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LFS

Latitude Group HoldingsASX:LFS Stock Report

Market Cap

AU$2.2b

7D

2.3%

1Y

n/a

Updated

22 Oct, 2021

Data

Company Financials +
LFS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health2/6
Dividends3/6

LFS Overview

Latitude Group Holdings Limited operates in instalments and lending business in Australia and New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Latitude Group Holdings
Historical stock prices
Current Share PriceAU$2.22
52 Week HighAU$2.13
52 Week LowAU$2.99
Beta0
1 Month Change1.37%
3 Month Change-5.53%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-17.78%

Recent News & Updates

Shareholder Returns

LFSAU Consumer FinanceAU Market
7D2.3%3.3%0.7%
1Yn/a16.3%21.4%

Return vs Industry: Insufficient data to determine how LFS performed against the Australian Consumer Finance industry.

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

Price Volatility

Is LFS's price volatile compared to industry and market?
LFS volatility
LFS Beta0
Industry Beta1.97
Market Beta1

Stable Share Price: LFS is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LFS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2015n/aA. Fahourhttps://www.latitudefinancial.com.au

Latitude Group Holdings Limited operates in instalments and lending business in Australia and New Zealand. It provides various installment products that enable the customer to obtain the good or service needed and the merchant to facilitate the sale. The company also offers lending products comprising credit cards, personal loans, and motor loans through various channels, such as direct, third parties, and its white-label partner.

Latitude Group Holdings Fundamentals Summary

How do Latitude Group Holdings's earnings and revenue compare to its market cap?
LFS fundamental statistics
Market CapAU$2.22b
Earnings (TTM)AU$101.03m
Revenue (TTM)AU$726.98m

22.0x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LFS income statement (TTM)
RevenueAU$726.98m
Cost of RevenueAU$0
Gross ProfitAU$726.98m
ExpensesAU$625.95m
EarningsAU$101.03m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin100.00%
Net Profit Margin13.90%
Debt/Equity Ratio446.1%

How did LFS perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

78%

Payout Ratio

Valuation

Is Latitude Group Holdings undervalued compared to its fair value and its price relative to the market?

21.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LFS (A$2.22) is trading above our estimate of fair value (A$0.67)

Significantly Below Fair Value: LFS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LFS is poor value based on its PE Ratio (22x) compared to the Australian Consumer Finance industry average (14.4x).

PE vs Market: LFS is poor value based on its PE Ratio (22x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: LFS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: LFS is good value based on its PB Ratio (1.7x) compared to the AU Consumer Finance industry average (1.8x).


Future Growth

How is Latitude Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LFS's forecast earnings growth (24.5% per year) is above the savings rate (1.9%).

Earnings vs Market: LFS's earnings (24.5% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LFS's revenue (7.4% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: LFS's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LFS's Return on Equity is forecast to be low in 3 years time (17.1%).


Past Performance

How has Latitude Group Holdings performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LFS has high quality earnings.

Growing Profit Margin: LFS's current net profit margins (13.9%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: LFS's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: LFS's earnings growth over the past year (832.7%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: LFS earnings growth over the past year (832.7%) exceeded the Consumer Finance industry 171.9%.


Return on Equity

High ROE: LFS's Return on Equity (6%) is considered low.


Financial Health

How is Latitude Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LFS's short term assets (A$6.5B) exceed its short term liabilities (A$667.8M).

Long Term Liabilities: LFS's short term assets (A$6.5B) exceed its long term liabilities (A$5.7B).


Debt to Equity History and Analysis

Debt Level: LFS's debt to equity ratio (446.1%) is considered high.

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

Debt Coverage: LFS's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: Insufficient data to determine if LFS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Latitude Group Holdings's current dividend yield, its reliability and sustainability?

7.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LFS's dividend (7.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: LFS's dividend (7.07%) is in the top 25% of dividend payers in the Australian market (5.31%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether LFS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if LFS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.7%), LFS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.6yrs

Average board tenure


CEO

A. Fahour (54 yo)

3.75yrs

Tenure

Mr. Ahmed Fahour, BEc (Hons), MBA, FAIM, has been Managing Director and Director at Latitude Group Holdings Limited and has been its Chief Executive Officer 2018. He has been Managing Director and Chief Ex...


Board Members

Experienced Board: LFS's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: LFS only recently listed within the past 12 months.


Top Shareholders

Company Information

Latitude Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Latitude Group Holdings Limited
  • Ticker: LFS
  • Exchange: ASX
  • Founded: 2015
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$2.220b
  • Shares outstanding: 1.00b
  • Website: https://www.latitudefinancial.com.au

Location

  • Latitude Group Holdings Limited
  • 800 Collins Street
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:51
End of Day Share Price2021/10/22 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.