AIM:LWRF

Stock Analysis Report

Executive Summary

LightwaveRF plc provides smart home products and software in the United Kingdom and rest of Europe.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-74.0%

LWRF

4.3%

GB Electronic

5.9%

GB Market


1 Year Return

-93.1%

LWRF

-3.1%

GB Electronic

-22.7%

GB Market

Return vs Industry: LWRF underperformed the UK Electronic industry which returned 20.7% over the past year.

Return vs Market: LWRF underperformed the UK Market which returned 6% over the past year.


Shareholder returns

LWRFIndustryMarket
7 Day-74.0%4.3%5.9%
30 Day-72.2%-15.4%-23.1%
90 Day-77.3%-19.0%-28.1%
1 Year-93.1%-93.1%-1.6%-3.1%-18.6%-22.7%
3 Year-94.8%-94.8%26.8%21.0%-13.4%-24.7%
5 Year-98.4%-98.4%80.2%65.1%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LWRF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LWRF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LWRF is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: LWRF 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 LWRF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LWRF is good value based on its PB Ratio (0.2x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

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

148.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LWRF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

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

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

Revenue vs Market: LWRF's revenue (65.6% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: LWRF's revenue (65.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has LightwaveRF performed over the past 5 years?

-55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWRF is currently unprofitable.

Growing Profit Margin: LWRF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LWRF is unprofitable, and losses have increased over the past 5 years at a rate of -55% per year.

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

Earnings vs Industry: LWRF is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-16.7%).


Return on Equity

High ROE: LWRF has a negative Return on Equity (-105.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is LightwaveRF's financial position?


Financial Position Analysis

Short Term Liabilities: LWRF's short term assets (£2.2M) exceed its short term liabilities (£1.5M).

Long Term Liabilities: LWRF's short term assets (£2.2M) exceed its long term liabilities (£58.7K).


Debt to Equity History and Analysis

Debt Level: LWRF's debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: LWRF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: LWRF has a high level of physical assets or inventory.

Debt Coverage by Assets: LWRF's debt is covered by short term assets (assets are 5.3x debt).


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: LWRF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LWRF has less than a year of cash runway if free cash flow continues to reduce at historical rates of -51.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LWRF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LWRF's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

2.4yrs

Average management tenure


CEO

Jason Elliott (48yo)

1.58s

Tenure

UK£168,618

Compensation

Mr. Jason Elliott has been Chief Executive Officer and Director of LightwaveRF plc since July 2, 2018. He served as the Chief Sales Officer for Onzo Ltd. Mr. Elliott was Divisional Managing Director of Saf ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD217.96K) is below average for companies of similar size in the UK market ($USD323.15K).

Compensation vs Earnings: Jason's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jason Elliott
CEO & Executive Director1.58yrsUK£168.62k0.073% £566.8
John Shermer
Founder4.92yrsUK£121.23k0.73% £5.6k
Kevin Edwards
CFO, Secretary3.25yrsUK£128.95k0.14% £1.1k
Michael Lord
Consultant & Non-Executive Director9.25yrsUK£36.29k1.11% £8.6k
Simon Lane
Sales Director & Member of Operational Boardno dataUK£100.00kno data
Michael Hughes
Member of Operational Boardno dataUK£4.00kno data
Huw Bristow
Chief Technology Officerno datano data0.030% £235.5
Rachel Cowle
Chief Marketing Officerno datano data0.041% £313.1
Adam Williams
Chief Revenue Officer1.92yrsno data0.039% £304.7

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: LWRF's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Elliott
CEO & Executive Director1.58yrsUK£168.62k0.073% £566.8
John Shermer
Founder4.92yrsUK£121.23k0.73% £5.6k
Kevin Edwards
CFO, Secretary3.25yrsUK£128.95k0.14% £1.1k
Michael Lord
Consultant & Non-Executive Director9.25yrsUK£36.29k1.11% £8.6k
Barry Gamble
Independent Non-Executive Chairman & Senior Independent Director4.5yrsUK£50.00k0.99% £7.7k
Steven Harris
Non-Executive Director4.42yrsUK£22.96kno data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Board: LWRF's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LWRF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: LightwaveRF plc
  • Ticker: LWRF
  • Exchange: AIM
  • Founded: 2008
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£772.396k
  • Shares outstanding: 123.58m
  • Website: https://www.lightwaverf.com

Number of Employees


Location

  • LightwaveRF plc
  • Innovation Birmingham Science Park
  • Faraday Wharf
  • Birmingham
  • West Midlands
  • B7 4BB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LWRFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2008

Biography

LightwaveRF plc provides smart home products and software in the United Kingdom and rest of Europe. It designs and develops devices and software to remotely control commercial and domestic lighting, heating, power, and security. LightwaveRF plc was incorporated in 2008 and is based in Birmingham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:41
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.