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AJL

AJ Lucas Group ASX:AJL Stock Report

Last Price

AU$0.056

Market Cap

AU$67.0m

7D

-9.7%

1Y

115.4%

Updated

24 Jun, 2022

Data

Company Financials
AJL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

AJL Stock 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$0.056
52 Week HighAU$0.093
52 Week LowAU$0.025
Beta0.38
1 Month Change-3.45%
3 Month Change-6.67%
1 Year Change115.39%
3 Year Change-30.00%
5 Year Change-74.54%
Change since IPO-94.55%

Recent News & Updates

Jun 19
Investors Will Want AJ Lucas Group's (ASX:AJL) Growth In ROCE To Persist

Investors Will Want AJ Lucas Group's (ASX:AJL) Growth In ROCE To Persist

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Apr 03
AJ Lucas Group (ASX:AJL) Use Of Debt Could Be Considered Risky

AJ Lucas Group (ASX:AJL) Use Of Debt Could Be Considered Risky

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

Feb 27
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

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Nov 30
AJ Lucas Group (ASX:AJL) Seems To Be Using A Lot Of Debt

AJ Lucas Group (ASX:AJL) Seems To Be Using A Lot Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

AJLAU ConstructionAU Market
7D-9.7%0.7%1.4%
1Y115.4%-4.7%-11.3%

Return vs Industry: AJL exceeded the Australian Construction industry which returned -6.4% over the past year.

Return vs Market: AJL exceeded the Australian Market which returned -12.2% over the past year.

Price Volatility

Is AJL's price volatile compared to industry and market?
AJL volatility
AJL Average Weekly Movement16.2%
Construction Industry Average Movement6.2%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: AJL is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: AJL's weekly volatility (16%) 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$66.99m
Earnings (TTM)-AU$9.93m
Revenue (TTM)AU$110.42m

0.6x

P/S Ratio

-6.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AJL income statement (TTM)
RevenueAU$110.42m
Cost of RevenueAU$85.82m
Gross ProfitAU$24.60m
Other ExpensesAU$34.53m
Earnings-AU$9.93m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0083
Gross Margin22.28%
Net Profit Margin-9.00%
Debt/Equity Ratio119.0%

How did AJL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AJL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AJL?

Other financial metrics that can be useful for relative valuation.

AJL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA11.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AJL's PS Ratio compare to its peers?

AJL PS Ratio vs Peers
The above table shows the PS ratio for AJL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.6x
DUR Duratec
0.4xn/aAU$85.4m
DRA DRA Global
0.09xn/aAU$105.6m
AE1 Aerison Group
0.2xn/aAU$32.1m
RDG Resource Development Group
1.8xn/aAU$129.8m
AJL AJ Lucas Group
0.6xn/aAU$67.0m

Price-To-Sales vs Peers: AJL is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.6x).


Price to Earnings Ratio vs Industry

How does AJL's PE Ratio compare vs other companies in the Australian Construction Industry?

Price-To-Sales vs Industry: AJL is expensive based on its Price-To-Sales Ratio (0.6x) compared to the Australian Construction industry average (0.5x)


Price to Sales Ratio vs Fair Ratio

What is AJL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AJL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate AJL's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of AJL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate AJL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AJL's fair value for valuation analysis.


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.3%

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.


Discover growth companies

  • Take a look at our analysis of AJL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • AJ Lucas Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


37.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AJL is currently unprofitable.

Growing Profit Margin: AJL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AJL is unprofitable, but has reduced losses over the past 5 years at a rate of 37.3% per year.

Accelerating Growth: Unable to compare AJL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AJL is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (16.6%).


Return on Equity

High ROE: AJL has a negative Return on Equity (-10.74%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is AJ Lucas Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AJL's short term assets (A$40.6M) do not cover its short term liabilities (A$66.1M).

Long Term Liabilities: AJL's short term assets (A$40.6M) do not cover its long term liabilities (A$78.5M).


Debt to Equity History and Analysis

Debt Level: AJL's net debt to equity ratio (112.3%) is considered high.

Reducing Debt: AJL's debt to equity ratio has reduced from 214% to 119% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AJL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AJL has less than a year of cash runway if free cash flow continues to grow at historical rates of 40.1% each year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AJL has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure


CEO

Brett Tredinnick

2.08yrs

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 ($USD383.19K) is above average for companies of similar size in the Australian market ($USD289.03K).

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 considered experienced (2.1 years average tenure).


Board Members

Experienced Board: AJL's board of directors are not considered experienced ( 2.4 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
  • Implied Market Cap: AU$66.992m
  • 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 Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
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.