AIM:LPA

Stock Analysis Report

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Executive Summary

LPA Group Plc, together with its subsidiaries, engages in the design, manufacture, and market industrial electrical and electronic products for rail, aerospace and defense, aircraft support, infrastructure, marine, and industrial markets primarily in the United Kingdom, rest of Europe, and internationally. More Details


Snowflake Analysis

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

Stable Share Price: LPA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LPA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

LPA

-4.6%

GB Electrical

0.3%

GB Market


1 Year Return

-18.3%

LPA

132.2%

GB Electrical

0.8%

GB Market

Return vs Industry: LPA underperformed the UK Electrical industry which returned 132.9% over the past year.

Return vs Market: LPA underperformed the UK Market which returned 1.1% over the past year.


Shareholder returns

LPAIndustryMarket
7 Day0%-4.6%0.3%
30 Day1.2%-8.8%3.2%
90 Day-2.9%27.4%4.5%
1 Year-18.3%-18.3%133.5%132.2%6.7%0.8%
3 Year-48.4%-50.9%282.5%268.1%11.5%-1.9%
5 Year-9.8%-17.1%442.0%411.9%41.8%14.5%

Long-Term 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?

17.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPA (£0.83) is trading above our estimate of fair value (£0.28)

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 (17.1x) compared to the GB Electrical industry average (29x).

PE vs Market: LPA is good value based on its PE Ratio (17.1x) compared to the UK market (24.3x).


Price to Earnings Growth Ratio

PEG Ratio: LPA is good value based on its PEG Ratio (0.7x)


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 (3x).


Next Steps

Future Growth

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

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPA's forecast earnings growth (25.4% per year) is above the savings rate (1%).

Earnings vs Market: LPA's earnings (25.4% per year) are forecast to grow faster than the UK market (22.9% per year).

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

Revenue vs Market: LPA's revenue (7.2% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: LPA's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LPA's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has LPA Group performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPA has a large one-off gain of £177.0K impacting its September 30 2020 financial results.

Growing Profit Margin: LPA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LPA's earnings have declined by 19.8% per year over the past 5 years.

Accelerating Growth: LPA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LPA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (20.1%).


Return on Equity

High ROE: LPA's Return on Equity (4.7%) 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 (£10.3M) exceed its short term liabilities (£4.8M).

Long Term Liabilities: LPA's short term assets (£10.3M) exceed its long term liabilities (£3.3M).


Debt to Equity History and Analysis

Debt Level: LPA's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: LPA's debt to equity ratio has reduced from 32.8% to 19.9% over the past 5 years.

Debt Coverage: LPA's debt is well covered by operating cash flow (30.9%).

Interest Coverage: LPA's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.27%

Forecast Dividend Yield


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?

2.4yrs

Average board tenure


CEO

Paul Curtis (48 yo)

0.92

Tenure

UK£215,000

Compensation

Mr. Paul Vincent Curtis has been Chief Executive Officer of LPA Group Plc since April 01, 2020 and serves as its Executive Director. He served as Chief Operating Officer of LPA Group Plc since October 01, ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD300.73K) is about average for companies of similar size in the UK market ($USD335.50K).

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


Board Members

NamePositionTenureCompensationOwnership
Paul Curtis
CEO & Executive Director0.92yrUK£215.00k0.31%
£ 31.6k
Christopher Buckenham
CFO, Company Secretary & Director3yrsUK£175.00k0.080%
£ 8.3k
Peter Pollock
Chairman of the Board2.42yrsUK£126.00k6.1%
£ 627.0k
Robert Edmund Bosnar-Horvath
Independent Non-Executive Director0.083yrno data0.24%
£ 24.7k
Leonard Porter
Senior Independent Non-Executive Director3yrsUK£37.00k0.20%
£ 20.6k
Gordon Wakeford
Independent Non-Executive Director0.92yrUK£16.00k0.12%
£ 12.4k

2.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: LPA's board of directors are not considered experienced ( 2.4 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: 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

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£10.278m
  • Shares outstanding: 12.46m
  • 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, engages in the design, manufacture, and market industrial electrical and electronic products for rail, aerospace and defense, aircraft support, infrastructure...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 18:58
End of Day Share Price2021/03/03 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.