LSE:LSL

Stock Analysis Report

Executive Summary

LSL Property Services plc provides residential property services for lenders, buyers and sellers of residential properties, tenants, and landlords in the United Kingdom.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 20.73% per year

Risk Analysis

Has a high level of debt

Dividend of 4.08% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has LSL Property Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LSL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.8%

LSL

0.3%

GB Real Estate

1.7%

GB Market


1 Year Return

13.1%

LSL

26.7%

GB Real Estate

8.1%

GB Market

Return vs Industry: LSL underperformed the UK Real Estate industry which returned 26.7% over the past year.

Return vs Market: LSL exceeded the UK Market which returned 8.1% over the past year.


Shareholder returns

LSLIndustryMarket
7 Day6.8%0.3%1.7%
30 Day9.2%3.6%0.1%
90 Day24.2%7.3%0.6%
1 Year18.7%13.1%29.8%26.7%13.8%8.1%
3 Year44.2%25.2%-0.7%-8.0%19.2%4.0%
5 Year14.4%-8.6%29.3%14.9%40.2%8.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LSL Property Services undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LSL (£2.67) is trading below our estimate of fair value (£4.16)

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


Price To Earnings Ratio

PE vs Industry: LSL is poor value based on its PE Ratio (27.9x) compared to the Real Estate industry average (14.4x).

PE vs Market: LSL is poor value based on its PE Ratio (27.9x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: LSL is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: LSL is overvalued based on its PB Ratio (2.1x) compared to the GB Real Estate industry average (1.1x).


Next Steps

Future Growth

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

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSL's forecast earnings growth (20.7% per year) is above the savings rate (0.5%).

Earnings vs Market: LSL's earnings (20.7% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: LSL's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: LSL's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LSL's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has LSL Property Services performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSL has a large one-off loss of £16.2M impacting its June 30 2019 financial results.

Growing Profit Margin: LSL's current net profit margins (3%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: LSL's earnings have declined by -1% per year over the past 5 years.

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

Earnings vs Industry: LSL had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Real Estate industry average (2.2%).


Return on Equity

High ROE: LSL's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LSL Property Services's financial position?


Financial Position Analysis

Short Term Liabilities: LSL's short term assets (£50.2M) do not cover its short term liabilities (£85.2M).

Long Term Liabilities: LSL's short term assets (£50.2M) do not cover its long term liabilities (£99.1M).


Debt to Equity History and Analysis

Debt Level: LSL's debt to equity ratio (55.2%) is considered high.

Reducing Debt: LSL's debt to equity ratio has increased from 37.5% to 55.2% over the past 5 years.

Debt Coverage: LSL's debt is well covered by operating cash flow (37%).

Interest Coverage: LSL's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

Inventory Level: LSL has a low level of unsold assets or inventory.

Debt Coverage by Assets: LSL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is LSL Property Services's current dividend yield, its reliability and sustainability?

4.08%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.2%industryaverage2.7%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: LSL's dividend (4.08%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: LSL's dividend (4.08%) is low compared to the top 25% of dividend payers in the UK market (5.21%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.1%), LSL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LSL's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

What is the CEO of LSL Property Services's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Ian Crabb 0

6.3yrs

Tenure

UK£774,629

Compensation

Mr. Ian Crabb has been the Group Chief Executive Officer of LSL Property Services Plc since September 9, 2013. Mr. Crabb served as an Executive Officer of Permira Advisers Ltd. He joined Permira in 1998. H ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD1.02M) is about average for companies of similar size in the UK market ($USD923.74K).

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


Management Age and Tenure

5.2yrs

Average Tenure

Experienced Management: LSL's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: LSL's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£58,17004 Apr 19
Ian Crabb
EntityIndividual
Role
Chief Executive Officer
Group CEO & Executive Director
Shares21,000
Max PriceUK£2.77

Ownership Breakdown

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


Management Team

  • Ian Crabb

    Group CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£774.63k
  • Sapna FitzGerald

    General Counsel & Company Secretary

    • Tenure: 15.9yrs
  • Helen Buck (59yo)

    Executive Director of Estate Agency & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£458.58k
  • David Walsh

    Head of Risk & Audit

    • Tenure: 0yrs
  • Adam Castleton (55yo)

    Group CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£550.16k
  • Melanie Cowell

    PR Manager

    • Tenure: 0yrs

Board Members

  • Ian Crabb

    Group CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£774.63k
  • Bill Shannon (70yo)

    Non Executive Deputy Chairman & Senior Independent Director

    • Tenure: 4.9yrs
    • Compensation: UK£72.67k
  • Simon Embley (58yo)

    Non Executive Chairman

    • Tenure: 4.9yrs
  • David Stewart (54yo)

    Independent Non Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£46.67k
  • Helen Buck (59yo)

    Executive Director of Estate Agency & Executive Director

    • Tenure: 8yrs
    • Compensation: UK£458.58k
  • Darrell Evans

    Non Executive Director

    • Tenure: 0.8yrs
  • Adam Castleton (55yo)

    Group CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£550.16k
  • Gaby Appleton

    Non Executive Director

    • Tenure: 0.3yrs

Company Information

LSL Property Services plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LSL Property Services plc
  • Ticker: LSL
  • Exchange: LSE
  • Founded: 2004
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: UK£273.399m
  • Shares outstanding: 102.40m
  • Website: https://www.lslps.co.uk

Number of Employees


Location

  • LSL Property Services plc
  • 1-3 Sun Street
  • London
  • Greater London
  • EC2A 2EP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSLLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2006
LSLP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2006
LSLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2006

Biography

LSL Property Services plc provides residential property services for lenders, buyers and sellers of residential properties, tenants, and landlords in the United Kingdom. It operates in two segments, Estate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 20:58
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.