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 the Kingdom of Saudi Arabia.


Snowflake Analysis

Excellent 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.8%

LAM

5.2%

GB Energy Services

2.0%

GB Market


1 Year Return

-75.0%

LAM

-46.3%

GB Energy Services

-12.5%

GB Market

Return vs Industry: LAM underperformed the UK Energy Services industry which returned -46.6% over the past year.

Return vs Market: LAM underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

LAMIndustryMarket
7 Day-15.8%5.2%2.0%
30 Day37.5%8.7%3.8%
90 Day-42.7%-32.9%-7.3%
1 Year-75.0%-75.0%-45.1%-46.3%-8.3%-12.5%
3 Year-85.2%-85.2%-59.9%-63.2%-5.9%-17.4%
5 Year-89.7%-89.7%-68.5%-72.8%12.9%-12.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAM (£0.17) is trading below our estimate of fair value (£1.11)

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


Price To Earnings Ratio

PE vs Industry: LAM is unprofitable, so we can't compare its PE Ratio to the 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 good value based on its PB Ratio (0.3x) compared to the GB Energy Services industry average (0.4x).


Next Steps

Future Growth

How is Lamprell forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

110.8%

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 (1.2%).

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 (21.7% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: LAM's revenue (21.7% 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 (9.1%).


Next Steps

Past Performance

How has Lamprell performed over the past 5 years?

-46.0%

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 -46% 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 (8%).


Return on Equity

High ROE: LAM has a negative Return on Equity (-86.82%), 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 ($229.7M) exceed its short term liabilities ($131.0M).

Long Term Liabilities: LAM's short term assets ($229.7M) exceed its long term liabilities ($92.3M).


Debt to Equity History and Analysis

Debt Level: LAM's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: LAM's debt to equity ratio has reduced from 14.7% to 9.5% over the past 5 years.


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: LAM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LAM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.84%

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?

3.6yrs

Average management tenure


CEO

Chris McDonald (52yo)

3.58yrs

Tenure

US$1,284,000

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 ($USD1.28M) is above average for companies of similar size in the UK market ($USD335.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher McDonald
CEO & Executive Director3.58yrsUS$1.28m0.22% $122.3k
Antony Wright
CFO & Executive Director4.75yrsUS$783.00k0.34% $191.4k
Hani El Kurd
Chief Operating Officer3.33yrsno data0.033% $18.3k
Natalia Erikssen
Head of Investor Relationsno datano datano data
Alex Ridout
General Counsel & Company Secretary7.5yrsno datano data
Kaye Whiteing
Vice President of Human Resources & Corporate Services2.17yrsno datano data

3.6yrs

Average Tenure

Experienced Management: LAM's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher McDonald
CEO & Executive Director3.58yrsUS$1.28m0.22% $122.3k
Antony Wright
CFO & Executive Director4.75yrsUS$783.00k0.34% $191.4k
Debra Valentine
Senior Independent Director2yrsUS$114.00kno data
Mel Fitzgerald
Independent Non-Executive Director4.75yrsUS$100.00k0.0034% $1.9k
John Malcolm
Non-Executive Chairman2.67yrsUS$247.00kno data
James Dewar
Independent Non-Executive Director2.5yrsUS$100.00k0.012% $6.6k

3.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: LAM's board of directors are considered experienced (3.1 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£56.382m
  • 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 United Arab Emirates and the Kingdom of Saudi Arabia. The company operates in three segments: Rigs and Engineering; Procurement, Construction & Installation EPCI; and Contracting Services. The Rigs segment offers new build jack up rigs, land rigs, and rig refurbishment services. The EPCI segment provides foundations, process modules, offshore platforms, pressure vessels, and engineering and construction services. The Contracting Services segment comprises of site works, operations and maintenance, manpower supply, and safety services. It also fabricates various platforms, such as topsides, jackets, wellhead decks, living quarters, HVDC platforms, and other offshore fixed facilities, as well as offers fabricating packaged and pre-assembled and modularized units. In addition, the company constructs accommodation and complex process modules for onshore downstream projects, and complex living quarters. The company was founded in 1974 and is based in Dubai, the United Arab Emirates. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:17
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.