NYSE:LU

Stock Analysis Report

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Market Cap

US$17.5b

Last Updated

2021/08/04 22:51 UTC

Data Sources

Company Financials +

Executive Summary

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. More Details

Rewards

Trading at 60.6% below our estimate of its fair value

Earnings are forecast to grow 11.33% per year

Risk Analysis

No risks detected for LU from our risk checks.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-11.2%

LU

-0.2%

US Consumer Finance

0.02%

US Market


1 Year Return

n/a

LU

89.1%

US Consumer Finance

33.2%

US Market

Return vs Industry: Insufficient data to determine how LU performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how LU performed against the US Market.


Shareholder returns

LUIndustryMarket
7 Day-11.2%-0.2%0.02%
30 Day-34.8%-2.4%-0.1%
90 Day-40.2%2.8%4.1%
1 Yearn/a92.8%89.1%35.3%33.2%
3 Yearn/a61.7%53.3%61.4%51.3%
5 Yearn/a153.3%132.3%122.2%97.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LU ($7.09) is trading below our estimate of fair value ($18.01)

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


Price To Earnings Ratio

PE vs Industry: LU is poor value based on its PE Ratio (7.9x) compared to the US Consumer Finance industry average (6.5x).

PE vs Market: LU is good value based on its PE Ratio (7.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LU is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LU is good value based on its PB Ratio (1.3x) compared to the US Consumer Finance industry average (1.5x).


Future Growth

How is Lufax Holding forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LU's forecast earnings growth (11.3% per year) is above the savings rate (2%).

Earnings vs Market: LU's earnings (11.3% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: LU's revenue (13.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: LU's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LU's Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

How has Lufax Holding performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LU has high quality earnings.

Growing Profit Margin: LU's current net profit margins (22.6%) are lower than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: LU's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: LU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LU had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (109.4%).


Return on Equity

High ROE: LU's Return on Equity (14.8%) is considered low.


Financial Health

How is Lufax Holding's financial position?


Financial Position Analysis

Short Term Liabilities: LU's short term assets (CN¥254.5B) exceed its short term liabilities (CN¥14.1B).

Long Term Liabilities: LU's short term assets (CN¥254.5B) exceed its long term liabilities (CN¥177.7B).


Debt to Equity History and Analysis

Debt Level: LU's debt to equity ratio (36.6%) is considered satisfactory.

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

Debt Coverage: LU's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: LU's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Lufax Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.2yrs

Average management tenure


CEO

Gregory Dean Gibb (54 yo)

0.58

Tenure

Mr. Gregory Dean Gibb has been Co-Chief Executive Officer of Lufax Holding Ltd since January 2021 and as its Director since December 2014. He was Chief Executive Officer of Lufax Holding Ltd from March 201...


Leadership Team

Experienced Management: LU's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: LU's board of directors are not considered experienced ( 1.1 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: LU only recently listed within the past 12 months.


Top Shareholders

Company Information

Lufax Holding Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lufax Holding Ltd
  • Ticker: LU
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$17.458b
  • Shares outstanding: 2.46b
  • Website: https://www.lufaxholding.com

Number of Employees


Location

  • Lufax Holding Ltd
  • No. 1333 Lujiazui Ring Road
  • 15th Floor
  • Shanghai
  • China

Listings


Biography

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. It offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. The...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 22:51
End of Day Share Price2021/08/04 00:00
Earnings2021/03/31
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.