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LGL

Lynch Group Holdings ASX:LGL Stock Report

Last Price

AU$2.10

Market Cap

AU$256.3m

7D

-2.3%

1Y

-42.5%

Updated

26 Jun, 2022

Data

Company Financials +
LGL fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends2/6

LGL Stock Overview

Lynch Group Holdings Limited operates as a grower, wholesaler, retailer, and importer of flowers and potted plants in Australia and China.

Lynch Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lynch Group Holdings
Historical stock prices
Current Share PriceAU$2.10
52 Week HighAU$3.96
52 Week LowAU$1.96
Beta0
1 Month Change-3.67%
3 Month Change-15.66%
1 Year Change-42.47%
3 Year Changen/a
5 Year Changen/a
Change since IPO-38.24%

Recent News & Updates

Apr 05
Be Wary Of Lynch Group Holdings (ASX:LGL) And Its Returns On Capital

Be Wary Of Lynch Group Holdings (ASX:LGL) And Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Shareholder Returns

LGLAU FoodAU Market
7D-2.3%-1.8%1.4%
1Y-42.5%-13.6%-11.3%

Return vs Industry: LGL underperformed the Australian Food industry which returned -13.6% over the past year.

Return vs Market: LGL underperformed the Australian Market which returned -11.3% over the past year.

Price Volatility

Is LGL's price volatile compared to industry and market?
LGL volatility
LGL Average Weekly Movement4.9%
Food Industry Average Movement6.0%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: LGL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LGL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1915n/aHugh Tollhttps://www.lynchgroup.com.au

Lynch Group Holdings Limited operates as a grower, wholesaler, retailer, and importer of flowers and potted plants in Australia and China. The company’s product portfolio includes gerberas, geraldton wax, phalaenopsis orchids, potted color products, and other wildflowers. It also exports its products.

Lynch Group Holdings Fundamentals Summary

How do Lynch Group Holdings's earnings and revenue compare to its market cap?
LGL fundamental statistics
Market CapAU$256.34m
Earnings (TTM)AU$27.15m
Revenue (TTM)AU$333.45m

9.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LGL income statement (TTM)
RevenueAU$333.45m
Cost of RevenueAU$168.75m
Gross ProfitAU$164.70m
Other ExpensesAU$137.55m
EarningsAU$27.15m

Last Reported Earnings

Dec 26, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)0.22
Gross Margin49.39%
Net Profit Margin8.14%
Debt/Equity Ratio22.4%

How did LGL perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGL?

Other financial metrics that can be useful for relative valuation.

LGL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA8.7x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does LGL's PE Ratio compare to its peers?

LGL PE Ratio vs Peers
The above table shows the PE ratio for LGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.9x
RIC Ridley
15.2x6.2%AU$568.7m
SHV Select Harvests
24.4x32.4%AU$635.0m
CGC Costa Group Holdings
32.8x18.3%AU$1.4b
ELD Elders
11.3x-3.2%AU$1.9b
LGL Lynch Group Holdings
9.4x16.9%AU$256.3m

Price-To-Earnings vs Peers: LGL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does LGL's PE Ratio compare vs other companies in the Oceanian Food Industry?

Price-To-Earnings vs Industry: LGL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the Oceanic Food industry average (14.3x)


Price to Earnings Ratio vs Fair Ratio

What is LGL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: LGL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


Share Price vs Fair Value

What is the Fair Price of LGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LGL (A$2.1) is trading below our estimate of fair value (A$9.19)

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


Price to Earnings Growth Ratio

PEG Ratio: LGL is good value based on its PEG Ratio (0.6x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGL's forecast earnings growth (16.9% per year) is above the savings rate (1.8%).

Earnings vs Market: LGL's earnings (16.9% per year) are forecast to grow faster than the Australian market (6% per year).

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

Revenue vs Market: LGL's revenue (8% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: LGL's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LGL's Return on Equity is forecast to be low in 3 years time (11%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


90.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: LGL has a large one-off gain of A$10.8M impacting its December 26 2021 financial results.

Growing Profit Margin: LGL's current net profit margins (8.1%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if LGL's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare LGL's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: LGL earnings growth over the past year (90.7%) exceeded the Food industry 50%.


Return on Equity

High ROE: LGL's Return on Equity (11.2%) is considered low.


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Financial Health

How is Lynch Group Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LGL's short term assets (A$88.9M) exceed its short term liabilities (A$71.3M).

Long Term Liabilities: LGL's short term assets (A$88.9M) exceed its long term liabilities (A$82.2M).


Debt to Equity History and Analysis

Debt Level: LGL's net debt to equity ratio (8.3%) is considered satisfactory.

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

Debt Coverage: LGL's debt is well covered by operating cash flow (44.6%).

Interest Coverage: LGL's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LGL's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Australian market (2.74%).

High Dividend: LGL's dividend (5.71%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.6%), LGL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (755%), LGL's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

7.9yrs

Average management tenure


CEO

Hugh Toll

3.42yrs

Tenure

AU$1,364,160

Compensation

Mr. Hugh Toll serves as an Associate Director of Macquarie Direct Investment Limited. He has experience in private equity and capital markets. He serves as Group Chief Executive Officer at Lynch Group Hold...


CEO Compensation Analysis

Compensation vs Market: Hugh's total compensation ($USD948.12K) is above average for companies of similar size in the Australian market ($USD606.74K).

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


Leadership Team

Experienced Management: LGL's management team is seasoned and experienced (7.9 years average tenure).


Board Members

Experienced Board: LGL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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


Top Shareholders

Company Information

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


Key Information

  • Name: Lynch Group Holdings Limited
  • Ticker: LGL
  • Exchange: ASX
  • Founded: 1915
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: AU$256.339m
  • Shares outstanding: 122.07m
  • Website: https://www.lynchgroup.com.au

Location

  • Lynch Group Holdings Limited
  • 24 Helles Avenue
  • Moorebank
  • New South Wales
  • 2170
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/26
Annual Earnings2021/06/27


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.