AIM:LPA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LPA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

LPA

0.7%

GB Electrical

0.1%

GB Market


1 Year Return

-14.2%

LPA

-10.8%

GB Electrical

-14.0%

GB Market

Return vs Industry: LPA underperformed the UK Electrical industry which returned -10.8% over the past year.

Return vs Market: LPA matched the UK Market which returned -14% over the past year.


Shareholder returns

LPAIndustryMarket
7 Day1.3%0.7%0.1%
30 Day6.8%13.4%0.2%
90 Day12.1%5.6%-1.8%
1 Year-14.2%-14.2%-10.6%-10.8%-10.6%-14.0%
3 Year-38.0%-41.0%-10.7%-14.3%-4.5%-16.0%
5 Year29.3%18.9%160.1%-88.3%22.5%-4.8%

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?

27.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LPA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LPA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LPA is poor value based on its PE Ratio (27.2x) compared to the GB Electrical industry average (25.5x).

PE vs Market: LPA is poor value based on its PE Ratio (27.2x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LPA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LPA is good value based on its PB Ratio (0.8x) compared to the GB Electrical industry average (2.1x).


Next Steps

Future Growth

How is LPA Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

62.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LPA Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has LPA Group performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPA has a large one-off loss of £39.0K impacting its March 31 2020 financial results.

Growing Profit Margin: LPA's current net profit margins (1.7%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: LPA's earnings have declined by 6.3% 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 (-53.4%) over the past year, making it difficult to compare to the Electrical industry average (-11.3%).


Return on Equity

High ROE: LPA's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is LPA Group's financial position?


Financial Position Analysis

Short Term Liabilities: LPA's short term assets (£10.4M) exceed its short term liabilities (£5.3M).

Long Term Liabilities: LPA's short term assets (£10.4M) exceed its long term liabilities (£3.4M).


Debt to Equity History and Analysis

Debt Level: LPA's debt to equity ratio (20.2%) is considered satisfactory.

Reducing Debt: LPA's debt to equity ratio has reduced from 27.1% to 20.2% over the past 5 years.

Debt Coverage: LPA's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: LPA's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LPA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LPA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LPA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LPA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LPA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LPA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Paul Curtis (48 yo)

0.42

Tenure

UK£183,000

Compensation

Mr. Paul Vincent Curtis has been Chief Executive Officer of LPA Group Plc since April 1, 2020 and serves as its Executive Director. He served as Chief Operating Officer of LPA Group Plc since October 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD237.08K) is below average for companies of similar size in the UK market ($USD349.92K).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Paul Curtis
CEO & Executive Director0.42yrUK£183.00k0.31%
£ 30.1k
Christopher Buckenham
CFO, Company Secretary & Director2.5yrsUK£160.00k0.081%
£ 7.9k
Peter Pollock
Chairman1.92yrsUK£150.00k6.15%
£ 596.6k
Leonard Porter
Senior Independent Non-Executive Director2.5yrsUK£36.00k0.20%
£ 19.6k
Gordon Wakeford
Non-Executive Director0.42yrno data0.12%
£ 11.8k

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LPA's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: LPA 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

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£9.701m
  • Shares outstanding: 12.36m
  • 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 Analysis2020/09/20 02:57
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.