ASX:LBT

Stock Analysis Report

Executive Summary

LBT Innovations Limited engages in the research, development, and commercialization of technologies for the healthcare and laboratory supply markets in Australia and Switzerland.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

31.8%

LBT

2.4%

AU Medical Equipment

-0.2%

AU Market


1 Year Return

26.1%

LBT

31.8%

AU Medical Equipment

10.5%

AU Market

Return vs Industry: LBT matched the Australian Medical Equipment industry which returned 31.8% over the past year.

Return vs Market: LBT exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

LBTIndustryMarket
7 Day31.8%2.4%-0.2%
30 Day31.8%3.1%-1.4%
90 Day11.5%3.4%-1.0%
1 Year26.1%26.1%34.1%31.8%16.9%10.5%
3 Year-77.2%-77.2%52.9%46.2%36.9%18.6%
5 Year26.1%26.1%143.7%124.0%50.2%16.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LBT Innovations 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: LBT (A$0.15) is trading below our estimate of fair value (A$0.92)

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


Price To Earnings Ratio

PE vs Industry: LBT is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: LBT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LBT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LBT is good value based on its PB Ratio (1.2x) compared to the AU Medical Equipment industry average (4.7x).


Next Steps

Future Growth

How is LBT Innovations forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

62.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LBT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: LBT is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: LBT's loss is forecast to worsen by 0% next year.

Revenue vs Market: LBT's revenue (48.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: LBT's revenue (48.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LBT's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has LBT Innovations performed over the past 5 years?

-51.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LBT is unprofitable, and losses have increased over the past 5 years at a rate of -51.9% per year.

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

Earnings vs Industry: LBT is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (29.5%).


Return on Equity

High ROE: LBT has a negative Return on Equity (-14.74%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: LBT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LBT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is LBT Innovations's financial position?


Financial Position Analysis

Short Term Liabilities: LBT's short term assets (A$11.5M) exceeds its short term liabilities (A$969.0K)

Long Term Liabilities: LBT's short term assets (11.5M) exceeds its long term liabilities (7.6M)


Debt to Equity History and Analysis

Debt Level: LBT's debt to equity ratio (8.5%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: LBT's debt is covered by short term assets (assets are 4.594800x debt).


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: LBT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LBT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate LBT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LBT's dividends per share have been stable in the past.

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


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Brent Barnes 0

3.2yrs

Tenure

AU$401,000

Compensation

Mr. Brenton Barnes, also known as Brent, has been the Chief Executive Officer and Director of LBT Innovations Limited since August 08, 2016. Mr. Barnes has been the Managing Director of LBT Innovations Lim ...


CEO Compensation Analysis

Compensation vs. Market: Brent's total compensation ($USD274.53K) is about average for companies of similar size in the Australian market ($USD259.85K).

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


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: LBT's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

Experienced Board: LBT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$10,20006 Aug 19
Stephen Mathwin
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares102,000
Max PriceAU$0.10
BuyAU$16,69731 Mar 19
Damian Lismore
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares203,716
Max PriceAU$0.082
BuyAU$12,00022 Mar 19
Brenton Barnes
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares203,389
Max PriceAU$0.059

Ownership Breakdown


Management Team

  • Dan Hill

    Company Secretary

    • Tenure: 4.9yrs
    • Compensation: AU$12.00k
  • Peter Bradley

    Vice President of Global Business Development

    • Tenure: 7yrs
    • Compensation: AU$229.00k
  • Ray Ridge

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: AU$175.00k
  • Brent Barnes

    CEO, MD & Director

    • Tenure: 3.2yrs
    • Compensation: AU$401.00k
  • Steven Giglio

    Scientific Director

    • Tenure: 2.8yrs

Board Members

  • Caroline Popper

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$47.00k
  • Simon Arkell

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$19.00k
  • Kate Costello (66yo)

    Independent Chairman

    • Tenure: 2.2yrs
    • Compensation: AU$83.00k
  • Stephen Mathwin

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: AU$54.00k
  • Brent Barnes

    CEO, MD & Director

    • Tenure: 3.2yrs
    • Compensation: AU$401.00k
  • Damian Lismore

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$12.00k

Company Information

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


Key Information

  • Name: LBT Innovations Limited
  • Ticker: LBT
  • Exchange: ASX
  • Founded: 2004
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$29.417m
  • Shares outstanding: 235.34m
  • Website: https://www.lbtinnovations.com

Location

  • LBT Innovations Limited
  • 44 Waymouth Street
  • Level 8
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2006
LBTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2006
LSMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006

Biography

LBT Innovations Limited engages in the research, development, and commercialization of technologies for the healthcare and laboratory supply markets in Australia and Switzerland. It offers MicroStreak, an  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:33
End of Day Share Price2019/10/21 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.