LSE:LAM

Stock Analysis Report

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Executive Summary

Lamprell plc, together with its subsidiaries, provides fabrication, engineering, installation, and contracting services to the offshore and onshore oil and gas, and renewable energy industries in the United Arab Emirates and Saudi Arabia. More Details

Rewards

Earnings are forecast to grow 107.4% per year

Risk Analysis

No risks detected for LAM from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: LAM's weekly volatility has decreased from 20% to 8% over the past year.


Market Performance


7 Day Return

-1.3%

LAM

0.7%

GB Energy Services

-0.2%

GB Market


1 Year Return

160.7%

LAM

-20.1%

GB Energy Services

1.1%

GB Market

Return vs Industry: LAM exceeded the UK Energy Services industry which returned -20.1% over the past year.

Return vs Market: LAM exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

LAMIndustryMarket
7 Day-1.3%0.7%-0.2%
30 Day19.7%7.1%3.6%
90 Day84.6%2.3%4.2%
1 Year160.7%160.7%-19.9%-20.1%7.0%1.1%
3 Year3.2%3.2%-49.7%-53.7%10.6%-2.7%
5 Year-25.3%-25.3%-55.1%-62.1%40.5%13.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LAM (£0.79) is trading above our estimate of fair value (£0.24)

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


Price To Earnings Ratio

PE vs Industry: LAM is unprofitable, so we can't compare its PE Ratio to the XE Energy Services industry average.

PE vs Market: LAM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LAM is overvalued based on its PB Ratio (2x) compared to the GB Energy Services industry average (0.9x).


Next Steps

Future Growth

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

107.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: LAM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LAM's is expected to become profitable in the next 3 years.

Revenue vs Market: LAM's revenue (20.6% per year) is forecast to grow faster than the UK market (7.3% per year).

High Growth Revenue: LAM's revenue (20.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAM's Return on Equity is forecast to be low in 3 years time (1.2%).


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has Lamprell performed over the past 5 years?

-37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAM is currently unprofitable.

Growing Profit Margin: LAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAM is unprofitable, and losses have increased over the past 5 years at a rate of 37.1% per year.

Accelerating Growth: Unable to compare LAM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LAM is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-25.6%).


Return on Equity

High ROE: LAM has a negative Return on Equity (-84.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lamprell's financial position?


Financial Position Analysis

Short Term Liabilities: LAM's short term assets ($316.5M) exceed its short term liabilities ($222.5M).

Long Term Liabilities: LAM's short term assets ($316.5M) exceed its long term liabilities ($91.5M).


Debt to Equity History and Analysis

Debt Level: LAM is debt free.

Reducing Debt: LAM has no debt compared to 5 years ago when its debt to equity ratio was 12.8%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LAM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LAM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 7.5% per year.


Next Steps

Dividend

What is Lamprell current dividend yield, its reliability and sustainability?

0.90%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LAM'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 LAM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LAM'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?

4.4yrs

Average management tenure


CEO

Chris McDonald (53 yo)

4.42yrs

Tenure

US$1,014,000

Compensation

Mr. Christopher McDonald, also known as Chris, has been Chief Executive Officer and Executive Director of Lamprell plc since October 1, 2016. Mr. McDonald served as Group Head of Business Development at Pe...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.01M) is above average for companies of similar size in the UK market ($USD765.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher McDonald
CEO & Executive Director4.42yrsUS$1.01m0.22%
$ 572.4k
Antony Wright
CFO & Executive Director5.58yrsUS$657.00kno data
Hani El Kurd
Chief Operating Officer4.17yrsno data0.049%
$ 128.1k
Natalia Erikssen
Head of Investor Relationsno datano datano data
Alex Ridout
General Counsel & Company Secretary8.33yrsno data0.026%
$ 69.0k
Kaye Whiteing
Vice President of Human Resources & Corporate Services3.08yrsno datano data

4.4yrs

Average Tenure

Experienced Management: LAM's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher McDonald
CEO & Executive Director4.42yrsUS$1.01m0.22%
$ 572.4k
Antony Wright
CFO & Executive Director5.58yrsUS$657.00kno data
Debra Valentine
Senior Independent Director2.83yrsUS$115.00kno data
Mel Fitzgerald
Independent Non-Executive Director5.58yrsUS$93.00kno data
John Malcolm
Non-Executive Chairman3.5yrsUS$229.00kno data
James Dewar
Independent Non-Executive Director3.33yrsUS$93.00kno data

4.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LAM's board of directors are considered experienced (4 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

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


Key Information

  • Name: Lamprell plc
  • Ticker: LAM
  • Exchange: LSE
  • Founded: 1974
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£263.800m
  • Shares outstanding: 341.71m
  • Website: https://www.lamprell.com

Number of Employees


Location

  • Lamprell plc
  • Jebel Ali Free Zone
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAMLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2006
LMPR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2006
L51DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
LAMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2006

Biography

Lamprell plc, together with its subsidiaries, provides fabrication, engineering, installation, and contracting services to the offshore and onshore oil and gas, and renewable energy industries in the Unite...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 18:51
End of Day Share Price2021/03/03 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.