ASX:L1GCapital Markets
L1 Group (ASX:L1G) Shares Look Cheap But Profit Durability Clouds Outlook
L1 Group walked into this earnings day looking cheap on trailing numbers with the stock at A$1.185 and a P/E of 5.5x while peers sat far higher. The headline today is not the share price churn; it is the clash between very high reported profitability, including a net margin above 50%, and forecasts that point to much weaker earnings and revenue ahead.
That gap between what the income statement currently shows and what the outlook implies is what is really moving sentiment on L1 Group, not the...