LPP SA
LPP SA Fundamental Analysis
LPP SA (LPPSY) shows moderate financial fundamentals with a PE ratio of 18.88, profit margin of 6.43%, and ROE of 28.17%. The company generates $23.1B in annual revenue with strong year-over-year growth of 16.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LPPSY's fundamental strength across five key dimensions:
Efficiency Score
WeakLPPSY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLPPSY trades at attractive valuation levels.
Growth Score
ModerateLPPSY shows steady but slowing expansion.
Financial Health Score
WeakLPPSY carries high financial risk with limited liquidity.
Profitability Score
ModerateLPPSY maintains healthy but balanced margins.
Key Financial Metrics
Is LPPSY Expensive or Cheap?
P/E Ratio
LPPSY trades at 18.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LPPSY's PEG of 0.25 indicates potential undervaluation.
Price to Book
The market values LPP SA at 4.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.63 times EBITDA. This is generally considered low.
How Well Does LPPSY Make Money?
Net Profit Margin
For every $100 in sales, LPP SA keeps $6.43 as profit after all expenses.
Operating Margin
Core operations generate 10.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.17 in profit for every $100 of shareholder equity.
ROA
LPP SA generates $7.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LPP SA produces operating cash flow of $4.40B, showing steady but balanced cash generation.
Free Cash Flow
LPP SA produces free cash flow of $1.27B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.42 in free cash annually.
FCF Yield
LPPSY converts 4.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How LPPSY Stacks Against Its Sector Peers
| Metric | LPPSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.88 | 23.93 | Better (Cheaper) |
| ROE | 28.17% | 1142.00% | Weak |
| Net Margin | 6.43% | -588.00% (disorted) | Weak |
| Debt/Equity | 1.32 | 0.85 | Weak (High Leverage) |
| Current Ratio | 0.83 | 2.64 | Weak Liquidity |
| ROA | 7.70% | -8097.00% (disorted) | Weak |
LPPSY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LPP SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
116.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
255.31%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
138.98%
Industry Style: Cyclical, Growth, Discretionary
High Growth