London City Equities Ltd (LCE) AI Stock Analysis

7 Followers

London City Equities Ltd

(ASX:LCE)

Select Model

Rating:70Outperform

Price Target:AUD 0.94▲(3.89% Upside)

Action:upgraded

Date:08/30/26

The score is driven primarily by strong financial performance in 2026 (surging profitability and a debt-free balance sheet), tempered by historically volatile earnings/cash flow. Technicals are mildly supportive but show overbought signals, while valuation is the main headwind due to the very high P/E and only modest dividend yield.

Positive Factors

Sharp 2026 revenue and profit growthThe substantial 2026 increase in revenue and net income indicates strong recent business momentum and improved earnings capacity, giving the company a stronger operating base over the next several months.

Negative Factors

Historically volatile earningsThe sharp contrast between the 2026 result and earlier losses or modest profits makes the earnings base difficult to forecast. This volatility reduces confidence that current profitability will persist through the next reporting period.

London City Equities Ltd (LCE) vs. iShares MSCI Australia ETF (EWA)

Market Cap: AUD 29.24M
Dividend Yield: 2.78%
Average Volume (3M): 8,629
Price to Earnings (P/E): 3.7
Beta (1Y): -0.00
Revenue Growth: 422.26%
EPS Growth: 1436.25%
Country: Australia
Employees: 2
Sector: Financial
Sector Strength: 68
Industry: Asset Management

London City Equities Ltd Business Overview & Revenue Model

Company Description

London City Equities Limited operates as a publicly listed investment management firm. Its core activity involves allocating capital within Australia's public equity markets. The company, headquartered in Sydney, Australia, was established in 1986.

London City Equities Ltd Financial Statement Overview

Summary

Strong latest-year (2026) inflection with sharply higher revenue (9.0M) and net income (7.8M), supported by a debt-free balance sheet and higher equity (28.4M). However, historical volatility (loss in 2024 and large 2025 operating cash outflow) reduces confidence in sustainability despite the strong current result.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	9.01M	9.01M	1.81M	1.25M	1.27M	2.41M
Gross Profit	8.04M	8.04M	1.28M	923.61K	722.93K	2.16M
EBITDA	7.80M	7.80M	776.90K	46.02K	169.63K	1.92M
Net Income	7.80M	7.80M	499.91K	-6,482	169.63K	1.81M
Balance Sheet
Total Assets	29.35M	29.35M	27.11M	26.61M	20.61M	22.97M
Cash, Cash Equivalents and Short-Term Investments	25.15M	25.15M	11.37M	19.76K	293.36K	1.55M
Total Debt	0	0	0	0	0	0
Total Liabilities	903.55K	903.55K	2.49M	5.18M	3.15M	3.85M
Stockholders Equity	28.45M	28.45M	24.62M	21.44M	17.46M	19.12M
Cash Flow
Free Cash Flow	8.08M	8.08M	-10.72M	508.26K	-48.00K	1.92M
Operating Cash Flow	8.08M	8.08M	-10.72M	508.26K	-48.00K	1.92M
Investing Cash Flow	-7.70M	-7.70M	11.82M	-138.63K	-1.30M	-1.47M
Financing Cash Flow	-112.42K	-112.42K	-1.08M	-367.46K	-189.39K	-251.43K

London City Equities Ltd Technical Analysis

Technical Analysis SentimentPositive

Last Price0.90

Price Trends

50DMA0.85Positive

100DMA0.83Positive

200DMA0.82Positive

Market Momentum

MACD0.02Positive

RSI97.93Negative

STOCH-0.00Positive

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 0.90 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.85, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 97.93 is Negative, neither overbought nor oversold. The STOCH value of -0.00 is Positive, 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

AU:LCE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:CDO	75Outperform	AUD 38.65M	5.88	15.53%	7.11%	201.60%	280.95%
AU:LCE	70Outperform	AUD 29.24M	3.67	27.70%	2.78%	422.26%	1436.25%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AU:SB2	58Neutral	AUD 46.24M	-5.90	-9.58%	7.34%	-42.55%	-396.54%
AU:NAC	49Neutral	AUD 27.48M	-9.08	-9.30%	10.67%	-21.07%	-143.16%
AU:CIW	41Neutral	AUD 21.37M	26.77	3.35%	3.01%	-22.54%	29.85%

* Financial Sector Average

Performance Comparison

AU:LCE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AU:LCE	London City Equities Ltd	0.90	0.08	9.09%
AU:GC1	Glennon Small Companies Ltd	0.40	-0.06	-12.42%
AU:CIW	Clime Investment Management Ltd	0.27	-0.09	-25.56%
AU:NAC	NAOS Ex-50 Opportunities Co. Ltd.	0.60	0.01	1.35%
AU:SB2	Salter Brothers Emerging Companies Ltd.	0.55	-0.16	-22.36%
AU:CDO	Cadence Opportunities Fund Ltd.	2.11	0.41	23.97%

London City Equities Ltd Corporate Events

London City Equities Director Increases Indirect Shareholding via On-Market Trade

Aug 27, 2026

London City Equities Limited has disclosed a change in director David G. Butel’s indirect interests in the company’s fully paid ordinary shares. The update, lodged with the ASX under listing rule 3.19A.2, reflects movements in holdings through the DG...

London City Equities Details ASX Governance Compliance in 2026 Annual Report

Aug 25, 2026

London City Equities Limited, an ASX-listed investment company, outlines its governance framework in its annual report for the year to 30 June 2026. The corporate governance statement details how the firm applies ASX Corporate Governance Council Prin...

London City Equities books profit surge on asset sales and boosts cash reserves

Aug 25, 2026

London City Equities reported a sharp improvement in earnings for the year to 30 June 2026, with revenue from ordinary activities rising 398% to $9.03 million and profit after tax surging to $7.8 million from $0.5 million a year earlier. Net tangible...

London City Equities Director Boosts Indirect Shareholding via On-Market Trades

Aug 16, 2026

London City Equities Limited has disclosed a change in director David G. Butel’s indirect interests in the company’s fully paid ordinary shares, following on-market purchases in mid-August 2026. The transactions, executed via his DG Butel Superannuat...

London City Equities Director Adds to Indirect Shareholding

Jun 3, 2026

London City Equities has disclosed a minor change in director David G. Butel’s indirect shareholding following an on-market purchase. Through Imperial Pacific Limited, a company where he is a director and shareholder, Butel acquired 35 fully paid ord...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 30, 2026

London City Equities Ltd AI Stock Analysis