Lungyen Life Service (TPEX:5530) - Share price, News & Analysis

5530 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

5530 Stock Overview

Lungyen Life Service Corporation provides funeral services in Taiwan.

Rewards

Trading at 55.8% below our estimate of its fair value

Earnings grew by 6.3% over the past year

Risk Analysis

Earnings have declined by 3.9% per year over past 5 years

Unstable dividend track record

Lungyen Life Service Competitors

Service Corporation International

NYSE:SCI

US$10.8b

InvoCare

ASX:IVC

AU$1.8b

Carriage Services

NYSE:CSV

US$588.4m

Dignity

LSE:DTY

UK£237.7m

Price History & Performance

Summary of all time highs, changes and price drops for Lungyen Life Service
Historical stock prices
Current Share Price	NT$45.45
52 Week High	NT$65.20
52 Week Low	NT$42.35
Beta	0.29
1 Month Change	-7.06%
3 Month Change	4.24%
1 Year Change	-6.87%
3 Year Change	-25.12%
5 Year Change	-30.18%
Change since IPO	439.62%

Shareholder Returns

	5530	TW Consumer Services	TW Market
7D	-1.0%	-8.4%	-0.8%
1Y	-6.9%	-17.0%	4.2%

Return vs Industry: 5530 exceeded the TW Consumer Services industry which returned -17% over the past year.

Return vs Market: 5530 underperformed the TW Market which returned 4.2% over the past year.

Price Volatility

Is 5530's price volatile compared to industry and market?
5530 volatility
5530 Average Weekly Movement	4.1%
Consumer Services Industry Average Movement	3.6%
Market Average Movement	4.6%
10% most volatile stocks in TW Market	8.3%
10% least volatile stocks in TW Market	2.1%

Stable Share Price: 5530 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 5530's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	n/a	Kelly Lee	https://www.lungyengroup.com.tw

Lungyen Life Service Corporation provides funeral services in Taiwan. It operates through five segments: Columbarium Sales; Funeral Service; Property Lease; Cemetery Operation and Others, and Construction Sales. Its funeral service includes hospice care, transport of the deceased, set up mourning hall, coffining, funeral ceremony coordination, ceremony preparation, the funeral ceremony, proceeding to cremation, cremation and sealing the urn, religious rituals, columbarium and cemetery service, and the following care services.

Lungyen Life Service Fundamentals Summary

How do Lungyen Life Service's earnings and revenue compare to its market cap?
5530 fundamental statistics
Market Cap	NT$19.09b
Earnings (TTM)	NT$1.46b
Revenue (TTM)	NT$3.63b

13.1x

P/E Ratio

5.3x

P/S Ratio

Is 5530 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5530 income statement (TTM)
Revenue	NT$3.63b
Cost of Revenue	NT$1.19b
Gross Profit	NT$2.43b
Other Expenses	NT$977.15m
Earnings	NT$1.46b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.47
Gross Margin	67.07%
Net Profit Margin	40.14%
Debt/Equity Ratio	0%

How did 5530 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Lungyen Life Service 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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 5530 (NT$45.45) is trading below our estimate of fair value (NT$102.92)

Significantly Below Fair Value: 5530 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 5530 is good value based on its PE Ratio (13.1x) compared to the TW Consumer Services industry average (15.7x).

PE vs Market: 5530 is good value based on its PE Ratio (13.1x) compared to the TW market (14.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5530's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 5530 is good value based on its PB Ratio (0.9x) compared to the TW Consumer Services industry average (1.5x).

Future Growth

How is Lungyen Life Service 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

33.7%

Forecasted Consumer Services 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 Lungyen Life Service 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.

Past Performance

How has Lungyen Life Service 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

-3.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5530 has high quality earnings.

Growing Profit Margin: 5530's current net profit margins (40.1%) are higher than last year (36.1%).

Past Earnings Growth Analysis

Earnings Trend: 5530's earnings have declined by 3.9% per year over the past 5 years.

Accelerating Growth: 5530's earnings growth over the past year (6.3%) exceeds its 5-year average (-3.9% per year).

Earnings vs Industry: 5530 earnings growth over the past year (6.3%) exceeded the Consumer Services industry -7.2%.

Return on Equity

High ROE: 5530's Return on Equity (6.6%) is considered low.

Financial Health

How is Lungyen Life Service's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 5530's short term assets (NT$41.7B) do not cover its short term liabilities (NT$44.5B).

Long Term Liabilities: 5530's short term assets (NT$41.7B) exceed its long term liabilities (NT$91.8M).

Debt to Equity History and Analysis

Debt Level: 5530 is debt free.

Reducing Debt: 5530 has no debt compared to 5 years ago when its debt to equity ratio was 20.3%.

Debt Coverage: 5530 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 5530 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Lungyen Life Service 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
Future Dividend Coverage

2.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5530's dividend (2.64%) is higher than the bottom 25% of dividend payers in the TW market (2.39%).

High Dividend: 5530's dividend (2.64%) is low compared to the top 25% of dividend payers in the TW market (6.13%).

Stability and Growth of Payments

Stable Dividend: 5530's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5530's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.6%), 5530's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.6%), 5530's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

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

1.8yrs

Average management tenure

CEO

Kelly Lee

1.17yrs

Tenure

Ms. Kelly Lee serves as Chairman of the Board at Lungyen Life Service Corporation since December 3, 2020 and as its Chief Executive Officer since March 1, 2021. Ms. Lee is Founder and serves as Chief Execu...

Leadership Team

Experienced Management: 5530's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: 5530's board of directors are not considered experienced ( 0.8 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31