AIM:LPA

Stock Analysis Report

Executive Summary

LPA Group Plc, together with its subsidiaries, designs, manufactures, and markets industrial electrical and electronic accessories for rail, aerospace and defense, aircraft support, infrastructure, marine, and industrial markets primarily in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

LPA

2.2%

GB Electrical

-0.4%

GB Market


1 Year Return

-25.3%

LPA

22.2%

GB Electrical

2.9%

GB Market

Return vs Industry: LPA underperformed the UK Electrical industry which returned 22.2% over the past year.

Return vs Market: LPA underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

LPAIndustryMarket
7 Day3.7%2.2%-0.4%
30 Day-8.2%0.4%-1.4%
90 Day-12.0%10.3%-2.1%
1 Year-23.1%-25.3%25.0%22.2%8.0%2.9%
3 Year-44.8%-48.3%20.4%14.2%18.0%3.6%
5 Year2.2%-8.2%230.0%-87.1%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPA (£0.84) is trading above our estimate of fair value (£0.41)

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


Price To Earnings Ratio

PE vs Industry: LPA is good value based on its PE Ratio (13.8x) compared to the Electrical industry average (18.6x).

PE vs Market: LPA is good value based on its PE Ratio (13.8x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LPA is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: LPA is good value based on its PB Ratio (0.9x) compared to the GB Electrical industry average (1.7x).


Next Steps

Future Growth

How is LPA Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

56.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPA's forecast earnings growth (56.3% per year) is above the savings rate (1.2%).

Earnings vs Market: LPA's earnings (56.3% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: LPA's revenue (0.8% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: LPA's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LPA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LPA Group performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LPA's earnings have grown by 16% per year over the past 5 years.

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

Earnings vs Industry: LPA had negative earnings growth (-56%) over the past year, making it difficult to compare to the Electrical industry average (0.2%).


Return on Equity

High ROE: LPA's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: LPA's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: LPA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LPA Group's financial position?


Financial Position Analysis

Short Term Liabilities: LPA's short term assets (£8.9M) exceeds its short term liabilities (£4.2M)

Long Term Liabilities: LPA's short term assets (8.9M) exceeds its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: LPA's debt to equity ratio (18.2%) is considered satisfactory

Reducing Debt: LPA's debt to equity ratio has reduced from 27.1% to 18.2% over the past 5 years.

Debt Coverage: LPA's debt is well covered by operating cash flow (123.7%).

Interest Coverage: LPA's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet

Inventory Level: LPA has a high level of physical assets or inventory.

Debt Coverage by Assets: LPA's debt is covered by short term assets (assets are 4.070830x debt).


Next Steps

Dividend

What is LPA Group's current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LPA's dividend (3.45%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: LPA's dividend (3.45%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

Growing Dividend: LPA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), LPA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of LPA Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

LPA Group has no CEO, or we have no data on them.


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: LPA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

67yo

Average Age

Experienced Board: LPA's board of directors are not considered experienced ( 1.6 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.


Ownership Breakdown


Management Team

  • Michael Rusch (74yo)

    Group President & Non-Executive Director

    • Tenure: 52.8yrs
    • Compensation: UK£51.00k
  • Chris Buckenham (48yo)

    CFO, Company Secretary & Director

    • Tenure: 1.6yrs
    • Compensation: UK£159.31k
  • Paul Curtis (47yo)

    COO & Executive Director

    • Tenure: 1yrs

Board Members

  • Michael Rusch (74yo)

    Group President & Non-Executive Director

    • Tenure: 52.8yrs
    • Compensation: UK£51.00k
  • Peter Pollock (73yo)

    Chairman

    • Tenure: 1yrs
    • Compensation: UK£250.00k
  • Len Porter (67yo)

    Senior Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£28.00k
  • Chris Buckenham (48yo)

    CFO, Company Secretary & Director

    • Tenure: 1.6yrs
    • Compensation: UK£159.31k
  • Paul Curtis (47yo)

    COO & Executive Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: LPA Group Plc
  • Ticker: LPA
  • Exchange: AIM
  • Founded: 1961
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: UK£10.633m
  • Shares outstanding: 12.66m
  • Website: https://www.lpa-group.com

Number of Employees


Location

  • LPA Group Plc
  • Light & Power House
  • Shire Hill
  • Saffron Walden
  • Essex
  • CB11 3AQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

LPA Group Plc, together with its subsidiaries, designs, manufactures, and markets industrial electrical and electronic accessories for rail, aerospace and defense, aircraft support, infrastructure, marine, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:32
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.