ASX:LCM

Stock Analysis Report

Executive Summary

LogiCamms Limited primarily provides engineering, project delivery, and operations services to the hydrocarbons, mining and mineral processing, infrastructure, and defense industries in Australia, New Zealand, Papua New Guinea, and the Pacific Islands.

Rewards

Trading at 59.8% below its fair value

Risk Analysis

Revenue has declined by -16.5% over the past year

Large one-off items impacting financial results

Profit margins (0.5%) are lower than last year (11.2%)

Does not have a meaningful market cap (A$39M)



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

LCM

6.2%

AU Construction

2.0%

AU Market


1 Year Return

n/a

LCM

-9.4%

AU Construction

19.8%

AU Market

Return vs Industry: Insufficient data to determine how LCM performed against the Australian Construction industry.

Return vs Market: Insufficient data to determine how LCM performed against the Australian Market.


Shareholder returns

LCMIndustryMarket
7 Day-7.1%6.2%2.0%
30 Day5.4%4.1%3.5%
90 Day-4.9%9.4%5.8%
1 Yearn/a-5.8%-9.4%25.2%19.8%
3 Yearn/a29.0%16.3%39.6%20.9%
5 Yearn/a111.8%74.7%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LogiCamms 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: LCM (A$0.2) is trading below our estimate of fair value (A$0.49)

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


Price To Earnings Ratio

PE vs Industry: LCM is poor value based on its PE Ratio (128.1x) compared to the Construction industry average (14.2x).

PE vs Market: LCM is poor value based on its PE Ratio (128.1x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LCM is good value based on its PB Ratio (1.6x) compared to the AU Construction industry average (1.6x).


Next Steps

Future Growth

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

7.8%

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 LogiCamms 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.


Next Steps

Past Performance

How has LogiCamms performed over the past 5 years?

-96.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: LCM has a large one-off loss of A$1.3M impacting its June 30 2019 financial results.

Growing Profit Margin: LCM's current net profit margins (0.5%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LCM's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: LCM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LCM had negative earnings growth (-96.2%) over the past year, making it difficult to compare to the Construction industry average (11%).


Return on Equity

High ROE: LCM's Return on Equity (0.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LogiCamms's financial position?


Financial Position Analysis

Short Term Liabilities: LCM's short term assets (A$38.8M) exceed its short term liabilities (A$29.0M).

Long Term Liabilities: LCM's short term assets (A$38.8M) exceed its long term liabilities (A$4.9M).


Debt to Equity History and Analysis

Debt Level: LCM's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LCM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LCM's debt is well covered by operating cash flow (178.1%).

Interest Coverage: LCM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: LCM's debt is covered by short term assets (assets are 12.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

0.6yrs

Average board tenure


CEO

Chris O’Neill 0

1.2yrs

Tenure

0

Mr. Chris O’Neill has been Chief Executive Officer of LogiCamms Limited since November 26, 2018. Mr. O’Neill has more than 25 years’ Australian and international experience across the resources, energy and ...


Board Age and Tenure

0.6yrs

Average Tenure

54yo

Average Age

Experienced Board: LCM's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LCM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$5,19620 Dec 19
Matthew Morgan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares27,027
Max PriceAU$0.19
BuyAU$180,29902 Jul 19
Forager Funds Management Pty Ltd.
EntityCompany
Shares963,297
Max PriceAU$0.20

Ownership Breakdown

Dilution of Shares: LCM only recently listed within the past 12 months, with total shares outstanding growing by 0.8% in the past year..


Management Team

  • Linton Burns (54yo)

    Executive Director

    • Tenure: 0.6yrs
  • Brian O'Sullivan

    Executive Director

    • Tenure: 0.6yrs
  • Dan Drewe

    CFO & Company Secretary

    • Chris O’Neill

      Chief Executive Officer

      • Tenure: 1.2yrs

    Board Members

    • Linton Burns (54yo)

      Executive Director

      • Tenure: 0.6yrs
    • Matt Morgan (45yo)

      Non-Executive Director

      • Tenure: 0.3yrs
    • Phil Campbell (67yo)

      Non-Executive Director

      • Tenure: 0.3yrs
    • Brian O'Sullivan

      Executive Director

      • Tenure: 0.6yrs
    • Charles Rottier

      Independent Chairperson

      • Tenure: 0.6yrs

    Company Information

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


    Key Information

    • Name: LogiCamms Limited
    • Ticker: LCM
    • Exchange: ASX
    • Founded:
    • Industry: Construction and Engineering
    • Sector: Capital Goods
    • Market Cap: AU$39.192m
    • Shares outstanding: 200.99m
    • Website: https://www.logicamms.com

    Location

    • LogiCamms Limited
    • 200 Mary Street
    • Level 14
    • Brisbane
    • Queensland
    • 4000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    LCMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2019
    47LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2019
    LCMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2019

    Biography

    LogiCamms Limited primarily provides engineering, project delivery, and operations services to the hydrocarbons, mining and mineral processing, infrastructure, and defense industries in Australia, New Zealand, Papua New Guinea, and the Pacific Islands. The company offers asset management services, including engineering, asset inspection and integrity, maintenance strategies, and database development and condition monitoring and assessment; and specialist training services. It also provides engineering and project delivery in the areas of controls and automation, data acquisition, industry digitalization, industrial data analytics and advanced algorithms; and low voltage and high voltage electrical systems and industrial instrumentation. In addition, the company offers engineering, design, and procurement services for oil and gas, and chemical facilities; and life-cycle services to various aspects of pipelines comprising conceptual studies, engineering design, EPC delivery, commissioning, operations and maintenance, commercial services, condition assessment, and repairs. LogiCamms Limited is based in Brisbane, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 10:49
    End of Day Share Price2020/01/16 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    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.