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LFIN

LB Finance COSE:LFIN.N0000 Stock Report

Last Price

LK₨46.30

Market Cap

LK₨25.7b

7D

-3.5%

1Y

-25.2%

Updated

26 Sep, 2022

Data

Company Financials
LFIN.N0000 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends4/6

LFIN.N0000 Stock Overview

LB Finance PLC provides financial solutions to corporates, small and medium enterprises, and individuals in Sri Lanka.

LB Finance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LB Finance
Historical stock prices
Current Share PriceLK₨46.30
52 Week HighLK₨92.10
52 Week LowLK₨37.30
Beta0.68
1 Month Change8.94%
3 Month Change7.43%
1 Year Change-25.20%
3 Year Change42.90%
5 Year Change42.57%
Change since IPO7,488.22%

Recent News & Updates

Shareholder Returns

LFIN.N0000LK Consumer FinanceLK Market
7D-3.5%-4.0%-1.1%
1Y-25.2%-1.0%5.8%

Return vs Industry: LFIN.N0000 underperformed the LK Consumer Finance industry which returned -1% over the past year.

Return vs Market: LFIN.N0000 underperformed the LK Market which returned 5.8% over the past year.

Price Volatility

Is LFIN.N0000's price volatile compared to industry and market?
LFIN.N0000 volatility
LFIN.N0000 Average Weekly Movement5.2%
Consumer Finance Industry Average Movement9.2%
Market Average Movement8.7%
10% most volatile stocks in LK Market13.6%
10% least volatile stocks in LK Market5.1%

Stable Share Price: LFIN.N0000 is less volatile than 75% of LK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LFIN.N0000's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19713,822John Anthony Sunil Adhihettyhttps://www.lbfinance.com

LB Finance PLC provides financial solutions to corporates, small and medium enterprises, and individuals in Sri Lanka. It accepts fixed deposits and maintains savings accounts; and offers mortgage, vehicle, educational, gold, personal, business, and housing loans, as well as power draft facilities. The company also provides finance leasing, hire purchase, margin trading facilities, factoring and trade finance, SME financing, microfinance, and other credit facilities; Islamic finance products; and utility bill payment, three-wheeler leasing, money remittance, and money exchange services, as well as digital financial and value added services.

LB Finance Fundamentals Summary

How do LB Finance's earnings and revenue compare to its market cap?
LFIN.N0000 fundamental statistics
Market CapLK₨25.65b
Earnings (TTM)LK₨9.27b
Revenue (TTM)LK₨21.66b

2.8x

P/E Ratio

1.2x

P/S Ratio

Is LFIN.N0000 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LFIN.N0000 income statement (TTM)
RevenueLK₨21.66b
Cost of RevenueLK₨0
Gross ProfitLK₨21.66b
Other ExpensesLK₨12.39b
EarningsLK₨9.27b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)16.73
Gross Margin100.00%
Net Profit Margin42.79%
Debt/Equity Ratio98.6%

How did LFIN.N0000 perform over the long term?

See historical performance and comparison

Dividends

10.8%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LFIN.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LFIN.N0000?

Other financial metrics that can be useful for relative valuation.

LFIN.N0000 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LFIN.N0000's PE Ratio compare to its peers?

LFIN.N0000 PE Ratio vs Peers
The above table shows the PE ratio for LFIN.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.9x
SFCL.N0000 Senkadagala Finance
31.4xn/aLK₨34.6b
CFIN.N0000 Central Finance
2.1xn/aLK₨15.7b
CDB.N0000 Citizens Development Business Finance
3.6xn/aLK₨12.3b
PLC.N0000 People's Leasing & Finance
2.6xn/aLK₨13.5b
LFIN.N0000 LB Finance
2.8xn/aLK₨25.7b

Price-To-Earnings vs Peers: LFIN.N0000 is good value based on its Price-To-Earnings Ratio (2.8x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

How does LFIN.N0000's PE Ratio compare vs other companies in the LK Consumer Finance Industry?

Price-To-Earnings vs Industry: LFIN.N0000 is good value based on its Price-To-Earnings Ratio (2.8x) compared to the LK Consumer Finance industry average (3.6x)


Price to Earnings Ratio vs Fair Ratio

What is LFIN.N0000's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LFIN.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LFIN.N0000's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LFIN.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LFIN.N0000 (LKR46.3) is trading below our estimate of fair value (LKR49.4)

Significantly Below Fair Value: LFIN.N0000 is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is LB Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.4%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LB Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether LB Finance is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has LB Finance performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LFIN.N0000 has a high level of non-cash earnings.

Growing Profit Margin: LFIN.N0000's current net profit margins (42.8%) are higher than last year (41.8%).


Past Earnings Growth Analysis

Earnings Trend: LFIN.N0000's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: LFIN.N0000's earnings growth over the past year (23.5%) exceeds its 5-year average (17.3% per year).

