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LAW

LawFinanceASX:LAW Stock Report

Market Cap

AU$40.8m

7D

-7.6%

1Y

-69.7%

Updated

29 Nov, 2021

Data

Company Financials
LAW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

LAW Stock Overview

LawFinance Limited provides financing solutions to law firms in Australia and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for LawFinance
Historical stock prices
Current Share PriceAU$0.91
52 Week HighAU$4.10
52 Week LowAU$0.77
Beta1.32
1 Month Change-11.22%
3 Month Change15.92%
1 Year Change-69.67%
3 Year Changen/a
5 Year Change-95.77%
Change since IPO-100.00%

Recent News & Updates

Dec 21
Have Insiders Been Buying LawFinance Limited (ASX:LAW) Shares?

Have Insiders Been Buying LawFinance Limited (ASX:LAW) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that...

Shareholder Returns

LAWAU Diversified FinancialAU Market
7D-7.6%-6.6%-1.6%
1Y-69.7%-12.6%11.8%

Return vs Industry: LAW underperformed the Australian Diversified Financial industry which returned -12.6% over the past year.

Return vs Market: LAW underperformed the Australian Market which returned 11.8% over the past year.

Price Volatility

Is LAW's price volatile compared to industry and market?
LAW volatility
LAW Average Weekly Movement7.8%
Diversified Financial Industry Average Movement6.1%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

Stable Share Price: LAW is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LAW's weekly volatility has decreased from 13% to 8% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999n/aDaniel Kleijnhttps://www.justkapital.com.au

LawFinance Limited provides financing solutions to law firms in Australia and the United States. The company operates through JustKapital Finance and National Health Finance segments. It offers disbursement and short-term, and medical lien funding services.

LawFinance Fundamentals Summary

How do LawFinance's earnings and revenue compare to its market cap?
LAW fundamental statistics
Market CapUS$29.02m
Earnings (TTM)-US$69.39m
Revenue (TTM)n/a

-6.0x

P/S Ratio

-0.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAW income statement (TTM)
Revenue-US$4.38m
Cost of RevenueUS$545.00k
Gross Profit-US$4.93m
ExpensesUS$64.46m
Earnings-US$69.39m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.70
Gross Margin112.43%
Net Profit Margin1,582.39%
Debt/Equity Ratio-1,761.9%

How did LAW perform over the long term?

See historical performance and comparison

Valuation

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


In this section, we usually try to help investors determine whether LawFinance is trading at an attractive price based on the cash flow it is expected to produce in the future. But as LawFinance has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Future Growth

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

-23.0%

Forecasted Diversified Financials 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 LawFinance 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.


Past Performance

How has LawFinance performed over the past 5 years?

-66.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAW is currently unprofitable.

Growing Profit Margin: LAW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAW is unprofitable, and losses have increased over the past 5 years at a rate of 66.5% per year.

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

Earnings vs Industry: LAW is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (26.8%).


Return on Equity

High ROE: LAW's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is LawFinance's financial position?


Financial Position Analysis

Short Term Liabilities: LAW has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LAW has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LAW has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LAW's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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: LAW has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: LAW has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 17.5% each year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LAW'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 LAW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LAW'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 LAW's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Daniel Kleijn

0.92

Tenure

US$348,950

Compensation

Mr. Daniel Kleijn has been Chief Executive Officer at LawFinance Limited since December 08, 2020 and has been its Managing Director since December 11, 2020 and also has been its Director since December 8,...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD348.95K) is about average for companies of similar size in the Australian market ($USD290.58K).

Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.


Leadership Team

Experienced Management: LAW's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: LAW's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 321.8%.


Top Shareholders

Company Information

LawFinance Limited's employee growth, exchange listings and data sources


Key Information

  • Name: LawFinance Limited
  • Ticker: LAW
  • Exchange: ASX
  • Founded: 1999
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: AU$40.771m
  • Shares outstanding: 40.77m
  • Website: https://www.justkapital.com.au

Location

  • LawFinance Limited
  • 56 Pitt Street
  • Suite 2
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/29 07:04
End of Day Share Price2021/11/29 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.