LiveChat Software (WSE:LVC) - Share price, News & Analysis

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

LVC (PLN110.2) is trading below our estimate of [[fair value]] (PLN144.85)

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

LVC Stock Overview

LiveChat Software S.A. develops and distributes software-as-a-service products for business-to-consumer and business-to-business text-based communications worldwide.

Rewards

Trading at 23.9% below our estimate of its fair value

Earnings are forecast to grow 9.21% per year

Earnings grew by 18.8% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 3.35% is not well covered by earnings

LiveChat Software Competitors

Shoper

WSE:SHO

zł1.0b

Vercom

WSE:VRC

zł782.2m

Ailleron

WSE:ALL

zł152.6m

Ifirma

WSE:IFI

zł130.6m

Price History & Performance

Summary of all time highs, changes and price drops for LiveChat Software
Historical stock prices
Current Share Price	zł110.20
52 Week High	zł137.00
52 Week Low	zł81.00
Beta	0.90
1 Month Change	13.37%
3 Month Change	25.09%
1 Year Change	-11.84%
3 Year Change	188.48%
5 Year Change	102.20%
Change since IPO	495.68%

Recent News & Updates

Aug 09

LiveChat Software's (WSE:LVC) Shareholders Will Receive A Bigger Dividend Than Last Year

LiveChat Software S.A. ( WSE:LVC ) has announced that it will be increasing its dividend from last year's comparable...

Jul 26

LiveChat Software (WSE:LVC) Is Paying Out A Larger Dividend Than Last Year

LiveChat Software S.A. ( WSE:LVC ) will increase its dividend from last year's comparable payment on the 5th of August...

Shareholder Returns

	LVC	PL Software	PL Market
7D	9.1%	2.4%	-0.7%
1Y	-11.8%	-14.6%	-21.0%

Return vs Industry: LVC exceeded the Polish Software industry which returned -16.4% over the past year.

Return vs Market: LVC exceeded the Polish Market which returned -22.3% over the past year.

Price Volatility

Is LVC's price volatile compared to industry and market?
LVC volatility
LVC Average Weekly Movement	6.5%
Software Industry Average Movement	6.5%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	11.9%
10% least volatile stocks in PL Market	4.1%

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

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

About the Company

Founded	Employees	CEO	Website
2002	n/a	Mariusz Cieply	https://investor.livechatinc.com

LiveChat Software S.A. develops and distributes software-as-a-service products for business-to-consumer and business-to-business text-based communications worldwide. It offers LiveChat, a tool that allows to communicate between Website visitor and its owner; ChatBot, which allows the creation of conversational chatbots for customer service teams that automates corporate communications; KnowledgeBase, a platform that lets companies to create knowledge bases for employees and clients; and HelpDesk, an application that enables companies to simplify team efforts for customer service via email. The company was founded in 2002 and is based in Wroclaw, Poland.

LiveChat Software Fundamentals Summary

How do LiveChat Software's earnings and revenue compare to its market cap?
LVC fundamental statistics
Market Cap	zł2.84b
Earnings (TTM)	zł119.02m
Revenue (TTM)	zł222.52m

23.8x

P/E Ratio

12.8x

P/S Ratio

Is LVC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LVC income statement (TTM)
Revenue	zł222.52m
Cost of Revenue	zł32.13m
Gross Profit	zł190.39m
Other Expenses	zł71.36m
Earnings	zł119.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	4.62
Gross Margin	85.56%
Net Profit Margin	53.49%
Debt/Equity Ratio	0%

How did LVC perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

41%

Payout Ratio

Does LVC pay a reliable dividends?

See LVC dividend history and benchmarks

When do you need to buy LVC by to receive an upcoming dividend?
LiveChat Software dividend dates
Ex Dividend Date	Aug 24 2022
Dividend Pay Date	Sep 01 2022
Days until Ex dividend	5 days
Days until Dividend pay date	13 days

Does LVC pay a reliable dividends?

See LVC dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is LVC 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 LVC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LVC. This is calculated by dividing LVC's market cap by their current preferred multiple.
What is LVC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł2.84b

LVC 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/Revenue	12.5x
Enterprise Value/EBITDA	21.5x
PEG Ratio	2.6x

Price to Earnings Ratio vs Peers

How does LVC's PE Ratio compare to its peers?

LVC PE Ratio vs Peers

The above table shows the PE ratio for LVC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	31x
SHO Shoper	41.4x	25.8%	zł1.0b
VRC Vercom	33.2x	n/a	zł782.2m
ALL Ailleron	30.5x	n/a	zł152.6m
IFI Ifirma	18.6x	n/a	zł130.6m
LVC LiveChat Software	23.8x	9.2%	zł2.8b

Price-To-Earnings vs Peers: LVC is good value based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (31x).

Price to Earnings Ratio vs Industry

How does LVC's PE Ratio compare vs other companies in the PL Software Industry?

Price-To-Earnings vs Industry: LVC is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the Polish Software industry average (16x)

Price to Earnings Ratio vs Fair Ratio

What is LVC'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.

LVC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.8x
Fair PE Ratio	16x

Price-To-Earnings vs Fair Ratio: LVC is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (16x).

Share Price vs Fair Value

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

Below Fair Value: LVC (PLN110.2) is trading below our estimate of fair value (PLN144.85)

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

Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is LiveChat Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

9.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LVC's forecast earnings growth (9.2% per year) is above the savings rate (2.6%).

Earnings vs Market: LVC's earnings (9.2% per year) are forecast to grow faster than the Polish market (7.9% per year).

High Growth Earnings: LVC's earnings are forecast to grow, but not significantly.

Revenue vs Market: LVC's revenue (11.4% per year) is forecast to grow faster than the Polish market (5.1% per year).

High Growth Revenue: LVC's revenue (11.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LVC's Return on Equity is forecast to be very high in 3 years time (83.3%).

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Past Performance

How has LiveChat Software performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.6%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: LVC's current net profit margins (53.5%) are lower than last year (56%).

Past Earnings Growth Analysis

Earnings Trend: LVC's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: LVC's earnings growth over the past year (18.8%) is below its 5-year average (22.6% per year).

Earnings vs Industry: LVC earnings growth over the past year (18.8%) exceeded the Software industry 13.1%.

Return on Equity

High ROE: LVC's Return on Equity (95.6%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is LiveChat Software's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: LVC's short term assets (PLN95.5M) exceed its short term liabilities (PLN12.4M).

Long Term Liabilities: LVC's short term assets (PLN95.5M) exceed its long term liabilities (PLN796.0K).

Debt to Equity History and Analysis

Debt Level: LVC is debt free.

Reducing Debt: LVC has not had any debt for past 5 years.

Debt Coverage: LVC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LVC has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is LiveChat Software current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.35%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LVC's dividend (3.35%) is higher than the bottom 25% of dividend payers in the Polish market (2.74%).

High Dividend: LVC's dividend (3.35%) is low compared to the top 25% of dividend payers in the Polish market (8.98%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LVC has been paying a dividend for less than 10 years.

Growing Dividend: LVC's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.3%), LVC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (96.4%), LVC's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

12.6yrs

Average management tenure

CEO

Mariusz Cieply

12.58yrs

Tenure

zł995,961

Compensation

Mr. Mariusz Cieply founded LIVECHAT Software S.A., in 2002 and serves as its Chief Executive Officer. Mr. Cieply is LiveChat’s product lead and evangelizer, driving product creation that is changing the fa...

Leadership Team

Experienced Management: LVC's management team is seasoned and experienced (12.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31