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AJL

AJ Lucas GroupASX:AJL Stock Report

Market Cap

AU$52.6m

7D

4.8%

1Y

10.0%

Updated

18 Oct, 2021

Data

Company Financials
AJL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health1/6
Dividends0/6

AJL Overview

AJ Lucas Group Limited, together with its subsidiaries, provides drilling services in Australia.

AJ Lucas Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AJ Lucas Group
Historical stock prices
Current Share PriceAU$0.044
52 Week HighAU$0.025
52 Week LowAU$0.12
Beta0.51
1 Month Change46.67%
3 Month Change37.50%
1 Year Change10.00%
3 Year Change-87.95%
5 Year Change-90.22%
Change since IPO-95.72%

Recent News & Updates

Aug 30
Auditors Have Doubts About AJ Lucas Group (ASX:AJL)

Auditors Have Doubts About AJ Lucas Group (ASX:AJL)

When AJ Lucas Group Limited ( ASX:AJL ) reported its results to June 2021 its auditors, Ernst & Young LLP could not be...

Aug 30
AJ Lucas Group (ASX:AJL) Shareholders Will Want The ROCE Trajectory To Continue

AJ Lucas Group (ASX:AJL) Shareholders Will Want The ROCE Trajectory To Continue

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Jun 20
These 4 Measures Indicate That AJ Lucas Group (ASX:AJL) Is Using Debt Extensively

These 4 Measures Indicate That AJ Lucas Group (ASX:AJL) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Apr 28
AJ Lucas Group's (ASX:AJL) Returns On Capital Are Heading Higher

AJ Lucas Group's (ASX:AJL) Returns On Capital Are Heading Higher

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

Mar 07
We Think AJ Lucas Group's (ASX:AJL) Healthy Earnings Might Be Conservative

We Think AJ Lucas Group's (ASX:AJL) Healthy Earnings Might Be Conservative

AJ Lucas Group Limited ( ASX:AJL ) announced a healthy earnings result recently, and the market rewarded it with a...

Shareholder Returns

AJLAU ConstructionAU Market
7D4.8%0.9%0.9%
1Y10.0%1.7%20.2%

Return vs Industry: AJL exceeded the Australian Construction industry which returned 1.7% over the past year.

Return vs Market: AJL underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is AJL's price volatile compared to industry and market?
AJL volatility
AJL Beta0.51
Industry Beta0.99
Market Beta1

Stable Share Price: AJL is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: AJL's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1993295Brett Tredinnickhttps://www.lucas.com.au

AJ Lucas Group Limited, together with its subsidiaries, provides drilling services in Australia. The company operates in two segments: Drilling, and Oil and Gas. Its Drilling segment provides integrated professional drilling services primarily for exploration and degasification of coal mines, which includes recovery and commercialization of coal seam gas and associated services.

AJ Lucas Group Fundamentals Summary

How do AJ Lucas Group's earnings and revenue compare to its market cap?
AJL fundamental statistics
Market CapAU$52.64m
Earnings (TTM)AU$3.34m
Revenue (TTM)AU$111.09m

15.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AJL income statement (TTM)
RevenueAU$111.09m
Cost of RevenueAU$83.43m
Gross ProfitAU$27.66m
ExpensesAU$24.32m
EarningsAU$3.34m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0028
Gross Margin24.90%
Net Profit Margin3.01%
Debt/Equity Ratio108.6%

How did AJL perform over the long term?

See historical performance and comparison

Valuation

Is AJ Lucas Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AJL (A$0.04) is trading below our estimate of fair value (A$0.22)

Significantly Below Fair Value: AJL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AJL's PE Ratio (15.8x) is in line with the Australian Construction industry average.

PE vs Market: AJL is good value based on its PE Ratio (15.8x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AJL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AJL is good value based on its PB Ratio (0.6x) compared to the AU Construction industry average (2x).


Future Growth

How is AJ Lucas Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AJ Lucas Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has AJ Lucas Group performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJL has high quality earnings.

Growing Profit Margin: AJL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AJL has become profitable over the past 5 years, growing earnings by 33.4% per year.

Accelerating Growth: AJL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AJL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (25%).


Return on Equity

High ROE: AJL's Return on Equity (3.6%) is considered low.


Financial Health

How is AJ Lucas Group's financial position?


Financial Position Analysis

Short Term Liabilities: AJL's short term assets (A$34.0M) do not cover its short term liabilities (A$59.2M).

Long Term Liabilities: AJL's short term assets (A$34.0M) do not cover its long term liabilities (A$78.3M).


Debt to Equity History and Analysis

Debt Level: AJL's debt to equity ratio (108.6%) is considered high.

Reducing Debt: AJL's debt to equity ratio has reduced from 122.5% to 108.6% over the past 5 years.

Debt Coverage: AJL's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: AJL's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

What is AJ Lucas Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AJL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AJL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AJL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AJL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AJL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AJL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Brett Tredinnick

1.42yrs

Tenure

AU$554,700

Compensation

Mr. Brett Tredinnick has been Executive Director of AJ Lucas Group Limited since January 01, 2020 and Group Chief Executive Officer since May 2020. He served as Chief Executive Officer of Drilling Division...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD411.71K) is above average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AJL's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: AJL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AJ Lucas Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: AJ Lucas Group Limited
  • Ticker: AJL
  • Exchange: ASX
  • Founded: 1993
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$52.637m
  • Shares outstanding: 1.20b
  • Website: https://www.lucas.com.au

Number of Employees


Location

  • AJ Lucas Group Limited
  • Emirates House
  • Level 22
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:01
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.