ASX:LIC

Stock Analysis Report

Lifestyle Communities

Executive Summary

Lifestyle Communities Limited, together with its subsidiaries, develops and manages affordable communities for homeowners in Australia.

Rewards

PE ratio (15.9x) is below the Australian market (18.4x)

Revenue is forecast to grow 10.82% per year

Earnings grew by 4.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -13.4% per year for the next 3 years

Large one-off items impacting financial results



Snowflake Analysis

Acceptable track record with mediocre balance sheet.

Share Price & News

How has Lifestyle Communities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

LIC

-1.7%

AU Real Estate

-0.07%

AU Market


1 Year Return

55.9%

LIC

45.5%

AU Real Estate

19.1%

AU Market

Return vs Industry: LIC exceeded the Australian Real Estate industry which returned 45.5% over the past year.

Return vs Market: LIC exceeded the Australian Market which returned 19.1% over the past year.


Shareholder returns

LICIndustryMarket
7 Day2.7%-1.7%-0.07%
30 Day2.2%-2.8%-0.6%
90 Day11.6%6.3%0.4%
1 Year57.3%55.9%50.6%45.5%25.0%19.1%
3 Year155.4%149.0%32.1%18.0%36.0%17.4%
5 Year385.1%366.1%43.5%18.1%63.2%26.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIC (A$8.39) is trading above our estimate of fair value (A$1.03)

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


Price To Earnings Ratio

PE vs Industry: LIC is poor value based on its PE Ratio (15.9x) compared to the Real Estate industry average (13x).

PE vs Market: LIC is good value based on its PE Ratio (15.9x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: LIC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LIC is overvalued based on its PB Ratio (3.4x) compared to the AU Real Estate industry average (0.9x).


Next Steps

Future Growth

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

-13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIC's earnings are forecast to decline over the next 3 years (-13.4% per year).

Earnings vs Market: LIC's earnings are forecast to decline over the next 3 years (-13.4% per year).

High Growth Earnings: LIC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LIC's revenue (10.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: LIC's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIC's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Lifestyle Communities performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIC has a large one-off gain of A$55.7M impacting its June 30 2019 financial results.

Growing Profit Margin: LIC's current net profit margins (37.5%) are lower than last year (42.6%).


Past Earnings Growth Analysis

Earnings Trend: LIC's earnings have grown significantly by 34% per year over the past 5 years.

Accelerating Growth: LIC's earnings growth over the past year (4.5%) is below its 5-year average (34% per year).

Earnings vs Industry: LIC earnings growth over the past year (4.5%) exceeded the Real Estate industry -2.4%.


Return on Equity

High ROE: LIC's Return on Equity (21.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lifestyle Communities's financial position?


Financial Position Analysis

Short Term Liabilities: LIC's short term assets (A$42.2M) exceed its short term liabilities (A$39.3M).

Long Term Liabilities: LIC's short term assets (A$42.2M) do not cover its long term liabilities (A$169.5M).


Debt to Equity History and Analysis

Debt Level: LIC's debt to equity ratio (39.3%) is considered satisfactory.

Reducing Debt: LIC's debt to equity ratio has increased from 37.5% to 39.3% over the past 5 years.

Debt Coverage: LIC's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: LIC's interest payments on its debt are well covered by EBIT (18.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: LIC's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Lifestyle Communities's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.4%markettop25%5.5%industryaverage2.6%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: LIC's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: LIC's dividend (0.72%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: LIC is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: LIC is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LIC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LIC'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 Lifestyle Communities's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

James Kelly 0

12.3yrs

Tenure

AU$579,592

Compensation

Mr. James Kelly, B. Bldg is a Founding Member of Lifestyle Communities Ltd and has been its Managing Director and Director since September 2007 and May 2007 respectively. Mr. Kelly has over 30 years experi ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD394.98K) is below average for companies of similar size in the Australian market ($USD715.44K).

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


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: LIC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

Experienced Board: LIC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$9,720,00111 Sep 19
James Kelly
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,500,000
Max PriceAU$7.50
SellAU$14,300,00011 Sep 19
Daken Investments Pty Ltd
EntityCompany
Shares2,000,000
Max PriceAU$7.15
BuyAU$020 Aug 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares2,069,447
Max PriceAU$6.55
SellAU$1,289,85016 Aug 19
Australian Foundation Investment Company Limited
EntityCompany
Shares242,422
Max PriceAU$5.42
BuyAU$6,540,34212 Feb 19
Pengana Capital Ltd.
EntityCompany
Shares1,101,915
Max PriceAU$6.16

Ownership Breakdown

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


Management Team

  • Mark Licciardo (55yo)

    Joint Company Secretary

    • Tenure: 1.8yrs
  • James Kelly

    Founder

    • Tenure: 12.3yrs
    • Compensation: AU$579.59k
  • Chris Paranthoiene

    Head of Development & Acquisition

    • Tenure: 0yrs
    • Compensation: AU$419.55k
  • Sam Cohen

    Head of Operations

    • Tenure: 0yrs
    • Compensation: AU$279.84k
  • Richard Parker

    Head of Sales

    • Tenure: 3.9yrs
    • Compensation: AU$289.12k
  • Kate Goland

    Joint Company Secretary

    • Tenure: 1.8yrs
  • Darren Rowland

    CFO & Joint Company Secretary

    • Tenure: 1.5yrs
    • Compensation: AU$404.25k
  • Yvonne Slater

    Head of Development & Delivery

    • Tenure: 1.9yrs
    • Compensation: AU$293.76k
  • Simône de Harpe

    Head of Human Resources

    • Tenure: 0yrs

Board Members

  • David Blight (56yo)

    Non Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$80.00k
  • Mark Blackburn

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Philippa Kelly

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: AU$85.00k
  • James Kelly

    Founder

    • Tenure: 12.3yrs
    • Compensation: AU$579.59k
  • Nicola Roxon

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$80.00k
  • Georgina Williams

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$80.00k

Company Information

Lifestyle Communities Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lifestyle Communities Limited
  • Ticker: LIC
  • Exchange: ASX
  • Founded: 2003
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$875.201m
  • Shares outstanding: 104.31m
  • Website: https://www.lifestylecommunities.com.au

Number of Employees


Location

  • Lifestyle Communities Limited
  • 9-17 Raglan Street
  • Level 1
  • South Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LICASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2007
LICCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2007

Biography

Lifestyle Communities Limited, together with its subsidiaries, develops and manages affordable communities for homeowners in Australia. The company was founded in 2003 and is based in South Melbourne, Aust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:32
End of Day Share Price2019/12/11 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.