London City Equities Ltd (LCE) AI Stock Analysis

• Market Cap: AU$27.23M
• Dividend Yield: 1.72%
• Average Volume (3M): 10.00
• Price to Earnings (P/E): 271.9
• Beta (1Y): 0.03
• Revenue Growth: -16.07%
• EPS Growth: -36.00%
• Country: AU
• Employees: 2
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): <0.01
• Shares Outstanding: 31,304,290
• 10 Day Avg. Volume: 5
• 30 Day Avg. Volume: 10
• PEG Ratio: 0.16
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

London City Equities Ltd has a stable balance sheet with no debt, providing a strong foundation. However, challenges in profitability with a negative net profit margin and declining revenue growth are concerning. The stock shows slight upward momentum technically but appears overvalued with a high P/E ratio. The modest dividend yield offers some return but does not sufficiently offset valuation concerns. Overall, the company's stability is overshadowed by profitability and valuation challenges.

London City Equities Ltd Business Overview & Revenue Model

Company Description

London City Equities Ltd (LCE) is an investment company based in London, focusing on the acquisition, management, and trading of equities and financial securities. The company operates primarily in the financial services sector, offering investment opportunities in a diversified portfolio of publicly listed companies across various industries. LCE aims to generate capital growth and income through its strategic investment approach and market expertise.

How the Company Makes Money

London City Equities Ltd generates revenue primarily through capital gains and dividends from its investment portfolio. The company invests in a diversified range of equities and financial securities, aiming to benefit from market appreciation and income distribution from these investments. LCE's strategy involves selecting undervalued stocks, holding them for long-term growth, and occasionally trading to capitalize on short-term market movements. Additionally, the company may earn revenue from any advisory or management fees if it provides investment consultancy services, although specific details about such services are unavailable. Key factors contributing to its earnings include market conditions, the performance of its investment holdings, and effective portfolio management.

London City Equities Ltd Financial Statement Overview

Summary

London City Equities Ltd demonstrates a mixed financial outlook. The company has strong gross margins and a stable balance sheet with no debt, enhancing its financial stability. However, the negative net profit margin and declining revenue growth rate highlight concerns about profitability and sales trajectory. Cash flow management has improved, though the negative net income remains a challenge. Overall, while the company maintains a stable balance sheet, it faces profitability and growth challenges.

Income Statement

London City Equities Ltd shows volatility in its financial performance. The gross profit margin improved significantly in 2024 with 74.1% compared to 56.4% in 2023, indicating efficient cost management. However, the net profit margin turned negative in 2024 at -0.5%, down from a positive 13.5% in 2023, driven by a net loss. The revenue growth rate is negative at -1.1% in 2024, showing declining sales. While EBIT margin improved to 19.4% in 2024 from 13.5% in 2023, the absence of EBITDA data limits comprehensive margin analysis.

Balance Sheet

The balance sheet reflects strong financial health with no debt and a solid equity base. The equity ratio for 2024 is high at 80.5%, indicating a stable capital structure. Return on Equity (ROE) dropped significantly to -0.03% in 2024 from 0.97% in 2023 due to net losses, suggesting challenges in generating returns on equity. Overall, the company maintains a conservative financial position, enhancing its stability.

Cash Flow

The cash flow statement indicates improving cash flow management. The free cash flow showed significant growth, turning positive in 2024 with $508,262 compared to a negative in 2023. The operating cash flow to net income ratio is strong at -78.4 in 2024, indicating robust cash generation relative to income. Despite positive trends in cash flow growth, the negative net income poses a risk.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.25M	1.26M	699.29K	534.89K	485.95K
	Gross Profit
923.61K	711.52K	660.80K	510.73K	513.45K
	EBIT
241.92K	169.63K	1.92M	166.55K	181.86K
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
-6.48K	169.63K	1.81M	-29.17K	48.03K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.76K	293.36K	1.62M	1.35M	1.22K
	Total Assets
26.61M	20.61M	22.97M	19.61M	13.38M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-19.76K	-17.59K	-1.55M	-1.35M	-1.22K
	Total Liabilities
5.18M	3.15M	3.85M	3.37M	3.10M
	Stockholders Equity
21.44M	17.46M	19.12M	16.24M	10.28M
Cash Flow		Free Cash Flow
508.26K	-48.00K	1.92M	13.06K	96.49K
	Operating Cash Flow
508.26K	-48.00K	1.92M	13.06K	96.49K
	Investing Cash Flow
-138.63K	-1.30M	-1.47M	-418.84K	-278.96K
	Financing Cash Flow
-367.46K	-189.39K	-251.43K	1.76M	168.13K

London City Equities Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LCE, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.87, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 99.82 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LCE.

London City Equities Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKI	72 Outperform		22.16	4.44%	4.70%	-4.33%	-13.07%
ARG	68 Neutral		27.01	3.96%	4.07%	-3.41%	-4.97%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%
LCE	60 Neutral	AU$27.23M	271.88	0.47%	1.72%	-16.07%	-36.00%
CAM	55 Neutral		26.17	-0.04%	7.20%	0.32%	-100.93%
CIW	53 Neutral	AU$28.90M	―	-9.28%	―	-13.78%	50.00%

London City Equities Ltd Corporate Events

London City Equities Announces Change in Company Secretary

London City Equities Limited has announced a change in its company secretary position. Mr. Louis J. Joseph will resume his role as Company Secretary, following Mr. Field’s decision to return to his private business activities. Mr. Joseph will also continue his responsibilities as an active non-executive Director, a role he has been contributing to since 2022.

London City Equities Reports Increased Profit Amid Revenue Decline

London City Equities Limited reported a decrease in revenue from ordinary activities for the six months ending December 2024 compared to the same period in 2023, with figures dropping from $779,166 to $716,215. Despite this decline, the company saw a significant 57% increase in net profit attributable to members, rising from $186,481 to $293,632. The company also paid fully franked dividends, totaling $469,565, and noted that its Dividend Reinvestment Plan was suspended during this period. This financial performance indicates a strengthening in profitability despite reduced revenue, potentially enhancing stakeholder confidence.

London City Equities Appoints New Company Secretary Amidst Strong Market Conditions

London City Equities Limited has announced the appointment of Mr. Michael W. Field as the new Company Secretary. This strategic move aims to leverage Mr. Field’s extensive background in managerial and analytical roles, which include experience in military and commercial activities both in Australia and overseas. The company is currently experiencing strong stock-market conditions and is actively engaged in operational work, including legal court involvement. The appointment will allow the current Company Secretary, Mr. Louis Joseph, to concentrate on his role as a non-Executive Director, focusing more on the company’s ongoing activities.