ASX:LLC

Stock Analysis Report

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Market Cap

AU$8.3b

Last Updated

2021/07/31 08:17 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Earnings are forecast to grow 23.76% per year

Risk Analysis

No risks detected for LLC from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 +/- 3% a week.

Volatility Over Time: LLC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

LLC

0.9%

AU Real Estate

0.01%

AU Market


1 Year Return

7.2%

LLC

20.0%

AU Real Estate

27.8%

AU Market

Return vs Industry: LLC underperformed the Australian Real Estate industry which returned 20% over the past year.

Return vs Market: LLC underperformed the Australian Market which returned 27.8% over the past year.


Shareholder returns

LLCIndustryMarket
7 Day2.1%0.9%0.01%
30 Day9.2%4.2%1.8%
90 Day-4.2%-1.2%4.7%
1 Year8.8%7.2%22.2%20.0%32.6%27.8%
3 Year-37.5%-42.0%-19.1%-25.5%34.4%18.1%
5 Year5.7%-9.7%23.7%4.8%66.2%33.9%

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?

1.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LLC (A$12.17) is trading above our estimate of fair value (A$7.89)

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


Price To Earnings Ratio

PE vs Industry: LLC is unprofitable, so we can't compare its PE Ratio to the Australian 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 (1.2x) compared to the AU Real Estate industry average (1x).


Future Growth

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

23.8%

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 (1.9%).

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 (9.1% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: LLC's revenue (9.1% 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 (9.7%).


Past Performance

How has Lendlease Group performed over the past 5 years?

-31.5%

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 31.5% 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 (-32.4%).


Return on Equity

High ROE: LLC has a negative Return on Equity (-5.96%), as it is currently unprofitable.


Financial Health

How is Lendlease Group's financial position?


Financial Position Analysis

Short Term Liabilities: LLC's short term assets (A$5.1B) do not cover its short term liabilities (A$5.3B).

Long Term Liabilities: LLC's short term assets (A$5.1B) exceed its long term liabilities (A$4.2B).


Debt to Equity History and Analysis

Debt Level: LLC's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: LLC's debt to equity ratio has reduced from 48% to 39% over the past 5 years.

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

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


Balance Sheet


Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LLC's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: LLC's dividend (1.5%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


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% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Tony Lombardo (46 yo)

no data

Tenure

AU$2,215,000

Compensation

Mr. Anthony Peter Lombardo, also known as Tony, serves as Global Chief Executive Officer and Managing Director of LendLease Group since June 1, 2021. He served as Chief Executive Officer of Asia at LendLea...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.63M) is about average for companies of similar size in the Australian market ($USD1.91M).

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


Leadership Team

Experienced Management: LLC's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: LLC's board of directors are considered experienced (4.5 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 not been meaningfully diluted in the past year.


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$8.319b
  • Shares outstanding: 683.59m
  • 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


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 Analysis2021/07/31 08:17
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
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.