LEM Holding SA Fundamental Analysis
LEM Holding SA (LMHDF) shows weak financial fundamentals with a PE ratio of 232.50, profit margin of 3.43%, and ROE of 7.42%. The company generates $0.3B in annual revenue with weak year-over-year growth of -6.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LMHDF's fundamental strength across five key dimensions:
Efficiency Score
WeakLMHDF struggles to generate sufficient returns from assets.
Valuation Score
WeakLMHDF trades at a premium to fair value.
Growth Score
ModerateLMHDF shows steady but slowing expansion.
Financial Health Score
ExcellentLMHDF maintains a strong and stable balance sheet.
Profitability Score
WeakLMHDF struggles to sustain strong margins.
Key Financial Metrics
Is LMHDF Expensive or Cheap?
P/E Ratio
LMHDF trades at 232.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LMHDF's PEG of 16.96 indicates potential overvaluation.
Price to Book
The market values LEM Holding SA at 17.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 50.15 times EBITDA. This signals the market has high growth expectations.
How Well Does LMHDF Make Money?
Net Profit Margin
For every $100 in sales, LEM Holding SA keeps $3.43 as profit after all expenses.
Operating Margin
Core operations generate 9.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.42 in profit for every $100 of shareholder equity.
ROA
LEM Holding SA generates $3.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LEM Holding SA produces operating cash flow of $39.90M, showing steady but balanced cash generation.
Free Cash Flow
LEM Holding SA generates strong free cash flow of $31.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.91 in free cash annually.
FCF Yield
LMHDF converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
232.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
16.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.002
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How LMHDF Stacks Against Its Sector Peers
| Metric | LMHDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 232.50 | 26.03 | Worse (Expensive) |
| ROE | 7.42% | 1264.00% | Weak |
| Net Margin | 3.43% | -40188.00% (disorted) | Weak |
| Debt/Equity | 0.93 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.66 | 9.94 | Neutral |
| ROA | 3.09% | -1487086.00% (disorted) | Weak |
LMHDF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LEM Holding SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.46%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-82.28%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining