WSE:LUG

Stock Analysis Report

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Executive Summary

LUG S.A. manufactures and sells luminaires and lighting systems worldwide. More Details


Snowflake Analysis

Fair value with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LUG is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LUG's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-6.7%

LUG

-1.6%

PL Electrical

-2.9%

PL Market


1 Year Return

183.8%

LUG

150.2%

PL Electrical

18.9%

PL Market

Return vs Industry: LUG exceeded the Polish Electrical industry which returned 120.3% over the past year.

Return vs Market: LUG exceeded the Polish Market which returned 15.8% over the past year.


Shareholder returns

LUGIndustryMarket
7 Day-6.7%-1.6%-2.9%
30 Day0%8.8%1.2%
90 Day20.0%-6.9%6.2%
1 Year183.8%183.8%150.5%150.2%20.0%18.9%
3 Year-20.8%-25.7%315.3%306.9%-4.1%-9.9%
5 Year183.0%162.5%191.2%174.5%18.8%5.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LUG (PLN8.4) is trading above our estimate of fair value (PLN1.48)

Significantly Below Fair Value: LUG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LUG is good value based on its PE Ratio (8x) compared to the PL Electrical industry average (22.1x).

PE vs Market: LUG is good value based on its PE Ratio (8x) compared to the Polish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LUG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LUG is good value based on its PB Ratio (1.1x) compared to the PL Electrical industry average (2.1x).


Next Steps

Future Growth

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

31.5%

Forecasted Capital Goods 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 LUG 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.


Next Steps

Past Performance

How has LUG performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUG has high quality earnings.

Growing Profit Margin: LUG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LUG's earnings have declined by 17.3% per year over the past 5 years.

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

Earnings vs Industry: LUG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (13%).


Return on Equity

High ROE: LUG's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is LUG's financial position?


Financial Position Analysis

Short Term Liabilities: LUG's short term assets (PLN86.8M) do not cover its short term liabilities (PLN87.8M).

Long Term Liabilities: LUG's short term assets (PLN86.8M) exceed its long term liabilities (PLN11.2M).


Debt to Equity History and Analysis

Debt Level: LUG's debt to equity ratio (95.1%) is considered high.

Reducing Debt: LUG's debt to equity ratio has increased from 51.5% to 95.1% over the past 5 years.

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

Interest Coverage: LUG's interest payments on its debt are well covered by EBIT (31.6x coverage).


Balance Sheet


Next Steps

Dividend

What is LUG current dividend yield, its reliability and sustainability?

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LUG's dividend (1.67%) is higher than the bottom 25% of dividend payers in the Polish market (1.54%).

High Dividend: LUG's dividend (1.67%) is low compared to the top 25% of dividend payers in the Polish market (4.94%).


Stability and Growth of Payments

Stable Dividend: LUG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LUG has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.4%), LUG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.1yrs

Average management tenure


CEO

Ryszard Wtorkowski (57 yo)

14.08yrs

Tenure

Mr. Ryszard Wtorkowski has been the President of the Executive Board and Member of Management Board at Lug Spólka Akcyjna since August 2, 2007. Mr. Wtorkowski has also been the President of LUG Light Facto...


Leadership Team

NamePositionTenureCompensationOwnership
Ryszard Wtorkowski
President of the Executive Board14.08yrsno data37.1%
PLN 22.3m
Mariusz Ejsmont
Vice-President of the Executive Board & Technical Director10.08yrsno datano data
Malgorzata Konys
CFO & Member of Executive Board14.08yrsno datano data

14.1yrs

Average Tenure

48yo

Average Age

Experienced Management: LUG's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Iwona Wtorkowska
President of the Supervisory Board 13.5yrszł32.70k15.56%
PLN 9.4m
Eryk Wtorkowski
Member of the Supervisory Board13.5yrsno datano data
Renata Baczanska
Member of the Supervisory Board13.5yrszł24.53kno data
Szymon Ziolo
Member of the Supervisory Board13.42yrszł12.26kno data
Zygmunt Cwik
Member of the Supervisory Board13.42yrszł24.53kno data

13.5yrs

Average Tenure

Experienced Board: LUG's board of directors are seasoned and experienced ( 13.5 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

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


Top Shareholders

Company Information

LUG S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LUG S.A.
  • Ticker: LUG
  • Exchange: WSE
  • Founded: 1989
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: zł60.108m
  • Shares outstanding: 7.20m
  • Website: https://www.lug.com.pl

Number of Employees


Location

  • LUG S.A.
  • Gorzowska Street 11
  • Zielona Góra
  • 65-127
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUGWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJan 2008

Biography

LUG S.A. manufactures and sells luminaires and lighting systems worldwide. The company offers downlight, indirect light, louver and recessed, industrial, and outdoor architectonic luminaires; decorative lu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 18:05
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.