ASX:LYL

Stock Analysis Report

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Executive Summary

Lycopodium Limited provides engineering consultancy services in the resources, infrastructure and industrial processes sectors. More Details


Snowflake Analysis

Flawless balance sheet and good value.


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

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


Market Performance


7 Day Return

7.0%

LYL

0.09%

AU Construction

-1.4%

AU Market


1 Year Return

-21.6%

LYL

-31.8%

AU Construction

-7.1%

AU Market

Return vs Industry: LYL exceeded the Australian Construction industry which returned -31.8% over the past year.

Return vs Market: LYL underperformed the Australian Market which returned -7.1% over the past year.


Shareholder returns

LYLIndustryMarket
7 Day7.0%0.09%-1.4%
30 Day0.7%11.4%3.4%
90 Day-8.6%5.7%3.8%
1 Year-17.7%-21.6%-31.1%-31.8%-3.7%-7.1%
3 Year12.6%-5.1%-41.9%-46.1%16.9%2.1%
5 Year305.7%217.7%4.6%-8.9%46.0%15.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LYL (A$4.13) is trading below our estimate of fair value (A$299.28)

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


Price To Earnings Ratio

PE vs Industry: LYL is good value based on its PE Ratio (13.9x) compared to the AU Construction industry average (17x).

PE vs Market: LYL is good value based on its PE Ratio (13.9x) compared to the Australian market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: LYL is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: LYL's PB Ratio (2.1x) is in line with the AU Construction industry average.


Next Steps

Future Growth

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

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYL's forecast earnings growth (7.8% per year) is above the savings rate (2.3%).

Earnings vs Market: LYL's earnings (7.8% per year) are forecast to grow slower than the Australian market (17.7% per year).

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

Revenue vs Market: LYL's revenue (0.3% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: LYL's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LYL's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Lycopodium performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYL has high quality earnings.

Growing Profit Margin: LYL's current net profit margins (5.6%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: LYL has become profitable over the past 5 years, growing earnings by 36.5% per year.

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 (-28.5%) over the past year, making it difficult to compare to the Construction industry average (-3.4%).


Return on Equity

High ROE: LYL's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Lycopodium's financial position?


Financial Position Analysis

Short Term Liabilities: LYL's short term assets (A$134.3M) exceed its short term liabilities (A$75.9M).

Long Term Liabilities: LYL's short term assets (A$134.3M) exceed its long term liabilities (A$1.9M).


Debt to Equity History and Analysis

Debt Level: LYL's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: LYL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: LYL's debt is well covered by operating cash flow (36731.5%).

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


Balance Sheet


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LYL's dividend (2.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: LYL's dividend (2.42%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.3%), 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 (74.7% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Peter De Leo (54 yo)

4.92yrs

Tenure

AU$689,376

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 ($USD491.08K) is above average for companies of similar size in the Australian market ($USD277.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter De Leo
MD & Executive Director4.92yrsAU$689.38k2.43%
A$ 3.9m
Justine Campbell
CFO & Company Secretary1.08yrsAU$486.07kno data
Peter Dawson
Director of Strategy & Corporate Development3.08yrsAU$562.23kno data
Bruno Ruggiero
Executive Director15.83yrsAU$568.57k0.063%
A$ 100.8k
Stuart Sutherland
Managing Director of Lycopodium Infrastructure Pty Ltdno datano datano data
Glenn Robertson
Senior Consultant of Lycopodium Process Industries Pty Ltdno dataAU$250.00kno data
Lou Giura
Manager of Projects of Lycopodium Minerals Pty Ltdno dataAU$374.17kno data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: LYL's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter De Leo
MD & Executive Director4.92yrsAU$689.38k2.43%
A$ 3.9m
Bruno Ruggiero
Executive Director15.83yrsAU$568.57k0.063%
A$ 100.8k
Steven Chadwick
Independent Non-Executive Director4.75yrsAU$78.00k0.025%
A$ 40.3k
Robert Osmetti
Non-Executive Directorno dataAU$129.50k0.78%
A$ 1.2m
Michael Caratti
Non-Executive Chairmanno dataAU$90.63k22.91%
A$ 36.7m
Rodney Leonard
Non-Executive Director16.75yrsAU$186.65k2.65%
A$ 4.2m
Lawrence Marshall
Independent Non-Executive Director15.83yrsAU$148.35k2.5%
A$ 4.0m

15.8yrs

Average Tenure

64yo

Average Age

Experienced Board: LYL's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$160.153m
  • Shares outstanding: 39.74m
  • Website: https://www.lycopodium.com

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 resources, infrastructure and industrial processes sectors. It operates through four segments: Mineral, Process Industries, Project Servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 10:36
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.