LMP Automotive Holdings (NasdaqCM:LMPX) - Share price, News & Analysis

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

LMPX ($4.6) is trading below our estimate of [[fair value]] ($185.53)

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

LMPX Stock Overview

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States.

Rewards

Trading at 97.5% below our estimate of its fair value

Risk Analysis

Earnings have declined by 37.1% per year over past 5 years

Latest financial reports are more than 6 months old

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

+ 1 more risk

LMP Automotive Holdings Competitors

CXJ Group

OTCPK:ECXJ

US$70.2m

CarLotz

NasdaqGM:LOTZ

US$53.7m

Jiuzi Holdings

NasdaqCM:JZXN

US$20.8m

Shift Technologies

NasdaqCM:SFT

US$77.2m

Price History & Performance

Summary of all time highs, changes and price drops for LMP Automotive Holdings
Historical stock prices
Current Share Price	US$4.60
52 Week High	US$20.50
52 Week Low	US$3.35
Beta	2.03
1 Month Change	2.91%
3 Month Change	-2.34%
1 Year Change	-71.11%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-14.18%

Shareholder Returns

	LMPX	US Specialty Retail	US Market
7D	15.9%	6.3%	6.6%
1Y	-71.1%	-26.6%	-18.4%

Return vs Industry: LMPX underperformed the US Specialty Retail industry which returned -26.6% over the past year.

Return vs Market: LMPX underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is LMPX's price volatile compared to industry and market?
LMPX volatility
LMPX Average Weekly Movement	12.1%
Specialty Retail Industry Average Movement	8.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LMPX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: LMPX's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2017	17	Sam Tawfik	https://www.lmpmotors.com

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. It primarily buys pre-owned automobiles primarily through auctions or directly from other automobile dealers, as well as new automobiles from manufacturers and manufacturer distributors at fleet rates. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida.

LMP Automotive Holdings Fundamentals Summary

How do LMP Automotive Holdings's earnings and revenue compare to its market cap?
LMPX fundamental statistics
Market Cap	US$50.18m
Earnings (TTM)	-US$10.02m
Revenue (TTM)	US$318.49m

0.2x

P/S Ratio

-5.0x

P/E Ratio

Is LMPX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LMPX income statement (TTM)
Revenue	US$318.49m
Cost of Revenue	US$258.27m
Gross Profit	US$60.21m
Other Expenses	US$70.23m
Earnings	-US$10.02m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.92
Gross Margin	18.91%
Net Profit Margin	-3.15%
Debt/Equity Ratio	261.2%

How did LMPX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is LMPX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LMPX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LMPX. This is calculated by dividing LMPX's market cap by their current preferred multiple.
What is LMPX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$50.18m

LMPX 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	0.6x
Enterprise Value/EBITDA	15.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LMPX's PS Ratio compare to its peers?

LMPX PS Ratio vs Peers

The above table shows the PS ratio for LMPX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	8.3x
ECXJ CXJ Group	30.6x	n/a	US$70.2m
LOTZ CarLotz	0.2x	22.0%	US$53.7m
JZXN Jiuzi Holdings	2.2x	n/a	US$20.8m
SFT Shift Technologies	0.1x	37.1%	US$77.2m
LMPX LMP Automotive Holdings	0.2x	n/a	US$50.2m

Forward PS

Price-To-Sales vs Peers: LMPX is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

How does LMPX's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Sales vs Industry: LMPX is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Specialty Retail industry average (0.4x)

Price to Sales Ratio vs Fair Ratio

What is LMPX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LMPX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate LMPX's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: LMPX ($4.6) is trading below our estimate of fair value ($185.53)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is LMP Automotive Holdings 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

9.3%

Forecasted Retail 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 LMP Automotive Holdings 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.

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Examine whether LMP Automotive Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has LMP Automotive Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-37.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LMPX is currently unprofitable.

Growing Profit Margin: LMPX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LMPX is unprofitable, and losses have increased over the past 5 years at a rate of 37.1% per year.

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

Earnings vs Industry: LMPX is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (40.3%).

Return on Equity

High ROE: LMPX has a negative Return on Equity (0.16%), as it is currently unprofitable.

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Financial Health

How is LMP Automotive Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LMPX's short term assets ($98.3M) exceed its short term liabilities ($66.1M).

Long Term Liabilities: LMPX's short term assets ($98.3M) do not cover its long term liabilities ($100.2M).

Debt to Equity History and Analysis

Debt Level: LMPX's net debt to equity ratio (221.8%) is considered high.

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

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LMPX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LMPX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.6% per year.

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Dividend

What is LMP Automotive Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if LMPX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LMPX has not reported any payouts.

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Management

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

1.4yrs

Average management tenure

CEO

Sam Tawfik (55 yo)

4.42yrs

Tenure

US$219,200

Compensation

Mr. Samer Tawfik, also known as Sam, has been President, Chief Executive Officer and Chairman of the board at LMP Automotive Holdings Inc., since January 2018 and had been its Interim Chief Financial Offic...

CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD219.20K) is below average for companies of similar size in the US market ($USD749.40K).

Compensation vs Earnings: Sam's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LMPX's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: LMPX insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31