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LSC

London Security AIM:LSC Stock Report

Last Price

UK£24.50

Market Cap

UK£300.4m

7D

0%

1Y

-5.8%

Updated

01 Oct, 2022

Data

Company Financials
LSC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

LSC Stock Overview

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, France, Germany, Denmark, Luxembourg, and rest of Europe.

Risk Analysis

Unstable dividend track record


London Security Competitors

Price History & Performance

Summary of all time highs, changes and price drops for London Security
Historical stock prices
Current Share PriceUK£24.50
52 Week HighUK£39.40
52 Week LowUK£24.40
Beta-0.090
1 Month Change-28.99%
3 Month Change-28.99%
1 Year Change-5.77%
3 Year Change15.02%
5 Year Change13.95%
Change since IPO1,490.91%

Recent News & Updates

May 21
London Security (LON:LSC) Is Increasing Its Dividend To UK£0.42

London Security (LON:LSC) Is Increasing Its Dividend To UK£0.42

London Security plc's ( LON:LSC ) dividend will be increasing to UK£0.42 on 8th of July. This makes the dividend yield...

Shareholder Returns

LSCGB MachineryGB Market
7D0%1.0%-1.7%
1Y-5.8%-28.5%-15.1%

Return vs Industry: LSC exceeded the UK Machinery industry which returned -28.5% over the past year.

Return vs Market: LSC exceeded the UK Market which returned -15.1% over the past year.

Price Volatility

Is LSC's price volatile compared to industry and market?
LSC volatility
LSC Average Weekly Movement7.6%
Machinery Industry Average Movement5.3%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: LSC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LSC's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18971,436Xavier Mignolethttps://www.londonsecurity.org

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, France, Germany, Denmark, Luxembourg, and rest of Europe. It also provides fire protection equipment maintenance services. The company offers its products under the Nu-Swift, Ansul, Premier, and Master brands.

London Security Fundamentals Summary

How do London Security's earnings and revenue compare to its market cap?
LSC fundamental statistics
Market CapUK£300.41m
Earnings (TTM)UK£19.01m
Revenue (TTM)UK£172.51m

15.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSC income statement (TTM)
RevenueUK£172.51m
Cost of RevenueUK£44.88m
Gross ProfitUK£127.63m
Other ExpensesUK£108.62m
EarningsUK£19.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.55
Gross Margin73.99%
Net Profit Margin11.02%
Debt/Equity Ratio2.0%

How did LSC perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

27%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LSC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LSC?

Other financial metrics that can be useful for relative valuation.

LSC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA8.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LSC's PE Ratio compare to its peers?

LSC PE Ratio vs Peers
The above table shows the PE ratio for LSC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.8x
MCON Mincon Group
16.7xn/aUK£216.7m
PRV Porvair
19.5xn/aUK£229.7m
GDWN Goodwin
16.4xn/aUK£212.6m
JDG Judges Scientific
46.8x28.2%UK£464.0m
LSC London Security
15.8xn/aUK£300.4m

Price-To-Earnings vs Peers: LSC is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (24.8x).


Price to Earnings Ratio vs Industry

How does LSC's PE Ratio compare vs other companies in the European Machinery Industry?

Price-To-Earnings vs Industry: LSC is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the European Machinery industry average (13.8x)


Price to Earnings Ratio vs Fair Ratio

What is LSC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LSC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LSC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LSC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LSC (£24.5) is trading above our estimate of fair value (£13.76)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.3%

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.


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  • Examine London Security's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • London Security competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has London Security performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LSC has high quality earnings.

Growing Profit Margin: LSC's current net profit margins (11%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: LSC's earnings have grown by 7.8% 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 (-14.4%) over the past year, making it difficult to compare to the Machinery industry average (17.5%).


Return on Equity

High ROE: LSC's Return on Equity (13.5%) is considered low.


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Financial Health

How is London Security's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LSC's short term assets (£91.4M) exceed its short term liabilities (£35.1M).

Long Term Liabilities: LSC's short term assets (£91.4M) exceed its long term liabilities (£9.4M).


Debt to Equity History and Analysis

Debt Level: LSC has more cash than its total debt.

Reducing Debt: LSC's debt to equity ratio has reduced from 11.5% to 2% over the past 5 years.

Debt Coverage: LSC's debt is well covered by operating cash flow (659.7%).

Interest Coverage: LSC's interest payments on its debt are well covered by EBIT (127x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.43%

Current Dividend Yield

Dividend Yield vs Market

London Security Dividend Yield vs Market
How does London Security dividend yield compare to the market?
SegmentDividend Yield
Company (London Security)3.4%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Machinery)2.4%
Analyst forecast in 3 Years (London Security)n/a

Notable Dividend: LSC's dividend (3.43%) is higher than the bottom 25% of dividend payers in the UK market (2.12%).

High Dividend: LSC's dividend (3.43%) is low compared to the top 25% of dividend payers in the UK market (6.11%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.1%), LSC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.2%), LSC's dividend payments are covered by cash flows.


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Management

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

15.8yrs

Average board tenure


CEO

Xavier Mignolet (58 yo)

16.08yrs

Tenure

UK£418,673

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

Experienced Board: LSC's board of directors are seasoned and experienced ( 15.8 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

What is the ownership structure of LSC?
Owner TypeNumber of SharesOwnership Percentage
Institutions36,2870.3%
General Public83,1030.7%
Private Companies12,142,08799.0%

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


Top Shareholders

Top 7 shareholders own 99.32% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
80.43%
British Security Group Limited
9,861,954£241.6m0%no data
18.4%
Tristar Fire Corp.
2,256,033£55.3m0%no data
0.17%
Credit Suisse, Investment Banking and Securities Investments
20,245£496.0k0%no data
0.1%
Rio Capital Investments Ltd
12,350£302.6k0%no data
0.096%
Nodbit Pty Ltd
11,750£287.9k0%no data
0.082%
Smith & Williamson Investment Management LLP
10,092£247.3k0%no data
0.049%
London Wealth Management Limited
5,950£145.8k0%0.01%

Company Information

London Security plc's 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
  • Implied Market Cap: UK£300.406m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.