Earnings vs Industry: LFIN.N0000 earnings growth over the past year (23.5%) underperformed the Consumer Finance industry 50.3%.


Return on Equity

High ROE: LFIN.N0000's Return on Equity (28.7%) is considered high.


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Financial Health

How is LB Finance'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: LFIN.N0000's short term assets (LKR149.4B) exceed its short term liabilities (LKR99.9B).

Long Term Liabilities: LFIN.N0000's short term assets (LKR149.4B) exceed its long term liabilities (LKR35.2B).


Debt to Equity History and Analysis

Debt Level: LFIN.N0000's net debt to equity ratio (69.1%) is considered high.

Reducing Debt: LFIN.N0000's debt to equity ratio has reduced from 191.2% to 98.6% over the past 5 years.

Debt Coverage: LFIN.N0000's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if LFIN.N0000's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is LB Finance 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

  • Cash Flow Coverage


10.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LFIN.N0000's dividend (10.8%) is higher than the bottom 25% of dividend payers in the LK market (2.08%).

High Dividend: LFIN.N0000's dividend (10.8%) is in the top 25% of dividend payers in the LK market (7.5%)


Stability and Growth of Payments

Stable Dividend: LFIN.N0000's dividend payments have been volatile in the past 10 years.

Growing Dividend: LFIN.N0000's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.9%), LFIN.N0000's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: LFIN.N0000 is paying a dividend but the company has no free cash flows.


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Management

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

6.5yrs

Average board tenure


CEO

John Anthony Sunil Adhihetty (71 yo)

18.67yrs

Tenure

Mr. John Anthony Sunil Sumith Adhihetty has been a Managing Director of LB Finance PLC since January 06, 2004. Mr. Adhihetty served as a Deputy Managing Director of Mercantile Investments Limited. He was M...


Board Members

Experienced Board: LFIN.N0000's board of directors are considered experienced (6.5 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

What is the ownership structure of LFIN.N0000?
Owner TypeNumber of SharesOwnership Percentage
Institutions3,057,7000.6%
Individual Insiders19,898,4173.6%
General Public26,564,7574.8%
Private Companies66,913,73412.1%
Public Companies437,622,52879.0%

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


Top Shareholders

Top 25 shareholders own 95.07% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
77.83%
Vallibel One PLC
431,222,528LKR20.0b0%no data
10.15%
Esna Holdings (Pvt) Ltd
56,249,600LKR2.6b0%no data
1.7%
Averbach Grauson & Co.
9,410,325LKR435.7m19.72%no data
1.16%
SBI Holdings, Inc.
6,400,000LKR296.3m0%no data
0.92%
K. Jayasundara
5,080,819LKR235.2m0.61%no data
0.35%
Janashakthi Limited, Asset Management Arm
1,952,700LKR90.4m0%2.01%
0.33%
Niroshan Udage
1,816,540LKR84.1m0%no data
0.31%
Kulappuarachchige Don Perera
1,708,116LKR79.1m0%no data
0.23%
A. Page
1,259,200LKR58.3m0%no data
0.23%
Phantom Investments (Private) Limited
1,253,809LKR58.1m0%no data
0.22%
John Anthony Sunil Adhihetty
1,238,325LKR57.3m0%no data
0.2%
Seylan Bank Asset Management Ltd
1,105,000LKR51.2m0%27.69%
0.19%
F. Herft
1,074,781LKR49.8m24.12%no data
0.15%
P.C. Cooray
834,528LKR38.6m0%no data
0.14%
Sarath Rangamuwa
791,141LKR36.6m0%no data
0.14%
A. Raaymakers
761,933LKR35.3m0%no data
0.13%
P. Beruwalage
733,327LKR34.0m0%no data
0.11%
T. Jeremiah
620,656LKR28.7m0%no data
0.1%
P. Pushpakumara
575,200LKR26.6m0%no data
0.1%
S. Vasudevan
560,875LKR26.0m6.56%no data
0.1%
V Saraswathi
560,875LKR26.0m6.56%no data
0.084%
G. Soysa
464,132LKR21.5m0.54%no data
0.084%
H. Soysa
464,132LKR21.5m0.54%no data
0.054%
Dueleep Dalpethado
301,624LKR14.0m0%no data
0.054%
H. Fonseka
301,620LKR14.0m0%no data

Company Information

LB Finance PLC's employee growth, exchange listings and data sources


Key Information

  • Name: LB Finance PLC
  • Ticker: LFIN.N0000
  • Exchange: COSE
  • Founded: 1971
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: LK₨25.653b
  • Shares outstanding: 554.06m
  • Website: https://www.lbfinance.com

Number of Employees


Location

  • LB Finance PLC
  • No. 275/75
  • Prof. Stanley Wijesundara Mawatha
  • Colombo
  • 7
  • Sri Lanka


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFIN.N0000COSE (Colombo Stock Exchange)YesOrdinary SharesLKLKRMar 1998

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.