Lookers (LSE:LOOK) - Share price, News & Analysis

LOOK fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	2/6
Financial Health	3/6
Dividends	4/6

LOOK Stock Overview

Lookers plc engages in the sale, hire, and maintenance of motor vehicles and motorcycles in the United Kingdom and Ireland.

Rewards

Trading at 28.5% below our estimate of its fair value

Revenue is forecast to grow 5.9% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 11.5% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Lookers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lookers
Historical stock prices
Current Share Price	UK£0.72
52 Week High	UK£1.02
52 Week Low	UK£0.54
Beta	1.13
1 Month Change	-13.95%
3 Month Change	-24.00%
1 Year Change	5.56%
3 Year Change	-17.96%
5 Year Change	-41.89%
Change since IPO	368.83%

Recent News & Updates

May 10

At UK£0.74, Is Lookers plc (LON:LOOK) Worth Looking At Closely?

Lookers plc ( LON:LOOK ), is not the largest company out there, but it saw significant share price movement during...

Apr 12

Lookers (LON:LOOK) Has More To Do To Multiply In Value Going Forward

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Shareholder Returns

	LOOK	GB Specialty Retail	GB Market
7D	-5.9%	4.5%	0.2%
1Y	5.6%	-18.8%	-3.8%

Return vs Industry: LOOK exceeded the UK Specialty Retail industry which returned -18.8% over the past year.

Return vs Market: LOOK exceeded the UK Market which returned -3.8% over the past year.

Price Volatility

Is LOOK's price volatile compared to industry and market?
LOOK volatility
LOOK Average Weekly Movement	6.8%
Specialty Retail Industry Average Movement	6.3%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: LOOK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LOOK's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1908	6,287	Mark Raban	https://www.lookersplc.com

Lookers plc engages in the sale, hire, and maintenance of motor vehicles and motorcycles in the United Kingdom and Ireland. The company engages in the sale of new and used cars and light commercial vehicles; vehicle rental; vehicle funding and management packages, including contract hire, contract purchase, and personal contract; leasing fleet management; and sale and maintenance of vehicles. It operates 144 franchised dealerships representing 32 manufacturers.

Lookers Fundamentals Summary

How do Lookers's earnings and revenue compare to its market cap?
LOOK fundamental statistics
Market Cap	UK£282.99m
Earnings (TTM)	UK£61.20m
Revenue (TTM)	UK£4.05b

4.6x

P/E Ratio

0.1x

P/S Ratio

Is LOOK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOOK income statement (TTM)
Revenue	UK£4.05b
Cost of Revenue	UK£3.53b
Gross Profit	UK£516.60m
Other Expenses	UK£455.40m
Earnings	UK£61.20m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.16
Gross Margin	12.75%
Net Profit Margin	1.51%
Debt/Equity Ratio	123.6%

How did LOOK perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

16%

Payout Ratio

Does LOOK pay a reliable dividends?

See LOOK dividend history and benchmarks

When do you need to buy LOOK by to receive an upcoming dividend?
Lookers dividend dates
Ex Dividend Date	May 19 2022
Dividend Pay Date	Jun 24 2022
Days until Ex dividend	2 days
Days until Dividend pay date	38 days

Does LOOK pay a reliable dividends?

See LOOK dividend history and benchmarks

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

28.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LOOK (£0.72) is trading below our estimate of fair value (£1.01)

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

Price To Earnings Ratio

PE vs Industry: LOOK is good value based on its PE Ratio (4.6x) compared to the UK Specialty Retail industry average (9.2x).

PE vs Market: LOOK is good value based on its PE Ratio (4.6x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: LOOK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: LOOK is good value based on its PB Ratio (0.8x) compared to the GB Specialty Retail industry average (1.5x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOOK's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: LOOK's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: LOOK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LOOK's revenue (5.9% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: LOOK's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LOOK's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Lookers 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

-23.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LOOK has high quality earnings.

Growing Profit Margin: LOOK became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: LOOK's earnings have declined by 23.3% per year over the past 5 years.

Accelerating Growth: LOOK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LOOK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (58.8%).

Return on Equity

High ROE: LOOK's Return on Equity (16.6%) is considered low.

Financial Health

How is Lookers's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LOOK's short term assets (£762.4M) do not cover its short term liabilities (£833.9M).

Long Term Liabilities: LOOK's short term assets (£762.4M) exceed its long term liabilities (£261.1M).

Debt to Equity History and Analysis

Debt Level: LOOK's net debt to equity ratio (95.5%) is considered high.

Reducing Debt: LOOK's debt to equity ratio has reduced from 137.7% to 123.6% over the past 5 years.

Debt Coverage: LOOK's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: LOOK's interest payments on its debt are well covered by EBIT (5x coverage).

Balance Sheet

Dividend

What is Lookers's 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
Future Dividend Coverage

3.46%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LOOK's dividend (3.46%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: LOOK's dividend (3.46%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16%), LOOK's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (20.8%), LOOK's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Retail industry.

Management

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

1.6yrs

Average management tenure

CEO

Mark Raban (54 yo)

2.25yrs

Tenure

UK£1,115,000

Compensation

Mr. Mark D. Raban has been Chief Executive Officer at Lookers plc since February 05, 2020 and is its Director since July 15, 2019 and was its Chief Financial Officer since July 15, 2019 until February 05,...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.36M) is above average for companies of similar size in the UK market ($USD989.58K).

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

Leadership Team

Experienced Management: LOOK's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: LOOK's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31