ASX:LLC

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Executive Summary

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


Snowflake Analysis

Average dividend payer with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.7%

LLC

-7.8%

AU Real Estate

-2.0%

AU Market


1 Year Return

-20.4%

LLC

-17.8%

AU Real Estate

-12.0%

AU Market

Return vs Industry: LLC underperformed the Australian Real Estate industry which returned -17.8% over the past year.

Return vs Market: LLC underperformed the Australian Market which returned -12% over the past year.


Shareholder returns

LLCIndustryMarket
7 Day-10.7%-7.8%-2.0%
30 Day-7.8%-4.9%1.5%
90 Day-3.5%1.5%12.0%
1 Year-17.5%-20.4%-14.9%-17.8%-8.4%-12.0%
3 Year-27.8%-34.7%-21.0%-28.8%15.3%0.003%
5 Year-13.9%-28.5%-3.5%-20.5%28.8%0.9%

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?

15.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LLC (A$11.31) is trading above our estimate of fair value (A$5.34)

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


Price To Earnings Ratio

PE vs Industry: LLC is poor value based on its PE Ratio (15.1x) compared to the AU Real Estate industry average (13x).

PE vs Market: LLC is good value based on its PE Ratio (15.1x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: LLC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LLC is overvalued based on its PB Ratio (1x) compared to the AU Real Estate industry average (0.7x).


Next Steps

Future Growth

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

42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LLC's forecast earnings growth (42.5% per year) is above the savings rate (2.3%).

Earnings vs Market: LLC's earnings (42.5% per year) are forecast to grow faster than the Australian market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LLC's revenue (0.9% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: LLC's revenue (0.9% 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 (9.1%).


Next Steps

Past Performance

How has Lendlease Group performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LLC has a large one-off gain of A$311.0M impacting its December 31 2019 financial results.

Growing Profit Margin: LLC's current net profit margins (2.6%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: LLC's earnings have declined by -4.7% per year over the past 5 years.

Accelerating Growth: LLC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LLC had negative earnings growth (-41.9%) over the past year, making it difficult to compare to the Real Estate industry average (-13.4%).


Return on Equity

High ROE: LLC's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is Lendlease Group's financial position?


Financial Position Analysis

Short Term Liabilities: LLC's short term assets (A$6.2B) exceed its short term liabilities (A$6.0B).

Long Term Liabilities: LLC's short term assets (A$6.2B) exceed its long term liabilities (A$5.5B).


Debt to Equity History and Analysis

Debt Level: LLC's debt to equity ratio (52.1%) is considered high.

Reducing Debt: LLC's debt to equity ratio has increased from 50.9% to 52.1% over the past 5 years.

Debt Coverage: LLC's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: LLC's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LLC's dividend (5.31%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: LLC's dividend (5.31%) is low compared to the top 25% of dividend payers in the Australian market (6.54%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.9%), LLC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LLC's dividends in 3 years are forecast to be well covered by earnings (48.1% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Steve McCann (55yo)

11.58yrs

Tenure

AU$5,463,000

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 ($USD3.80M) is about average for companies of similar size in the Australian market ($USD2.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen McCann
Group CEO11.58yrsAU$5.46m0.12% A$9.6m
Tarun Gupta
Group Chief Financial Officer4.17yrsAU$2.70m0.017% A$1.3m
Anthony Lombardo
Chief Executive Officer of Asia4.17yrsAU$2.69m0.016% A$1.3m
David Wilson
Group Chief Commercial and Risk Officer2.5yrsAU$2.46m0.0072% A$564.9k
Denis Hickey
Chief Executive Officer of Americas6.5yrsAU$3.19m0.0055% A$429.4k
Kylie Rampa
Chief Executive Officer of Property Australia4.17yrsAU$2.57m0.0091% A$709.1k
Johannes Dekker
Group Head of Engineering & Building2.17yrsAU$2.87m0.0021% A$163.0k
Justin McCarthy
Head of Investor Relations4.5yrsno datano data
Karen Pedersen
Group General Counsel7.5yrsno datano data
Ola Fadahunsi
Director of Corporate Communicationsno datano datano data
Luisa Megale
Group Head of Corporate Affairs & Marketing3.5yrsno datano data
Alex Christie
Group Head of People & Culture0.25yrno datano data

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: LLC's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen McCann
Group CEO11.58yrsAU$5.46m0.12% A$9.6m
Elizabeth Proust
Independent Non-Executive Director2.42yrsAU$277.00k0.0077% A$607.2k
Colin Carter
Independent Non-Executive Director8.25yrsAU$313.00k0.0027% A$213.1k
Phillip Coffey
Independent Non-Executive Director3.5yrsAU$313.00k0.0031% A$242.9k
Michael Ullmer
Independent Non Executive Chairman of the Board1.67yrsAU$552.00k0.016% A$1.3m
David Craig
Independent Non-Executive Director4.33yrsAU$301.00k0.0092% A$722.4k
Robert Welanetz
Independent Non-Executive Director1.33yrsno data0.0010% A$79.9k
Jane Hemstritch
Independent Non-Executive Director8.83yrsAU$301.00k0.0034% A$264.0k
Nicola M. Evans
Independent Non-Executive Director6.83yrsAU$295.00k0.0050% A$389.4k
Baroness Ford
Independent Non Executive Director1.33yrsno datano data

3.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LLC's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LLC 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 diluted in the past year, with total shares outstanding growing by 22%.


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$7.835b
  • 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. The company operates through Development, Construction, and Investments segments. The Development segment develops communities, inner city mixed use developments, apartments, retirement, retail, commercial assets, and social and economic infrastructure. The Construction segment provides project management, design, and construction services primarily in the infrastructure, defense, mixed use, commercial, and residential sectors. The Investments segment owns and/or manages investments, including property and infrastructure co-investments, retirement livings, and the U.S. military housings. Lendlease Group was founded in 1958 and is headquartered in Barangaroo, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 10:32
End of Day Share Price2020/07/13 00:00
Earnings2019/12/31
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.