AIM:LSC

Stock Analysis Report

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Executive Summary

London Security plc, an investment holding company, engages in the manufacture, sale, and rental of fire protection equipment in the United Kingdom, Belgium, the Netherlands, Austria, Luxembourg, France, Germany, Denmark, and rest of Europe. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has London Security's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0%

LSC

-2.5%

GB Machinery

-0.4%

GB Market


1 Year Return

-6.0%

LSC

8.3%

GB Machinery

-10.0%

GB Market

Return vs Industry: LSC underperformed the UK Machinery industry which returned 8.3% over the past year.

Return vs Market: LSC exceeded the UK Market which returned -10% over the past year.


Shareholder returns

LSCIndustryMarket
7 Day0%-2.5%-0.4%
30 Day-6.8%6.5%13.7%
90 Day-2.4%12.7%6.4%
1 Year-3.3%-6.0%9.8%8.3%-6.4%-10.0%
3 Year8.0%-2.4%22.4%14.1%1.6%-10.9%
5 Year16.8%-2.4%106.9%81.7%27.5%-1.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is London Security undervalued compared to its fair value and its price relative to the market?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LSC (£20.5) is trading below our estimate of fair value (£31.01)

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


Price To Earnings Ratio

PE vs Industry: LSC is good value based on its PE Ratio (17.4x) compared to the GB Machinery industry average (26.9x).

PE vs Market: LSC is good value based on its PE Ratio (17.4x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LSC is overvalued based on its PB Ratio (2x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

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

17.7%

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 London Security 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 London Security performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSC has high quality earnings.

Growing Profit Margin: LSC's current net profit margins (10.1%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: LSC's earnings have grown by 6.3% per year over the past 5 years.

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

Earnings vs Industry: LSC had negative earnings growth (-13%) over the past year, making it difficult to compare to the Machinery industry average (-18.5%).


Return on Equity

High ROE: LSC's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is London Security's financial position?


Financial Position Analysis

Short Term Liabilities: LSC's short term assets (£82.1M) exceed its short term liabilities (£34.7M).

Long Term Liabilities: LSC's short term assets (£82.1M) exceed its long term liabilities (£12.1M).


Debt to Equity History and Analysis

Debt Level: LSC's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: LSC's debt to equity ratio has reduced from 15.6% to 5.2% over the past 5 years.

Debt Coverage: LSC's debt is well covered by operating cash flow (387.9%).

Interest Coverage: LSC's interest payments on its debt are well covered by EBIT (122.7x coverage).


Balance Sheet


Next Steps

Dividend

What is London Security current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSC's dividend (2.93%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: LSC's dividend (2.93%) is low compared to the top 25% of dividend payers in the UK market (4.93%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), LSC's dividend payments are 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

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

14.0yrs

Average board tenure


CEO

Xavier Mignolet (56 yo)

no data

Tenure

UK£377,007

Compensation

Mr. Xavier Mignolet, HEC-Economics, has been the Managing Director of London Security Plc and served as its Operations Director since August 2, 2006. Mr. Mignolet joined London Security Plc in 1995 and ser...


Board Members

NamePositionTenureCompensationOwnership
Jacques-Gaston Murray
Chairmanno datano datano data
Xavier Mignolet
MD & Executive Directorno dataUK£377.01kno data
Jean-Jacques Murray
Vice Chairmanno dataUK£117.58kno data
Emmanuel David Olivier Sebag
Executive Directorno datano datano data
Henry Shouler
Senior Independent Non-Executive Director26.25yrsUK£24.00kno data
Marie-Claire Leon
Non-Executive Director13.67yrsUK£20.00kno data
Jean-Pierre Murray
Non-Executive Director12.25yrsUK£20.00kno data

14.0yrs

Average Tenure

56yo

Average Age

Experienced Board: LSC's board of directors are seasoned and experienced ( 14 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

London Security plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: London Security plc
  • Ticker: LSC
  • Exchange: AIM
  • Founded: 1897
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£251.360m
  • Shares outstanding: 12.26m
  • Website: https://www.londonsecurity.org

Number of Employees


Location

  • London Security plc
  • Premier House
  • 2 Jubilee Way
  • Elland
  • West Yorkshire
  • HX5 9DY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1994

Biography

London Security plc, an investment holding company, engages in the manufacture, sale, and rental of fire protection equipment in the United Kingdom, Belgium, the Netherlands, Austria, Luxembourg, France, G...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 19:39
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.