ASX:LBL

Stock Analysis Report

Executive Summary

Laserbond Limited, a surface engineering company, engages in the development and application of materials, technologies, and methodologies to enhance operating performance and wear life of capital-intensive machinery components.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Risks

  • Laserbond has significant price volatility in the past 3 months.
  • Laserbond is not covered by any analysts.

Share Price & News

How has Laserbond's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

ASX:LBL

0.4%

AU Machinery

0.6%

AU Market


1 Year Return

277.8%

ASX:LBL

7.3%

AU Machinery

5.7%

AU Market

LBL outperformed the Machinery industry which returned 7.3% over the past year.

LBL outperformed the Market in Australia which returned 5.7% over the past year.


Share holder returns

LBLIndustryMarket
7 Day-3.8%0.4%0.6%
30 Day32.5%10.4%0.8%
90 Day37.8%23.1%5.9%
1 Year291.5%277.8%8.0%7.3%11.8%5.7%
3 Year466.0%410.0%-9.1%-10.3%37.2%19.4%
5 Year515.9%410.0%-24.8%-40.2%44.8%12.3%

Price Volatility Vs. Market

How volatile is Laserbond's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Laserbond undervalued based on future cash flows and its price relative to the stock market?

8%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Laserbond's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Laserbond's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Laserbond is overvalued based on earnings compared to the AU Machinery industry average.

Laserbond is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Laserbond, we can't assess if its growth is good value.


Price Based on Value of Assets

Laserbond is overvalued based on assets compared to the AU Machinery industry average.


Next Steps

Future Growth

How is Laserbond expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Laserbond is high growth as no revenue estimate data is available.

Laserbond's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Laserbond's revenue growth to the Australia market average as no estimate data is available.

Laserbond's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Laserbond's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Laserbond will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Laserbond performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Laserbond has delivered over 20% year on year earnings growth in the past 5 years.

Laserbond's 1-year earnings growth exceeds its 5-year average (120.6% vs 38.5%)

Laserbond's earnings growth has exceeded the AU Machinery industry average in the past year (120.6% vs -38.6%).


Return on Equity

Laserbond has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Laserbond used its assets more efficiently than the AU Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Laserbond has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Laserbond's financial position?


Financial Position Analysis

Laserbond is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Laserbond's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Laserbond's level of debt (29%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.4% vs 29% today).

Debt is well covered by operating cash flow (76.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.6x debt.


Next Steps

Dividend

What is Laserbond's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield and Payments Analysis

Laserbond's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).

Laserbond's dividend is below the markets top 25% of dividend payers in Australia (5.78%).

Laserbond has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Laserbond only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Laserbond's salary, the management and board of directors tenure and is there insider trading?


CEO

Wayne Hooper

AU$355,300

Compensation

Mr. Wayne Edward Hooper serves as Chief Executive Officer and Director at Laserbond Limited. He is a Professional Engineer with significant experience within the engineering and manufacturing industries. M ...


CEO Compensation Analysis

Wayne's remuneration is about average for companies of similar size in Australia.

Wayne's compensation has been consistent with company performance over the past year, both up more than 20%.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Greg Hooper

    Chief Technology Officer

    • Compensation: A$337.37k
  • Wayne Hooper

    CEO & Director

    • Compensation: A$355.30k
  • Matthew Twist

    CFO & Company Secretary

    • Tenure: 12.3yrs
    • Compensation: A$166.93k

Board Members

  • Phil Suriano

    Chairman of the Board

    • Compensation: A$41.25k
  • Greg Hooper

    Chief Technology Officer

    • Tenure: 26.8yrs
    • Compensation: A$337.37k
  • Wayne Hooper

    CEO & Director

    • Tenure: 25.3yrs
    • Compensation: A$355.30k

Company Information

Laserbond Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laserbond Limited
  • Ticker: LBL
  • Exchange: ASX
  • Founded: 1992
  • Industry: industrial machinery
  • Sector: capital goods
  • Market Cap: AU$46.797m
  • Shares outstanding: 94.54m
  • Website: Click here

Number of Employees


Location

  • Laserbond Limited
  • 2/57 Anderson Road
  • Smeaton Grange
  • Sydney
  • New South Wales
  • 2567
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
LBLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007

Biography

Laserbond Limited, a surface engineering company, engages in the development and application of materials, technologies, and methodologies to enhance operating performance and wear life of capital-intensiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 10:35
End of Day Share Price2019/07/22 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.