ASX:LYL

Stock Analysis Report

Executive Summary

Lycopodium Limited provides engineering consultancy services in the mining, metallurgical, rail, and manufacturing industries.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

LYL

0.9%

AU Construction

0.4%

AU Market


1 Year Return

29.4%

LYL

-23.6%

AU Construction

9.8%

AU Market

Return vs Industry: LYL exceeded the Australian Construction industry which returned -23% over the past year.

Return vs Market: LYL exceeded the Australian Market which returned 10.3% over the past year.


Shareholder returns

LYLIndustryMarket
7 Day3.6%0.9%0.4%
30 Day-0.9%2.7%-0.7%
90 Day0.5%-9.0%-0.6%
1 Year37.0%29.4%-20.5%-23.6%16.1%9.8%
3 Year145.0%106.7%23.9%12.4%36.1%17.9%
5 Year260.1%193.1%48.1%16.2%49.4%15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lycopodium undervalued compared to its fair value and its price relative to the market?

13.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LYL (A$5.54) is trading above our estimate of fair value (A$4.12)

Significantly Undervalued: LYL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LYL is good value based on its PE Ratio (13.3x) compared to the Construction industry average (13.8x).

PE vs Market: LYL is good value based on its PE Ratio (13.3x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: LYL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: LYL is overvalued based on its PB Ratio (2.8x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

How is Lycopodium forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYL's forecast earnings growth (5.8% per year) is above the savings rate (2.3%).

Earnings vs Market: LYL's earnings (5.8% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: LYL's earnings are forecast to grow, but not significantly.

Revenue vs Market: LYL's revenue (10.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: LYL's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LYL's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has Lycopodium performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LYL's earnings have grown significantly by 54% per year over the past 5 years.

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

Earnings vs Industry: LYL had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Construction industry average (5.7%).


Return on Equity

High ROE: LYL's Return on Equity (20.6%) is considered high.


Return on Assets

ROA vs Industry: LYL has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: LYL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Lycopodium's financial position?


Financial Position Analysis

Short Term Liabilities: LYL's short term assets (A$102.8M) exceeds its short term liabilities (A$39.8M)

Long Term Liabilities: LYL's short term assets (102.8M) exceeds its long term liabilities (625.2K)


Debt to Equity History and Analysis

Debt Level: LYL is debt free.

Reducing Debt: LYL had no debt 5 years ago.

Debt Coverage: LYL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LYL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if LYL's debt is covered by short term assets.


Next Steps

Dividend

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

5.42%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LYL's dividend (5.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: LYL's dividend (5.42%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: LYL's dividend payments have been volatile in the past 10 years.

Growing Dividend: LYL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.2%), LYL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LYL's dividends in 3 years are forecast to be covered by earnings (70.7% payout ratio).


Next Steps

Management

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

9.8yrs

Average board tenure


CEO

Peter De Leo (53yo)

3.9yrs

Tenure

AU$575,514

Compensation

Mr. Peter De Leo, BE (Civil), CPEng, FIEAust., has been the Managing Director of Lycopodium Ltd. since November 25, 2015. Mr. De Leo served as Managing Director of Lycopodium Minerals Pty Ltd. since 2009 u ...


CEO Compensation Analysis

Compensation vs. Market: Peter's total compensation ($USD392.76K) is about average for companies of similar size in the Australian market ($USD257.55K).

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


Board Age and Tenure

9.8yrs

Average Tenure

62yo

Average Age

Experienced Board: LYL's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: LYL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$1,064,11518 Sep 19
Peter De Leo
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares200,000
Max PriceAU$5.32
SellAU$5,320,57409 Sep 19
Rodney Leonard
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,000,000
Max PriceAU$5.32

Ownership Breakdown


Management Team

  • Bruno Ruggiero (55yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: AU$418.41k
  • Glenn Robertson

    Senior Consultant of Lycopodium Process Industries Pty Ltd

    • Tenure: 0yrs
    • Compensation: AU$250.00k
  • Peter De Leo (53yo)

    MD & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$575.51k
  • Peter Dawson (61yo)

    Director of Strategy & Corporate Development and Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$358.30k
  • Lou Giura

    Manager of Projects of Lycopodium Minerals Pty Ltd

    • Tenure: 0yrs
    • Compensation: AU$374.17k
  • Stuart Sutherland

    Managing Director of Lycopodium Infrastructure Pty Ltd

    • Tenure: 0yrs

Board Members

  • Steve Chadwick (66yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$79.20k
  • Bruno Ruggiero (55yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: AU$418.41k
  • Bob Osmetti (63yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$374.26k
  • Mick Caratti (69yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$71.76k
  • Peter De Leo (53yo)

    MD & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$575.51k
  • Rod Leonard (58yo)

    Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: AU$494.26k
  • Laurie Marshall (66yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$131.18k
  • Peter Dawson (61yo)

    Director of Strategy & Corporate Development and Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$358.30k

Company Information

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


Key Information

  • Name: Lycopodium Limited
  • Ticker: LYL
  • Exchange: ASX
  • Founded: 1992
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$214.555m
  • Shares outstanding: 39.73m
  • Website: https://www.lycopodium.com.au

Location

  • Lycopodium Limited
  • 1 Adelaide Terrace
  • Level 5
  • East Perth
  • Western Australia
  • 6004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
LYLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004

Biography

Lycopodium Limited provides engineering consultancy services in the mining, metallurgical, rail, and manufacturing industries. The company provides feasibility studies, value engineering, and project devel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:31
End of Day Share Price2019/10/18 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.