company background image
LOM

Lucapa DiamondASX:LOM Stock Report

Market Cap

AU$81.1m

7D

-1.4%

1Y

13.3%

Updated

26 Oct, 2021

Data

Company Financials
LOM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends0/6

LOM Overview

Lucapa Diamond Company Limited, together with its subsidiaries, engages in the exploration, evaluation, development, and mining of diamond projects in Angola, Lesotho, Botswana, and Australia.

Lucapa Diamond Competitors

Gem Diamonds

LSE:GEMD

UK£89.4m

Price History & Performance

Summary of all time highs, changes and price drops for Lucapa Diamond
Historical stock prices
Current Share PriceAU$0.068
52 Week HighAU$0.045
52 Week LowAU$0.08
Beta-0.050
1 Month Change25.93%
3 Month Change30.77%
1 Year Change13.33%
3 Year Change-68.37%
5 Year Change-85.68%
Change since IPO-99.55%

Recent News & Updates

Sep 19
Lucapa Diamond's (ASX:LOM) Earnings Aren't As Good As They Appear

Lucapa Diamond's (ASX:LOM) Earnings Aren't As Good As They Appear

Lucapa Diamond Company Limited's ( ASX:LOM ) stock rose after it released a robust earnings report. While the headline...

May 18
Here's Why Shareholders Should Examine Lucapa Diamond Company Limited's (ASX:LOM) CEO Compensation Package More Closely

Here's Why Shareholders Should Examine Lucapa Diamond Company Limited's (ASX:LOM) CEO Compensation Package More Closely

Shareholders will probably not be too impressed with the underwhelming results at Lucapa Diamond Company Limited...

Shareholder Returns

LOMAU Metals and MiningAU Market
7D-1.4%-0.4%0.8%
1Y13.3%15.6%24.4%

Return vs Industry: LOM underperformed the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: LOM underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is LOM's price volatile compared to industry and market?
LOM volatility
LOM Beta-0.050
Industry Beta0.97
Market Beta1

Stable Share Price: LOM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: LOM's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004678Stephen Wetherallhttps://www.lucapa.com.au

Lucapa Diamond Company Limited, together with its subsidiaries, engages in the exploration, evaluation, development, and mining of diamond projects in Angola, Lesotho, Botswana, and Australia. It primarily operates Lulo Alluvial mine in Angola and the Mothae Kimberlite mine in Lesotho. The company was formerly known as Lonrho Mining Limited and changed its name to Lucapa Diamond Company Limited in October 2012.

Lucapa Diamond Fundamentals Summary

How do Lucapa Diamond's earnings and revenue compare to its market cap?
LOM fundamental statistics
Market CapUS$60.77m
Earnings (TTM)US$5.19m
Revenue (TTM)US$17.24m

12.5x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOM income statement (TTM)
RevenueUS$17.24m
Cost of RevenueUS$14.97m
Gross ProfitUS$2.27m
Expenses-US$2.92m
EarningsUS$5.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0041
Gross Margin13.15%
Net Profit Margin30.09%
Debt/Equity Ratio24.7%

How did LOM perform over the long term?

See historical performance and comparison

Valuation

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

12.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LOM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LOM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LOM is good value based on its PE Ratio (12.5x) compared to the Australian Metals and Mining industry average (14.6x).

PE vs Market: LOM is good value based on its PE Ratio (12.5x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LOM is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.5%

Forecasted Materials 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 Lucapa Diamond 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 Lucapa Diamond performed over the past 5 years?

-29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOM has high quality earnings.

Growing Profit Margin: LOM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LOM has become profitable over the past 5 years, growing earnings by -29.1% per year.

Accelerating Growth: LOM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LOM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: LOM's Return on Equity (10.3%) is considered low.


Financial Health

How is Lucapa Diamond's financial position?


Financial Position Analysis

Short Term Liabilities: LOM's short term assets ($17.1M) do not cover its short term liabilities ($18.5M).

Long Term Liabilities: LOM's short term assets ($17.1M) exceed its long term liabilities ($10.5M).


Debt to Equity History and Analysis

Debt Level: LOM's debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: LOM's debt to equity ratio has increased from 0% to 24.7% over the past 5 years.

Debt Coverage: LOM's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

What is Lucapa Diamond current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if LOM'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 LOM'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?

6.8yrs

Average management tenure


CEO

Stephen Wetherall (49 yo)

6.83yrs

Tenure

US$317,770

Compensation

Mr. Stephen Lee Wetherall has been the Chief Executive Officer and Managing Director of Lucapa Diamond Company Limited since December 11, 2014. Mr. Wetherall served as the Chief Financial Officer of Kimber...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD317.77K) is about average for companies of similar size in the Australian market ($USD301.38K).

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


Leadership Team

Experienced Management: LOM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: LOM's board of directors are considered experienced (5.5 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: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 96.6%.


Top Shareholders

Company Information

Lucapa Diamond Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lucapa Diamond Company Limited
  • Ticker: LOM
  • Exchange: ASX
  • Founded: 2004
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: AU$81.068m
  • Shares outstanding: 1.27b
  • Website: https://www.lucapa.com.au

Number of Employees


Location

  • Lucapa Diamond Company Limited
  • 34 Bagot Road
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 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.