NasdaqCM:LFAC.U

Stock Analysis Report

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Executive Summary

LF Capital Acquisition Corp. does not have significant operations.


Snowflake Analysis

Questionable track record with worrying balance sheet.

Share Price & News

How has LF Capital Acquisition's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LFAC.U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

LFAC.U

6.3%

US Capital Markets

2.9%

US Market


1 Year Return

0.2%

LFAC.U

9.0%

US Capital Markets

8.9%

US Market

Return vs Industry: LFAC.U underperformed the US Capital Markets industry which returned 7.1% over the past year.

Return vs Market: LFAC.U underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

LFAC.UIndustryMarket
7 Day0%6.3%2.9%
30 Day0%15.8%10.6%
90 Dayn/a8.9%5.1%
1 Year0.2%0.2%11.2%9.0%11.4%8.9%
3 Yearn/a31.8%24.1%34.3%25.4%
5 Yearn/a57.7%42.7%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is LF Capital Acquisition undervalued compared to its fair value and its price relative to the market?

153.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LFAC.U ($10.5) is trading above our estimate of fair value ($1.31)

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


Price To Earnings Ratio

PE vs Industry: LFAC.U is poor value based on its PE Ratio (153.2x) compared to the Capital Markets industry average (33x).

PE vs Market: LFAC.U is poor value based on its PE Ratio (153.2x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LFAC.U is overvalued based on its PB Ratio (40.8x) compared to the US Capital Markets industry average (9.1x).


Next Steps

Future Growth

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

7.0%

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 LF Capital Acquisition 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 LF Capital Acquisition performed over the past 5 years?

19.1%

Last years earnings growth


Earnings and Revenue History

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

Growing Profit Margin: Insufficient data to determine if LFAC.U's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LFAC.U's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare LFAC.U's past year earnings growth to its 5-year average.

Earnings vs Industry: LFAC.U earnings growth over the past year (19.1%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: LFAC.U's Return on Equity (26.6%) is considered high.


Next Steps

Financial Health

How is LF Capital Acquisition's financial position?


Financial Position Analysis

Short Term Liabilities: LFAC.U's short term assets ($471.8K) do not cover its short term liabilities ($1.6M).

Long Term Liabilities: LFAC.U's short term assets ($471.8K) do not cover its long term liabilities ($156.5M).


Debt to Equity History and Analysis

Debt Level: LFAC.U's debt to equity ratio (23.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LFAC.U's debt to equity ratio has reduced over the past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

What is LF Capital Acquisition's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if LFAC.U'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 LFAC.U's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Philippe De Backer (63yo)

2.67yrs

Tenure

Mr. Philippe De Backer has been Co-Head of Global Financial Services Practice at Bain & Company Inc. since March 2011. Mr. De Backer has been Chief Executive Officer and Director of LF Capital Acquisition  ...


Board Members

NamePositionTenureCompensationOwnership
Philippe De Backer
CEO & Director2.67yrsno datano data
Scott Reed
President2.67yrsno datano data
Baudouin Prot
Independent Chairman of the Board2.33yrsno datano data
James Erwin
Independent Director2.58yrsno data0.10% $210.3k
Karen Wendel
Independent Director2.58yrsno data0.10% $210.3k
Elias Farhat
Independent Director2.83yrsno datano data
Gregory Wilson
Independent Director2.67yrsno data0.10% $210.3k
Djemi Traboulsi
Independent Director2.58yrsno datano data

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LFAC.U's board of directors are not considered experienced ( 2.6 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.


Top Shareholders

Company Information

LF Capital Acquisition Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LF Capital Acquisition Corp.
  • Ticker: LFAC.U
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$204.057m
  • Shares outstanding: 19.41m
  • Website: https://www.lfcapital.co

Location

  • LF Capital Acquisition Corp.
  • 600 Madison Avenue
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFAC.UNasdaqCM (Nasdaq Capital Market)UnitsUSUSDJun 2018
LFACNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDJun 2018

Biography

LF Capital Acquisition Corp. does not have significant operations. It focuses on identifying and evaluating opportunities for the acquisition of assets or business with a view to completing a qualifying transaction. The company was founded in 2017 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 05:16
End of Day Share Price2020/05/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.