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LLC

Lendlease Group ASX:LLC Stock Report

Last Price

AU$10.28

Market Cap

AU$7.0b

7D

1.4%

1Y

-18.3%

Updated

12 Aug, 2022

Data

Company Financials +
LLC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

LLC Stock Overview

Lendlease Group operates as an integrated real estate and investment in Australia, Asia, Europe, and the Americas.

Rewards

Trading at 30.6% below our estimate of its fair value

Earnings are forecast to grow 32.36% per year

Risk Analysis

No risks detected for LLC from our risk checks.

Lendlease Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lendlease Group
Historical stock prices
Current Share PriceAU$10.28
52 Week HighAU$12.38
52 Week LowAU$8.76
Beta0.88
1 Month Change7.08%
3 Month Change-9.43%
1 Year Change-18.35%
3 Year Change-24.08%
5 Year Change-36.93%
Change since IPO14.86%

Recent News & Updates

Aug 05
An Intrinsic Calculation For Lendlease Group (ASX:LLC) Suggests It's 32% Undervalued

An Intrinsic Calculation For Lendlease Group (ASX:LLC) Suggests It's 32% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Lendlease Group...

Jul 09
At AU$9.50, Is It Time To Put Lendlease Group (ASX:LLC) On Your Watch List?

At AU$9.50, Is It Time To Put Lendlease Group (ASX:LLC) On Your Watch List?

While Lendlease Group ( ASX:LLC ) might not be the most widely known stock at the moment, it received a lot of...

Apr 20
Lendlease Group's (ASX:LLC) Intrinsic Value Is Potentially 18% Below Its Share Price

Lendlease Group's (ASX:LLC) Intrinsic Value Is Potentially 18% Below Its Share Price

Does the April share price for Lendlease Group ( ASX:LLC ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

LLCAU Real EstateAU Market
7D1.4%1.1%1.1%
1Y-18.3%-16.3%-8.1%

Return vs Industry: LLC underperformed the Australian Real Estate industry which returned -16.3% over the past year.

Return vs Market: LLC underperformed the Australian Market which returned -8.1% over the past year.

Price Volatility

Is LLC's price volatile compared to industry and market?
LLC volatility
LLC Average Weekly Movement3.2%
Real Estate Industry Average Movement5.8%
Market Average Movement10.6%
10% most volatile stocks in AU Market18.0%
10% least volatile stocks in AU Market4.6%

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.

About the Company

FoundedEmployeesCEOWebsite
1958n/aTony Lombardohttps://www.lendlease.com

Lendlease Group operates as an integrated real estate and investment in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment develops inner-city mixed-use developments, apartments, communities, retirement, retail, commercial assets, and social and economic infrastructure.

Lendlease Group Fundamentals Summary

How do Lendlease Group's earnings and revenue compare to its market cap?
LLC fundamental statistics
Market CapAU$7.02b
Earnings (TTM)-AU$250.00m
Revenue (TTM)AU$9.52b

0.7x

P/S Ratio

-28.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LLC income statement (TTM)
RevenueAU$9.52b
Cost of RevenueAU$8.83b
Gross ProfitAU$696.00m
Other ExpensesAU$946.00m
Earnings-AU$250.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 22, 2022

Earnings per share (EPS)-0.37
Gross Margin7.31%
Net Profit Margin-2.62%
Debt/Equity Ratio38.0%

How did LLC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LLC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LLC?

Other financial metrics that can be useful for relative valuation.

LLC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA-163.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does LLC's PS Ratio compare to its peers?

LLC PS Ratio vs Peers
The above table shows the PS ratio for LLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.6x
UOS United Overseas Australia
4.8xn/aAU$866.3m
QAL Qualitas
9.9x13.4%AU$664.4m
MGR Mirvac Group
3.8x-4.0%AU$8.4b
VCX Vicinity Centres
7.9x2.1%AU$9.4b
LLC Lendlease Group
0.7x8.6%AU$7.0b

Price-To-Sales vs Peers: LLC is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (6.6x).


Price to Earnings Ratio vs Industry

How does LLC's PE Ratio compare vs other companies in the AU Real Estate Industry?

Price-To-Sales vs Industry: LLC is good value based on its Price-To-Sales Ratio (0.7x) compared to the Australian Real Estate industry average (3.3x)


Price to Sales Ratio vs Fair Ratio

What is LLC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LLC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: LLC is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2x).


Share Price vs Fair Value

What is the Fair Price of LLC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LLC (A$10.28) is trading below our estimate of fair value (A$14.82)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Lendlease Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


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 (1.8%).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: LLC's revenue (8.6% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: LLC's revenue (8.6% 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%).


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Past Performance

How has Lendlease Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-47.9%

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 47.9% 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 (149%).


Return on Equity

High ROE: LLC has a negative Return on Equity (-3.74%), as it is currently unprofitable.


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Financial Health

How is Lendlease Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LLC's short term assets (A$4.0B) do not cover its short term liabilities (A$4.8B).

Long Term Liabilities: LLC's short term assets (A$4.0B) do not cover its long term liabilities (A$4.8B).


Debt to Equity History and Analysis

Debt Level: LLC's net debt to equity ratio (25.4%) is considered satisfactory.

Reducing Debt: LLC's debt to equity ratio has increased from 30.9% to 38% over the past 5 years.

Debt Coverage: LLC's debt is not well covered by operating cash flow (2.4%).

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LLC's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.63%).

High Dividend: LLC's dividend (1.65%) is low compared to the top 25% of dividend payers in the Australian market (6.21%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: LLC is paying a dividend but the company has no free cash flows.


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Management

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

1.2yrs

Average management tenure


CEO

Tony Lombardo (48 yo)

1.17yrs

Tenure

AU$2,384,000

Compensation

Mr. Anthony Peter Lombardo, also known as Tony, serves as Global Chief Executive Officer of LendLease Group since June 1, 2021 and serves as its Managing Director since September 03, 2021. He serves as Exe...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.70M) is below average for companies of similar size in the Australian market ($USD2.49M).

Compensation vs Earnings: Tony's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: LLC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: LLC's board of directors are considered experienced (5.6 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 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
  • Implied Market Cap: AU$7.023b
  • Shares outstanding: 683.16m
  • Website: https://www.lendlease.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.