Lufax Holding (LU) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: 4.57%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -38.81%
• EPS Growth: -425.73%
• Country: US
• Employees: 36,215
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 866,688,900
• 10 Day Avg. Volume: 1,782,200
• 30 Day Avg. Volume: 2,353,229
• PEG Ratio: -0.08
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.07
• 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: $2.40
• Price Target Upside: -11.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ―

Lufax Holding faces significant financial hurdles with declining income and profitability, impacting its overall stock score. Despite operational efficiencies and positive cash flow, the negative valuation metrics and financial instability weigh heavily. Technical analysis and earnings call insights show potential growth areas but also underline persistent challenges. The stock's dividend yield offers some appeal, but broader risks must be managed for improvement.

Positive Factors

Asset Quality

Asset quality improved with a decline in the non-performing loan ratio to 1.20%.

Funding Cost

Funding cost fell to 5.7%, benefiting from ample liquidity.

Negative Factors

Financial Performance

Lufax's loss before tax widened significantly, impacting overall financial performance.

Lufax Holding Business Overview & Revenue Model

Company Description

Lufax Holding Ltd (LU) is a leading technology-empowered personal financial services platform in China. The company focuses on providing retail credit facilitation services and wealth management solutions to small business owners and salaried workers. Lufax leverages its advanced technology and data analytics capabilities to offer innovative financial products and services that cater to the diverse needs of its clients.

How the Company Makes Money

Lufax makes money primarily through two main revenue streams: retail credit facilitation and wealth management. In the retail credit facilitation segment, the company generates income by connecting borrowers with financial institutions, earning fees for facilitating loans. Lufax's wealth management segment earns revenue by offering a variety of investment products through its platform, charging management and advisory fees. Additionally, the company benefits from strategic partnerships with financial institutions, leveraging these relationships to expand its product offerings and customer base.

Lufax Holding Financial Statement Overview

Summary

Lufax Holding is experiencing financial challenges, with declining revenues and profitability. The income statement reflects negative profit margins, while the balance sheet shows manageable leverage but potential instability due to declining equity. Positive cash flow generation is a strength, but the company must address revenue contraction and manage leverage for long-term health.

Income Statement

Lufax Holding's income statement reveals declining revenue trends and negative profit margins. The TTM (Trailing-Twelve-Months) data shows a net loss, with a net profit margin of -16.7% and negative EBIT margin. Revenue has decreased significantly from the previous annual period, indicating financial stress. However, a strong EBITDA margin of 58.6% suggests potential operational efficiency.

Balance Sheet

The balance sheet indicates a moderate level of debt with a debt-to-equity ratio of 0.56, suggesting manageable leverage. The equity ratio stands at 40.9%, indicating a reasonable proportion of equity financing. However, the decline in stockholders' equity and total assets over recent periods could signal potential financial instability.

Cash Flow

The cash flow statement shows a positive free cash flow and a high operating cash flow to net income ratio, indicating strong cash generation relative to reported losses. However, the free cash flow has decreased from the previous year, and the free cash flow to net income ratio is negative due to the net loss.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	20.24B	41.68B	50.45B	54.31B	43.13B	40.92B
Gross Profit	10.84B	28.99B	36.84B	45.31B	36.36B	35.52B
EBITDA	11.86B	0.00	0.00	0.00	0.00	0.00
Net Income	-3.38B	886.87M	8.70B	16.80B	12.35B	13.33B
Balance Sheet
Total Assets	206.45B	237.02B	349.26B	360.43B	248.89B	149.53B
Cash, Cash Equivalents and Short-Term Investments	28.32B	39.99B	43.88B	34.74B	24.16B	7.35B
Total Debt	47.59B	44.86B	53.11B	44.80B	28.94B	13.94B
Total Liabilities	120.11B	143.34B	254.48B	265.87B	165.74B	101.39B
Stockholders Equity	84.55B	92.14B	93.19B	93.05B	81.56B	48.04B
Cash Flow
Free Cash Flow	8.65B	14.98B	4.33B	4.83B	6.91B	2.01B
Operating Cash Flow	8.70B	15.03B	4.46B	4.99B	7.12B	2.19B
Investing Cash Flow	-3.41B	-5.94B	8.45B	313.82M	-15.00B	-11.01B
Financing Cash Flow	-14.04B	-20.55B	-9.92B	-2.45B	24.87B	-2.61B

Lufax Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LU, the sentiment is Negative. The current price of 2.7 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 2.87, and below the 200-day MA of 2.79, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LU.

Lufax Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	81 Outperform	$2.68B	7.72	17.91%	2.61%	5.13%	25.93%
QFIN	80 Outperform	$5.50B	6.62	30.67%	3.20%	3.88%	56.29%
JFIN	80 Outperform	$951.05M	5.18	42.99%	5.55%	4.16%	1.98%
TIGR	74 Outperform	$1.77B	23.06	13.18%	―	52.63%	96.46%
LX	71 Outperform	$1.18B	6.65	12.60%	3.13%	7.53%	37.86%
Sector *	67 Neutral	$16.77B	11.74	9.77%	3.75%	12.07%	-8.28%
LU	52 Neutral	$2.41B	―	-3.79%	4.57%	-38.81%	-425.73%