NasdaqCM:LYL

Stock Analysis Report

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Executive Summary

Dragon Victory International Limited operates a reward-based crowdfunding platform in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Dragon Victory International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LYL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.9%

LYL

3.0%

US Consumer Finance

4.3%

US Market


1 Year Return

26.2%

LYL

-27.6%

US Consumer Finance

7.4%

US Market

Return vs Industry: LYL exceeded the US Consumer Finance industry which returned -30.1% over the past year.

Return vs Market: LYL exceeded the US Market which returned 5% over the past year.


Shareholder returns

LYLIndustryMarket
7 Day10.9%3.0%4.3%
30 Day32.8%-11.7%0.5%
90 Day22.6%22.5%23.0%
1 Year26.2%26.2%-26.0%-27.6%9.7%7.4%
3 Yearn/a3.7%-1.6%38.3%29.2%
5 Yearn/a2.3%-5.8%66.0%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dragon Victory International undervalued compared to its fair value and its price relative to the market?

1.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LYL ($1.28) is trading above our estimate of fair value ($0.29)

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


Price To Earnings Ratio

PE vs Industry: LYL is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: LYL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LYL is overvalued based on its PB Ratio (1.6x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

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

49.3%

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 Dragon Victory International 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 Dragon Victory International performed over the past 5 years?

-51.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYL is currently unprofitable.

Growing Profit Margin: LYL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LYL is unprofitable, and losses have increased over the past 5 years at a rate of -51.3% per year.

Accelerating Growth: Unable to compare LYL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LYL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-23.6%).


Return on Equity

High ROE: LYL has a negative Return on Equity (-26.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dragon Victory International's financial position?


Financial Position Analysis

Short Term Liabilities: LYL's short term assets ($10.5M) exceed its short term liabilities ($2.3M).

Long Term Liabilities: LYL's short term assets ($10.5M) exceed its long term liabilities ($25.2K).


Debt to Equity History and Analysis

Debt Level: LYL is debt free.

Reducing Debt: LYL had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

What is Dragon Victory International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LYL'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 LYL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LYL'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 LYL'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?

0.9yrs

Average board tenure


CEO

Limin Liu (49yo)

0.92

Tenure

Mr. Limin Liu serves as Chairman of the Board and CEO at Dragon Victory International Limited since August 21, 2019. He has extensive experience in many industries, including investing, financing, and  ...


Board Members

NamePositionTenureCompensationOwnership
Limin Liu
Chairman & CEO0.92yrno datano data
Wenbing Christopher Wang
Independent Director2.58yrsno datano data
Jingxin Tian
Independent Director1.08yrsno datano data
Wei Wang
Director0.92yrno data7% $1.0m
Bin Liu
Independent Director0.83yrno datano data

0.9yrs

Average Tenure

48yo

Average Age

Experienced Board: LYL's board of directors are not considered experienced ( 0.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Dragon Victory International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dragon Victory International Limited
  • Ticker: LYL
  • Exchange: NasdaqCM
  • Founded: 2015
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$14.562m
  • Shares outstanding: 11.42m
  • Website: https://www.dvintinc.com

Number of Employees


Location

  • Dragon Victory International Limited
  • Hanshi Tower
  • 22nd Floor
  • Hangzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYLNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDOct 2017

Biography

Dragon Victory International Limited operates a reward-based crowdfunding platform in the People’s Republic of China. The company operates through four segments: Crowdfunding Platform Service, Incubation Services, Finder’s Fees Services, and Auto-Parts Procurement Services. It operates 5etou, an online crowdfunding platform at 5etou.cn that enables project searching for funding to connect with funding sources. The company also provides business incubation services related to marketing, sales and strategic planning, and guidance and general resources in ancillary services, such as human resources, legal, accounting, operations, assisting with feasibility studies, and other types of services. In addition, it offers finder’s service to assist companies to obtain loans or additional equity financing, introduce them to potential business partners, find merger candidates or other strategic relationships, or assist with feasibility studies. Further, the company offers procurement services to auto-repair shops that have demands for auto-parts from auto-parts suppliers, and transacting with auto-parts shops. Dragon Victory International Limited was founded in 2015 and is headquartered in Hangzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 00:13
End of Day Share Price2020/07/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.