dividend than 100.00% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 19.39% |
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 2Y-3.64%
EPS Next 3Y22.93%
3.1
+0.16 (+5.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners10.63%
Inst Owner Change-1.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.69B
Analysts75.29
Price Target3 (-3.23%)
Short Float %1.12%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 19.39% |
Yearly Dividend2
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)-87.12%
Min Revenue beat(2)-87.51%
Max Revenue beat(2)-86.73%
Revenue beat(4)0
Avg Revenue beat(4)-67.63%
Min Revenue beat(4)-87.75%
Max Revenue beat(4)-8.54%
Revenue beat(8)0
Avg Revenue beat(8)-68.55%
Revenue beat(12)0
Avg Revenue beat(12)-50.26%
Revenue beat(16)0
Avg Revenue beat(16)-40.15%
PT rev (1m)-5.32%
PT rev (3m)-13.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.28%
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 | 13.48 | ||
| Fwd PE | 14.52 | ||
| P/S | 0.77 | ||
| P/FCF | 2.26 | ||
| P/OCF | 2.24 | ||
| P/B | 0.23 | ||
| P/tB | 0.26 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.23
EY7.42%
EPS(NY)0.21
Fwd EY6.89%
FCF(TTM)1.37
FCFY44.34%
OCF(TTM)1.38
OCFY44.59%
SpS4.03
BVpS13.44
TBVpS11.82
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 | 0.39 |
F-Score3
WACC6.9%
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-340.61%
EPS Next 2Y-3.64%
EPS Next 3Y22.93%
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-29.51%
Revenue Next 2Y-15.42%
Revenue Next 3Y-6.13%
Revenue Next 5Y2.55%
EBIT growth 1Y-154.71%
EBIT growth 3Y-54.77%
EBIT growth 5Y-37.6%
EBIT Next Year-109.01%
EBIT Next 3Y-17.5%
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