ASX:LLC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Lendlease Group provides property and infrastructure solutions in Australia, Asia, Europe, and the Americas. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Lendlease Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-3.4%

LLC

2.5%

AU Real Estate

2.4%

AU Market


1 Year Return

-25.6%

LLC

-17.5%

AU Real Estate

-0.6%

AU Market

Return vs Industry: LLC underperformed the Australian Real Estate industry which returned -17.5% over the past year.

Return vs Market: LLC underperformed the Australian Market which returned -0.6% over the past year.


Shareholder returns

LLCIndustryMarket
7 Day-3.4%2.5%2.4%
30 Day14.4%13.6%8.0%
90 Day28.6%28.2%8.8%
1 Year-24.2%-25.6%-15.6%-17.5%2.7%-0.6%
3 Year-1.6%-9.5%3.8%-5.1%24.3%9.0%
5 Year31.1%10.7%39.9%17.0%56.9%25.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LLC (A$14.39) is trading below our estimate of fair value (A$17.99)

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


Price To Earnings Ratio

PE vs Industry: LLC is unprofitable, so we can't compare its PE Ratio to the AU Real Estate industry average.

PE vs Market: LLC 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 LLC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LLC is overvalued based on its PB Ratio (1.4x) compared to the AU Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Lendlease Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

High Growth Earnings: LLC's is expected to become profitable in the next 3 years.

Revenue vs Market: LLC's revenue (8% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: LLC'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: LLC's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Lendlease Group performed over the past 5 years?

-15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LLC is currently unprofitable.

Growing Profit Margin: LLC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LLC is unprofitable, and losses have increased over the past 5 years at a rate of 15.8% per year.

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

Earnings vs Industry: LLC is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-39.6%).


Return on Equity

High ROE: LLC has a negative Return on Equity (-4.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lendlease Group's financial position?


Financial Position Analysis

Short Term Liabilities: LLC's short term assets (A$6.0B) exceed its short term liabilities (A$5.7B).

Long Term Liabilities: LLC's short term assets (A$6.0B) exceed its long term liabilities (A$5.2B).


Debt to Equity History and Analysis

Debt Level: LLC's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: LLC's debt to equity ratio has reduced from 47.4% to 34.5% over the past 5 years.

Debt Coverage: LLC's debt is not well covered by operating cash flow (5.7%).

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


Balance Sheet


Next Steps

Dividend

What is Lendlease Group current dividend yield, its reliability and sustainability?

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LLC's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: LLC's dividend (2.31%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

Stable Dividend: LLC's dividend payments have been volatile in the past 10 years.

Growing Dividend: LLC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: LLC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: LLC's dividends in 3 years are forecast to be well covered by earnings (47.9% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Steve McCann (55 yo)

11.92yrs

Tenure

AU$4,226,000

Compensation

Mr. Stephen B. McCann, also known as Steve, has been Group Chief Executive Officer of LendLease Group (alternate name: Lend Lease Corporation Limited) since December 16, 2008 and has been its Group Managin...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.11M) is about average for companies of similar size in the Australian market ($USD2.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen McCann
Group CEO11.92yrsAU$4.23m0.080%
A$ 8.1m
Tarun Gupta
Group Chief Financial Officer4.5yrsAU$2.10m0%
A$ 0
Neil Martin
Chief Executive Officer of Europe1.17yrsAU$1.80mno data
Anthony Lombardo
Chief Executive Officer of Asia4.5yrsAU$2.22m0%
A$ 0
David Wilson
Group Chief Commercial and Risk Officer2.83yrsAU$2.33m0%
A$ 0
Denis Hickey
Chief Executive Officer of Americas6.83yrsAU$2.64m0%
A$ 0
Kylie Rampa
Chief Executive Officer of Property Australia4.5yrsAU$2.16m0%
A$ 0
Johannes Dekker
Group Head of Construction2.5yrsAU$3.26m0%
A$ 0
Justin McCarthy
Head of Investor Relations4.83yrsno datano data
Karen Pedersen
Group General Counsel7.83yrsno datano data
Ola Fadahunsi
Director of Corporate Communicationsno datano datano data
Luisa Megale
Group Head of Corporate Affairs & Marketing3.83yrsno datano data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: LLC's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen McCann
Group CEO11.92yrsAU$4.23m0.080%
A$ 8.1m
Elizabeth Proust
Independent Non-Executive Director2.75yrsAU$275.00k0.010%
A$ 1.0m
Philip Coffey
Independent Non-Executive Director3.83yrsAU$316.00k0.0031%
A$ 313.1k
Michael Ullmer
Independent Non Executive Chairman of the Board2yrsAU$668.00k0.018%
A$ 1.8m
David Craig
Independent Non-Executive Director4.67yrsAU$280.00k0.011%
A$ 1.1m
Robert Welanetz
Independent Non-Executive Director0.67yrAU$91.00k0.0010%
A$ 103.0k
Jane Hemstritch
Independent Non-Executive Director9.17yrsAU$273.00k0.0048%
A$ 487.8k
Nicola M. Evans
Independent Non-Executive Director7.17yrsAU$283.00k0.0050%
A$ 503.0k

4.3yrs

Average Tenure

65yo

Average Age

Experienced Board: LLC's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.1%.


Top Shareholders

Company Information

Lendlease Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lendlease Group
  • Ticker: LLC
  • Exchange: ASX
  • Founded: 1958
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: AU$10.100b
  • Shares outstanding: 684.27m
  • Website: https://www.lendlease.com

Number of Employees


Location

  • Lendlease Group
  • Tower Three, International Towers Sydney
  • Level 14
  • Barangaroo
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLES.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJan 1989
LLCASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJan 1989
LLCDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJan 1989
LLCCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJan 1989
LLES.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2003

Biography

Lendlease Group provides property and infrastructure solutions in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:00
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.